In Organo Chemicals Industries v. Union of India (AIR 1979 SC 1803), this court has held that absence of a right of appeal does not spell arbitrainess. It is further held in the same rulings that giving of reasons for conclusion is ordinarily important component of natural justice in quasi judicial
tribunals."
23. The principles of natural justice are also applicable to Administrative orders, which affect adversely or take away the rights of others or involve civil consequences. A reference in this regard may be made to the decision of Union of India v. E.G. Nambudari, (1991) 3 SCC 38 : (AIR 1991 SC 1216), wherein it has been ruled by the Supreme Court as under (Para 7 of AIR):--
What is a civil consequence has been answered by this Court in Mohinder Singh Gill v. Chief Election Commr. (1978 (1) SCC 405 : AIR 1978 SC 851), Krishna Iyer J. speaking for the Constitution Bench observed : (See p. 440 para 66).
The purpose of the rules of natural justice is to prevent miscarriage of justice and it is no
more in doubt that the principles of natural justice are applicable to administrative orders if such orders affect the right of a citizen. Arriving at the just decision is the aim of both quasi judicial as well as administrative enquiry, an unjust decision in an administrative enquiry may have more far-reaching reaching effect than decision in quasi judicial enquiry. Now, there is no doubt that the principles of natural justice are applicable even to administrative enquiries. See A.K. Kraipak v. Union India (AIR 19780 SC 150)."