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Issues: Whether rejection of the declarant's claim under the legacy dispute resolution scheme without a personal hearing and without reasons could be sustained, and whether the matter required reconsideration by the designated committee.
Analysis: The rejection order contained only a cryptic remark and disclosed no material particulars. In a scheme where the designated committee exercises discretion affecting civil rights, the decision must be taken fairly and reasonably and in compliance with the principles of natural justice. The scheme framework, including the hearing contemplated where the committee determines an amount higher than the declared amount, supports the requirement that the declarant be heard before rejection. A summary rejection without hearing is contrary to the object of the scheme and invalidates the decision-making process. Since the defect went to the decision itself, the merits of eligibility were left for fresh consideration by the committee.
Conclusion: The rejection could not be sustained. The declaration was required to be reconsidered afresh after granting a personal hearing and by passing a reasoned order.
Final Conclusion: The impugned rejection was set aside and the matter was sent back to the designated authority for fresh decision in accordance with law after hearing the petitioner.
Ratio Decidendi: Under the legacy dispute resolution scheme, a declaration affecting civil consequences cannot be rejected summarily without affording a personal hearing and complying with natural justice.