Premature adjudication notice invalid where authority must first consider the reply and ensure a fair hearing.

An adjudication notice under the foreign exchange regime was treated as premature where the adjudicating authority issued a hearing notice before first considering the reply to the show cause notice. The governing procedure required the authority to apply its mind to the response and decide whether proceedings should continue before fixing appearance. Because the matter had earlier been adjourned sine die for denial of inspection of relied upon documents, and a draft order was already on the departmental file, the process was found unfair and biased. The notice and later proceedings were held incapable of standing, and the authority had to reconsider the reply afresh in accordance with law.

---

---

Issues: Whether the notice fixing personal hearing and the subsequent adjudication proceedings were vitiated as premature and unfair, having regard to the requirement that the adjudicating authority first consider the reply to the show cause notice and then decide whether adjudication should proceed.

Analysis: The petition concerned challenge to the adjudication process under the foreign exchange regime. The record showed that the matter had been adjourned sine die because inspection of relied upon documents had not been afforded, yet a later notice fixed a personal hearing before any fresh decision was taken on the reply. The governing procedure required the adjudicating officer to consider the cause shown and, only if satisfied that proceedings should continue, to issue a notice fixing appearance. In these circumstances, the later notice was held to be premature. The presence of a draft order on the departmental file before the hearing further indicated that the petitioner's apprehension that a real and unbiased hearing was not being afforded was justified.

Conclusion: The notice fixing hearing and the subsequent proceedings were vitiated and could not stand; the adjudicating authority was required to apply its mind afresh to the reply and proceed only thereafter in accordance with law.

Ratio Decidendi: An adjudication notice issued before the authority has considered the reply to the show cause notice, and after the matter has been adjourned sine die, is premature and invalid; adjudicatory proceedings must follow prior application of mind and a fair opportunity of hearing.

---