Case Note & Summary
The case involved two writ petitions challenging the cancellation of import licences granted to the petitioner, a manufacturer of celluloid and plastic bangles. The petitioner was granted two licences on January 18, 1960, and February 2, 1960, for importing cellulose nitrate sheets. However, following an investigation that revealed the petitioner lacked the necessary machinery and licenses, the authorities issued a notice on May 27, 1960, proposing to cancel the licences without specifying the grounds. The petitioner responded, stating that the notice did not provide sufficient information to contest the cancellation. On July 2, 1960, the Chief Controller of Imports informed the petitioner of the findings and requested a response regarding the suspension of further licences. The petitioner claimed that the cancellation orders issued on August 3, 1960, were arbitrary and violated their right to a fair hearing under Clause 10 of the Imports (Control) Order, 1955, which mandates a reasonable opportunity to be heard. The court found that the petitioner was not afforded a real opportunity to contest the cancellation, as the notices did not specify the grounds for cancellation, and the subsequent correspondence did not rectify this. The court concluded that the cancellation orders were invalid due to the violation of natural justice principles and quashed them, allowing the writ petitions and awarding costs to the petitioner.
Headnote
A) Administrative Law - Natural Justice - Reasonable Opportunity - Imports (Control) Order, 1955, Clause 10 - The petitioner was not given a reasonable opportunity to be heard before the cancellation of import licences, violating the principles of natural justice. The court held that the cancellation orders were invalid and must be quashed due to the lack of proper notice and opportunity to respond (Paras 1-20).
Issue of Consideration
Whether the petitioner was given a reasonable opportunity to be heard before the cancellation of import licences.
Final Decision
The Supreme Court quashed the cancellation orders of the import licences, ruling that the petitioner was not given a reasonable opportunity to be heard as required under Clause 10 of the Imports (Control) Order, 1955.
Law Points
- natural justice
- import licence cancellation
- reasonable opportunity
- Imports (Control) Order
- 1955
- Article 19
- principles of natural justice
