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Supreme Court of India

KRISHNADATT AWASTHYversusSTATE OF M.P. & ORS.

Citation
2025 INSC 126
Decided
29 January 2025
Disposal
Appeal(s) allowed

Holding

The selection was not vitiated by bias, but the ex‑parte cancellation violated the principle of audi alteram partem and such a procedural defect cannot be cured on appeal, leading to the appeals being allowed.

Summary

The case concerned the 1998 appointment of ten individuals as Shiksha Karmi Grade III teachers in Janpad Panchayat, Gaurihar, where the selection was challenged on grounds of alleged bias because some selection committee members were relatives of the appointees and for the lack of a hearing. The Collector set aside the appointments ex‑parte, citing the Panchayat Raj Act, and the decision was upheld by the Commissioner, but the appointees appealed. A split decision in the Supreme Court arose: one judge held the selection was vitiated by bias, the other held that the breach of audi alteram partem rendered the decision invalid. The larger bench examined the rule against bias, the necessity of a hearing, and whether a procedural defect could be cured on appeal. It concluded that the recusal of relatives eliminated any reasonable likelihood of bias, but the failure to give notice and a hearing violated the principle of audi alteram partem, a defect that cannot be cured at the revisional stage. Consequently, the Court set aside the Division Bench judgment, upheld the Collector’s ex‑parte cancellation as invalid, but declined to order a fresh inquiry due to the passage of time, allowing the appointees to retain their positions. The appeals were allowed.

Issues considered

  • Whether the selection was vitiated by violation of the rule against bias (nemo judex in causa sua).
  • Whether there was a breach of the principle of audi alteram partem and whether demonstration of prejudice is required to establish such a breach.
  • Whether a breach of audi alteram partem at the initial stage can be cured at the revisional or appellate stage.

Legislation cited

Headnote

Issue for Consideration Whether the selection is vitiated for violation of the first limb of natural justice i.e. rule against bias; whether it is a case of violation of the principle of audi alteram partem and is demonstration of prejudice necessary to succeed with a claim of violation of alteram partem; whether the breach of the principle of audi alteram partem at the original stage can be cured, at the revisional stage. Headnotes† Panchayat Raj Act Avam Gram Swaraj Adhiniyam, 1993 – Principle of natural justice – Rule against bias (nemo judex in causa sua)

Subjects

Audi alteram partemRule against biasAllegation of bias/mere suspicion of biasPrinciples of natural justiceNemo judex in causa suaSelectionAppointmentSchool teachersShiksha karmi(s)Selection committeeRelatives of the candidatesFamily membersSelection not vitiatedInterference with selectionsProcedural improprietyRule of fair hearingRecuseRecusalResolution for recusalDoctrine of necessityJudicial review of administrative actionsCollectorIneffective hearingNotice not issuedWithout issuing notice to the selecteesAbsence of opportunity of hearingViolation of right of hearingPrejudiceFull jurisdiction

Judgment

                  [2025] 1 S.C.R. 1173 : 2025 INSC 126

                             Krishnadatt Awasthy
                                       v.
                              State of M.P. & Ors.
                       (Civil Appeal No(s). 4806 of 2011)
                                  29 January 2025
[Hrishikesh Roy,* Sudhanshu Dhulia and S.V.N. Bhatti, JJ.]


                              Issue for Consideration
       Whether the selection is vitiated for violation of the first limb of natural
       justice i.e. rule against bias; whether it is a case of violation of the
       principle of audi alteram partem and is demonstration of prejudice
       necessary to succeed with a claim of violation of the principle of audi
       alteram partem; whether the breach of the principle of audi alteram
       partem at the original stage can be cured, at the revisional stage.

                                     Headnotes†
       Panchayat Raj Act Avam Gram Swaraj Adhiniyam, 1993 –
       Principle of natural justice – Rule against bias (nemo judex
       in causa sua) – Challenge was made to the validity of
       appointments of the appellants as school teachers (Shiksha
       Karmi Grade III) alleging that the selection process was vitiated
       by bias as some of the members of selection committee were
       close relatives of the appellants – Split verdict by two judge
       bench of Supreme Court, wherein one of the Judge held that
       selection of appellants was erroneously set aside, in breach
       of principle of audi alteram partem whereas, the other upheld
       the cancellation of the appointment of appellants and held
       that the first limb of natural justice i.e. ‘rule against bias’ was
       proved, as reasonable likelihood of bias was established –
       Matter before the larger bench:
       Held: Present is a case of allegation of bias/mere suspicion of
       bias without any foundation – The Janpad Panchayat unanimously
       passed a resolution mandating that members who had close
       relatives among the candidates would recuse themselves from the
       interview process – As a matter of fact, the concerned members
       had recused and did not participate in the interview and did not
       award any marks, thus, a reasonable likelihood of bias cannot
       reasonably be inferred – Selection is not vitiated on account of

* Author
1174                                                         [2025] 1 S.C.R.

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    violation of the nemo judex rule – Madhya Pradesh Panchayat
    (Appeal and Revision) Rules, 1995. [Paras 29, 30, 35, 37]

    Principle of natural justice – Audi alteram partem – Violation of –
    Appointment of the appellants was set aside by the Collector,
    without issuing any notice, holding that the recruitment was
    vitiated by bias as some of the members of selection committee
    were close relatives of the appellants – Whether it is a case
    of violation of the principle of audi alteram partem and is
    demonstration of prejudice necessary to succeed with a claim
    of violation of the principle of audi alteram partem:
    Held: In the present case, there has been a gross violation of
    the principle of audi alteram partem – In the absence of notice,
    the breach strikes at the fundamental core of procedural fairness,
    rendering the decision invalid – The selectees were not arrayed
    and they could not contest the selection before the Collector – The
    absence of opportunity of hearing at the initial stage prevented the
    selectees to show that no relative had influenced their selection –
    The vitiation of selection was not only a breach of the principles of
    natural justice but also contrary to the express statutory provision
    that required for an opportunity to show cause and an opportunity to
    provide self-defence – The prejudice theory must be understood as
    an exception to the general rule and cannot be the norm – Panchayat
    Raj Act Avam Gram Swaraj Adhiniyam, 1993. [Paras 29, 35, 54]

    Principle of natural justice – Denial of, at the initial stage
    if, can be cured by an appellate body – Appointment of the
    appellants was set aside by the Collector without issuing any
    notice – Revision petition filed by the appellants, dismissed –
    Challenged before High Court, writ petition also rejected – Writ
    appeal thereagainst was also dismissed – Eventually, split
    verdict delivered by the bench of two judges of Supreme
    Court – Matter before the larger bench:
    Held: A defect at the initial stage cannot generally be cured at
    the appellate stage – Even in cases where a ‘full jurisdiction’ may
    be available at the appellate stage, the Courts must have the
    discretion to relegate it to the original stage for an opportunity of
    hearing – Therefore, in the present case, the ex-parte decision to
    set aside the selection of the appellants was vitiated – However,
    since the selection pertains to the year 1998, and the appellants
    have continuously held office and performed their duties for over
    twenty-five years under interim orders, remanding the matter
    for a fresh inquiry not practical and will be an injustice to the
[2025] 1 S.C.R.                                                               1175

               Krishnadatt Awasthy v. State of M.P. & Ors.


     appointees – Panchayat Raj Act Avam Gram Swaraj Adhiniyam,
     1993. [Paras 67, 71]

     Principle of natural justice – Denial of, at the initial stage
     taints the decision-making process leading to flawed orders
     at subsequent stages – Appointment of the appellants was set
     aside by the Collector without issuing any notice – Revision
     petition filed by the appellants, dismissed – Challenged
     before High Court, writ petition also rejected – Writ appeal
     thereagainst was also dismissed – Eventually, split verdict
     delivered by the bench of two judges of Supreme Court –
     Matter before the larger bench:
     Held: The orders of the Collector and Commissioner in Revision
     are practically identical – An ineffective hearing at the initial stage
     tainted the entire decision-making process leading to flawed
     orders at subsequent stages – Providing a hearing to the affected
     individual, minimizes the risk of administrative authorities making
     decisions in ignorance of facts or other relevant circumstances
     allowing all pertinent issues to be brought to light – This process not
     only aids the administration in arriving at correct decisions but also
     enables courts to more effectively review such actions – Panchayat
     Raj Act Avam Gram Swaraj Adhiniyam, 1993 – Madhya Pradesh
     Panchayat (Appeal and Revision) Rules, 1995 – r.5(b). [Para 66]
     Principle of natural justice – Right to a fair hearing (audi
     alteram partem) – Object of – For an allegation of bias to be
     proved, fair hearing is imperative. [Paras 68, 69]
     Doctrine of necessity – Applicability – Assumption of
     impartiality to be contextual for the application of the doctrine
     of necessity – Discussed. [Para 30]
     Judicial review of administrative actions, discussed –
     Selections made by expert bodies – Scope of interference
     with, under writ jurisdiction. [Paras 14, 15]

                               Case Law Cited
     State Bank of Patiala v. SK Sharma [1996] 3 SCR 972 : (1996)
     3 SCC 364; AK Kraipak v. Union of India [1970] 1 SCR 457 :
     (1969) 2 SCC 262; Mohinder Singh Gill v. Chief Election Commr
     [1978] 2 SCR 272 : (1978) 1 SCC 405; Swadeshi Cotton Mills v.
     Union of India [1981] 2 SCR 533 : (1981) 1 SCC 664; Maneka
     Gandhi v. Union of India [1978] 2 SCR 621 : (1978) 1 SCC 248;
     SL Kapoor v. Jagmohan [1981] 1 SCR 746 : (1980) 4 SCC 379;
1176                                                      [2025] 1 S.C.R.

