Oral hearing before waiver of pre-deposit protects the right of appeal and satisfies natural justice in hardship applications

Oral hearing is required before deciding an application for dispensing with pre-deposit under the second proviso to Section 4-M of the Imports and Exports (Control) Act, 1947, because the waiver decision can affect the appellant's substantive statutory right of appeal. A reasonable opportunity to present prima facie case and financial hardship must be given to ensure effective compliance with audi alteram partem, and oral hearing should be afforded as far as practicable. The contrary view was overruled, and the impugned order was quashed.

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Issues: Whether oral hearing is mandatory before deciding an application under the second proviso to Section 4-M of the Imports and Exports (Control) Act, 1947 for dispensing with pre-deposit.

Analysis: The appellate authority's decision on waiver of pre-deposit directly affects the appellant's substantive statutory right of appeal and may determine whether the appeal can be heard at all. The Court reviewed authorities on natural justice and held that a reasonable opportunity to present the case is required in such matters. Since the application must enable the appellant to show prima facie case and financial hardship, oral hearing, as far as practicable, is necessary to give full effect to audi alteram partem.

Conclusion: Oral hearing is required before deciding an application under the second proviso to Section 4-M of the Imports and Exports (Control) Act, 1947. The contrary view was overruled, and the petitions were allowed with the impugned order quashed.

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