No Due Certificate raising liability question: impugned order quashed subject to deposit and fresh adjudication within three months.

A pre-existing no due certificate and cancellation of registration raised a substantive question on liability, prompting quashing of the impugned adjudicatory order and remittal for fresh evaluation. The decision conditions reinstatement of proceedings on the petitioner depositing the full disputed amount within two weeks and filing a reply with written submissions; the authority must afford an opportunity of hearing, pass a fresh order within three months, and either refund the deposit if the show-cause notice is discharged or adjust it against any liability. The effect is conditional quash and directed fresh adjudication subject to deposit and hearing rights.

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Issues: Whether the Order-in-Original passed against the petitioner should be set aside and the show-cause proceedings reopened where a no due certificate and cancellation of registration had been issued in favour of the erstwhile company that underwent amalgamation.

Analysis: The existence of a no due certificate and cancellation of registration raised a substantive question about the validity of proceedings conducted against the petitioner. The petitioner undertook to deposit the entire amount stated in the impugned Order-in-Original within two weeks and to submit a reply to the show-cause notice along with written submissions. On that basis, the impugned Order-in-Original was quashed and a direction given to the authority to evaluate the petitioner's claim afresh after allowing an opportunity of hearing, subject to the deposit and submission of reply and written submissions. The authority was directed to communicate its fresh order within three months and to refund the deposit if the show-cause notice was discharged; otherwise the deposit could be adjusted against any liability.

Conclusion: The petition is partly allowed by quashing and setting aside the impugned Order-in-Original dated December, 2025, subject to the petitioner depositing the entire amount within two weeks and submitting the reply and written submissions, and by directing the respondent authority to pass a fresh order after giving an opportunity of hearing and communicating the order within three months.

Ratio Decidendi: Where a no due certificate and cancellation of registration raise a real issue as to liability, an impugned order may be quashed and the matter remitted for fresh adjudication with directions for deposit and an opportunity of hearing to the affected party.

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