Natural justice in withdrawal of employee benefits: long-standing overseas travel concession could not be removed without notice and hearing.

A long-standing leave travel concession for overseas travel could not be withdrawn by administrative order without prior notice or a hearing where the change had civil consequences for employees. The Madras HC noted that the facility had continued for decades, including after revision of service terms, and that the immediate withdrawal was made without notice to the employee unions. On that basis, the Court found the procedure unfair, held the withdrawal to be in breach of natural justice, and set aside the orders, remitting the matter for fresh consideration after due notice and hearing.

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Issues: Whether the withdrawal of the long-standing leave travel concession for overseas travel, without prior notice or hearing, was vitiated for breach of the principles of natural justice.

Analysis: The overseas travel facility had been extended to the officers for decades and had continued even after revision of service terms. The impugned withdrawal was implemented immediately without notice or opportunity to the employee unions representing the officers. In these circumstances, the denial of hearing was not a mere formality, and the decision was liable to be tested on the touchstone of fair procedure.

Conclusion: The withdrawal orders were held to be in violation of the principles of natural justice and were set aside, with the matter remitted for a fresh decision after due notice and hearing.

Ratio Decidendi: A long-standing service benefit affecting employees cannot be withdrawn by an administrative decision without affording a reasonable opportunity of hearing where such withdrawal has civil consequences.

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