Application of Natural Justice
Application of Natural Justice
OF LEGAL STUDIES,
PANJAB UNIVERSITY,
CHANDIGARH
ADMINISTRATIVE LAW
APPLICATION OF PRINCIPLES OF
NATURAL JUSTICE
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ACKNOWLEDGEMENT
I would like to express my special thanks and gratitude to my subject teacher
Ms. Shallu for assigning me the project topic “Application of Natural Justice”
to work and broaden my knowledge and horizons. Her able guidance and
support lent me a great help in going through this wonderful journey of working
on this assignment. The completion of this task would not have been possible
without participation and assistance of many people and I highly appreciate and
acknowledge their contribution.
My appreciation for my teacher can be well fitted for her efforts as much equal
or even greater than mine. She has been kind enough to make us learn through
every aspect time and again on the assignments that me and my classmates have
worked on.
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TABLE OF CONTENTS
Introduction 4
Types of Bias 8
Pecuniary Bias 9
Personal Bias 10
Subject-matter bias 11
Departmental/Policy Bias 12
Notice 15
Hearing 17
Bibliography 25
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INTRODUCTION
Court in order to prevent abuse of power and to check on their limits has
evolved the principles of natural justice as important safeguards against
injustice. The object of natural justice is to secure justice to the citizens and
prevent contempt of justice. Decisions which violate the natural justice shall
stand null and void.2
1Upadhyaya, J.J.R, Administrative Law, Central Law Agency, 6th Edition (2006)
2https://www.legalserviceindia.com/legal/article-1549-concept-of-natural-justice.html
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Natural Justice is also known as substantial justice or fundamental justice or
universal justice or fair play in action. The principles of natural justice are
not embodied rules and are not codified. They are judge made rules and are
regarded has counterpart of the American procedural due process. In the initial,
the concept of natural justice was confined to the Judicial proceedings only but
with the advent of welfare state, the powers of administrative authorities have
considerably increased as a result of which it becomes impossible for law to
determine the fair procedure to be followed by each authority while
adjudicating any disputes or any quasi-judicial proceedings.
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many forms and shapes, and save where valid law excludes it, applies when
people are affected by acts of authority. It is the bone of healthy government,
recognised from the earliest times and not a mystic testament of judge-made
law.3
The rules of natural justice do not supplant the law of the land but only
supplement it. It is now firmly established that in the absence of express
provisions in any statute dispensing with the observance of the principles of
natural justice, such principles will have to be observed in all judicial, quasi-
judicial and administrative proceedings which involve civil consequences to the
parties as laid in A.K Kraipak v. Union of India, AIR 1970 SC 150.4
1. Nemo zudex in causa sua or Rule against bias (No man shall be a judge
in his own case)
2. Audi alteram partem or Rule of fair hearing (Hear the other side) or
both sides must be heard or no one should be condemned unheard
The first one is “Bias rule” generally expresses that panel of expert should be
bias free while taking the decision. The decision should be given in a free and
fair manner which can fulfil the rule of natural justice.
3Upadhyaya, J.J.R, Administrative Law, Central Law Agency, 6th Edition (2006)
4https://nacin.gov.in/resources/file/e-books/Principles%20of%20natural%20justice.pdf
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Second is “Hearing rule” which states that the person or party who is affected
by the decision made by the panel of expert members should be given a fair
opportunity to express his point of view to defend himself.
And thirdly, “Reasoned Decision” which states that order, decision or
judgement of the court should be given by the Presiding authorities with a valid
and reasonable ground.
In R.S. Dass v. Union of India,5 Hon’ble the Supreme Court stated, “it is well
established that rules of natural justice are not rigid rules; they are flexible and
their application depends upon the setting and background of statutory
provisions, nature of the right which may be affected and the consequences
which may entail, its application depends upon facts and circumstances of each
case.”
