Natural justice in import licence relaxation requests requires a hearing before rejection, with fresh consideration on remand.

Rejection of requests for deletion or removal of actual user conditions in import licences could not stand where the petitioners were denied a hearing before the Policy Relaxation Committee. The governing policy required an opportunity to be heard before deciding a relaxation request, and the later policy position continued that requirement. The Court held that this breach of natural justice rendered the rejection unsustainable. The alternate remedy objection did not cure the denial of hearing. The rejection orders were set aside and the applications were restored for fresh consideration by the Committee after a hearing and a reasoned decision on merits.

---

---

Issues: Whether the rejection of the applications for deletion or removal of actual user conditions in import licences could be sustained when the petitioners were not granted an opportunity of hearing, and whether the matter should be restored for reconsideration by the Policy Relaxation Committee.

Analysis: The applications for relaxation had been rejected without hearing the petitioners. The applicable policy framework contemplated an opportunity of hearing before the Policy Relaxation Committee decided a request for relaxation, and the later policy position was stated to continue the same requirement. In view of the denial of hearing, the rejection orders could not be sustained. The alternate remedy objection did not displace the requirement of compliance with the hearing obligation already attracted in the proceedings before the Committee.

Conclusion: The rejection orders were set aside and the applications were restored to the Policy Relaxation Committee for fresh decision after granting a hearing and passing a reasoned order on merits.

Final Conclusion: The proceedings were remitted for reconsideration in accordance with law, with merits left open for the statutory authority.

Ratio Decidendi: Where the governing policy requires a hearing before deciding a relaxation request, rejection without affording such hearing violates natural justice and warrants restoration for fresh consideration.

---