Natural justice applies to conclusive liability determinations before recovery proceedings are triggered under a dues-recovery statute.

Under Section 3 of the Haryana Public Moneys (Recovery of Dues) Act, 1979, the Managing Director's determination of the sum due and issuance of a recovery certificate had serious civil consequences and was made final by the statute. The provision was therefore read as requiring compliance with natural justice, even though no express hearing requirement was stated. The words "determine" and "sum due" implied that the alleged defaulter had to be given an opportunity to be heard before liability was finally fixed and recovery proceedings were triggered. The determination and consequential recovery certificate were held vitiated for non-compliance with natural justice.

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Issues: Whether, under Section 3 of the Haryana Public Moneys (Recovery of Dues) Act, 1979, the Managing Director could determine the sum due from an alleged defaulter and issue a recovery certificate without giving the defaulter an opportunity of being heard.

Analysis: Section 3(1)(b) required the Managing Director to determine the sum due from the defaulter before sending a certificate to the Collector under Section 3(2). The certificate under Section 3(3) was conclusive proof of the matters stated therein, and recovery followed as arrears of land revenue. Because the determination had serious civil consequences and was made final by the statute, the principles of natural justice had to be read into the provision, even though no express hearing requirement was stated. The use of the words "determine" and "sum due" necessarily implied that the alleged defaulter had to be heard before a final decision was taken.

Conclusion: The determination and the consequential recovery certificate were vitiated for non-compliance with natural justice, and the challenge succeeded in favour of the appellant.

Ratio Decidendi: Where a statute authorises a final and conclusive determination of liability that results in recovery proceedings with civil consequences, the requirement of a hearing is implied unless expressly excluded.

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