Natural justice in penalty proceedings: orders set aside and matter remanded after denial of hearing

Orders imposing penalty and dismissing the appeal could not be sustained because no opportunity of hearing had been granted. The Allahabad HC held that an order passed in breach of natural justice is liable to be set aside, and the consequential appellate order also falls when the foundation order is invalid. The challenge to the quantum of penalty was not decided on merits; the matter was remanded for fresh consideration after affording a proper hearing in accordance with law.

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Issues: Whether the orders imposing penalty and dismissing the appeal could be sustained when no opportunity of hearing had been granted.

Analysis: The order imposing penalty did not reflect any opportunity of hearing. In the absence of such hearing, the consequential appellate order also could not stand. The challenge to the quantum of penalty was not finally adjudicated on merits; the matter was required to be reconsidered after affording hearing.

Conclusion: The impugned orders were quashed and the matter was remanded for fresh decision after giving an opportunity of hearing.

Final Conclusion: The writ petition succeeded to the extent that the matter was sent back to the authority for a fresh order in accordance with law.

Ratio Decidendi: An order passed without affording opportunity of hearing cannot be sustained, and the matter must be remanded for fresh consideration after compliance with natural justice.

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