ValkyaEditorial

Tagged “natural-justice”

18 articles on natural-justice.

Supreme CourtSupreme Court of India

CCI v. Steel Authority of India (2010): a Section 26(1) direction to investigate is administrative, not an appealable order

The foundational judgment on CCI procedure. A three-judge Bench held that a direction to the Director General to investigate under Section 26(1) of the Competition Act is an administrative, prima facie order — not a final adjudication and not appealable to the Tribunal. It also held that the Commission must still record minimal reasons, need not hear the party at that stage, and is a necessary party once an appeal is filed.

Valkya Editorial··7 min
Supreme CourtSupreme Court of India

Dev Sharan v. State of U.P.: when 'urgency' cannot dispense with the Section 5A enquiry

On 7 March 2011, a two-judge Bench of the Supreme Court quashed the acquisition of fertile agricultural land for a district jail at Shahjahanpur, holding that the emergency power under Section 17(4) of the Land Acquisition Act, 1894 cannot be invoked to dispense with the landowner's right to object under Section 5A absent a real and demonstrable urgency. A digest of the holding, the reasoning on urgency and alternative sites, and where the decision sits in the urgency-clause line.

Valkya Editorial··8 min
Supreme CourtSupreme Court of India

Radhy Shyam v. State of U.P.: urgency is extraordinary, and planned development cannot brook it

On 15 April 2011, a two-judge bench of Justices G.S. Singhvi and A.K. Ganguly held that the power under Sections 17(1) and 17(4) of the Land Acquisition Act, 1894, to dispense with the Section 5A objection enquiry is an extraordinary power — available only where the public purpose cannot brook even a few weeks' delay. Acquisition for planned industrial and residential development near Greater Noida, which by its nature takes years, could not justify denying landowners their Section 5A hearing. Once urgency is challenged, the burden falls on the State to justify the dispensation.

Valkya Editorial··7 min
Supreme CourtSupreme Court of India

Surekha Domaji Bele v. MSEDCL (2026): after a vitiated inquiry is remanded, the disciplinary authority must apply its mind afresh to punishment

The Supreme Court partly allowed an electricity-company clerk's appeal, holding that once a defective departmental inquiry is set aside and misconduct is later proved on fresh evidence, the disciplinary authority cannot mechanically fall back on the old, pre-remand show-cause notice and reimpose dismissal — it must independently apply its mind to the quantum of punishment. A digest of the facts, the holding on proportionality and natural justice, and what it means for service-law practice.

Valkya Editorial··7 min
LandmarkSupreme Court of India

Delhi Transport Corporation v. DTC Mazdoor Congress: striking down hire-and-fire

On 4 September 1990, a Constitution Bench of five judges struck down a 'hire and fire' clause permitting termination of permanent employees without reasons and without hearing — holding that audi alteram partem must be read into State termination powers and that arbitrary, unguided dismissal violates Article 14.

Valkya Editorial··9 min
LandmarkSupreme Court of India

MD, ECIL, Hyderabad v. B. Karunakar: the right to the enquiry report

On 1 October 1993, a five-judge Constitution Bench held that a delinquent employee is entitled to a copy of the inquiry officer's report before the disciplinary authority decides — but tempered the remedy with a prejudice test, making non-supply void only where the employee shows prejudice.

Valkya Editorial··8 min
Supreme CourtSupreme Court of India

Roop Singh Negi v. Punjab National Bank: no enquiry on ipse dixit

On 19 December 2008, the Supreme Court held that a departmental enquiry finding cannot rest on the inquiry officer's ipse dixit, surmise or conjecture — that suspicion is never a substitute for legal proof, and that disciplinary orders carrying civil consequences must be supported by recorded reasons.

Valkya Editorial··8 min
LandmarkSupreme Court of India

Union of India v. Tulsiram Patel: the second proviso to Article 311(2)

On 11 July 1985, a five-judge Constitution Bench upheld the second proviso to Article 311(2) — the three situations in which a civil servant may be dismissed without the constitutional inquiry — while holding the recorded satisfaction reviewable by courts for relevance and bona fides.

Valkya Editorial··8 min
LandmarkSupreme Court of India

Mohinder Singh Gill v. Chief Election Commissioner: the reservoir of powers under Article 324 and the reasons doctrine

On 2 December 1977, a five-judge Constitution Bench held that Article 324 vests the Election Commission of India with plenary and residuary powers wherever statute or rules are silent, but that those powers must be exercised consistently with natural justice and on reasons stated when the order is made — not on reasons supplied later by affidavit. The judgment also reaffirmed that Article 329(b) bars judicial interference with the election process between notification and declaration, leaving the election petition as the sole post-result remedy.

Valkya Editorial··15 min
Supreme CourtSupreme Court of India

SBI v. Amit Iron: the 2024 RBI Fraud Master Directions, the written-procedure rule, and the right to the full forensic audit report

The Supreme Court's first major pronouncement on the 2024 RBI Master Directions on Fraud Risk Management. A 2-judge bench held three things: there is no inherent right to a personal or oral hearing before fraud classification because the determination is grounded in objective documentary evidence and a written show-cause-and-reply procedure satisfies natural justice; banks must furnish the full Forensic Audit Report to the borrower as the rule, with only narrow exceptions for genuinely third-party sensitive material; and the doctrinal distinction between fraud — which carries criminality — and wilful default — which does not — justifies the differentiated procedural protections under the two regulatory regimes.

Valkya Editorial··13 min
Supreme CourtSupreme Court of India

SBI v. Rajesh Agarwal: natural justice and the bank's fraud-classification machinery

A 2-judge bench of the Supreme Court — *Dr D.Y. Chandrachud, C.J.* and *Hima Kohli, J.* — held in March 2023 that the principle of audi alteram partem must be read into Clauses 8.9.4 and 8.9.5 of the *Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions 2016*. Classification of a borrower's account as 'fraud' by a Joint Lenders' Forum carries the consequences of civil death — credit-access debarment, reputational harm, director-disqualification fallout — and engages Articles 14, 19(1)(g) and 21. The borrower is entitled to notice, to supply of the forensic audit report (or its conclusions), to an opportunity to be heard and to a reasoned order before classification. No prior hearing is required before the lodging of an FIR under *Section 154* of the *Code of Criminal Procedure*, which is a separate criminal-law step.

Valkya Editorial··15 min