                       Supreme Court Reports


    Dharampal Satyapal Ltd. v. Dy. Comm. of Central Excise, Gauhati
    and Ors. [2015] 6 SCR 437 : (2015) 8 SCC 519; State of UP v.
    Sudhir Kumar Singh [2020] 13 SCR 571 : (2021) 19 SCC 706;
    Madhyamam Broadcasting Ltd. v. Union of India [2023] 10 SCR
    595 : (2023) 13 SCC 401; Institute of Chartered Accountants v. L.
    K. Ratna [1986] 3 SCR 1049 : (1986) 4 SCC 537; State of U.P. v.
    Mohammed Nooh 1958 SCR 595; Mysore State Road Transport
    Corporation v. Mirja Khasim [1977] 2 SCR 282 : (1977) 2 SCC
    457; Charan Lal Sahu v. Union of India [1989] Supp. 2 SCR 597 :
    (1990) 1 SCC 613; J. Mohapatra & Co. v. State of Orissa [1985]
    1 SCR 322 : (1984) 4 SCC 103; Ashok Kumar Yadav v. State
    of Haryana [1985] Supp. 1 SCR 657 : (1985) 4 SCC 417; Kirti
    Deshmankar v. Union of India [1990] Supp. 1 SCR 355 : (1991)
    1 SCC 104; Gurdip Singh v. State of Punjab (1997) 10 SCC 641;
    Utkal University v. Nrusingha Charan Sarangi [1999] 1 SCR 19 :
    (1999) 2 SCC 193; Govt. of T.N. v. Munuswamy Mudaliar [1988]
    Supp. 2 SCR 673 : (1988) Supp. SCC 651 : AIR 1988 SC 2232;
    Bihar State Mineral Development Corporation v. Encon Builders
    (I) (P) Ltd. [2003] Supp. 2 SCR 812 : (2003) 7 SCC 418; State of
    A.P. v. McDowell & Company [1996] 3 SCR 721 : (1996) 3 SCC
    709; Tata Cellular v. Union of India [1994] Supp. 2 SCR 122 :
    (1994) 6 SCC 651; Mohd. Mustafa v. Union of India [2021] 11
    SCR 163 : (2022) 1 SCC 294; Dalpat Abasaheb Solunke v. B.S.
    Mahajan (1990) 1 SCC 305; Badrinath v. State of T.N. [2000] Supp.
    3 SCR 573 : (2000) 8 SCC 395; National Institute of Mental Health
    & Neuro Sciences v. K. Kalyana Raman (1992) Supp. 2 SCC
    481; I.P.S. Dewan v. Union of India [1995] 2 SCR 532 : (1995) 3
    SCC 383; UPSC v. Hiranyalal Dev [1988] 3 SCR 302 : (1988) 2
    SCC 242; M.V. Thimmaiah v. UPSC [2007] 13 SCR 624 : (2008)
    2 SCC 119; UPSC v. M. Sathiya Priya [2018] 6 SCR 701 : (2018)
    15 SCC 796; Om Kumar v. Union of India [2000] Supp. 4 SCR
    693 : (2001) 2 SCC 386 : 2001 SCC (L&S) 1039; Union of India v.
    G. Ganayutham [1997] Supp. 3 SCR 549 : (1997) 7 SCC 463 :
    1997 SCC (L&S) 1806; S.N. Mukherjee v. Union of India [1990]
    Supp. 1 SCR 44 : (1990) 4 SCC 594; Siemens Engg. & Mfg. Co.
    of India Ltd. v. Union of India [1976] Supp. 1 SCR 489 : (1976)
    2 SCC 981; CCI v. SAIL [2010] 11 SCR 112 : (2010) 10 SCC
    744; Kranti Associates (P) Ltd. v. Masood Ahmed Khan [2010]
    10 SCR 1070 : (2010) 9 SCC 496; Railway Electrification v. ECI
    SPIC SMO MCML (JV) A Joint Venture Co., 2024 SCC OnLine SC
    3219; Manak Lal v. Dr. Prem Chand Singhvi [1957] 1 SCR 575 :
    1957 SCC OnLine SC 10; Ranjit Thakur v. Union of India [1988]
[2025] 1 S.C.R.                                                           1177

               Krishnadatt Awasthy v. State of M.P. & Ors.


     1 SCR 512 : (1987) 4 SCC 611; Rattan Lal Sharma v. Managing
     Committee, Dr. Hari Ram (Co-Education) Higher Secondary School
     [1993] 3 SCR 863 : (1993) 4 SCC 10; S Parthasarathi v. State
     of AP [1974] 1 SCR 697 : (1974) 3 SCC 459; SK Golap and
     Others v. Bhuban Chandra Panda, 1990 SCC OnLine Cal 264;
     GN Nayak v Goa University [2002] 1 SCR 636 : (2002) 2 SCC
     712; Union of India v. Tulsiram Patel [1985] Supp. 2 SCR 131 :
     (1985) 3 SCC 398; Charanjit Singh v. Harinder Sharma (2002) 9
     SCC 732; Javid Rasool Bhat v. State of Jammu & Kashmir (1984) 2
     SCC 682; Jaswant Singh Nerwal v. State of Punjab [1991] 1 SCR
     411 : (1991) Supp. 1 SCC 313; State Govt. Houseless Harijan
     Employees Association v. State of Karnataka [2000] Supp. 5
     SCR 483 : (2001) 1 SCC 610; East India Commercial Co. Ltd. v.
     Collector of Customs [1963] 3 SCR 338 : AIR 1962 SC 1893;
     Uma Nath Pandey and Ors. v. State of UP [2009] 4 SCR 374 :
     (2009) 12 SCC 40; Fareed Ahmed v. Ahmedabad Municipality
     [1977] 1 SCR 71 : AIR 1976 SC 2095; Shri Mandir Sita Ramji v.
     Government of Delhi [1975] 1 SCR 597 : (1975) 4 SCC 298;
     Mysore SRT Corp v. Mirza Khasim [1977] 2 SCR 282 : AIR 1977
     SC 747; Jayantilal Ratanchand Shah v. Reserve Bank of India
     [1996] Supp. 4 SCR 443 : (1996) 9 SCC 650; United Planters’
     Association of Southern India v. KG Sangameswaran [1997] 2
     SCR 756 : (1997) 4 SCC 741; Olga Tellis v. Bombay Municipal
     Corporation [1985] Supp. 2 SCR 51 : (1985) 3 SCC 545; Aligarh
     Muslim University v. Mansoor Ali Khan [2000] Supp. 2 SCR 684 :
     (2000) 7 SCC 529 – referred to.
     Hira Lal Patel v. Chief Executive Officer, District Panchayat,
     Sarangarh (1998) 2 MP WN 39; Laxmidhar v. State of Orissa,
     AIR 1974 Ori 127; Kashiram Dalmia v. State, AIR 1978 Pat 265;
     G Rajalakshmi v. Appellate Authority, AIR 1980 AP 100; Serajuddin
     Co. v. State of Orissa, AIR 1974 Cal 296 – referred to.
     Council of Civil Service Unions v. Minister for Civil Service, 1985
     AC 374; Dimes v. The Proprietors of the Grand Junction Canal
     (1852) 3 HLC 759; R v. Sussex Justices ex parte McCarthy [1924]
     1 KB 256; Metropolitan Properties Co. (FGC) v. Lannon (1969) 1
     QB 577; Porter v. Magill (2002) 1 All ER 465; Ridge v. Baldwin
     [1964] AC 40; Annamunthodo v. Oilfield Workers’ Trade Union
     [1961] AC 945 (PC); Leary v. National Union of Vehicle Builders
     (1970) 2 All ER 713; Calvin v. Carr (1979) 2 WLR 755; Lloyd v.
     McMahon (1987) 1 AC 625; R v. Gough, 1993 AC 646; Australian
     Workers’ Union v. Bowen (No. 2) (1948) 77 C.L.R. 601 – referred to.
1178                                                         [2025] 1 S.C.R.

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                      Books and Periodicals Cited
    H. W. R. Wade, Administrative Law (5th Edition); H W R Wade
    and C F Forsyth, Administrative Law (Oxford University Press,
    11th ed, 2014); I.P. Massey, Administrative Law (8th Edition, 2012);
    Lawrence H. Tribe, ‘American Constitutional Law’ (The Foundation
    Press 1978) – referred to.

                               List of Acts
    Panchayat Raj Act Avam Gram Swaraj Adhiniyam, 1993; Madhya
    Pradesh Panchayat (Appeal and Revision) Rules, 1995.