Nemo judex in causa sua means rule against bias. It is the first principles of
natural justice which says no man shall be judge in his own cause or a deciding
authority must be impartial and neutral while deciding any case. Thus, the
principle signifies that in circumstances where a judge or deciding authority is
suspected to be biased and partial then he/she shall be disqualified from
determining any case before them. Bias disqualifies an individual from acting
as Judge flows from two principles:
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It formulates that justice should not only be done but seen to be done. It
means that deciding authority must be impartial. Proceedings before any
adjudicating authority must be according to the principles of natural justice.
Where it is found that a judge who is deciding any dispute has its own interest
or some outcome derived from such case then the decision given by the
authority shall not execute or it remains void. It is said that impartiality is the
best characteristics for good administration. Human nature is such that a person
ordinarily cannot take an objective decision in a case when he himself found an
interest, as very rarely can person take decision against his own interest. A
person can apply his mind effectively when he follows impartiality. The rule
against bias thus avoids possibility of partial decisions. It also ensures public
confidence in legal system of a country.6
Justice can never be seen to be done if a man acts as a judge in his own cause or
is himself interested in its outcome. This principle is applicable not only to
judicial proceedings but also to quasi-judicial as well as administrative
proceedings.
It is the minimal requirement of natural justice that the authority must consist of
impartial persons who are to act fairly and without prejudice and bias. A
decision which is result of bias is a nullity and the trial is “coram non-judice”
which means before a judge not competent or without jurisdiction.
TYPES OF BIAS
6https://nios.ac.in/
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Bias appears in various forms which may affect the decision in variety of ways.
The various types of bias are:
Pecuniary bias
Personal bias
Subject-matter bias
Departmental/policy bias
PECUNIARY BIAS
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matter largely involving the interests of the Company. The Lord Chancellor
who decided the case was a shareholder in the company and gave relief to the
company which it had sought. His decision was quashed by the House of Lords
because of the pecuniary interest of Lord Chancellor in the company. Lord
Campbell observed that the judge was influenced by the interest that he had in
the concern.
PERSONAL BIAS
Personal bias arises from a relation between the party and deciding authority
which leads the deciding authority in a doubtful situation to make an unfair
activity and give judgement in favour of his person. Such equations arise due to
various forms of personal and professional relations. In order to challenge the
administrative action successfully on the ground of personal bias, it is necessary
to give a reasonable reason for bias. Personal bias arises from near and dear i.e.,
from friendship, relationship, business or professional association. Such
relationship disqualifies a person from acting as a judge. This is a most
common bias that arises out of certain relationship between decision making
authority and the parties. There is likelihood that judge may be biased towards
one party or prejudiced toward other. Therefore, we have to see whether there is
reasonable ground for believing that he was likely to have been biased.
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had political rivalry with petitioners cancelled their licence and this action was
challenged on ground of personal bias which was accepted by the Court. The
Minister was disqualified from taking action against petitioners.
In A. K. Kraipak v. Union of India 12, the Supreme Court quashed the selections
to the Indian Foreign Service made by the selection board on the ground that
one of the candidates appeared before selection committee was also a member
of the selection board.
SUBJECT-MATTER BIAS
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subject matter of the case. Here again mere involvement would not vitiate the
administrative action unless there is a real likelihood of bias.
In a case, the Supreme Court quashed the decision of the Andhra Pradesh
Government, nationalizing road transport on the ground that the Secretary of the
Transport Department who gave hearing was interested in the subject-matter.13
12
Secretary to the Transport Department to hear objections under the Motor
Vehicles Act to the proposed scheme of Nationalization. The objections filed by
the petitioners were received and heard by the Secretary and thereafter the
scheme was approved by the Chief Minister. The Supreme Court accepted the
contentions of the petitioners that the official who heard the objections was ‘in
substance’ one of the parties to the dispute and this was against the principles of
natural justice.
In Krishna Bus Service (Pvt.) Ltd. v. State of Haryana 16, the legality of the
notification issued by the State Government conferring the powers of Deputy
Superintendent of Police on the General Manager, Haryana Roadways was
challenged by private operators of Motor Vehicles inter alia on the ground of
bias and interest. The Supreme Court upheld the contention and quashed the
notification.
