Natural justice applies to compensation orders under criminal procedure law: hearing is required before liability and quantum are fixed.

An appellate court's power to direct compensation under Section 357(4) of the Code of Criminal Procedure must be exercised consistently with natural justice. Where the statute is silent on procedure, and the compensation order may create adverse financial liability and affect the accused's rights, the affected person must be heard before quantum and liability are determined, unless hearing is excluded by express words or necessary implication. The relevant inquiry includes the need for compensation, the accused's capacity to pay, and surrounding circumstances, and it cannot be fairly undertaken without notice and hearing. The compensation component was set aside and remitted for fresh consideration after hearing.

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Issues: Whether an appellate court can direct payment of compensation under Section 357(4) of the Code of Criminal Procedure, 1973 without first affording the accused an opportunity of hearing on the question of quantum and liability.

Analysis: Section 357(1) applies where fine forms part of the sentence, while Section 357(3) creates an independent power to award compensation even where no fine is imposed, and Section 357(4) extends that power to appellate, revisional, and High Court jurisdiction. The provision is silent on procedure, but where an order may adversely affect the accused's rights and financial liability, the principles of natural justice are read into the statute unless expressly excluded. Before compensation is fixed, relevant matters such as the need for compensation, the accused's capacity to pay, and other surrounding circumstances must be considered; that inquiry cannot be made fairly without hearing the affected party.

Conclusion: An opportunity of hearing is mandatory before compensation is directed under Section 357(4) of the Code. The compensation direction made by the High Court could not stand without such hearing.

Final Conclusion: The compensation component of the High Court's order was set aside and the matter was remitted for fresh consideration after hearing the appellant, while the rest of the decision remained unaffected.

Ratio Decidendi: When a statute confers power to impose compensatory liability affecting substantive rights but is silent on procedure, the principles of natural justice require that the affected person be given an opportunity of hearing before the power is exercised, unless excluded by express words or necessary implication.

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