Fair show-cause notice requirement in statutory cancellation proceedings, with open mind and recorded reasons, was enforced.

A show-cause notice and consequential cancellation of an exporter's registration under the MPEDA Rules were treated as invalid because the notice disclosed a concluded view rather than a genuine opportunity to respond. The Court noted that a person proceeded against must receive a real chance to answer allegations, and a quasi-judicial authority must keep an open mind at the initiation stage; prejudice in the notice makes the proceeding an empty formality. The cancellation order was also criticised as non-speaking and unsupported by adequate reasons or consideration of the reply. The defective notice and cancellation were quashed, and the registration was restored, with liberty to begin fresh proceedings in accordance with law.

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Issues: Whether the show-cause notice and consequential cancellation of the exporter's registration were vitiated for want of fairness, absence of an open mind, bias, and failure to record reasons in the exercise of statutory power under the MPEDA Rules.

Analysis: The notice did not merely set out proposed charges for rebuttal but conveyed a concluded finding that the exporter had sent substandard material and had dishonoured its obligations. A person proceeded against must be given a real opportunity to answer allegations, and a quasi-judicial authority must keep an open mind at the initiation stage. Where the notice itself reveals prejudgment, the ensuing proceeding becomes an empty formality. The original cancellation order was also non-speaking, with no adequate reference to the reply or reasons to support the adverse conclusion. In a matter involving statutory cancellation, the authority was bound to act fairly, disclose reasons, and comply with the requirement of a reasonable opportunity of objection under the governing rule.

Conclusion: The show-cause notice and the cancellation orders were vitiated and were liable to be quashed; the exporter's registration was restored, leaving the authorities free to commence proceedings afresh from the notice stage in accordance with law.

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