Rdc Concrete INDIA LTD And Anr vs. Union Of INDIA Thr Secretary And Ors

Held

The Court held that the Respondents' contention that they were not obligated to inform the Petitioners about the transfer of show cause notices to the call book prior to 2017 was incorrect. The Court found that even in the absence of a specific circular, the principles of natural justice mandated that the Petitioners be informed about the reason for the delay in adjudication, which was the transfer to the call book. The Court noted that the master circular of 2017 merely clarified this existing position. Therefore, the failure to intimate the Petitioners about the transfer to the call book was a violation of natural justice. The Court explicitly rejected the Respondents' argument, referencing a Coordinate Bench's decision in Raymond Ltd. v. Union of India. Consequently, following numerous cited precedents, the Court quashed and set aside the order in original dated January 31, 2024, along with its corrigendum dated February 9, 2024.

Facts

The Petitioners, RDC Concrete India Limited and another, challenged show cause notices dated May 2, 2008, and September 22, 2009, which culminated in an order in original dated January 31, 2024, with a corrigendum dated February 9, 2024. The primary issue was the significant delay of approximately 15 years in adjudicating these notices. The Respondents attributed this delay to the transfer of the show cause notices to the 'call book' due to a similar issue pending before the Supreme Court. However, it was admitted that the Petitioners were never informed of this transfer. The Petitioners argued that this lack of intimation violated principles of natural justice.

Key Issues

1. Whether the Respondents' failure to inform the Petitioners about the transfer of show cause notices to the call book, despite the adjudication delay of approximately 15 years, violates the principles of natural justice, thereby vitiating the subsequent order in original? The Petitioners contended that the prolonged delay in adjudication, coupled with the failure to inform them about the transfer of show cause notices to the call book, is unjust and violates their right to a fair hearing. They argued that even in the absence of a specific circular mandating such intimation prior to 2017, the principles of natural justice required the Respondents to inform them about the status of their notices. They relied on various High Court judgments supporting the principle that unexplained delays and lack of communication can invalidate adjudication orders. The Respondents argued that a master circular issued in 2017 mandated intimating the Petitioners about transfers to the call book, and since no such requirement existed prior to 2017, they were not obligated to inform the Petitioners. They asserted that the transfer to the call book was a valid reason for the delay.