Admin Law Notes (1) ......
Admin Law Notes (1) ......
Natural Justice
Natural justice is an expression of English common law, and involves a procedural requirement of
fairness. The principles of natural justice have great significance in the study of administrative law. It is
also known has substantial justice or fundamental justice or Universal justice or fair play in action. The
principles of natural justice are not embodied rules and are not codified. They are judge made rules and
are regarded has counterpart of the American procedural due process.
Two principles:
1. Nemo judex in causa sua- No one should be made a judge in his own cause, and the rule against bias.
2. Audi alteram partem- To hear the other party, or no one should be condemned unheard.
Nemo judex in causa sua
The first principle of impartiality translates to “no one shall be an arbitrator on his own or a cause in
which he is interested.” This idea is also known as the Doctrine of Bias, which means the authority to
which the case is assigned should be unbiased and act without favouritism. To instil trust in the system,
justice must be done and seen to be done.
Kinds of Bias: The rule against bias may be classified under Pecuniary bias, Personal bias, Bias as to
subject matter.
1. Pecuniary Bias: Pecuniary bias arises, when the adjudicator/ judge has monetary/ economic interest
in the subject matter of the dispute/ case. The judge, while deciding a case should not have any
pecuniary or economic interest. In other words, pecuniary interest in the subject matter of litigation
disqualifies a person from acting as a judge. In the case of Jeejeebhoy v. Asst. Collector, it was found
that one of the members of the bench of the court was also a member of the co-operative society for
which the disputed land had been acquired. The bench was reconstituted.
2. Personal Bias: Personal bias arises from near and dear i.e., from friendship, relationship, business,
or professional association. Such relationship disqualifies a person from acting as a judge. Relevant
case on this point is A.K. Kraipak vs. UOI, Naquishband, who was the acting Chief Conservator of
Forests, was a member of the Selection Board and was also a candidate for selection to All India cadre
of the Forest Service. Though he did not take part in the deliberations of the Board when his name
was considered and approved, the SC held that `there was a real likelihood of a bias for the mere
presence of the candidate on the Selection Board may adversely influence the judgment of the other
members'
3. Bias as to subject matter (official bias): Any interest or prejudice will disqualify a judge from
hearing the case. When the adjudicator or the judge has general interest in the subject matter in dispute
on account of his association with the administration or private body, he will be disqualified on the
ground of bias if he has intimately identified himself with the issues in dispute. To disqualify on the
ground there must be intimate and direct connection between the adjudicator and the issues in dispute.
Now the question is, whether this principle can be extended to administrative adjudication also. If so,
no decision will be free from bias. In the case of Gullampally Nageswara Rao v. A. P.S.R.T.C, the
government proposed nationalization of motor transport. Objections for nationalization were referred
to be heard by the secretary to the Government, who upheld the validity of the scheme (for
nationalization). It was challenged on the ground that the said secretary in fact, initiated the
nationalization.
Audi alteram partem
The second natural justice principle translates “to listen to the other side.” This principle is required for
a fair hearing, and the rule against partiality would undoubtedly be part of the procedure. According to
this principle, reasonable opportunity must be given to a person before taking any action against him.
This rule insists that the affected person must be given an opportunity to produce evidence in support of
his case. He should be disclosed the evidence to be utilized against him and should be given an
opportunity to rebut the evidence produced by the other party.
1. Notice: There is a duty on the part of the deciding authority to give notice to a person before taking
any action against him. The notice must be reasonable and must contain the time, place, nature of
hearing and other particulars. If the notice is defective or vague, all subsequent proceedings would be
vitiated. The principle of natural justice must be observed irrespective of the reason, whether the
purpose would be served or not. The case of Maneka Gandhi v. Union of India is a leading case in
personal liberty under Article 21 of Indian Constitution. The petitioner, Maneka Gandhi's passport
was impounded without giving any opportunity (by the government of India) in public interest.
2. Hearing: Fair hearing in its full sense means that a person against whom an order to his prejudice is
passed should be informed of the charges against him, be given an opportunity to submit his
explanation thereto, have a right to know the evidence both oral and documentary, by which the matter
is proposed to be decided and to have the witnesses examined in his presence and have the right to
cross examine them and to lead his own evidence both oral and documentary in his defence. It is a
code of procedure, which has no definite content, but varies with the facts and circumstances of the
case.