                            List of Keywords
    Audi alteram partem; Rule against bias; Allegation of bias/mere
    suspicion of bias; Principles of natural justice; Nemo judex in causa
    sua; Selection; Appointment; School teachers; Shiksha karmi(s);
    Selection committee; Relatives of the candidates; Family members;
    Selection not vitiated; Interference with selections; Procedural
    impropriety; Rule of fair hearing; Recuse; Recusal; Resolution for
    recusal; Doctrine of necessity; Judicial review of administrative
    actions; Collector; Ineffective hearing; Notice not issued; Without
    issuing notice to the selectees; Absence of opportunity of hearing;
    Violation of right of hearing; Prejudice; Full jurisdiction.

                           Case Arising From
    CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4806 of 2011
    From the Judgment and Order dated 15.12.2008 of the High Court
    of M.P at Jabalpur in WA No. 892 of 2008
    With
    Civil Appeal Nos. 4807, 4808 and 4809 of 2011

                        Appearances for Parties
    Advs. for the Appellant:
    Vivek Tankha, Sr. Adv., Neeraj Shekhar, Mrs. Kshama Sharma,
    Ramendra Vikram Singh, Divyam Sikka, Amrendra Singh, Ram
    Bachan Choudhary, Rajesh Maurya Singh, Rajesh Maurya.
    Advs. for the Respondents:
    Ms. Mrinal Gopal Elker, Saurabh Singh, Shiv Vinayak Gupta,
    Ms. Shruti Verma, Avdhesh Kumar Singh, Sanjay Kumar Visen,
    Parth Sarathi, Gyanendra Vikram Singh, Ms. Soumya Gulati.
[2025] 1 S.C.R.                                                        1179

               Krishnadatt Awasthy v. State of M.P. & Ors.


                Judgment / Order of the Supreme Court

                                Judgment

     Hrishikesh Roy, J.

1.   Heard Mr. Vivek Tankha, learned Senior Counsel appearing for the
     appellant. The respondents are represented by Ms. Mrinal Gopal Elker,
     learned counsel and Mr. Avdhesh Kumar Singh, learned counsel.
2.   This matter is posted before this larger Bench on account of the
     split verdict rendered on 4.4.2024 by the two learned Judges of
     this Court. The case pertains to the validity of appointments made
     for the post of school teachers (Shiksha Karmi Grade III) in Janpad
     Panchayat, Gaurihar in the year 1998. Four Civil Appeals were filed
     before this Court by ten persons, who are alleged to be the relatives
     of the members of the selection committee and were placed in the
     final select list of 249 Shiksha Karmis.
3.   While Justice JK Maheshwari upheld the finding to set aside the
     selection of Shiksha Karmis on account of the violation of the first
     limb of the principle of natural justice i.e. rule against bias, Justice
     KV Vishwanathan has however upheld the selection, citing inter alia,
     a breach of the right to a fair hearing. Therefore, in this case, we are
     confronted with a conflict between the two foundational principles of
     natural justice i.e. rule against bias (nemo judex in causa sua) and
     the right to a fair hearing (audi alteram partem).

                           I.    RELEVANT FACTS
4.   Initially, one Kunwar Vijay Bahadur Singh Bundela challenged the
     preparation of the select list by filing an appeal before the Collector,
     District Chhatarpur, who quashed the select list, vide order dated
     31.8.1998 and remitted the matter for fresh consideration. Thereafter,
     a fresh select list consisting of 249 candidates including the names
     of appellants (and four others) was published on 16.9.1998 and
     the appointment order was issued on 17.9.1998. The selection and
     appointment of the appellants was challenged by an unsuccessful
     candidate- Archana Mishra (Respondent No. 4 herein), before the
     Collector, District Chatarpur, Madhya Pradesh, under Section 3 of
     Madhya Pradesh Panchayat (Appeal and Revision) Rules, 1995(for
     short “Appeal and Revision Rules,1995) alleging that elements
     of nepotism, corruption and bias have seeped into the selection
1180                                                         [2025] 1 S.C.R.

                           Supreme Court Reports


      process because of the composition of the selection committee. The
      Collector, accepting the challenger’s contention vide order dated
      02.06.1999, set aside the appellants’ appointment by concluding that
      the recruitment was vitiated on account of bias and nepotism. The
      Collector found fault with the composition of the selection committee,
      some of whom were the family members of the appellants herein
      and opined that the award of marks in the selection, was improper.
      Relying on Section 40(c) and Section 100 of Panchayat Raj Act
      Avam Gram Swaraj Adhiniyam, 1993 (for short “Adhiniyam, 1993),
      it was noted that office bearers cannot facilitate financial gains to
      relatives. The Collector further noted that:
             ‘…it is proved that the appointment of these relatives could
             not be deemed to be according to the prescribed procedure
             and the scheme and therefore, it is not necessary to call
             them up’.
5.    Relying on the MP High Court’s judgment in Hira Lal Patel v Chief
      Executive Officer, District Panchayat, Sarangarh1, the Collector
      without issuing notice to the selectees observed that if the appointment
      is not made as per the scheme, it can be terminated without giving
      any opportunity of hearing.
6.    Aggrieved by the above interference with the selection, the appellants
      filed a Revision petition before the Commissioner, Revenue, Sagar
      Division under section 5 of the Appeal and Revision Rules,1995. The
      selectees contended therein that without arraying them and without
      affording them any hearing, the Collector could not have interfered
      with the selection and this would be in violation of the principles of
      natural justice. The Revision Petition was however dismissed by
      the Commissioner vide order dated 14.3.2000. In the said order the
      Commissioner observed in para (6) that the selection is contrary
      to Section 40(C) of the Adhiniyam, 1993. The Revisional Authority
      brushed aside the plea of non-joinder and of not affording opportunity
      of hearing, by relying on the admission of the relationship of the
      appellants with the members of the selection committee, as noted
      in the reply filed by the Chief Executive Officer. Aggrieved by the
      order of the Commissioner, the appointees filed a writ petition under
      Article 226 of the Constitution of India before the Madhya Pradesh
      High Court which was however dismissed by the learned single judge


1    (1998) 2 MP WN 39
[2025] 1 S.C.R.                                                                                 1181

                    Krishnadatt Awasthy v. State of M.P. & Ors.


      vide order dated 31.7.2008. Relying on State Bank of Patiala v SK
      Sharma2, it was observed that the opportunity of hearing has to be
      tested on the touchstone of actual prejudice being caused to the
      writ petitioners. It was also noted that full opportunity of hearing was
      granted at the Revisional stage by the Commissioner. According to
      the learned Judge the Chief Executive officer’s reply established that
      few selectees were relatives of Smt. Pushpa Dwivedi(Chairperson
      of the selection Committee) and similarly, close relatives of Shri
      Swami Singh(member of the Education Committee) such as his
      sister-in-law, son, daughter-in-law and nephew were also among the
      selected candidates. The Single Judge relied on the five-judge bench
      decision of this Court in AK Kraipak v Union of India3(for short “AK
      Kraipak”) where it was emphasized that the presence of interested
      parties in the selection committee creates a reasonable likelihood of
      bias, even if direct participation is limited. It was therefore concluded
      that even though Smt. Pushpa Dwivedi(Chairperson) and Swami
      Singh(member) recused themselves during interviews of their alleged
      relatives, their presence on the committee could have influenced the
      overall selection process.
7.    The appellants then preferred a writ appeal which was dismissed by
      the Division bench of the High Court on 15.12.2008. The Division
      Bench noted inter alia that:
              ‘though it was imperative on the part of appellants to
              implead the affected parties, yet as the affected parties
              had been given full opportunity from all aspects by the
              revisional forum as well as by the Learned Single Judge,
              we do not think it apt and apposite to quash the order and
              remand the matter to the Collector’.
8.    Relying on decisions of this Court on bias4, the Division Bench
      observed that bias is a state of mind at work and when the degree
      of relationship is in quite proximity, bias has to be inferred.



2    (1996) 3 SCC 364
3    (1969) 2 SCC 262
4    A.K. Kraipak v Union of India (1969) 2 SCC 262; J. Mohapatra & Co. v. State of Orissa, (1984) 4 SCC
     103, Ashok Kumar Yadav v. State of Haryana, (1985) 4 SCC 417, Kirti Deshmankar v. Union of India,
     (1991) 1 SCC 104, Gurdip Singh v. State of Punjab, (1997) 10 SCC 641, Utkal University v. Nrusingha
     Charan Sarangi, (1999) 2 SCC 193, G.N. Nayak v. Goa University, (2002) 2 SCC 712, Govt. of T.N. v.
     Munuswamy Mudaliar, (1988) Supp. SCC 651 : AIR 1988 SC 2232, Bihar State Mineral Development
     Corporation v. Encon Builders (I) (P) Ltd., (2003) 7 SCC 418.
1182                                                         [2025] 1 S.C.R.

