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Issues: Whether the cancellation of registration order and the appellate order were liable to be quashed for lack of reasons and non-application of mind, and whether the matter should be remitted for fresh adjudication after hearing the petitioner.
Analysis: The cancellation order recorded inconsistent treatment of the reply to the show-cause notice and did not disclose any meaningful reasoning for the drastic action of cancellation. The appellate order also did not cure the defect. An adverse quasi-judicial order affecting business rights must reflect application of mind and reasons so that the decision satisfies the requirements of fairness and Article 14. Where the original order is non-speaking and the petitioner has not been afforded a proper opportunity to contest the notice, the appropriate course is to set aside the orders and require fresh consideration by the adjudicating authority.
Conclusion: The cancellation order and the appellate order were quashed and set aside, and the matter was remitted for fresh decision after filing of reply and grant of opportunity of hearing.