TEST OF BIAS
At present the reasonable suspicion test seems to be in favor with the Courts.
The result is that proof of actual bias on the part of adjudicator is not necessary.
What is essential is that in the opinion of reasonable men, there is real
likelihood of bias in the circumstances of the case.
13
In Halsbury's Laws of England, it is stated: "The test of bias is whether a
reasonable intelligent man, fully apprised of all the circumstances, would feel a
serious apprehension of bias."
The audi alteram partem rule means that no one should be condemned unheard.
The literal meaning of this rule is that both parties should be given a fair chance
to present themselves with their relevant points and a fair trial should be
conducted. This is an important rule of natural justice and its pure form is not to
penalize anyone without any valid and reasonable ground. Prior notice should
be given to a person so he can prepare to know what all charges are framed
against him. It is also known as a rule of fair hearing. The components of fair
hearing are not fixed or rigid in nature. It varies from case to case and authority
to authority.
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According to this principle, reasonable opportunity must be given to a person
before taking any action against him. This rule insists that the affected person
must be given an opportunity to produce evidence in support of his case. He
should be disclosed the evidence to be utilized against him and should be given
an opportunity to rebut the evidence produced by the other party. It means “hear
the other side” or “let the other side be heard as well”.
It gives right to the party to respond to the evidence against them and to choose
legal representative of their own choice. It is the duty of every person or body
exercising judicial or quasi-judicial functions to act in good faith and to listen
fairly both the sides before passing any order.
In short, the principle is that before an order is passed against any person
reasonable opportunity of being heard must be afforded to him. Generally, the
maxim includes two ingredients- notice, and hearing.
NOTICE
‘Notice’ is the starting point of any hearing. Unless a person knows the
formulation of subjects and issues involved in the case, he/she cannot defend
himself/herself. It is not enough that the notice in a case be given, but it must be
adequate also. The adequacy of notice is a relative term and must be decided
with reference to each case. The basic principle of natural justice is that before
any action is taken, the affected person must be given notice to show cause
against the proposed action and seek his explanation. It is a sine qua non of fair
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hearing. Any order passed without giving notice is against the principles of
natural justice and is void ab initio.
Even if there is no provision in the statute about giving of notice, if the order
adversely affects the rights of an individual, the notice is required to be given.
Further it is necessary that the notice must be clear, specific and un-ambiguous
and the charges should not be vague and uncertain. Its two essentials are
discussed in the following-
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contractor that it was proposed to debar him as defaulter from taking any
contract in future under the Department.
In a case of Punjab National Bank v. All India Bank Employees Federation 20,
the notice contained certain charges but the penalty was imposed on the charges
which were not mentioned in the notice. Therefore, the Court held notice was
improper, and eventually the imposition of penalty was held invalid.
A vague or imprecise notice does not afford the party the desired reasonable
opportunity. A notice would be vague if it is based on no material or if it is
vitiated by non-application of mind.
HEARING
The second requirement of the audi alteram partem maxim is that the party
concerned must be given an opportunity of being heard before any adverse
action is taken against him.
20AIR 1960 SC 16
17
In Maneka Gandhi (supra) the passport of the petitioner was impounded by the
Government of India in public interest. No opportunity was afforded to the
petitioner before taking the impugned action. The Supreme Court held that the
order was violative the principles of natural justice.
In Olga Tellis v. Bombay Municipal Corporation 21, under the statute the
Commissioner was empowered for removal of construction without notice.
However, the Court held that it was merely an enabling provision and not a
command not to issue notice before demolition of structure. The discretion was,
therefore, required to be exercised according to the principles of natural justice.
I. Oral hearing- Generally, hearing means oral hearing where the parties
have right to legal representation to produce witnesses who may be cross-
examined.
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In the case of Union of India v. J.P. Mitter 23, it was held by the Supreme Court
that as the petitioner Judge had been afforded an opportunity to submit his case
in writing, denial of an opportunity of personal hearing, even after request, does
not violate the principles of natural justice.
