Admin Notes Unit III
Admin Notes Unit III
It is a great humanizing principle intended to invest law with fairness to secure justice and to
prevent miscarriage of justice.
It is not possible to define precisely and scientifically the expression of natural justice. It is a
vague and ambiguous concept and that natural justice is a branch of public law. It is a weapon
that can be used to secure justice for citizens. Rules of natural justice are basic values that a man
has cherished throughout the ages.
Principles of natural justice control all actions of the public authorities by applying rules relating
to reasonableness, good faith, justice, equity and good conscience.
Natural justice is a part of the law that relates to the administration of justice. The term natural
justice expresses the close relationship between the common law and moral principles and it
describes what is right and what is wrong. It has been recognised from the earliest times that it is
not judge-made law.
The Greeks had accepted the principle that “No man should be condemned unheard”.
In Kautilya’s Arthashastra, the rule of law has added the stamp of natural justice which makes it
social justice.
1. Nemo debet esse judex inpropria causa: No man shall be a judge in his own cause or no
man can act as both a party or a suitor and also a judge for the deciding authority. The judge
must be impartial and must have no bias.
2. Audi alteram partem: Hear the other side or both the side must be heard or no man should
be condemned unheard or that there must be fairness on the part of the deciding authorities.
1. The first requirement of natural justice is that the judge should be impartial, neutral and must
be free from bias.
1. Pecuniary bias:
It is well settled that as regards pecuniary interest, even a little pecuniary interest in the subject
matter of the litigation will disqualify any person from acting as a judge. Pecuniary interest will
disqualify even though it is not proved that the decision is in any way affected.
Nothing is to be done which creates even a suspicion that there has been an improper
interference with the course of justice.
Cases :
a. Bonham Case: Dr Bonham, a doctor of Cambridge University was fined by the college of
physicians for practising in the city of London without the licence of the college. The college
held that half the amount would go to the king and the other half to the college. The claim was
disallowed by Justice Coke as the college had a financial interest in its own judgement and was a
judge in its own cause.
c. In Mahapatra v. State of Orissa, some of the members of the committee, set up for selecting
books for educational institutions, were themselves authors whose books were to be considered
for selection. It was held by the Supreme court that there was a pecuniary bias.
2. Personal Bias: In this type, the judge may be a relative, a family friend, a business associate of
a party. This type of relationship may give rise to the second type of bias known as personal bias.
Cases:
a. In Cottle v. Cottle, the chairman of the bench was a friend of the wife's family who had
instituted matrimonial proceedings against her husband and the wife had told her husband that
the chairman would decide the case in her favour. The divisional court quashed the order.
b. R v. Handle, A magistrate who was beaten by the accused was held disqualified from hearing
a case filed against that accused.
c. In Ladies of the Sacred Heart of Jesus vs Armstrong, the decision was set aside on the ground
that the chairman was the husband of an executive officer of a body which was a party before the
tribunal.
b. There existed political rivalry between M and the minister who had cancelled the licence of M.
A criminal case was filed by the Minister against M. It was held that there was a personal bias
against M and the minister was disqualified from taking any action against him.
3. Official bias: This is a type of bias with reference to the subject matter. This may arise when
the judge has a general interest in the subject matter and when this happens, it will invalidate the
proceedings.
E.g.: Suppose a minister is empowered to frame a scheme after hearing the objections. The
procedure for hearing the objections is subject to the principles of natural justice in so far as they
require a fair hearing.
3. Notice
Before any actions are taken, the affected party must be given the notice to show cause against
the proposed action and seek his explanation. It is a sine qua non (essential condition) of the right
of a fair hearing. Any order passed without giving notice is against the principles of natural
justice and is void ab initio.
In R v. the University of Cambridge, Dr Bentley was deprived of his degrees by the Cambridge
University on account of his illegal misconduct without giving any notice or opportunity of
hearing. The Court of King's Bench declared the decision as null and void.