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9.   Thereafter when the matter reached the Supreme Court, Justice
     KV Vishwanathan concluded that the selection of appellants was
     erroneously set aside, in breach of the principle of audi alteram partem.
     It was further held that the principle must be adhered to at the original
     stage. Furthermore, Rule 9 of the Appeal and Revision Rules, 1995
     was not complied with. It was also observed that the orders of the
     Collector & Commissioner made no reference either to definition
     of ‘relative’ in explanation to Section 40(c) of Adhiniyam nor to the
     resolution providing for recusal. Non-impleadment of parties amounted
     to ‘no opportunity at all’ for hearing was the conclusion reached by
     Justice KV Vishwanathan.
10. On the other hand, Justice J.K. Maheshwari upheld the decision to
    cancel the appointment of the appellants and opined that the first
    limb of natural justice i.e. ‘rule against bias’ was irrefutably proved,
    as reasonable likelihood of bias was established. The plea of non-
    impleadment was considered to be a useless formality. It was further
    held that unless prejudice is demonstrated, mere non-joinder at the
    initial stage does not violate the principles of natural justice.

                              II.   SUBMISSIONS
11. The foundational contention of the appellants is that since their
    appointments were cancelled without affording them any hearing
    and without arraying them as a party in the challenge by the
    respondent no. 4(Archana Mishra), the adverse decision taken
    against the appellants, is legally unsustainable. Mr. Vivek Tankha,
    the learned Senior Counsel would argue that an incorrect narrative
    was the basis for the allegation made by the respondent No. 4,
    about unfair selection. It is specifically pointed out that none of the
    relatives of the candidates had participated during the selection
    of the appellants. More importantly, the related persons had not
    awarded any marks to influence the selection. Specifically adverting
    to the marks obtained by the challenger and the selectees, the
    appellants argue that it was a fair selection and that intervention
    was unmerited.
12. On the other hand, learned Counsel for the respondent, Mrinal Gopal
    Elker, and Avdhesh Kumar Singh, would rely on Section 40(c) of the
    Adhiniyam,1993 to project that the said section provides that ‘any
    of the office bearers shall not cause financial gain to his relatives’.
    According to them, the presence of close relatives in the selection
    process vitiated the process of selection of Shiksha Karmis. They
[2025] 1 S.C.R.                                                                                      1183

                    Krishnadatt Awasthy v. State of M.P. & Ors.


     projected that non-adherence to the principles of audi alteram partem,
     if any, was cured by the proceedings before the commissioner wherein
     appellants were given full opportunity. On that basis, it was submitted
     that the non- granting of opportunity of hearing by the Collector at
     the original stage was inconsequential. According to the respondent,
     the reasonable likelihood of bias in selection is established by the
     close relationship between the Committee members and the selected
     candidates who have been awarded high marks in comparison to
     other candidates in the interview process.

                                                 III.   ISSUES
13. Going by the above submissions, the following broad issues fall for
    our consideration:
     A.      Whether the selection is vitiated for violation of the first limb of
             natural justice i.e. rule against bias?
     B.      Where it is a case of violation of the principle of audi alteram
             partem? Is demonstration of prejudice necessary to succeed
             with a claim of violation of the principle of audi alteram partem?
     C.      Whether the breach of the principle of audi alteram partem at
             the original stage can be cured, at the Revisional stage?

                                           IV.      DISCUSSION
14. Judicial review of administrative actions are permissible on the
    grounds of illegality, unreasonableness or irrationality and procedural
    irregularity 5. Lord Diplock 6 succinctly described each of the
    aforementioned grounds for judicial review as under:
             “By “illegality” as a ground for judicial review I mean that
             the decision-maker must understand correctly the law that
             regulates his decision-making power and must give effect
             to it. Whether he has or not is par excellence a justiciable
             question to be decided, in the event of dispute, by those
             persons, the Judges, by whom the judicial power of the
             State is exercisable.



5   State of A.P. v. McDowell & Company, (1996) 3 SCC 709; Tata Cellular v. Union of India, (1994) 6 SCC
    651; and Council of Civil Service Unions v. Minister for Civil Service, 1985 AC 374 (HL); Mohd. Mustafa v.
    Union of India, (2022) 1 SCC 294.
6   Council of Civil Service Unions v. Minister for Civil Service, 1985 AC 374.
1184                                                                           [2025] 1 S.C.R.

                                Supreme Court Reports


             By “irrationality” I mean what can by now be succinctly
             referred to as “Wednesbury [Associated Provincial Picture
             Houses v. Wednesbury Corpn., (1948) 1 KB 223 (CA)]
             unreasonableness”. It applies to a decision which is so
             outrageous in its defiance of logic or of accepted moral
             standards that no sensible person who had applied his
             mind to the question to be decided could have arrived
             at it. Whether a decision falls within this category is a
             question that Judges by their training and experience
             should be well equipped to answer, or else there would
             be something badly wrong with our judicial system. To
             justify the court’s exercise of this role, resort I think is
             today no longer needed to Viscount Radcliffe’s ingenious
             explanation in Edwards v. Bairstow [Edwards v. Bairstow,
             1956 AC 14 : (1955) 3 WLR 410 (HL)] , of irrationality as
             a ground for a court’s reversal of a decision by ascribing
             it to an inferred though unidentifiable mistake of law by
             the decision-maker. “Irrationality” by now can stand on its
             own feet as an accepted ground on which a decision may
             be attacked by judicial review.
             I have described the third head as “procedural impropriety”
             rather than failure to observe basic rules of natural
             justice or failure to act with procedural fairness towards
             the person who will be affected by the decision. This
             is because susceptibility to judicial review under this
             head covers also failure by an Administrative Tribunal
             to observe procedural rules that are expressly laid down
             in the legislative instrument by which its jurisdiction is
             conferred, even where such failure does not involve
             any denial of natural justice. But the instant case is not
             concerned with the proceedings of an Administrative
             Tribunal at all.”
15. It is equally well-settled that courts under its writ jurisdiction do not
    interfere with selections made by expert bodies by reassessing the
    comparative merits of the candidates. Interference with selections
    is limited to decisions vitiated by bias, malafides and violation of
    statutory provisions7. Additionally, this Court has also held that


7   Dalpat Abasaheb Solunke v. B.S. Mahajan (1990) 1 SCC 305; Badrinath v. State of T.N. (2000) 8 SCC
    395; National Institute of Mental Health & Neuro Sciences v. K. Kalyana Raman (1992) Supp. 2 SCC
[2025] 1 S.C.R.                                                                                   1185

                    Krishnadatt Awasthy v. State of M.P. & Ors.


      administrative action can be reviewed on the ground of proportionality
      if it affects fundamental rights guaranteed under Article 19 and 21
      of the Constitution of India8.
16. In this case, our primary focus is on procedural impropriety and in
    particular, the breach of the principles of natural justice. The process
    for arriving at a decision is equally significant as the decision itself. If
    the procedure is not ‘fair’, the decision cannot be possibly endorsed.
    The principles of natural justice as derived from common law which
    guarantee ‘fair play in action’9, has two facets which include rule
    against bias and the rule of fair hearing. Additionally, a reasoned
    order has also been regarded as a third facet of the principles of
    natural justice10 and holds utmost significance in ensuring fairness
    of the process.

                                              ISSUE A
17. The first issue that falls for our consideration is whether the selection
    stands vitiated on the ground of violation of the rule against bias. It
    must be borne in mind that when a statute specifies the procedure
    for administrative decision making, the principles of natural justice
    supplement but do not substitute the statutory procedure11. However,
    even if the statute does not provide for the administrative procedure,
    the authorities are bound to make decisions in adherence to the
    principles of natural justice.
18. Let us now consider the relevant statutory provisions in the present
    case which operate alongside the common law principles. The Madhya
    Pradesh Panchayat Shiksha Karmis (Recruitment and Conditions of
    Service) Rules, 1997 is framed in exercise of the powers conferred
    by sub-section (2) of Section 53, sub-section (1) of Section 70 read
    with subsection (1) of Section 95 of Adhiniyam, 1993 is apposite.
    Rule 2(h) defines ‘Shiksha Karmi’ as under:



     481; I.P.S. Dewan v. Union of India (1995) 3 SCC 383; UPSC v. Hiranyalal Dev (1988) 2 SCC 242; M.V.
     Thimmaiah v. UPSC (2008) 2 SCC 119 and UPSC v. M. Sathiya Priya (2018) 15 SCC 796
8    Om Kumar v. Union of India (2001) 2 SCC 386 : 2001 SCC (L&S) 1039; Union of India v. G. Ganayutham
     (1997) 7 SCC 463 : 1997 SCC (L&S) 1806
9    Maneka Gandhi v. Union of India (1978) 1 SCC 248
10   S.N. Mukherjee v. Union of India (1990) 4 SCC 594; Siemens Engg. & Mfg. Co. of India Ltd. v. Union of
     India (1976) 2 SCC 981; CCI v. SAIL (2010) 10 SCC 744; Kranti Associates (P) Ltd. v. Masood Ahmed
     Khan (2010) 9 SCC 496
11   AK Kraipak v Union of India (1969) 2 SCC 262
1186                                                         [2025] 1 S.C.R.

