Natural justice and contractual grievance mechanisms require a hearing before coercive recovery of disputed toll-tax arrears.

A contractual toll-tax dispute resolution clause requiring reference to the competent officer and, on further dissatisfaction, to the Commissioner, SDMC, was treated as the operative mechanism before coercive recovery. Because the disputed demand had civil consequences, natural justice required prior hearing and a reasoned speaking order before enforcement. The writ petition was therefore converted into a representation for decision under the contractual procedure, with interim protection against recovery pending that decision. The petitioner was required to continue interim weekly payments and furnish fresh post-dated cheques until the reasoned order was passed.

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Issues: Whether the demand notice for toll tax arrears could be enforced without first affording the petitioner a hearing and passing a reasoned order under the contractual dispute resolution mechanism.

Analysis: The agreement contained a specific procedure requiring disputes to be placed before the competent officer and, on dissatisfaction, before the Commissioner, SDMC, with an opportunity of hearing and a written decision. The demand for a large amount had civil consequences, and the rule of natural justice required that the petitioner be heard before coercive enforcement. The writ petition was therefore treated as a representation to the Commissioner, SDMC, with directions for hearing and a reasoned order within fixed timelines. Pending such decision, the impugned demand was kept in abeyance, while the petitioner was directed to continue interim weekly payments and to furnish fresh post-dated cheques.

Conclusion: The petitioner was granted interim procedural relief by way of hearing and deferment of coercive recovery, but was required to continue payment pending the reasoned decision.

Final Conclusion: The matter was disposed of by directing recourse to the contractual grievance mechanism before enforcement of the demand, with interim protection to the petitioner and preservation of the respondent's right to proceed after the speaking order.

Ratio Decidendi: Where a contractual dispute resolution clause and principles of natural justice require a hearing before decision-making with civil consequences, coercive enforcement of a disputed monetary demand should be deferred until a reasoned order is passed after affording the affected party an opportunity of being heard.

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