2014 (2) TMI 1422 - SC - Indian Laws

National security exceptions allow departure from natural justice principles in policy matters affecting territorial integrity and stability

Ex. Armymen's Protection Services P. Ltd. Versus Union of India (UOI) and Ors.

Ex. Armymen's Protection Services P. Ltd. Versus Union of India (UOI) and Ors. - 2014 (5) SCC 409 Issues:1. Whether any reasonable restriction or limitation to the principle of natural justice is permissible in the interest of national security.Analysis:The judgment revolves around the principle of natural justice and its application in cases concerning national security. The appellant, a ground handling service provider, had its security clearance withdrawn by the Central Government in national interest. The appellant challenged this decision, arguing that they were not given a fair hearing before the withdrawal of security clearance. The High Court initially ruled in favor of the appellant, emphasizing the importance of natural justice in administrative actions with civil consequences. However, the Division Bench overturned this decision, stating that certain information was withheld in national interest, justifying the withdrawal of security clearance. The Division Bench highlighted the importance of national security and the authority's discretion in such matters. The Supreme Court, after considering the differing views of the High Court, reiterated that in cases involving national security, the principle of natural justice may be subject to reasonable restrictions. The Court cited legal precedents emphasizing that national security concerns may override the duty of fairness, and decisions based on national security must be respected. The Court concluded that since the appellant's security clearance had expired, further examination of the case on merits was unnecessary, and the appeal was disposed of accordingly.The judgment underscores the delicate balance between natural justice and national security concerns. It clarifies that in cases where national security is at stake, the principle of natural justice may be subject to limitations. The Court highlighted the need for courts to defer to the executive on matters of national security and emphasized that evidence of national security risks must be presented to justify decisions that may infringe on natural justice principles. The judgment provides a nuanced understanding of how national security considerations can impact administrative decisions and underscores the importance of upholding national security in such cases.