In a judgment that would send a strong message to the bureaucracy, the Madras High Court has said an order of a quasi-judicial or an administrative authority affecting the rights of the parties should record the reasons.
Recording of reasons operated as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. It reassured that discretion was exercised by the decision-maker on relevant grounds and by disregarding extraneous considerations, the court said. The authority should adduce reasons that would be regarded as fair and legitimate by a reasonable man.
Justice S. Vaidyanathan made the observation while setting aside an order of July 24, 2012 of the Assistant Commissioner of Customs (Gr-2), Chennai, denying permission for a company in Mumbai to re-export 400 kg of progesterone (a hormone) to Hong Kong.
B. Khokhani & Co. had imported the material. In May 2009, the drugs authorities said the documents submitted by the petitioner were forged. Thus, the material imported was not from a registered source and it was ‘spurious.’ The CBI filed a charge sheet in the case. The petitioner sought permission for re-export. By the proceedings of July 2012, the Customs authorities denied permission. Hence, the present writ petition to quash the order and permit re-export of the consignment.
Counsel submitted that the impugned order in two lines did not give sufficient reasons for rejecting permission. This was arbitrary. There was no need to detain the entire material for marking it during trial. A sample may be retained. The consignment may be permitted for re-export.
Allowing the petition, Justice Vaidyanathan said no reason had been assigned in the impugned order to enable the petitioner to workout his further remedy, if any, or at least to know why the decision was against him.
The authorities could not be permitted to support their decision based on the statements in the counter affidavit. Citing Supreme Court’s dictum, he said the order passed without reasons could not be sustained. The court permitted re-export subject to various conditions to be complied with by the petitioner.
