AIR 1981 SUPREME COURT 818 ::1981 (1) SCC 664 ::(1981) 51 ComCas 210 ::51 Com Cas 210 ::(1981) 58 FJR 190 ::58 FJR 190 ::(1981) 2 SCR 533 (SC) ::1981 2 SCR 533

Supreme Court Of India

(From : Delhi)*

Hon'ble Judge(s): R. S. Sarkaria, D. A. Desai, O. Chinnappa Reddy , JJJ

Industries (Development and Regulation) Act (65 of 1951) , S.18AA, S.18F— Taking over of undertaking without investigation - Hearing at pre-decisional stage must be given Rule of audi alteram partem not excluded. - Audi alteram partem rule. Decision dated 5-1-1979 (Delhi), Reversed. Constitution of India , Art.226— General Clauses Act (10 of 1897) , S.21— (Per Majority, O. Chinnappa Reddy, J. Contra.) Section 18-AA does not expressly in unmistakable and unequivocal terms exclude the application of the audi alteram partem rule at the pre-decisional stage. The phrase "that immediate action is necessary" in Section 18-AA (a) does not exclude absolutely, by inevitable implication, the application of this cardinal canon of fair play in all cases where S. 18-AA (1) (a) may be invoked. Section 18-F has also not the effect of excluding the rules of natural justice relating to prior hearing. Decision dated 5-1-1979 (Delhi), Reversed.(Para 65 91) The expression "immediate action" in the phrase is to be construed in the light of the marginal heading of the section, its context and the Objects and Reasons for enacting this provision. Thus construed, this expression only means "without prior investigation" under Section 15. Dispensing with the requirement of such prior investigation does no....