Fair hearing requirement bars a penalty order where dropped proceedings were revived without proper opportunity to be heard.

A penalty order was challenged on the ground that the earlier show cause proceedings had already been withdrawn and dropped, yet the same matter was later proceeded with again. The record showed that the petitioners were not given proper and appropriate opportunity of hearing before the penalty was imposed. On that basis, the order was held unsustainable and was set aside for breach of fair hearing and natural justice.

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Issues: Whether the penalty order was liable to be set aside for want of proper opportunity of hearing after the proceedings had earlier been dropped.

Analysis: The record indicated that the show cause proceedings had already been withdrawn and dropped, and the later penalty order was made on the same matter. The petitioners were not given due and appropriate opportunity before the penalty was imposed. In these circumstances, the order could not stand.

Conclusion: The penalty order was set aside in favour of the petitioners for breach of fair hearing.

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