Kanco Enterprises Limited vs Authorised Officer Of State Bank Of ... on 6 May, 2015
"6. x x x It is now settled law that
where an authority makes an order in
exercise of a quasijudicial
function, it must record its reasons
in support of the order it makes.
Every quasijudicial order must be
supported by reasons. That has been
laid down by a long line of decisions
of this Court ending with N.M. Desai
v. Testeels Ltd.. But, unfortunately,
the Assistant Collector did not
choose to give any reasons in support
of the order made by him confirming
the demand for differential duty.
This was in plain disregard of the
requirement of law. The Collector in
revision did give some sort of reason
but it was hardly satisfactory. He
did not deal in his order with the
arguments advanced by the appellants
in their representation dated
December 8, 1961 which were repeated
Page 75 of 115
C/SCA/6331/2015 ORDER
in the subsequent representation
dated June 4, 1965. It is not
suggested that the Collector should
have made an elaborate order
discussing the arguments of the
appellants in the manner of a Court
of law. But the order of the
Collector could have been a little
more explicit and articulate so as to
lend assurance that the case of the
appellants had been properly
considered by him. If courts of law
are to be replaced by administrative
authorities and tribunals, as indeed,
in some kinds of cases, with the
proliferation of Administrative Law,
they may have to be so replaced, it
is essential that administrative
authorities and tribunals should
accord fair and proper hearing to the
persons sought to be affected by
their orders and give sufficiently
clear and explicit reasons in support
of the orders made by them. Then
alone administrative authorities and
tribunals exercising quasijudicial
function will be able to justify
their existence and carry credibility
with the people by inspiring
confidence in the adjudicatory
process. The rule requiring reasons
to be given in support of an order
is, like the principle of audi
alteram partem, a basic principle of
natural justice which must inform
every quasijudicial process and this
rule must be observed in its proper
spirit and mere pretence of
compliance with it would not satisfy
the requirement of law. x x x."