High Court quashes orders under Foreign Trade Act for breach of natural justice

The High Court quashed and set aside orders passed under the Foreign Trade Act due to a breach of natural justice principles. The show cause notice was restored for fresh disposal, emphasizing the importance of providing parties with relevant documents and a fair hearing. The judgment highlighted the significance of upholding natural justice in administrative actions, particularly in trade regulation matters. The ruling stressed the necessity of following fair procedures and granting parties the opportunity to present their case in proceedings under the Foreign Trade Act.

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Issues: Challenge to orders passed under Foreign Trade Act, Breach of principles of natural justice

The judgment delivered by the High Court pertained to a Petition challenging orders passed under the Foreign Trade (Development and Regulation) Act, 1992. The primary issue raised was the alleged breach of principles of natural justice in the orders dated 17th May 2012 and 27th March 2017. The Petitioner contended that the basis of the show cause notice against them, a letter received by the Joint Director General of Foreign Trade, was not provided to them despite their request. The Respondents did not dispute this contention, and the Appellate Authority failed to address this fundamental grievance while dismissing the Petitioner's Appeal.

The Court, after considering the submissions, quashed and set aside the impugned orders dated 17th May 2012 and 27th March 2017. The show cause notice issued on 27th April 2012 was restored to the file of the Joint Director General of Foreign Trade for fresh disposal. The Court directed that the principle of natural justice be followed, requiring the Petitioner to be provided with a copy of the relied-upon document and to be heard before the disposal of the show cause notice. The Writ Petition was allowed in favor of the Petitioner, emphasizing the importance of adhering to principles of natural justice in administrative proceedings under the Foreign Trade Act.

In conclusion, the judgment highlighted the significance of upholding principles of natural justice in administrative actions, especially in matters concerning trade regulations. The Court's decision to set aside the impugned orders and restore the show cause notice for fresh disposal underscored the importance of fair procedures and the right to be heard in such proceedings. The ruling serves as a reminder of the essential requirement of providing parties with relevant documents and an opportunity to present their case before reaching a decision in matters under the Foreign Trade Act.

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