Speaking Orders or Reasoned Decision
The third component of natural justice necessitates verbal orders or rational decisions. Giving
explanations for a decision is now universally recognised as one of the basics of effective governance
and protection against arbitrariness. The refusal to provide reasons may raise the possibility that there
are no good reasons to support the decision. As a result, reasons are useful because they can reveal a
legal error, provide grounds for an appeal, or simply remove a lingering sense of injustice on the part of
the unsuccessful party.
Tribunals
The term ‘tribunal’ is used in a significant sense and refers to only the adjudicatory bodies which lie
outside the sphere of the ordinary judicial system. Technically in India, the judicial powers are vested in
the Courts which aims to safeguard the rights of the individuals and promotes justice. Therefore, to
institute an effective system of the judiciary with fewer complexities, the judicial powers are delegated
to the administrative authorities, thus, giving rise to administrative tribunals or administrative
adjudicatory bodies which holds quasi-judicial features.
Difference between Court and Tribunal
Courts:
1. A Court of law is a part of the traditional judicial system.
2. A Court of law is vested with general jurisdiction over all the matters.
3. It is strictly bound by all the rules of evidence and by the procedure of the Code of Civil Procedure.
4. It is presided over by an officer expert in the law.
5. The decision of the court is objective in nature primarily based on the evidence and materials
produced before the court.
6. It is bound by precedents, the principle of res judicata and the principle of natural justice.
7. It can decide the validity of legislation.
8. The courts do not follow investigatory or inquisition functions rather it decides the case on the basis
of evidence.
Administrative Tribunals:
1. The administrative tribunal is an agency created by a statue endowed with judicial powers.
2. It deals with service matters and is vested with limited jurisdiction to decide a particular issue.
3. It is not bound by the rules of the Evidence Act and the CPC unless the statute which creates the
tribunal imposes such an obligation.
4. It is not mandatory in every case that the members need to be trained and experts in law.
5. The decision is subjective i.e., at times it may decide the matters taking into account the policy and
expediency.
6. It is not obligatory to follow precedents and principle of res judicata but the principle of natural justice
must be followed.
7. It cannot decide the validity of legislation.
8. Many tribunals perform investigatory functions as well along with its quasi-judicial functions.
Need of the tribunal
1. Judicial Inadequacy: As traditional has been proved inadequate as burdened excessively and one
cannot expect a fast execution in all matters. So various tribunal provides relief to the courts by
solving disputes in effective and cost saving measures.
2. Technical Expertise: As almost all disputes requires technical know-how of the subject matter of the
suits. As tribunal are handled by the experts thus are able enough to cater to and solve such issues.
3. Enforcement: Administrative authorities has power to enforce the preventive measures such
suspension, cancellation or revocation of licenses and destruction of contaminated articles among
others. The conventional courts usually don’t enforce these solutions.
4. Flexibility of procedure – As there is no rigid procedures and evidence ordeals as in the courts in the
India so there is no fix procedure. Tribunals works on the principle of Natural Justice.
Constitutionality of the Administrative Tribunals
The growth of the administrative tribunals in India can be traced back to the 42nd Amendment of the
Indian Constitution which added Part XIV A and added Article 323A and Article 323 B to the Indian
Constitution. These articles have excluded the jurisdiction of the High Court which are available in
Article 226 and 227 of the Indian Constitution. The effect of the same does not have an effect on the
Jurisdiction of the Supreme Court present under Article 136 of the Constitution of India.
Constitutional amendment:
1. Constitutional (42nd Amendment) Act, 1976: The amendments made two major changes as far as
Tribunals are concerned. It took away the power of superintendence of High court over administrative
tribunals which they possessed under Article 227 of the constitution. After Part XIV, it inserted Part
XIV-A (Article 323-A and 323- B) by enabling Parliament to constitute administrative tribunals for
the purposes specified therein. These amendments may also provide for the exclusion of jurisdiction
of all courts except that of the Supreme court under Article 136.
2. Constitution (44th Amendment) Act, 1978: Article 227 was amended and jurisdiction of High courts
over administrative tribunal had been restored. No amendment was made in Part XVI-A as inserted
by the Constitutional (42nd Amendment) Act, 1976.
