The rule of natural justice has evolved with the growth of civilization.

Natural justice is the

concept of common law which implies fairness, reasonableness, equality and equity. In India,
the principles of natural justice are the grounds of Article 14 and 21 of the Constitution.
Article 14 enshrines that every person should be treated equally. Article 21 in its judgment
of Maneka Gandhi vs. The Union of India[1], it has been held that the law and procedure
must be of a fair, just and reasonable kind. The principle of natural justice comes into force
when no prejudice is caused to anyone in any administrative action. The principle of Audi
Alteram Partem is the basic concept of the principle of natural justice. This doctrine states the
no one shall be condemned unheard. This ensures a fair hearing and fair justice to both the
parties. Under this doctrine, both the parties have the right to speak. No decision can be
declared without hearing both the parties. The aim of this principle is to give an opportunity
to both the parties to defend themselves. Rules of "natural justice" are not embodied
rules. The phrase "natural justice" is also not capable of a comprehensive definition. In
Swadeshi Cotton Mills Vs. Union of India, R.S. Sarkaria, J., speaking for the majority in a
three-Judge Bench, lucidly explained the meaning and scope of the concept of "natural
justice". Referring to several decisions, his Lordship observed thus "Rules of natural justice
are not embodied rules. Being means to an end and not an end in themselves, it is not possible
to make an exhaustive catalogue of such rules. Audi alteram partem is only to check the
arbitrary exercise of power. The principle implies a duty to act fairly.

In Canara Bank Vs. V.K. Awasthy , the Court said : "Concept of natural justice has
undergone a great deal of change in recent years. Rules of natural justice are not rules
embodied always expressly in a statute or in rules framed thereunder. They may be implied
from the nature of the duty to be performed under a statute. What particular rule of natural
justice should be implied and what its context should be in a given case must depend to a
great extent on the fact and circumstances of that case, the frame- work of the statute under
which the enquiry is held. The old distinction between a judicial act and an administrative act
has withered away. Even an administrative order which involves civil consequences must be
consistent with the rules of natural justice. Expression 'civil consequences' encompasses
infraction of not merely property or personal rights but of civil 'liberties, material
deprivations, and non- pecuniary damages. In its wide umbrella comes everything that affects
a citizen in his civil life."

It is a fundamental rule of law that no decision must be taken which will affect the right of
any person without first being informed of the case and be given him/ her an opportunity of
putting forward his/her case. An order involving civil consequences must be made
consistently with the rules of natural justice. In Mohinder Singh Gill & Anr. v. The Chief
Election Commissioner & Ors., the Constitution Bench held that 'civil consequence' covers
infraction of not merely property or personal right but of civil liberties, material deprivations
and non- pecuniary damages. In its comprehensive connotation everything that affects a
citizen in his civil life inflicts a civil consequence. In State of Orissa v. Dr. (Miss) Binapani
Dei & Ors., the court held that even an administrative order which involves civil
consequences must be made consistently with the rules of natural justice. The person
concerned must be informed of the case, the evidence in support thereof supplied and must be
given a fair opportunity to meet the case before an adverse decision is taken. Since no such
opportunity was given it was held that superannuation was in violation of principles of
natural justice.

In Maneka Gandhi v. Union of India,. another bench of seven judges held that the
substantive and procedural laws and action taken under them will have to pass the test under
Art, 14. The test of reason and justice cannot be abstract. They cannot be divorced from the
needs of the nation. The tests have to be pragmatic otherwise they would cease to the
reasonable. The procedure prescribed must be just, fair and reasonable even though there is
no specific provision in a statute or rules made thereunder for showing cause against action
proposed to be taken against an individual, which affects the right of that individual. The duty
to give reasonable opportunity to be heard will be implied from the nature of the function to
be performed by the authority which has the power to take punitive or damaging action. Even
executive authorities which take administrative action involving any deprivation of or
restriction on inherent fundamental rights of citizens, must take care to see that justice is not
only done but manifestly appears to be done. They have a duty to proceed in a way which is
free from even the appearance of arbitrariness, unreasonableness or unfairness. They have to
act in a manner which is patently impartial and meets the requirements of natural justice.

In Escorts Farms Ltd. (Previously known as M/s. Escorts Farms (Ramgarh) Ltd.) v.
Commissioner, Kumaon Division, Nainital, U.P. & Ors., this Court, while reiterating the
position that rules of natural justice are to be followed for doing substantial justice, held
that, at the same time, it would be of no use if it amounts to completing a mere ritual of
hearing without possibility of any change in the decision of the case on merits.
In Automotive Tyre Manufacturers Assn. v. Designated Authority, the Hon'ble Supreme
Court held as follows: -

''It is thus, well settled that unless a statutory provision, either specifically or by necessary
implication excludes the application of principles of natural justice, because in that event the
court would not ignore the legislative mandate, the requirement of giving reasonable
opportunity of being heard before an order is made, is generally read into the
provisions of a statute, particularly when the order has adverse civil consequences
which obviously cover infraction of property, personal rights and material deprivations
for the party affected. The principle holds good irrespective of whether the power conferred
on a statutory body or Tribunal is administrative or quasi-judicial. It is equally trite that the
concept of natural justice can neither be put in a straitjacket nor is it a general rule of
universal application.''

 In Mahabir Prasad Santosh Kumar v. State of U.P., while dealing with the U.P. Sugar
Dealers' Licensing Order under which the licence was cancelled, this Court held that such an
order of cancellation is quasi-judicial and must be a speaking one. This Court further held
that merely giving an opportunity of hearing is not enough and further pointed out
where the order is subject to appeal, the necessity to record reason is even greater. The
learned Judges held that the recording of reasons in support of a decision on a disputed claim
ensures that the decision is not a result of caprice, whim or fancy but was arrived at after
considering the relevant law and that the decision was just.