                         Supreme Court Reports


          “Shiksha Karmi” means the person appointed by Zila
          Panchayat or Janpad Panchayat, as the case may be, for
          teaching in the schools under their control.”
19. Rule 5 deals with ‘Methods of Selection and Recruitment’. Sub-rule 8
    provides that the Selection Committee shall be constituted consisting
    of members as specified in Schedule II by the Zila Panchayat or the
    Janpad Panchayat, as the case ,may be. The relevant sub-Rule 9
    reads as under:
          (i) the Committee will assess the candidates called for
          interview and award marks in the following manner:
          “a) 60% marks for marks obtained in the qualifying
          examination specified in Schedule II;
          b) 25% marks for the teaching experience in the schools of
          concerning Janpad Panchayat or Zila Panchayat. Similar
          benefits will be given for teaching experience of equivalent
          rural school. The decision of the Committee on the validity
          and valuation of the certificate of teaching experience of
          rural schools will be final;
          c) 15% marks for oral test which may include the test for-
          i) communication skills in local dialect
          ii) knowledge of local environment
          iii) general knowledge
          iv) training and teaching aptitude and
          v) any other test which the Selection Committee may
          deem fit.
          d) Other things remaining the same, preference, preference
          will be given to candidates who possess certificate in B.
          Ed, BTI or D. Ed.
          e) All other things remaining the same, in the final selection,
          those who have teaching experience of schools of Janpad
          Panchayat or Zila Panchayat will be given preference.
          (ii) Select list of each category shall be prepared on the
          basis of above assessment in order of merit and shall
          include 10% names in waiting list which shall be valid for
          six months.”
[2025] 1 S.C.R.                                                          1187

               Krishnadatt Awasthy v. State of M.P. & Ors.


20. The statutory Rules clearly specify the designation of those who must
    be included in the selection committee, as outlined in Schedule II of
    the Rules,1997. They are following:
           “1. Chairperson, Standing Committee of Education of
           Janpad Panchayat;
           2. Chief Executive Officer, Janpad Panchayat;
           3. Block Education Officer (Member Secretary);
           4. Two specialists in the subject to be nominated by the
           Standing Committee for Education of whom one shall be
           woman; and
           5. All members from the Standing Committee of whom
           atleast one belongs to Scheduled Castes, Scheduled Tribes
           or OBC, in case there is no SC/ST/OBC member in the
           Standing Committee then the same shall be nominated
           from the General Body.”
21. Therefore, ‘all members from the Standing Committee’ were required
    to be a part of the selection committee. It is also important to note
    that the following resolution was passed by the Standing Committee
    on recusal:
           “(C) Letter No. 423/S.T.98 dated 26.07.1998 of the
           Collector, Chhatarpur was read over by Chief Executive
           Officer, in which it has been mentioned that at the time of
           recruitment of teachers those members and officers also
           take part in the interview whose close relatives are the
           candidates due to which the entire selection process is
           likely to be affected. Therefore, the directions are given
           toimmediately examine whether any candidate is the close
           relative of the member of the Committee in the interview.
           If any near relative of the member or the officer is the
           candidate, then such member or officer should not be
           present on the date of interview and any impartial person
           should be kept in his place. The Committee unanimously
           decided that if any close relative of any member, officer or
           subject expert appears for interview then the marks to be
           given by that member, officer or subject specialist should
           be given by Chief Executive Officer and that member,
           officer or subject expert shall not be present at the venue
           of interview. This resolution has been passed unanimously.”
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                         Supreme Court Reports


22. Rule 40 deals with the removal of office bearers of Panchayat and
    provides as under:
          “40. Removal of office-bearers of Panchayat- (1) The State
          Government or the prescribed authority may after such
          enquiry as it may deem fit to make at any time, remove
          an office bearer-
          (a) if he has been guilty of misconduct in the discharge
          of his duties; or
          (b) if his continuance in office is undesirable in the interest
          of the public: Provided that no person shall be removed
          unless he has been given an opportunity to show cause
          why he should not be removed from his office.
          Explanation-For the purpose of this sub-section “Misconduct”
          shall include-
          (a) any action adversely affecting,-
          (i) the sovereignty, unity and integrity of India; or
          (ii) the harmony and the spirit of common brotherhood
          amongst all the people of State transcending religious,
          linguistic, regional, caste or sectional diversities; or
          (iii) the dignity of women; or
          (b) gross negligence in the discharge of the duties under
          this Act;
          [(c) the use of position or influence directly or indirectly
          to secure employment for any relative in the Panchayat
          or any action for extending any pecuniary benefits to any
          relative, such as giving out any type of lease, getting any
          work done through them in the Panchayat by an office-
          bearer of Panchayat.
          Explanation. - For the purpose of this clause, the expression
          “relative” shall mean father, mother, brother, sister, husband,
          wife, son, daughter, mother-in-law, father-in-law, brother -in-
          law, sister-in-law, son-in-law or daughter-in-law : ]”
23. The explanation to clause(c) provides for the definition of the
    expression ‘relative’ to mean ‘father, mother, brother, sister, husband,
[2025] 1 S.C.R.                                                             1189

                    Krishnadatt Awasthy v. State of M.P. & Ors.


      wife, son, daughter, mother-in-law, father-in-law, brother-in-law, sister-
      in-law, son-in-law or daughter-in-law’. Rule 100 of the Adhiniyam
      which has some relevance reads thus:
              “100. Penalty for acquisition by a member, office bearer
              or servant of interest in contract. - If a member or office
              bearer or servant of Panchayat knowingly acquires, directly
              or indirectly any personal share or interest in any contract
              or employment, with, by or on behalf of a Panchayat without
              the sanction of or permission of the prescribed authority
              he shall be deemed to have committed an offense under
              Section 168 of the Penal Code, 1860 (XLV of 1860).”
24. Having noted the relevant statutory provisions, a brief survey of the
    jurisprudence on the appropriate test for bias and the applicable
    standard of proof would now be in order before the statutory law and
    the common law principles are applied to the facts of the present case.
25. The principle of nemo judex causa sua found its origin in English law.
    In Dimes v. Proprietors of the Grand Junction Canal12, the House of
    Lords in a case concerning pecuniary interest observed that the rule
    against bias extends not only to actual bias but also to the appearance
    of bias. This principle was later extended to other forms of interest in R
    v. Sussex Justices ex parte McCarthy13 where it was held that ‘even a
    suspicion that there has been improper interference with the course of
    justice’, would lead to the vitiation of proceedings. Lord Hewart noted
    that it is of fundamental importance that justice should not only be
    done, but should manifestly and undoubtedly be seen to be done. Lord
    Denning in Metropolitan Properties Co. (FGC) v Lannon14 noted that,
    ‘if right minded persons would think that, in the circumstances, there
    was a ‘real likelihood of bias’ on his part, he should not sit. And if he
    does sit, his decision does not stand’. It was further held that ‘there
    must be circumstances from which a reasonable man would think it
    likely or probable that the justice, or chairman as the case may be,
    would, or did, favour one side at the expense of the other.’
26. The emphasis on ‘likely or probable’ as noted by Lord Denning,
    was considered in R v Gough15 (for short “Gough”) where the Court


12   Dimes v. The Proprietors of the Grand Junction Canal (1852) 3 HLC 759
13   [1924] 1 KB 256
14   (1969) 1 QB 577
15   R v. Gough, 1993 AC 646
1190                                                                             [2025] 1 S.C.R.

                                  Supreme Court Reports


      shifted the focus to the possibility of bias rather than its probability.
      The test articulated in Gough(supra), was whether there was a ‘real
      danger of bias’ rather than a ‘real likelihood’ of bias. It prioritised
      the court’s assessment of bias over the perception of a fair-minded
      and informed observer emphasising that the court ‘personifies the
      reasonable man’. This test was criticised in other common law
      jurisdictions for veering away from the public perception of bias.
      The House of Lords modified the said test in Porter v Magill16 and
      pronounced as under:
              “The Court must first ascertain all the circumstances which
              have a bearing on the suggestion that the judge was biased,
              it must then ask whether those circumstances would lead
              to a fair minded and informed observer to conclude that
              there was a real possibility that the Tribunal was biased.”
27. Indian Courts have consistently adopted the ‘real likelihood’ test
    to determine bias17. In a recent decision in Central Organisation
    for Railway Electrification v. ECI SPIC SMO MCML (JV) A Joint
    Venture Co.18, a constitution bench of this Court speaking through
    DY Chandrachud CJ(of which one of us was a member), summarised
    the Indian position thus:
              “Although there have been vacillations about the test in
              England, the Indian courts have been largely consistent
              in their approach by applying the test of real likelihood of
              bias or reasonable apprehension of bias. Recently, the
              court has used the real danger of bias test. However,
              the above discussion shows that there is no significant
              difference between the real danger of bias test and the real
              possibility of bias test if the question of bias is inferred from
              the perspective of a reasonable or fair-minded person.”
28. Turning now to the facts of the present case, let us first examine
    whether the selection can be set aside if there are circumstances
    which would give rise to a reasonable likelihood of bias from the
    perspective of a fair-minded person:


16   (2002) 1 All ER 465
17   Manak Lal v Dr. Prem Chand Singhvi 1957, SCC OnLine SC 10; Ranjit Thakur v. Union of India (1987) 4
     SCC 611; Rattan Lal Sharma v. Managing Committee, Dr. Hari Ram (Co-Education) Higher Secondary
     School (1993) 4 SCC 10; S Parthasarathi v. State of AP (1974) 3 SCC 459; SK Golap and others v
     Bhuban Chandra Panda, 1990 SCC OnLine Cal 264; GN Nayak v Goa University (2002) 2 SCC 712
18   2024 SCC OnLine SC 3219
[2025] 1 S.C.R.                                                         1191

                Krishnadatt Awasthy v. State of M.P. & Ors.


