Mandatory time limits in CHA licence revocation proceedings vitiated the order and led to setting it aside.

Mandatory time limits under the Customs House Agent licensing regulations governed issuance of notice, completion of inquiry and passing of the final revocation order. Because the inquiry report and final order were issued well beyond the prescribed periods, and no legally sustainable justification for the delay was shown, the authority's action was held to be non-compliant with the regulatory schedule. Where the regulations require a power to be exercised within fixed limits and in a specified manner, adherence is obligatory. The revocation of the licence and forfeiture of the security deposit were therefore set aside.

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Issues: Whether the revocation of the Customs House Agent licence and forfeiture of the security deposit were liable to be set aside for breach of the mandatory time limits prescribed for initiation, inquiry and final order under the licensing regulations.

Analysis: The revocation framework under the licensing regulations prescribes successive time limits for issuance of the notice, completion of inquiry and passing of the final order. The record showed substantial delay at each stage, with the inquiry report and the final order being passed far beyond the stipulated periods. The time schedule under the regulations was treated as mandatory, and the authority could not disregard it in the absence of any legally sustainable justification for the delay. Where the statute prescribes that a power must be exercised in a particular manner and within fixed limits, compliance is obligatory.

Conclusion: The revocation order was unsustainable and was set aside, and the appeal was allowed.

Ratio Decidendi: When licensing regulations prescribe mandatory time limits for each stage of revocation proceedings, failure to adhere to those limits vitiates the resulting order.

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