Natural justice and reasoned orders required before dismissing impleadment; non-speaking order set aside and remanded.

An appellate order dismissing an impleadment application was found unsustainable because it did not show that the parties were heard on the relevant facts and gave no reasons demonstrating application of mind to the rival contentions. The absence of a fair hearing process and a reasoned decision breached natural justice, and an order affecting rights must disclose the basis of the conclusion. The order was set aside and the matter was remitted for de novo consideration after giving both sides an opportunity to be heard and passing a reasoned order.

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Issues: Whether the impugned order dismissing the application was liable to be set aside for breach of natural justice and lack of reasons, and whether the matter should be remitted for fresh consideration.

Analysis: The impugned order did not record whether the parties had been given an opportunity to explain the facts relevant to the proposed impleadment, and it contained no discussion showing application of mind to the rival contentions. In appellate proceedings, adherence to natural justice is essential, and an order affecting rights must disclose reasons so that the affected party can understand the basis of the decision. On that ground, the absence of a reasoned and fair hearing process rendered the order unsustainable. The appropriate course was to set aside the order and remit the matter for fresh decision after giving opportunity to both sides.

Conclusion: The order was set aside and the matter was remanded for de novo consideration after affording opportunity to the parties and passing a reasoned order, in favour of the appellant.

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