     (i)    The resolution for recusal, passed unanimously by the Janpad
            Panchayat would be a relevant and an important factor that
            reflects on the efforts to ensure impartiality in the selection
            process. The resolution mandated that members who had close
            relatives among the candidates would recuse themselves from
            the interview process, with their responsibilities being delegated
            to the Chief Executive Officer. In this manner, the Panchayat
            addressed the concern and perception of bias in the mind of
            a fair-minded observer. Recusal is an acceptable mechanism
            and serves to eliminate any reasonable likelihood of bias. It
            was however argued that the counter affidavit filed by the Chief
            Executive Officer, Janpad Panchayat, attaching the certificate
            given by the Sarpanch of the Panchayat, acknowledges the
            relationship of the selected/appointed candidates with the
            members of selection committee giving rise to a reasonable
            conclusion of bias. However, when the concerned person has
            recused and did not award any marks, it is difficult for us to
            accept a contention on a so-called relative, influencing the
            selection.
     (ii)   The statutory definition of ‘relative’, as per the Adhiniyam,1993
            was not specifically adverted to by the adjudicatory forums. This
            was an important omission as few candidates do not fall within
            the scope of this definition of ‘relative’. Thus, the challenge of
            bias gets diluted further.
     (iii) It has also been argued that marks obtained by the Complainant
           in the interview was more than the marks obtained by the
           appellants. These facts could have been demonstrated by
           the appellants (selectees) before the Collector, if they were
           arrayed as the affected party and opportunity of hearing was
           provided to them.
29. In a scenario such as this where the members did not participate in
    the interview, a reasonable likelihood of bias in our opinion cannot
    reasonably be inferred. While it is true that actual bias need not be
    proved, this appears to be a case of allegation of bias without any
    foundational footing. We must also be mindful of the fact that the
    absence of opportunity of hearing at the initial stage, has prevented
    the selectee to show that no relative had influenced their selection. It
    also disables this Court to examine the issue holistically to conclusively
    determine bias.
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                                  Supreme Court Reports


30. It must also be emphasized that the nemo judex rule is subject to the
    rule of necessity and yields to it19. In J Mohapatra v State of Orissa20,
    the Court recognized that the doctrine of necessity serves as an
    exception to the rule against bias. In a matter like this, the doctrine of
    necessity would also be squarely attracted since the statute explicitly
    mandates the composition of the selection Committee, as outlined
    in Schedule II of the Rules. The doctrine of necessity recognizes
    that decision-making bodies need to function even in circumstances
    where potential conflicts of interests may arise. Here as earlier noted,
    the concerned members recused and did not award any marks. It
    must however be borne in mind that the doctrine of necessity is an
    exception and must be applied bearing in mind the circumstances
    in a given case. The size of the jurisdiction must also be taken into
    account for the application of the doctrine of necessity. In this regard,
    Forsyth and Wade21 have noted that in small jurisdictions, qualified
    persons may be few in number and likely to be known to the parties
    making the ‘fair minded and informed observer’ test impractical. The
    doctrine of necessity is where such considerations of size should be
    considered rather than in the distortion of the test.
31. The assumption of impartiality must not also be an abstract analysis
    but should equally consider the contextual background, for the
    application of the doctrine of necessity. This is a selection at a village
    level where it is very likely, that people involved would know each
    other. In Charanjit Singh v Harinder Sharma22, a public interest action
    was filed challenging the selection of clerks, firemen, drivers, peons
    and instructors for the Municipal Council in Mansa, a small town in
    Punjab by a selection committee which had relatives of some of the
    selectees on it. The High Court had quashed the decision but the
    Supreme Court noted that in a small town like Mansa, it would be
    difficult to constitute a Selection Committee of total strangers. The
    relative of some candidate or the other is bound to find a place on
    the Committee. Therefore, the Court is required to see whether the
    prescribed balancing mechanism was followed when a relative of
    the member of the Selection Committee was being considered. The
    Rules required that when such a candidate appeared, the concerned


19   Union of India v Tulsiram Patel (1985) 3 SCC 398; Swadesh Cotton Mills v Union of India (1981) 1 SCC
     664
20   (1984) 4 SCC 103
21   H. W. R. Wade, Administrative Law (5th Edition)
22   (2002) 9 SCC 732
[2025] 1 S.C.R.                                                              1193

                  Krishnadatt Awasthy v. State of M.P. & Ors.


      selection committee member should recuse from the proceedings
      and such a candidate could only be appointed after obtaining the
      approval of the Regional Deputy Director, Local Government. This
      was seen as an acceptable mode to rule out bias in selection or
      selections being influenced by a relative.
32. Reliance has been placed on the landmark decision in Kraipak(supra)
    that significantly expanded the scope of judicial review of administrative
    decisions. This ruling was cited in Javid Rasool Bhat v. State of Jammu
    & Kashmir23 where the Court distinguished Kraipak(supra) as under:
             “Great reliance was placed by the learned counsel on A.K.
             Kraipak & Ors. V. Union of India on the question of natural
             justice. We do not think that the case is of any assistance to
             the petitioners. It was a case where one of the persons, who
             sat as member of the Selection Board, was himself one of
             the persons to be considered for selection. He participated
             in the deliberations of the Selection Board when the
             clams of his rivals were considered. He participated in the
             decisions relating to the orders of preference and seniority.
             He participated at every stage in the deliberations of the
             Selection Board and at every stage there was a conflict
             between his interest and duty. The court had no hesitation
             coming to the conclusion that there was a reasonable
             likelihood of ibis and therefore, there was a violation of
             the principles of natural justice. In the case before us, the
             Principal of the Medical College, Srinagar, dissociated
             himself from the written test and did not participate in the
             proceedings when his daughter was interviewed. When
             the other candidates were interviewed, he did not know
             the marks obtained either by his daughter or by any of the
             candidates. There was no occasion to suspect his bona
             fides even remotely. There was not even a suspicion of
             bias, leave alone a reasonable likelihood of bias. There
             was no violation of the principals of natural justice.”
33. A five-judge constitution bench of this Court in Ashok Kumar Yadav v
    State of Haryana24 endorsed the decision in Javed Rasool(supra)
    and held that when a near relative of a member of the Public Service


23   (1984) 2 SCC 682
24   (1985) 4 SCC 417
1194                                                      [2025] 1 S.C.R.

                              Supreme Court Reports


      Commission is a member of the Selection Committee, it will be enough
      if the concerned member desists from interviewing his relation. He
      should withdraw from the committee when his relative appears for
      the interview and he should not participate in discussion in regards
      to the merit of the candidate and even the marks should not be
      disclosed to the concerned member.
34. Similarly, in Jaswant Singh Nerwal v State of Punjab25, the father
    of one of the selected candidates was in the selection committee
    conducting the interview. However, he did not participate in the
    deliberation when his son appeared for viva voce. It was held therein
    that selection was thus not vitiated.
35. Guided by the above ratios, on facts, this clearly appears to be a
    case of mere suspicion of bias particularly on account of the fact
    that the Janpad Panchayat unanimously passed a resolution for
    recusal of the concerned member. It must also be borne in mind
    that rule against bias is itself considered as a ground for recusal.
    The selectees were not arrayed and they couldn’t contest the
    selection before the Collector, in the absence of a complete picture
    on the process, it is all the more difficult to deduce that there was
    a reasonable likelihood of bias. In light of the aforesaid reasons,
    our conclusion in this matter is that the selection is not vitiated on
    account of violation of the nemo judex rule.

                                    ISSUE B
36. This brings us to the second limb of the principle of natural justice
    i.e. audi alteram partem and whether the demonstration of prejudice
    is mandatory for raising a claim of violation of right of hearing. The
    principle of audi alteram partem lies at the very heart of procedural
    fairness, ensuring that no one is condemned or adversely affected,
    without being given an opportunity to present their case. The decision
    in Ridge v Baldwin26 is regarded as a significant landmark decision in
    British administrative law and is often referred to as a magna carta
    of natural justice. This decision has resonated deeply in the Indian
    legal context where natural justice principles are firmly entrenched
    with constitutional guarantees.




25   (1991) Supp. 1 SCC 313
26   [1964] AC 40
[2025] 1 S.C.R.                                                                               1195

                    Krishnadatt Awasthy v. State of M.P. & Ors.


