Natural justice bars cancellation of DEPB authorisations after years of pending notice without adjudication or hearing.

A statutory authority cannot keep a show cause notice pending for years and later cancel DEPB authorisations on the basis of that unresolved notice without prior intimation or hearing. Such prolonged non-adjudication, followed by adverse civil consequences without fair procedure, was treated as denial of natural justice and gross arbitrariness. The existence of an alternate appellate remedy did not prevent writ intervention where the impugned action itself was vitiated by procedural unfairness. The show cause notice, cancellation communication, and related DEPB cancellation letters were quashed as unsustainable.

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Issues: Whether a show cause notice kept pending for decades, followed by cancellation of DEPB authorisations without prior notice or hearing, could be sustained in the face of alleged violation of natural justice and arbitrariness.

Analysis: The proceedings under the Foreign Trade (Development and Regulation) Act, 1992 remained unadjudicated for an inordinately long period, despite the authority's admission that the show cause notice had not been decided. The cancellation letters were issued much later, without prior intimation or hearing, and were founded on adverse conclusions drawn from the pending notice itself. In these circumstances, the Court held that prolonged non-adjudication, coupled with a subsequent prejudicial action taken without hearing, amounted to denial of fair procedure and gross arbitrariness. The availability of an alternate appellate remedy did not bar writ intervention where the impugned action involved violation of natural justice.

Conclusion: The challenge was accepted and the impugned show cause notice, the cancellation communication, and the related DEPB cancellation letters were quashed as being unsustainable.

Final Conclusion: The petitioner succeeded because the authority could not keep the matter pending for years and then impose adverse consequences without due adjudication and hearing.

Ratio Decidendi: A statutory authority cannot retain a serious show cause proceeding in abeyance for years and thereafter visit the noticee with adverse civil consequences without adjudicating the notice and affording a fair hearing; such action is liable to be set aside notwithstanding the existence of an alternate remedy.

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