In Ghanshyam Das v. State of Madhya Pradesh, the court held that if the government servant is
placed under suspension and the enquiry is held at a different place from the place of his
residence and he is not able to attend the enquiry due to non-payment of subsistence allowance,
the enquiry is vitiated.
In Ajith Kumar Nag v. Indian Oil Corporation, the employee of the corporation had led an unruly
mob to the hospital run by the corporation, assaulted and beaten the chief medical officer. His
services were terminated under the relevant standing orders. The action was upheld.
In Maneka Gandhi v. Union of India, the passport of the petitioner was impounded by the Indian
government in ‘public interest’. No opportunity was given to the petitioner before taking the
impugned order. The Supreme Court held that the order was violative of the principles of natural
justice.
In M S Bharat Engineering Company Limited v. the State of Bihar, a senior supervisor was
dismissed from service by the company for indulging in theft. The dispute was referred to the
labour court under the Industrial Disputes Act. The workman made an application to the labour
court stating that since he was residing at Haripur, it would be convenient for him if the case is
transferred to the labour court, Patna. The application was made without intimation to the
management. The government also without issuing notice and opportunity to the management,
accepted the request of the workmen and transferred the case to the labour court, Patna. The
petition filed by the management against the said order was dismissed by the Patna High court on
the ground that no prejudice was caused to the company.
The Supreme Court held that an opportunity of hearing ought to have been forwarded to the
company before passing the impugned order.
In Hiranath Mishra v. Rajendra Medical College, even though the statements of girl students
were recorded in the absence of the boys’ students and no opportunity was afforded to the boys’
students to cross-examine the girls’ students, the order of expulsion from college passed against
the boys’ students was upheld by the Supreme Court.
4. Disclosure of Material
An adjudicating authority must disclose all evidence and materials placed before it in the course
of proceedings and must afford an opportunity to the person against whom it is sought to be
utilised.
a. Dhakeshwari cotton mills limited v. CIT, the Supreme Court set aside the order passed by the
appellate tribunal on the ground that it did not disclose some evidence produced by the
department and used against the assessee.
b. In Bisham Bharath Kohli v. the State of U.P, Revision Proceedings, the Custodian General
accepted new evidence produced by one party but no opportunity was given to the other side to
meet with the same.
The Supreme Court set aside the order saying that principles of natural justice were violated.
5. Cross-Examination
Cross-examination was never considered to be a part and parcel of the doctrine of natural justice
which always depends upon the facts and circumstances of each case whether an opportunity of
cross-examination should be given to a party against whom proceedings have been initiated.
In-State of Kerala v. KT Shaduli Grocery Dealer, the returns filed by the respondent-assessee on
the basis of his books of account appeared to the sales tax officer to be incomplete and incorrect.
The entries in the books of the wholesale dealer and the respondent did not match and the
respondent applied to the sales tax officer for an opportunity to cross-examine the wholesale
dealer which was rejected by STO.
Holding the decision of the STO to be illegal, the Supreme Court held that respondents could
prove the correctness and completeness of his returns only by showing that the entries in the
books of accounts of the wholesale dealer were false and bogus and this the respondent could not
do unless he was allowed to cross-examine the wholesale dealer.
But in certain cases or in certain circumstances cross-examination will not be allowed to a person
against whom proceedings have been initiated. In the absence of express provision, the authority
or tribunal will consider whether cross-examination is an essential ingredient of natural justice, if
such provision exists such cross-examination cannot be denied
In Hiranath Mishra v. Rajendra Medical College, a complaint was made by some medical
students that some boys being naked entered into the compound of girls hostel at night. They
were rusticated from the college. Their access to cross-examine female students who had seen
them were denied, the Supreme Court upheld the action of refusing the cross-examination.
As a general rule one who hears must decide. This is a statutory principle based on the proper
administration of justice.
