High Court of Bombay at Goa Quashes Cancellation of Shack Allotment for Violation of Natural Justice. Director of Tourism's Orders Set Aside as Show Cause Notice Did Not Specify Grounds and No Opportunity of Hearing Was Given.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The petitioners, Alex J. Fernandes and Agustinho Coutinho, were allotted shacks at Umtawado, Calangute, Goa under the Tourism Policy 2016-2019 after a draw of lots on 11 November 2016 and were granted permission cum licence on 1 December 2016. Respondent No.3, Lavita Fernandes, filed a complaint on 16 December 2016 alleging that the petitioners were running a flourishing Rent-a-Bike business and thus the allotment was in violation of the policy. A show cause notice was issued, and an additional complaint was filed on 20 January 2017. The petitioners responded denying the allegations. Without any further hearing, the Director of Tourism passed orders on 19 April 2017 and 24 May 2017 cancelling the allotment. The petitioners challenged these orders by way of a writ petition under Article 226 of the Constitution of India. The High Court held that the show cause notice did not specify the grounds on which the cancellation was proposed, and no opportunity of hearing was granted to the petitioners before passing the impugned orders. The court found that the orders were passed in violation of the principles of natural justice and accordingly set them aside, restoring the allotment of shacks to the petitioners.

Headnote

A) Administrative Law - Natural Justice - Show Cause Notice - Requirement of Specific Grounds - The show cause notice issued to the petitioners did not specify the grounds on which the cancellation was proposed, and no opportunity of hearing was granted before passing the impugned orders - Held that the orders are in violation of principles of natural justice and are liable to be set aside (Paras 4-6).

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Issue of Consideration

Whether the orders cancelling the allotment of shacks passed by the Director of Tourism without giving a proper opportunity of hearing to the petitioners are sustainable in law.

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Final Decision

The High Court allowed the writ petition, quashed the orders dated 19 April 2017 and 24 May 2017 passed by the Director of Tourism, and restored the allotment of shacks to the petitioners.

Law Points

  • Natural Justice
  • Right to be Heard
  • Show Cause Notice Must Specify Grounds
  • Cancellation of Licence Without Hearing is Illegal
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Case Details

2017:BHC-GOA:2997-DB

WRIT PETITION NO.796 OF 2017

2017-11-06

N.M. Jamdar, Nutan D. Sardessai

2017:BHC-GOA:2997-DB

Mr. S.D. Lotlikar, Senior Advocate with Mr. P. S. Lotlikar, Advocate for the Petitioners; Mr. P. Dangui, Government Advocate with Ms. P. Bhandari, Additional Government Advocate for Respondent Nos.1 & 2; Mr. A. D. Bhobe, Advocate for Respondent Nos. 3 & 4

Alex J. Fernandes, Agustinho Coutinho

State of Goa, Director of Tourism, Lavita Fernandes, Alex Fernandes

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Nature of Litigation

Writ Petition under Article 226 of the Constitution of India challenging the orders of the Director of Tourism cancelling the allotment of shacks.

Remedy Sought

The petitioners sought quashing of the orders dated 19 April 2017 and 24 May 2017 cancelling their shack allotment.

Filing Reason

The petitioners' shack allotment was cancelled by the Director of Tourism based on a complaint by Respondent No.3, without proper show cause notice or hearing.

Previous Decisions

The Director of Tourism passed orders on 19 April 2017 and 24 May 2017 cancelling the allotment of shacks granted to the petitioners.

Issues

Whether the impugned orders cancelling the allotment of shacks were passed in violation of principles of natural justice.

Submissions/Arguments

The petitioners argued that the show cause notice did not specify the grounds for cancellation and no opportunity of hearing was given. The respondents contended that the petitioners were having a flourishing Rent-a-Bike business and thus the allotment was in violation of the policy.

Ratio Decidendi

The orders cancelling the allotment of shacks were passed in violation of the principles of natural justice as the show cause notice did not specify the grounds and no opportunity of hearing was granted to the petitioners.

Judgment Excerpts

By this Writ Petition under Article 226 of the Constitution of India, the Petitioners have challenged the orders passed by the Director of Tourism, Panaji Goa dated 19 April 2017 and 24 May 2017 cancelling the allotment of shacks granted to the Petitioners under the Tourism Policy formulated by the State of Goa for the year 2016-2019, on a complaint filed by Respondent No.3. The show cause notice did not specify the grounds on which the cancellation was proposed. No opportunity of hearing was given to the Petitioners before passing the impugned orders. The orders are in violation of the principles of natural justice.

Procedural History

The petitioners applied for shack allotment in October 2016, lots were drawn on 11 November 2016, and permission was granted on 1 December 2016. Respondent No.3 filed a complaint on 16 December 2016, followed by an additional complaint on 20 January 2017. Show cause notices were issued, and the petitioners responded. The Director of Tourism passed orders on 19 April 2017 and 24 May 2017 cancelling the allotment. The petitioners filed the present writ petition on an unspecified date, and the High Court delivered judgment on 6 November 2017.

Acts & Sections

  • Constitution of India: Article 226
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High Court High Court of Bombay at Goa Quashes Cancellation of Shack Allotment for Violation of Natural Justice. Director of Tourism's Orders Set Aside as Show Cause Notice Did Not Specify Grounds and No Opportunity of Hearing Was Given.