37. In Mohinder Singh Gill v. Chief Election Commr27 (for short ‘Mohinder
    Gill’), this Court observed that:
              “Today in our jurisprudence, the advances made by natural
              justice far exceed old frontiers and if judicial creativity
              belights penumbral areas, it is only improving the quality
              of government by injecting fair play into its wheels.. law
              lives not in a world of abstractions but in a cosmos of
              concreteness and to give up something good must be
              limited to extreme cases. If to condemn unheard is wrong, it
              is wrong except where it is overborne by social necessity.”
38. In Swadeshi Cotton Mills v. Union of India28, this Court held:
              “this rule of fair play must not be jettisoned save in very
              exceptional circumstances where compulsive necessity so
              demands. The Court must make every effort to salvage
              this cardinal rule to the maximum extent possible, with
              situational modifications.”
39. Justice Bhagwati in Maneka Gandhi v Union of India29, described
    natural justice as a profound ‘humanising principle’ designed to
    imbue the law with fairness and ensure justice. This principle has
    garnered widespread recognition across democratic societies and
    has evolved into a universally accepted rule, influencing areas of
    administrative decision-making.
40. Wade and Forsyth30 discuss the essence of good and considerate
    administration as under:
              “Judges are naturally inclined to use their discretion when
              a plea of natural justice is used as the last refuge of a
              claimant with a bad case. But that should not be allowed
              to weaken the the basic principle that fair procedure comes
              first, and that it is only after hearing both sides that merits
              can be properly considered. In the case of a tribunal which
              must decide according to, it may be justifiable to disregard
              a breach of natural justice where the demerits of the claim
              are such that it would in any case be hopeless. But in the


27   (1978) 1 SCC 405
28   (1981) 1 SCC 664
29   (1978) 1 SCC 248
30   H W R Wade and C F Forsyth, Administrative Law (Oxford University Press, 11th ed, 2014)
1196                                                                               [2025] 1 S.C.R.

                                   Supreme Court Reports


              case of a discretionary administrative decision, such as
              dismissal of a teacher or expulsion of a student, hearing
              their case will often soften the heart of the authority and
              alter their decision, even though it is clear from the outset
              that punitive action would be justified. This is the essence
              of a good and considerate administration, and the law
              should take care to preserve it.”
41. The opportunity of hearing is considered so fundamental to any
    civilised legal system that the courts have read the principles of
    natural justice into an enactment to save it from being declared
    unconstitutional on procedural grounds31.
42. It has been argued before us that if the failure to provide hearing
    does not cause prejudice, observing the principle of natural justice
    may not be necessary. In this context, a three judge bench of this
    Court in SL Kapoor v Jagmohan32 speaking through Justice Chinappa
    Reddy considered such arguments to be ‘pernicious’ and held that ‘the
    non-observance of natural justice is itself prejudice to any man and
    proof of prejudice independently of proof of denial of natural justice
    is unnecessary’ . The Supreme Court, however, has drawn out an
    exception where ‘on admitted or indisputable facts only one conclusion
    is possible, and under the law, only one penalty is permissible, then
    the Court may not compel the observance of natural justice’33.
43. Professor IP Massey34 has commented on this shift as under:
              “Before the decision of the Highest Court in SL Kapoor v
              Jagmohan, the rule was that the principles of natural justice
              shall apply only when the an administrative action has
              caused some prejudice to the person, meaning thereby
              that he must have suffered some ‘civil consequences’.
              Therefore, the person had to show something extra in order
              to prove ‘prejudice’ or civil consequences. This approach
              had stultified the growth of administrative law within an
              area of highly practical significance. It is gratifying that
              in Jagmohan, the Court took a bold step in holding that


31   Olga Tellis v. Bombay Municipal Corporation (1985) 3 SCC 545
32   (1980) 4 SCC 379
33   Swadeshi Cotton Mills v Union of India (1981) 1 SCC 664; Aligarh Muslim University v Mansoor Ali Khan
     (200) 7 SCC 529
34   I.P. Massey, Administrative Law (8th Edition,2012)
[2025] 1 S.C.R.                                                              1197

                  Krishnadatt Awasthy v. State of M.P. & Ors.


             a separate showing of prejudice is not necessary. The
             non-observance of natural justice is in itself prejudice
             caused. However, merely because facts are admitted or
             are undisputable it does not follow that the principles of
             natural justice need not be observed.”
44. In Bank of Patiala v SK Sharma35, the Supreme Court observed
    that where an enquiry is not convened by any statutory provision
    and the only obligation of the administrative authority is to observe
    the principles of natural justice, the Court/tribunal should make a
    distinction between a total violation of the rule of fair hearing and
    violation of the facet of that rule. In other words, a distinction must
    be made between ‘no opportunity’ or ‘no adequate opportunity’.
    In the case of the former, the order passed would undoubtedly be
    invalid and the authority may be asked to conduct proceedings afresh
    according to the rule of fair hearing. But in the latter case, the effect
    of violation of a facet of the rule of fair hearing has to be examined
    from the standpoint of prejudice.
45. In Dharampal Satyapal Ltd. v. Dy. Comm. Of Central Excise, Gauhati
    and Ors.36, this Court dealt with the prejudice question as under:
             “42. So far so good. However, an important question
             posed by Mr Sorabjee is as to whether it is open to the
             authority, which has to take a decision, to dispense with
             the requirement of the principles of natural justice on the
             ground that affording such an opportunity will not make
             any difference? To put it otherwise, can the administrative
             authority dispense with the requirement of issuing notice by
             itself deciding that no prejudice will be caused to the person
             against whom the action is contemplated? Answer has to
             be in the negative. It is not permissible for the authority to
             jump over the compliance of the principles of natural justice
             on the ground that even if hearing had been provided it
             would have served no useful purpose. The opportunity of
             hearing will serve the purpose or not has to be considered
             at a later stage and such things cannot be presumed
             by the authority. This was so held by the English Court
             way back in the year 1943 in General Medical Council v.


35   (1996) 3 SCC 364
36   (2015) 8 SCC 519
1198                                                           [2025] 1 S.C.R.

                            Supreme Court Reports


             Spackman [1943 AC 627]. This Court also spoke in the
             same language in Board of High School and Intermediate
             Education v. Chitra Srivastava [(1970) 1 SCC 121]……”
46. In a more recent decision in State of UP v Sudhir Kumar Singh37,
    the position of law was summarised as under:
             “(1) Natural justice is a flexible tool in the hands of the
             judiciary to reach out in fit cases to remedy injustice. The
             breach of the audi alteram partem rule cannot by itself,
             without more, lead to the conclusion that prejudice is
             thereby caused.
             (2) Where procedural and/or substantive provisions of law
             embody the principles of natural justice, their infraction per
             se does not lead to invalidity of the orders passed. Here
             again, prejudice must be caused to the litigant, except in
             the case of a mandatory provision of law which is conceived
             not only in individual interest, but also in public interest.
             (3) No prejudice is caused to the person complaining of
             the breach of natural justice where such person does not
             dispute the case against him or it. This can happen by
             reason of estoppel, acquiescence, waiver and by way of
             non-challenge or non-denial or admission of facts, in cases
             in which the Court finds on facts that no real prejudice
             can therefore be said to have been caused to the person
             complaining of the breach of natural justice.
             (4) In cases where facts can be stated to be admitted
             or indisputable, and only one conclusion is possible,
             the Court does not pass futile orders of setting aside or
             remand when there is, in fact, no prejudice caused. This
             conclusion must be drawn by the Court on an appraisal of
             the facts of a case, and not by the authority who denies
             natural justice to a person.
             (5) The “prejudice” exception must be more than a mere
             apprehension or even a reasonable suspicion of a litigant.
             It should exist as a matter of fact, or be based upon a
             definite inference of likelihood of prejudice flowing from
             the non-observance of natural justice.”


37   (2021) 19 SCC 706
[2025] 1 S.C.R.                                                              1199

                  Krishnadatt Awasthy v. State of M.P. & Ors.


47. The aforementioned principles on the ‘prejudice exception’ must not
    be however be understood as infringing upon the core of the principle
    of audi alteram partem. In this regard, the constitutionalisation of
    administrative law and the doctrinal shifts spearheaded in Maneka
    Gandhi(supra) were succinctly observed in a recent judgment in
    Madhyamam Broadcasting Ltd. v. Union of India38, as under:
             “55.1. Firstly, procedural fairness was no longer viewed
             merely as a means to secure a just outcome but a
             requirement that holds an inherent value in itself. In view
             of this shift, the courts are now precluded from solely
             assessing procedural infringements based on whether
             the procedure would have prejudiced the outcome of
             the case. [S.L. Kapoor v. Jagmohan, (1980) 4 SCC 379;
             “The non-observance of natural justice is itself prejudice to
             any man and proof of prejudice independently of proof of
             denial of natural justice is unnecessary; also see Swadeshi
             Cotton Mills v. Union of India, (1981) 1 SCC 664 : AIR
             1981 SC 818] Instead, the courts would have to decide
             if the procedure that was followed infringed upon the
             right to a fair and reasonable procedure, independent of
             the outcome. In compliance with this line of thought, the
             courts have read the principles of natural justice into an
             enactment to save it from being declared unconstitutional
             on procedural grounds. [Olga Tellis v. Bombay Municipal
             Corpn., (1985) 3 SCC 545; C.B. Gautam v. Union of India,
             (1993) 1 SCC 78; Sahara India (Firm) (1) v. CIT, (2008) 14
             SCC 151; Kesar Enterprises Ltd. v. State of U.P., (2011)
             13 SCC 733]
             55.2. Secondly, natural justice principles breathe
             reasonableness into the procedure. Responding to the
             argument that the principles of natural justice are not static
             but are capable of being moulded to the circumstances,
             it was held that the core of natural justice guarantees a
             reasonable procedure which is a constitutional requirement
             entrenched in Articles 14, 19 and 21. The facet of audi
             alteram partem encompasses the components of notice,
             contents of the notice, reports of inquiry, and materials that


