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of <h1>Suspension and cancellation orders quashed for lack of notice and natural justice; case sent back for fresh hearing</h1> <h3>M/s. Assaka Powerinfra Pvt. Ltd. Versus State of Up And 2 Others</h3> The HC quashed the suspension and cancellation orders against the petitioner firm due to lack of proper notice and violation of natural justice, as no ... Suspension of registration of petitioner firm and subsequently cancelled - no proper service of notice - notice issued to the Director of the firm did not contain any time, date or place where the petitioner may be required to submit his reply or appear for hearing - gross violation of principles of natural justice - suspension order merges into the subsequent cancellation order - doctrine of merger - HELD THAT:- The petitioner could not demonstrate from the impugned orders as to whether any date, time and place was assigned to hold hearing in the matter. Thus, he does not dispute this fact that final orders were passed in gross violation of principles of natural justice. The suspension order dated 26th August, 2022 has merged into the order dated 17th September, 2022 passed by respondent no. 3. Accordingly, the order dated 17.09.2022 as well as the order dated 06.08.2024 passed by respondent nos. 2 & 3 respectively are hereby quashed. The matter is remitted to the authority concerned to be decided afresh after giving opportunity of hearing afresh to the petitioner. Petition allowed by way of remand. ISSUES: Whether the cancellation of registration was passed in violation of principles of natural justice due to lack of proper notice specifying time, date, and place for hearing.Whether a non-speaking order can be sustained under the relevant statutory provisions and constitutional mandates.Whether the suspension order merges into the subsequent cancellation order and the legal consequences thereof. RULINGS / HOLDINGS: The court held that the cancellation order was passed in 'gross violation of principles of natural justice' as no opportunity of hearing was provided and the notice did not specify any time, date, or place for submission of reply or appearance.The court found that the impugned cancellation order was a 'non-speaking order' and such an order is neither contemplated under the Act nor conforms with Article 14 of the Constitution of India.The court ruled that the suspension order dated 26th August, 2022, has merged into the cancellation order dated 17th September, 2022, and both orders were quashed accordingly. RATIONALE: The court applied the principles of natural justice requiring that a party be given notice specifying the time, date, and place for hearing before passing any order affecting their rights.The judgment relied on precedents emphasizing that a 'non-speaking order' is impermissible and violates the requirement for reasoned decisions under the relevant statute and constitutional guarantees under Article 14.The court followed prior decisions which held that failure to fix a time and date for hearing renders the exercise of power arbitrary and invalid.The court remitted the matter to the authority concerned for fresh consideration after affording a proper opportunity of hearing, directing that the decision be taken within three months.
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