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Bombay Oil Industries vs Union Of India

Supreme Court14 November 1983Y.V. Chandrachud · E.S. Venkataramiah · R.B. Misra

Ratio decidendi

The rule this decision rests on

1. While disposing of applications under sections 21, 22 and 23 of the Monopolies and Restrictive Trade Practices Act, 1969, the Government must give good reasons in support of its order and not merely state its bald conclusion. 2. The relevant material on which the Government relies must be made available to the objectors, as without it they cannot meet the claims or contentions of the applicants; refusal to furnish such material amounts to denial of a reasonable opportunity and constitutes a violation of natural justice. 3. Administrative tribunals must act fairly and dispose of matters before them by well-considered orders in order to sustain public faith in such tribunals.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

PETITIONER:BOMBAY OIL INDUSTRIES
Vs.
RESPONDENT:UNION OF INDIA
DATE OF JUDGMENT14/11/1983
BENCH:CHANDRACHUD, Y.V. ((CJ)BENCH:CHANDRACHUD, Y.V. ((CJ)VENKATARAMIAH, E.S. (J)MISRA, R.B. (J)
CITATION:1984 AIR 160 1984 SCR (1) 8151984 SCC (1) 141 1983 SCALE (2)816CITATOR INFO :RF 1987 SC1564 (2)E 1990 SC1744 (4)

ACT: Monopolies and Restrictive Trade Practices Act, 1969- Ss. 21, 22 and 23-Objectors must be supplied with relevant materials-Government must give good reasons in support of its order.

HEADNOTE: HELD: The faith of the people in administrative tribunals can be sustained only if the tribunals act fairly and dispose of the matters before them by well considered orders. Refusal to furnish relevant materials to the objectors can amount to denial of reasonable opportunity and violation of natural justice. [816 C & E]

JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3191 of 1983.

WITH S.L.P. (CIVIL) No. 4311 of 1983.

From the Judgment and Order dated the 30th November, 1982 passed by the Govt. of India u/s.22 of the Monopolies & Restrictive Trade Practices Act, 1969 bearing No.2/18/80-M- II.

Anil B. Divan and B.V. Desai for the Appellant. B. V. Desai for the petitioner.

P. R. Mridul, Ravindra Narain, D. N. Misra and Ashok Sagar for the respondent in C. A. No. 3191/83.

M. L. Talukdar, C.V. Subba Rao and R. N. Poddar for the respondent.

D.N. Misra and R. N. Poddar for the respondent in S.L.P. No.4311/83.

816 The Order of the Court was delivered by CHANDRACHUD, C. J. The order of the Government dated November 30, 1982 which is impugned in these proceeding leaves much to be desired. But we do not propose to admit the appeal since after hearing a longish argument from Shri Anil B. Divan on behalf of the appellant, we are satisfied on the material produced before us and on perusal of the counter affidavit of the Government that, there were good reasons for passing the impugned order. We must, however, impress upon the Government that while disposing of applications under Sections 21, 22 and 23 of the Monopolies and Restrictive Trade Practices Act, 1969 it must give good reasons in support of its order and not merely state its bald conclusion. The faith of the people in administrative tribunals can be sustained only if the tribunals act fairly and dispose of the matters before them by well considered orders. The relevant material must be made available to be objectors because with out it, they cannot possibly must the claim or contentions of the applicants under Sections 21, 22 and 23 of the MRTP Act. The refusal of the Government to furnish such material to the objectors can amount to a denial of a reasonable opportunity to the objectors to meet the applicant's case. And denial of a reasonable opportunity to meet the other man's case is denial of natural justice.

On the question of the need to give reasons in support of the conclusions to which the Government has come, the authorities concerned may, with profit, see the Judgments of this Court in Union of India v. Mohan Lal Capoor & Ors., Siemens Engineering & Manufacturing Co. of India Limited v. Union of India & Ans. and Uma Charan v. State of Madhya Pradesh & Anr.

With these observations we dismiss the special leave petition and the appeal.

H.L.C. Petition dismissed. 817

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