Case Note & Summary
The petitioner, Mohd. Iliyas Sk. Omar Kirmani, proprietor of Impact Services, Aurangabad, had been running a private security agency for about 15 years with a shop licence under the Bombay Shop and Establishment Act, 1948, and employed around 1000 persons. After the Private Security Agencies (Regulation) Act, 2005 came into force, he applied for a licence under the Act on 2 February 2009 to the Commissioner of Police, Aurangabad Division (respondent No.3). The Commissioner rejected the application by order dated 27 May 2009 without assigning any reasons. The petitioner appealed to the Principal Secretary, Home Department, Mantralaya, Mumbai (respondent No.2), who dismissed the appeal by order dated 17 April 2010, also without providing reasons. The petitioner then filed a writ petition under Articles 226 and 227 of the Constitution seeking quashing of both orders and a direction to grant the licence. The High Court noted that neither the Commissioner nor the appellate authority had given any reasons for their decisions, nor had they afforded the petitioner an opportunity of hearing. The court held that such orders are arbitrary and violative of principles of natural justice. Consequently, the court quashed both the impugned orders and remanded the matter to the Commissioner of Police for fresh consideration, directing that the petitioner be given an opportunity of hearing and that a reasoned order be passed within four weeks. The petition was allowed in those terms.
Headnote
A) Administrative Law - Natural Justice - Duty to Give Reasons - Rejection of licence application without assigning reasons and without hearing the applicant is violative of principles of natural justice - The Commissioner of Police and the appellate authority failed to provide any reasons for rejection, rendering the orders arbitrary and unsustainable (Paras 5-7). B) Private Security Agencies (Regulation) Act, 2005 - Licence - Rejection of Application - The authorities must pass reasoned orders and afford an opportunity of hearing before rejecting an application for licence under the Act - The impugned orders were set aside and the matter remanded for fresh consideration (Paras 5-7).
Issue of Consideration
Whether the rejection of the petitioner's application for licence under the Private Security Agencies (Regulation) Act, 2005 by the Commissioner of Police and the dismissal of the appeal by the Principal Secretary, Home Department, without providing reasons and without affording an opportunity of hearing, are sustainable in law.
Final Decision
The court quashed the order dated 27.5.2009 passed by the Commissioner of Police, Aurangabad and the order dated 17.4.2010 passed by the Principal Secretary, Home Department, and remanded the matter to the Commissioner of Police for fresh consideration. The Commissioner was directed to give an opportunity of hearing to the petitioner and pass a reasoned order within four weeks from the date of receipt of the order.
Law Points
- Natural justice
- duty to give reasons
- right to hearing
- administrative action
- licence cancellation
- Private Security Agencies (Regulation) Act
- 2005
