Genuine pre-show cause consultation is mandatory where circular instructions require a real two-way exchange before adjudication.

Pre-show cause consultation under the Master Circular must be a genuine two-way process aimed at discussing the dispute and narrowing issues where possible. A consultation notice served only a day before the scheduled meeting, followed by a meeting in which the petitioner's submissions were merely taken on record without meaningful exchange or deliberation, did not satisfy that mandatory requirement. The court therefore held that the pre-notice consultation was only formal compliance. The show cause notice was not quashed, but the respondents were directed to conduct a fresh and genuine consultation before proceeding further with adjudication.

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Issues: Whether the pre-show cause notice consultation requirement under the Master Circular was genuinely complied with, and whether the impugned show cause notice could proceed without a fresh and meaningful consultation process.

Analysis: The consultation notice was issued only a day before service and was served so close to the scheduled consultation that it amounted to mere formal compliance. The subsequent meeting did not involve any real exchange or deliberation, as the petitioner's submissions were only taken on record without any further consultative steps or conclusion being communicated. Consultation, for the purpose of the Master Circular, requires a genuine two-way process aimed at discussing the dispute and, where possible, narrowing the controversy. Since that did not occur here, the process fell short of the mandatory pre-notice consultation contemplated by the circular instructions.

Conclusion: The petitioner succeeded in part. The show cause notice was not quashed, but the respondents were directed to undertake a fresh and genuine consultation before proceeding further with adjudication.

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