Board of High School and Intermediate Education, U.P v. Chitra Srivatsa, the Board cancelled
the examination of the petitioner on the ground that there was a shortage in attendance at lectures
but no notice was given to the student before taking the action. On behalf of the board, it was
contended that the facts were not in dispute and no useful purpose would have been served by
giving such notice.
The Supreme Court however did not uphold the contention. It was against the principles of
natural justice.
In Aligarh Muslim University v. Mansoor Ali Khan, the relevant rule provided automatic
termination of service on unauthorised absence of an employee for a certain period. Since M
remained absent for more than five years, the post was deemed to have been vacated. M
challenged the order being violative of natural justice as no opportunity of hearing was afforded
before taking the action. The court refused to set aside the order observing that there was no
prejudice (partiality). According to the code, the only conclusion which could have been drawn
was that had M been given notice, it would not have made any difference.
It is well established that principles of natural justice do not require a personal hearing and if all
the relevant circumstances have been taken into account before taking the important action the
said action cannot be set aside only on the ground that personal hearing was not given as already
discussed. The principles of natural justice are flexible but whether they are observed in a given
case or not depends upon the facts and circumstances of the case.
The Supreme Court of India in Maneka Gandhi vs Union of India agreed that even though there
is no concept of post-decisional hearing but sometimes the doctrine is accepted in exceptional
cases. It laid down that wherein an emergency situation requiring immediate action, it is not
practicable to give prior notice for the hearing, the preliminary action should be soon followed
by a full remedial hearing.
Olga Tellis v Union of India, even though the statute imports the commissioner to remove the
construction without notice, the Supreme Court read the Audi alteram partem in observing that
reading the provisions as containing command or not to issue notice before the removal of
encroachment will make the law invalid.
Some statue does not permit the appearance of legal practitioners, e.g. Factory Act, some statues
require the appearance of advocates only with the permission of the tribunal concerned e.g.
Industrial Dispute Act, 1947 while in some statutes the right to be represented through an
advocate is recognised e.g. Income Tax Act, 1961 and Section 30 of the Advocates Act, 1961
confers an absolute right on every advocate to practice in all courts including the Supreme Court
and before any Tribunal.
In A. K. Roy vs Union of India, it was contended that detinue has a right to represent his case
through a lawyer. The Supreme Court, negativing the contention, held that a lawyer cannot be a
next friend.
Speaking order
Speaking orders or reasoned decisions
Speaking order means an order speaking for itself or every order must contain reasons in support
of it.
Giving of reasons in support of an order is considered to be the third principle of natural justice.
According to this, a party has a right to know not only the result of the enquiry but also the
reasons in support of the decision.
There is no general rule of English law that reasons must be given for administrative or even
judicial decisions. In India, till very recently it was not accepted that the requirement to pass
speaking order is one of the principles of natural justice.
In order to provide a safeguard against the arbitrary exercise of powers by these authorities, the
condition of recording reasons is imposed on them. It is true that even the ordinary law courts do
not always give reasons in support of the orders passed by them when they dismiss appeals and
revisions summarily, but regular courts of law and administrative tribunals cannot be put at par.
Another rationale is that the effective party can know why the decision has gone against.
The courts insist upon disclosure of reasons in support of the order on:
1. Party aggrieved has the opportunity to demonstrate before the appellate revisional court
that the reasons which persuaded the authority to reject his case were erroneous
2. The obligation to record reasons operates as a deterrent against possible arbitrary action
by the executive authority invested in them with judicial power
3. To give satisfaction to the party against whom the order is made.
In Raipur Development Authority v. Contractors, an award was made by an arbitrator under the
Arbitration Act, 1948, which did not contain reasons. The said award was challenged on the
ground that the arbitrator was bound to record reasons which was a requirement of natural
justice. Reliance was placed on Siemens engineering and manufacturing company of India
limited vs Union of India; the court considered for the first time that the rule requiring reasons in
support of an order is the third principle of natural justice.