Moreover, if there are contending parties before the adjudicating authority and
one of them is allowed to give oral hearing, the same facility must be afforded
to the other as well.
II. Fair Hearing- Natural justice is primarily identified with fair hearing.
authority must give full opportunity to the affected person to produce all
the relevant evidence in support of his case. For fair hearing, it is
necessary that the concerned party must be given right to present his case
and evidence. Where the adjudicating authority wrongly refuses to
receive evidence, the proceedings will be vitiated.
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sought to be used. Natural justice is infringed if the adjudicatory body
decides a matter on the basis of confidential inquiries unknown to the
party concerned.
3) Rebuttal of adverse evidence- For fair hearing, it is not enough that the
party should know the adverse material but it is further necessary that he
must be given an opportunity to rebut the evidence. The adjudicating
authority must give right to the party concerned to rebut the evidence and
material placed by the other side.
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decision of the Commission was challenged before the Supreme Court of India.
Disallowing the challenge, the Supreme Court observed that no oral hearing is
held and only when statements are called for from the affected party, there is no
right of cross-examining witnesses.
But speaking generally, it can be said that the right to be represented by counsel
has recognized in Administrative Law. Where there is a right to appear in
person or a technical matter of law and fact is involved, the denial of legal
representation by counsel is considered as an antithesis of fair hearing.
In Khatri v. State of Bihar27, the Supreme Court held that the State is under
constitutional obligation to provide legal assistance to the poor accused not only
at the stage of trial but at the time of remand also.
III. Right to know evidence- The right to know the materials on which the
authority is going to make a decision is part of the right to defend oneself.
26AIR 1978 SC 1548
27AIR 1981 SC 928
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No evidence can be taken into consideration which has not been known to the
party concerned and for which no opportunity has been afforded to rebut.
Therefore, evidence must not be given behind the back of the other party but in
his presence, so that if written evidence is given it must be made available to the
other party to contradict it. It would be violative of natural justice to take
evidence behind the back of the concerned person.
IV. Opportunity of being heard: Fair Trial- Any order passed by the
adjudicating authority without providing the opportunity of being heard
to the party concerned is bad and can be set aside.
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A. Administrative agencies invested with the adjudicator must exercise such
power in exercise of its own judgment and not under dictation from
anybody.
In England, the Common Law rule is that natural justice does not require
reasons to be given for decision. However, Franks Committee insisted that there
should be a general practice for adjudicatory bodies to give reasons for their
decision. This suggestion has been given statutory force. Section 12 of the
Tribunals and Inquiries Act, 1971 imposes a duty upon a Tribunal or Minister
to give reasons for the decision. In USA, the requirement of giving reasons for
decision has been given statutory force. In India, natural justice postulates that
party has right to know not only the decision but also the reasons. But this is not
a universally established rule although, in certain situations it is rigidly
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enforced. The duty to give reasons may be statutory or non-statutory. Where the
duty is required by the statute, the authority is bound to give reasoned decisions
in all cases to which that provision applies. But in the absence of statutory
requirement, the Courts have been emphatic to advise judicial or quasi-judicial
bodies to assign reasons in such a form as to justify the orders being called what
are described as speaking orders.
A speaking order means an order which speaks by itself. Thus, every order must
contain reasons for support of it. Speaking orders are necessary to make judicial
review effective. The affected party must know why and on what grounds an
order has been passed against him. This is a cardinal principle of natural justice.
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BIBLIOGRAPHY
WEBLIOGRAPHY
https://blog.ipleaders.in/natural-justice/
https://www.legalserviceindia.com/legal/article-1659-principles-of-
natural-justice-in-the-light-of-administrative-law.html
https://www.legalserviceindia.com/legal/article-1549-concept-of-natural-
justice.html
https://nios.ac.in/media/documents/SrSec338New/338_Introduction_To_
Law_Eng/338_Introduction_To_Law_Eng_L6.pdf
https://nacin.gov.in/resources/file/e-books/Principles%20of%20natural
%20justice.pdf
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