The High Court of Calcutta, while disposing of a petition filed challenging the order of cancellation of registration dated 13th September 2023 and the order rejecting the application for revocation of cancellation dated 2nd January 2024, held that when an order of cancellation of registration is passed which has adverse civil consequences, the authority is bound to give adequate reasons for the same.
Brief Facts:
The allegations of fraud were levelled against the petitioner. A show cause notice dated 7th August 2023 was issued against the petitioner. Later the registration of the petitioner was cancelled. The petitioner filed an application for revocation of cancellation. The same was dismissed. Hence, the present petition.
Contentions of the Petitioner:
The learned counsel appearing on behalf of the Petitioner submitted that the show cause notice dated 7th August 2023 only spells out that the registration of the petitioner had been obtained by means of fraud, wilful misstatement, or suppression of facts, without identifying the particulars of such fraud or wilful misstatement or suppression. According to her, the petitioner has been denied the right to object appropriately in the absence of appropriate disclosure. She further argued that the show-cause did not identify the name of the issuer and as such the petitioner couldn’t appear and explain its case.
Observations of the court:
The court noted that although a show cause had been issued for cancellation of registration and though the petitioner had been called upon to respond and appear before the “undersigned” as recorded in such notice on 11th August 2023, such notice only has a digital signature with the mark “validity unknown”. The name of the signing authority is not available. The show cause notice is also vague. No particulars of the fraud and misstatement or suppression have been disclosed. Since the petitioner did not respond to the show cause notice dated 19th December 2023, the application for revocation of cancellation had been rejected.
The Court observed that when an order of cancellation of registration is passed which has adverse civil consequences, the authority is bound to give adequate reasons for the same. No reasons were disclosed, and there was an absence of appropriate disclosure in the show-cause notice.
The decision of the Court:
The Calcutta High Court, disposing of the petition, held that respondents are directed to forthwith make available the basis for issuing the show cause notice dated 7th August 2023 to the petitioner.
Case Title: Indrajit Roy v The Superintendent, Barasat Range IV & Ors.
Coram: Hon’ble Justice Raja Basu Chowdhury
Case No.: WPA 4345 of 2024
Advocate for the Petitioner: Ms. Rita Mukherjee
Advocate for the Respondent: Mr. Bhaskar Prosad Banerjee