For the first time in the Siemens Engineering case, the Supreme Court held that the rule requiring
reasons to be recorded by Quasi-judicial authorities in support of the orders passed by them must
be held to be a basic principle of natural justice.
In Srilekha Vidyarthi vs the State of U.P, the State Government by a circular terminated
appointment of all government counsels. When the validity of the said circular was questioned in
the supreme court, it was contended that the appointments were liable to be terminated at any
time “without assigning any cause”. Construing the expression in the light of the ratio laid down
in Liberty oil Mills, the court observed that non-communication may be based on public policy
but termination of an appointment without the existence of any event reason in furtherance of the
object for which the power is given would be arbitrary and therefore against public policy.
It is a general rule that every person whose rights are affected by onadministrative actions is
entitled to claim natural justice. The courts have generally read into the provisions of the relevant
sections for the requirement of giving a reasonable opportunity of being heard before any order
is made which would have adverse civil consequences for the parties affected. However, there
are certain exceptions to this general rule. In such an exceptional circumstance, the requirement
of natural justice is excluded. Those exceptional circumstances are:
1. Exclusion by Statutory provisions
2. Exclusion by the Constitutional provisions
3. Exclusion in case of legislative Act
4. Exclusion in Public Interest
5. Exclusion in case of the need for prompt action or emergency or necessity
6. Exclusion on the ground of impracticability
7. Exclusion in case of confidentiality
8. Exclusion in cases of academic adjudication
9. Exclusion when no right of the person is infringed
[Link] in the cases of interim preventive action
[Link] in case of fraud
The principles of natural justice may be excluded by the express provision of the Constitution.
The principles of natural justice are implicit in Article 14 and Article 21 however Article 311 (2)
is notable.
Article 310 incorporates the Doctrine of Pleasure and developed and applied in England. In
England, the rule is that a civil servant of the Crown holds office during the pleasure of the
Crown and his services can be terminated by the crown at any time without assigning any reason
and without giving any compensation except where it is otherwise provided by a statute. The
crown is not bound by the contract of employment between it and a civil servant.
Article 310 of the Constitution of India which incorporate the doctrine of pleasure provides that
except as expressly provided by the Constitution, every person who is a member of a defence
service or a civil service of the union or of an all India service or holds any post connected with
defence or any civil post under the union, holds office during the pleasure of the President and
every person who is a member of a civil service of a state or hold any post-civil under state
government does so during the pleasure of the Governor of the state.
In-State of Haryana vs Piara Singh, the Supreme court has held that if a municipal corporation is
established, the government is not required to hear the residents of the municipal area before
making decisions for its establishment because the establishment of a municipal corporation is a
legislative act, and the rules of natural justice are not applicable to the legislative act.
If the action of government is of a legislative character, the rules of natural justice would not be
attracted, however, it must be done in accordance with the statutory provisions. In short, in the
discharge of legislative functions, the observance of the principles of natural justice is not
required, however, it must be discharged in accordance with the statutory provisions.
In M.R.F ltd vs Inspector, Kerala Government, the court has made it clear that the principles of
natural justice cannot be imported in the matter of legislative action if the legislative in the
exercise of its plenary power under Article 245 of the Constitution proceeds to enact a law.
Those who would be affected by that law cannot legally raise grievance that before the law was
made, they should have been given an opportunity of hearing.
The observance of the principles of natural justice may be excluded in case if such observance
would cause injury to the public interest.
In Union of India vs Tulsiram Patel, the Supreme Court has made it clear that the rules of natural
justice can be avoided if its observance will paralyze the administrative process. The cases of
public interest include the defence of the country and maintenance of State secret. Thus, the
authorities are not required to disclose the information relating to the defence policy and other
defence of the country for keeping safe.
