High Court rules against respondents, citing violation of natural justice. Order quashed, fair hearing mandated.

The High Court ruled in favor of the petitioners, finding that the respondents' refusal to convert shipping bills without a hearing violated principles of natural justice. The court quashed the impugned order, directing the competent authority to reconsider the applications with a fair hearing within six weeks. The judgment emphasized the importance of following natural justice principles before passing adverse orders, granting relief to the petitioners based on procedural irregularities without assessing the merits of the conversion claim.

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Issues:
Challenge to the action of respondents in refusing to convert shipping bills, Violation of principles of natural justice in passing the impugned order.

Analysis:
The petition sought writs to quash the action of the respondents in refusing to convert shipping bills and to direct issuance of DEPB licenses based on the bills. The petitioner argued that the impugned order was passed without granting a hearing, violating principles of natural justice. The respondents contended that the petitioners were not entitled to the conversion. The High Court noted that the impugned order disallowed the conversion without a hearing, breaching natural justice principles. The court held that the order was unsustainable due to this violation.

The court found that the petitioners' applications for conversion were rejected without affording them a hearing, contrary to natural justice. The impugned order disallowed the conversion based on a circular without providing an opportunity for the petitioners to present their case. The court emphasized that before passing an adverse order, the principles of natural justice must be followed. As the impugned order failed to comply with these principles, it was deemed violative of natural justice and unsustainable.

The judgment quashed and set aside the impugned order and directed the competent authority to reconsider the applications within six weeks, ensuring a fair hearing for the petitioners. The court ruled in favor of the petitioners on the grounds of the violation of natural justice, without delving into the merits of the conversion claim. The rule was made absolute with no order as to costs, granting relief to the petitioners based on the procedural irregularity in the decision-making process.

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