Case Note & Summary
The petitioner, a registered legal practitioner since 1980 and empanelled with the Bank of Baroda for over 30 years, was de-empanelled by a communication dated 16.12.2019 without any prior notice or opportunity of hearing. Subsequently, a show-cause notice dated 22.07.2020 was issued, which the petitioner challenged as having been issued with premeditation. The petitioner had been asked in 2012 to provide a title report for a property of M/s. Krishidhan Seeds Limited, which he submitted. The Bank alleged that the report was erroneous, leading to loss. The petitioner contended that the de-empanelment was arbitrary and violative of natural justice. The court examined whether the de-empanelment without hearing and the show-cause notice with premeditation were valid. The court held that the de-empanelment without affording an opportunity of hearing violated principles of natural justice and Article 14 of the Constitution. The show-cause notice issued after the decision to de-empanel was a mere formality and did not cure the defect. The court allowed the petition, quashed the de-empanelment communication and the show-cause notice, and directed the Bank to consider the petitioner's explanation afresh after giving him a hearing.
Headnote
A) Constitutional Law - Principles of Natural Justice - De-empanelment - Right to Fair Hearing - Article 14 of Constitution of India - The petitioner, a legal practitioner empanelled with the Bank for over 30 years, was de-empanelled without any prior notice or opportunity of hearing. The show-cause notice issued subsequently was held to be with premeditation as the decision to de-empanel had already been taken. Held that de-empanelment without hearing violates principles of natural justice and Article 14. (Paras 1-23) B) Banking Law - Panel of Advocates - De-empanelment - Show-Cause Notice - Premeditation - The Bank issued a show-cause notice after already de-empanelling the petitioner, indicating a predetermined mind. Held that such a notice is a mere formality and does not cure the violation of natural justice. (Paras 1-23)
Issue of Consideration
Whether the de-empanelment of the petitioner by the respondent Bank without affording an opportunity of hearing and the issuance of show-cause notice with premeditation are violative of principles of natural justice.
Final Decision
The court allowed the writ petition, quashed the de-empanelment communication dated 16.12.2019 and the show-cause notice dated 22.07.2020, and directed the Bank to consider the petitioner's explanation afresh after giving him a reasonable opportunity of hearing.
Law Points
- Principles of natural justice
- Right to fair hearing
- De-empanelment without opportunity of hearing
- Show-cause notice with premeditation
- Article 14 of Constitution of India