In Satyaveer Singh vs Union of India, the Supreme Court has expressed the view that natural
justice must be confined within its proper limits and must not be allowed to run wild.
a. Union of India vs Tulsiram Patel, the permanent auditor in the Regional Audit Office was
convicted under Section 332 of the Indian Penal Code for causing head injury by an iron rod to
his superior officer, Regional Audit Officer. He was compulsorily retired by the disciplinary
authority under rule 19(1) of the Central Civil Service Classification Control and Appeal Rules,
1965 without holding an enquiry and giving an opportunity of being heard under Article 311(2).
The Supreme Court held the order of compulsory retirement valid.
b. In Union of India vs Sadanand Jha, the supreme court upheld the dismissal under Article 311.
In this case, some members of the Central Industrial Security Force broke down the discipline in
force and deliberately disobeyed the orders of the superior. The military was called to control the
situation. There had been an exchange of fire between the military and members of the CISF for
few hours. The situation was very violent and there was mass terror and threat to the loyal staff.
The respondents who were members of the said CISF were dismissed from service without
holding an enquiry Article 311(2) and Rule 37(b) of the CISF on the ground that it was not
necessary and practicable to hold an enquiry.
In another leading case decided by the Supreme Court along with the case of Tulsi Ram Patel,
the railway employees were dismissed from service under Article 311(2) and Rule 14 of the
Railway Servant Rules for participating in illegal all India strike of the railway employees. The
order of dismissal was upheld and to be valid. The railway service was paralyzed, loyal workers
and superior officers were assaulted and intimidated, public interest and public good were
prejudicially affected. In such a situation, there was a great need for prompt and immediate
action to bring the situation to normal. In these circumstances, the enquiry was not reasonably
practicable hence the order of dismissal without enquiry was held valid.
In another leading case, the members of M.P. District Police stationed at the annual Mela at
Gwalior indulged in violent demonstration and rioting. They were dismissed by the order of the
Governor without making an enquiry and giving the petitioners reasonable opportunity of being
heard. The court held the order of dismissal was valid on the ground that in the circumstances
prompt and urgent action was necessary and holding an enquiry would not have been in the
interest of the security of the State. The Supreme Court also held that the order was valid and
properly applied in the dismissal of the officers.
The principles of natural justice do not have a place when there is fraud committed.
In the case of U.P. Junior Doctors Action Committee vs Dr B. Shital Nandwani, the admission
obtained by fraud was cancelled without providing an opportunity of hearing to the affected
candidates and was held valid by the Supreme Court as the rules of natural justice were not
attracted. In this case, some student secured admission to post-graduation medical course in the
medical college by producing fake order from the court. Their admission was cancelled without
giving them an opportunity of being heard. The court held that the circumstances in which such
benefit has been taken by the candidates concerned do not justify the attraction of the application
of the rule of natural justice and therefore the cancellation of the admission could not be
challenged on the ground that no opportunity of hearing was given to the affected candidates.
1. Manika Gandhi v. Union of India, the passport of the petitioner was impounded by the Indian
government in ‘public interest and no opportunity was given to the petitioner before taking the
impugned order. The Supreme Court held that the order was violative of the principles of natural
justice.
2. Dhakeshwari cotton mills limited v. CIT, the Supreme Court set aside the order passed by the
court on the ground that it did not disclose some evidence produced by the department and used
against the assessee.
3. Board of High School and Intermediate Education, U.P v. Chitra Srivatsa, the Board cancelled
the examination of the petitioner on the ground that there was a shortage in attendance at
lectures, but no notice was given to the student before taking the action. On behalf of the board,
it was contended that the facts were not in dispute and no useful purpose would have been served
by giving such notice.
The Supreme Court however did not uphold the contention. It was against the principles of
natural justice.
4. Olga Tellis v. Union of India, even though the statute imports the commissioner to remove the
construction without notice, the Supreme Court read the Audi alteram partem in observing that
reading the provisions as containing command or not to issue notice before the removal of
encroachment will make the law invalid.