Right to reply to show cause notice preserved, with fresh merits-based consideration directed after audit-related challenge.

The Madras HC held that the petitioner was not foreclosed from responding to the show cause notice merely because a reply to the draft audit report had not been filed before the draft was prepared. The petitioner was permitted to raise all grievances before the adjudicating authority, which was directed to consider the reply independently on merits and in accordance with law after granting sufficient opportunity. The writ petitions were disposed of by allowing liberty to file a reply to the show cause notice and requiring fresh consideration of that reply on merits.

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Issues: Whether the challenge to the audit report and show cause notice required adjudication on merits, and whether the petitioner should be permitted to respond to the show cause notice.

Analysis: The reply to the draft audit report had not been filed before the draft was prepared, but the petitioner was not held to have lost the opportunity to respond to the subsequent show cause notice. The petitioner was permitted to place all grievances before the adjudicating authority, which was directed to consider the reply independently on merits and in accordance with law after giving sufficient opportunity.

Outcome: The writ petitions were disposed of with liberty to file a reply to the show cause notice and with a direction for fresh consideration of that reply on merits.

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