Coming down heavily on administrative arbitrariness, the Punjab and Haryana High Court has set aside a five-line order cancelling a stamp vendor’s licence after holding it to be “ex facie bereft of any reason” and passed in violation of natural justice. The order came as Justice Jasgurpreet Singh Puri directed the State of Haryana to pay Rs 10,000 in costs to the petitioner.
The court made it clear that any order entailing civil consequences must be reasoned and preceded by an opportunity of hearing, and failure to do so would invite judicial correction — and costs. Allowing the petition, Justice Jasgurpreet Singh Puri ruled: “Such kind of orders passed by the officers of the State are required to be deprecated by this court.” The Bench added that “any order which visits with civil consequences, the principles of natural justice are required to be followed and rather they are mandatory in nature.
The court found the impugned order — passed by the Gurugram Deputy Commissioner-cum-Registrar — strikingly deficient. “A perusal of the order would show that it consists of only five lines, whereby the Deputy Commissioner and Registrar, Gurugram, has cancelled the licence of the petitioner and as per the counsel for the petitioner, no opportunity of hearing was given to the petitioner.
Referring to the facts of the case in hand, the Bench added not only were the principles of natural justice violated in the matter, but the order itself was totally non-speaking and was ex-facie bereft of any reason.
Setting aside the February 24 order cancelling the licence, the court granted liberty to the authorities to proceed afresh — but strictly “in accordance with law after giving adequate opportunity of hearing and by following the procedure.”
The court went a step further and imposed costs, holding the State accountable for the arbitrary exercise of power. “Since the impugned order passed by the Deputy Commissioner and Registrar, Gurugram, is ex facie without any reason, consists of only five lines and has been passed without affording any opportunity of hearing to the petitioner, the petitioner is entitled to costs. The costs are assessed at Rs 10,000. The respondent-State shall pay the aforesaid costs to the petitioner by way of a demand draft in his name within a period of three months,” Justice Puri added.
The counsel appearing on behalf of the petitioner had earlier submitted that the Deputy Commissioner and Registrar, Gurugram, by way of the impugned order dated February 24, cancelled the stamp vendor licence of the petitioner.
Referring to the order, he submitted that the same was on the face of it a non-speaking order and was not backed by any reasons. He further submitted that the petitioner was neither afforded any opportunity of hearing nor was served with the show cause notice before passing the order and it has prejudicially affected the rights of the petitioner and, therefore, the aforesaid order was liable to be set aside.