Sampath Kumar V. Union Of India (1987) 1 SCC 124:
1. In exercise of the power conferred by Article 323-A of the constitution, Parliament enacted the
Administrative Tribunals Act, 1985. Section 28 of the said Act excluded the power of judicial review
in service matters under Article 226 and 227 of the constitution. The constitutionality of the Act was
challenged before the Supreme Court in this leading case. The constitutional bench upheld the validity
of the Administrative Tribunals Act, 1985.
2. Post Sampath Kumar Position: In Sampath Kumar, the Supreme Court observed that CATs were the
real substitutes of the High Courts de jure as well as de facto in regards to the matters to be dealt with
by them and no void had been created.
L. Chandra Kumar V. Union of India (1997) 3 SCC 261:
After considering various decisions on the point, the larger bench held that the power of judicial review
is the basic and essential feature of the constitution. Parliament is empowered to amend the constitution,
but that power cannot be exercised to damage the essential feature of the constitution. It was held that,
Section 28 of the Administrative Tribunals Act, 1985 and clause 2(d) of Article 323-A and clause 3(d)
of Article 323-B was ultra vires as amended by the 42nd amendment Act, 1976.
Evolution of Tribunals
1. S. P. Sampath Kumar Etc. versus Union of India and Ors., 1986: It is constitutionally valid for
Parliament to create an alternate institution to High Courts with jurisdiction over certain matters
provided that the alternate body has same efficacy as that of the High Court. Such tribunals will be
considered substitutes of the High Courts. Appointments should be made either: (i) by the central
government after consultation with the Chief Justice of India, or (ii) by a high-powered selection
committee headed by Chief Justice of India or a current Supreme Court Judge or current Judge from
the concerned High Court.
2. L. Chandra Kumar versus Union of India and Ors, 1997: A tribunal which substitutes High Courts as
an alternative institutional mechanism for judicial review (to lessen the burden on High Courts) must
have the status of High Courts. Such tribunals will act as courts of first instance in respect of areas of
law for which they have been constituted. However, decisions of these tribunals will be subject to
scrutiny by a division bench of the High Court within whose jurisdiction the concerned tribunal falls.
For a tribunal substituting a High Court, any weightage in favour of non-judicial members would
render the tribunal less effective and potent than the High Court. Only persons with judicial
experience should be appointed to tribunals. To ensure uniformity in administration, a separate
independent mechanism should be set up to manage the appointment and administration of tribunals.
Until such an independent agency is set up, all tribunals should be under the administration of a single
nodal Ministry (such as the Ministry of Law)
3. R. Gandhi versus Union of India & Anr, 2010: Parliament may create alternate mechanism to High
Courts on subject matters in the Union List. There is no need of a technical member if jurisdiction of
courts is transferred to the tribunals solely to achieve expeditious disposal of matters. In any bench,
technical members must not outnumber judicial members. Only Secretary level officers with
specialised knowledge and skills should be appointed as technical members.
4. Madras Bar Association versus Union of India & Anr, 2014: Group A or equivalent rank officers with
experience in the Indian Company Law Service (Legal Branch) and the Indian Legal Service (Grade
I) cannot be considered for appointment as judicial members. Such officers may be for considered for
appointment as technical members. Administrative support for all tribunals should come the Ministry
of Law and Justice. Neither the tribunals nor their members must seek or be provided with facilities
from the respective parent Ministry or concerned Department.
5. Rojer Mathew versus South Indian Bank Limited & ors, 2019: Judicial functions cannot be performed
by technical members. Provisions to allow removal of judges by the Executive is unconstitutional.
There should be a uniform age of retirement for all members of all the tribunals. Short tenures lead
to control of executives over tribunals causing adverse effects on the independence of judiciary. The
impact of amalgamation of tribunals should be analysed with judicial impact assessment.
6. Madras Bar Association versus Union of India, 2020: National Tribunals Commission should be set
up to supervise appointments, as well as functioning and administration of tribunals. Members will
have a term of five years instead of four years. Members will be allowed to hold office till they reach
67 years of age (instead of 65).
7. Madras Bar Association versus Union of India, 2021: The Court struck down provisions related to
the four-year tenure and minimum age requirement of 50 years for members.