In my earlier write-up on BASIC PRINCIPLES OF NATURAL JUSTICE it was concluded that when Natural Justice is denied then the Justice itself is denied in every manner. Now let us understand from a specific judgement of the Supreme Court of India as to what would be the outcome of violation of Natural Justice by a Statutory authority.

The Apex Court emphasised that the Statutory authorities under the Act exercise Quasi-Judicial function. This is well known to everyone whether it is the adjudicating or appellate authority or an assessee. It is so because there are thousands of judgements of Tribunals, High Courts and even the Supreme Court passed by in the past several decades. In spite of it, in the case of a dispute matter between KOTHARI FILAMENTS vs COMMISSIONER OF CUSTOMS [PORT] KOLKATA, a Civil Appeal No.7307 OF 2008 came up before the Apex Court. In delivering the judgement, the Apex Court observed that there was no doubt whatsoever that the principles of Natural Justice was violated in the said case. Before arriving at such a categorical conclusion, the Apex Court remarked that the Commissioner of Customs was conscious of the fact that the result of the enquiry was not conclusive one way or the other. It is one thing to say that denial to supply the documents collected in the said enquiry has a statutory backing but it is another thing to say that use thereof was to be made without supplying the copies thereof. The Statutory authorities under the Act exercise Quasi-Judicial function. In the event a finding as regards violation of the provisions of the Act is arrived at, several steps resulting in civil or evil consequences may be taken. The principles of Natural Justice, therefore, were required to be complied with. The Act does not prohibit application of Natural Justice. A person charged with misdeclaration is entitled to know the ground on the basis whereof he would be penalised. He may have an answer to the charges or may not have. But there cannot be any doubt whatsoever that in law he is entitled to a proper hearing which would include supply of the documents. Only on knowing the contents of the documents, he could furnish an effective reply.

The Supreme Court made a reference to its earlier judgements in re: RAJESH KUMAR & ors. vs DEPUTY COMMISSIONER OF INCOME TAX & ors. [2007--2--SCC--181] and in re: S.L. KAPOOR vs JAGMOHAN & ors. [1980--4--SCC--379] and concluded in this case that in view of the aforementioned settled legal principles, there cannot be any doubt whatsoever that the principles of Natural Justice have been violated.

The MORAL of this story is that the Statutory authorities, when they are required under the Act to function as a Quasi-judicial authority, continue to ignore the need for extending the principles of Natural Justice to the parties and pass orders which, when taken up by the Tribunals, High Courts and even the Supreme Court in some cases, are straightaway set aside and the matter gets remitted back to the said authorities for consideration of the dispute matter afresh, with further directions that the said authority should supply the relevant copies of the documents relied upon to decide the case or at least allow the appellant to inspect the same.

What follows next is that in future if any statutory authority continues to violate the principles of Natural Justice in the course of his adjudicating a matter involving points of Law, then, they should be awarded NEGATIVE RATIING in their Annual Character Confidential Reports and such NEGATIVE RATINGS should be duly taken into account while crediting them for their performances to earn their career progression. Of course, the admnistrative authorities, who would be taking such steps, should also extend the Principles of Natural Justice to such authorities so that they can either get convinced or get the opportunity to contest such negative ratings. If the principles of Natural Justice are apllied at every stage, then, the day may come soon when we would be enjoying a RAM RAJ or DHARM RAJ and the Tribunals or High Courts or the Supreme Court would not be compelled to repeat their observations about of denial of Natural Justice.[by VENKATRAMAN RAGGHUPATHY, ex. GENERAL MANAGER [EXCISE & CUSTOMS] INDIAN OIL CORPN. LTD.

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