Natural justice requires prior show-cause notice and hearing before cancelling a registration certificate; same-day cancellation is unsustainable.

Cancellation of a registration certificate is unsustainable where the authority issues the notice and cancellation order on the same day without a meaningful prior show-cause notice or effective opportunity of hearing. Before cancelling registration, the dealer must be specifically informed of the proposed grounds and given a fair chance to respond. An order passed straightaway in such circumstances is mechanical and contrary to fair procedure. The cancellation was therefore set aside for breach of the principles of natural justice.

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Issues: Whether the cancellation of the registration certificate was sustainable when no prior show-cause notice or effective opportunity of hearing was afforded to the petitioner.

Analysis: The impugned order showed that the notice and the cancellation order were issued on the same day. Before cancelling a registration, the authority was required to call upon the dealer to show cause by specifically stating the proposed grounds and to afford an opportunity of hearing. Since no meaningful prior notice was issued and the order was passed straightaway, the action was held to be mechanically taken and contrary to fair procedure.

Conclusion: The cancellation order could not be sustained as it violated the principles of natural justice and was set aside.

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