38   (2023) 13 SCC 401
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                         Supreme Court Reports


          are available for perusal. While situational modifications are
          permissible, the rules of natural justice cannot be modified
          to suit the needs of the situation to such an extent that the
          core of the principle is abrogated because it is the core
          that infuses procedural reasonableness. The burden is on
          the applicant to prove that the procedure that was followed
          (or not followed) by the adjudicating authority, in effect,
          infringes upon the core of the right to a fair and reasonable
          hearing. [See para 12 of Bhagwati, J.’s judgment in Maneka
          Gandhi v. Union of India, (1978) 1 SCC 248.]”
48. Pertinently on the issue, a five judge bench of this Court in
    CORE(supra) described the object of observing the principles of
    natural justice as under:
          “80. …The object of observing the principles of natural
          justice is to ensure that “every person whose rights are
          going to be affected by the proposed action gets a fair
          hearing.” The non-observance of natural justice is itself
          a prejudice to any person who has been denied justice
          depending upon the facts and circumstances of each
          case. The principle of procedural fairness is rooted in
          the principles of the rule of law and good governance. In
          Madhyamam Broadcasting Limited v. Union of India(2023)
          13 SCC 401 , this Court held that the requirement of
          procedural fairness “holds an inherent value in itself.”
49. Returning to the facts of the present case, the Collector records in
    his order that even though the selected ‘relatives’ have not been
    made parties, ‘it is proved that the appointment of these relatives
    could not be deemed to be made according to the scheme’ and
    hence it is not necessary to provide an opportunity of hearing.
    This was reiterated by the Commissioner in his Revisional order.
    The Division Bench in its order also notes that it was imperative
    to implead the affected parties. As noted by Justice Vishwanathan,
    Respondent No. 4(Archana Mishra) ought to have impleaded the
    candidates who were selected and appointed and even if she didn’t
    array the affected parties, the Collector should have given an order
    for impleadment of the selectees. The facts here are not such where
    only one position emerges. It is a case of disputed facts. Significantly
    the legal effect of recusal was not examined in the orders and it is
    difficult to speculate what the conclusion of the Collector and the
[2025] 1 S.C.R.                                                                                 1201

                   Krishnadatt Awasthy v. State of M.P. & Ors.


      Revisional authority would have been, if they were posted of the
      recusal resolution.
50. Moreover, the question about whether prejudice was caused due to
    non-observance of the principles of natural justice could not be raised
    where such principles are incorporated into statutory procedure39. In
    this regard, Rule 9 is crucial and reads as under:
              “9. Power of appellate or revisional authority.- The
              appellate or revisional authority after giving an opportunity
              to parties to be heard and after such further enquiry, if
              any, as it may deem necessary subject to the provisions
              of the Act and the rules made thereunder, may confirm,
              vary or set aside the order or decision appealed against.”
51. Considering the above, Justice Vishwanathan rightly notes as under:
              “At least at the stage when the Collector identified all the
              14 names, Rule 9 of the A&R Rules, ought to have been
              complied with and notices ought to have been issued giving
              an opportunity to the selected candidates to set out their
              version and thereafter hold such enquiry as the Collector
              may deem necessary. This was also not done. This is all
              the more when only the appointment of the 14 candidates
              of the 249 appointees/candidates were set aside on the
              ground that 33 they were relatives and it was not a case
              of setting aside of the entire selection.
              It is well settled that in service matters when an
              unsuccessful candidate challenges the selection process,
              in a case like the present where the specific grievance
              was against 14 candidates under the category of relatives
              and when the overall figure was only 249, at least the
              candidates against whom specific allegations were made
              and who were identified ought to have been given notices
              and made a party. This Court has, even in cases where
              the selected candidates were too large, unlike in the
              present case, held that even while adjudicating the writ
              petitions at least some of the selected candidates ought
              to be impleaded even it is in a representative capacity.
              It has also been held that in service jurisprudence, if an


39   State Govt. Houseless Harijan Employees Association v State of Karnataka (2001) 1 SCC 610
1202                                                                         [2025] 1 S.C.R.

                                Supreme Court Reports


             unsuccessful candidate challenges the selection process
             the selected candidates ought to be impleaded. [See J.S.
             Yadav vs. State of Uttar Pradesh and Another, (2011) 6
             SCC 570 (para 31) and Prabodh Verma and Others vs.
             State of Uttar Pradesh and Others, (1984) 4 SCC 251
             (para 28) and Ranjan Kumar and Others vs. State of Bihar
             and Others, 2014:INSC:276 = (2014) 16 SCC 187 (paras
             4,5,8,9 & 13)] This is not a case where the allegation was
             that the mischief was so widespread and all pervasive
             affecting the result of the selection in a manner as to make
             it difficult to sift the grain from the chaff. It could not be
             said and it is not even the case of the State that it was
             not possible to segregate the allegedly tainted candidates
             from the untainted candidates. [See Union of India and
             Others vs. G. Chakradhar, (2002) 5 SCC 146 (paras 7 &
             8), Abhishek Kumar Singh vs. G. Pattanaik and Others,
             2021:INSC:305 = (2021) 7 SCC 613 (para 72).”
52. In a catena of cases, significantly a clear distinction has been crafted
    by this Court between the service of notice and the requirement of
    fair hearing40. The respondents rely on SK Sharma(supra) which
    highlights the circumstances when non-adherence to the principle
    of natural justice, will not be fatal. It must however be borne in mind
    that S.K. Sharma (supra) was not a case of total denial of opportunity
    unlike in the present case. In fact, as Justice Vishwanathan rightly
    notes in S.K. Sharma (supra), after noticing the classic case of Ridge
    vs. Baldwin41 , this Court expressly records that where there is a
    total violation of principles of natural justice, the violation would be
    of a fundamental nature. Therefore, SK Sarma(supra) did not deal
    with the violation of the first limb of Audi Alteram Partem principles,
    a situation of non-service of notice. The judgment in fact explicitly
    records that “a distinction ought to be made between violation of
    the principle of natural justice, audi alteram partem, as such, and
    violation of a facet of the said principle. In other words, distinction
    between “no notice” “no hearing” and “no adequate hearing” or
    to put it in different words, “no opportunity” and “no adequate
    opportunity”, was highlighted. The judgement in SK Sharma(supra)



40   East India Commercial Co. Ltd. v. Collector of Customs, AIR 1962 SC 1893; Uma Nath Pandey and
     Ors. v state of UP (2009) 12 SCC 40
41   1964 AC 40
[2025] 1 S.C.R.                                                                            1203

                    Krishnadatt Awasthy v. State of M.P. & Ors.


      is therefore inapplicable to the present matter which is a case of
      no notice whatsoever.
53. The statutory provision also clearly provided for an opportunity of
    hearing:
              “40. Removal of office-bearers of Panchayat- (1) The State
              Government or the prescribed authority may after such
              enquiry as it may deem fit to make at any time, remove
              an office-bearer-
              (a) if he has been guilty of misconduct in the discharge
              of his duties; or
              (b) if his continuance in office is undesirable in the interest
              of the public:
              Provided that no person shall be removed unless he has
              been given an opportunity to show cause why he should
              not be removed from his office.”
                                                                      [emphasis supplied]

54. In the absence of notice, the breach strikes at the fundamental
    core of procedural fairness, rendering the decision invalid unless
    exceptional circumstances justify such deviation. The vitiation of
    selection was not only a breach of the principles of natural justice
    but also contrary to the express statutory provision that required for
    an opportunity to show cause and an opportunity to provide self-
    defence. The prejudice theory must be understood as an exception
    to the general rule and cannot therefore be the norm. In view of the
    foregoing, a gross violation of the principle of audi alteram partem
    is noticed in the present case.

                                             ISSUE C
55. The next issue that falls for our consideration is whether the denial of
    natural justice at the initial stage can be cured by an appellate body.
    The earliest decision on the issue was delivered by the High Court of
    Australia in Australian Workers’ Union v Bowen42. Bowen contested
    his dismissal by the General Council of the Union, claiming bias
    because the Union Secretary acted as both prosecutor and judge.



42   Australian Workers’ Union v Bowen (No. 2) (1948) 77 C.L.R. 601
1204                                                            [2025] 1 S.C.R.

                             Supreme Court Reports


      While the Commonwealth Court of Conciliation and Arbitration ruled
      in his favour, the decision was overturned on appeal. The appellate
      court held that the Secretary’s role did not violate the rule against
      bias and, even if it had, any flaw in the original proceedings was
      remedied by a fair appeal to the Annual Conference, which Bowen
      did not dispute.
56. Thereafter, in a case involving a trade union dispute, Lord Denning
    in Annamunthodo v Oilfield Workers’ Trade Union43, ruled that a flaw
    in natural justice during the initial hearing could not be remedied by
    an appeal.
57. Leary v. National Union of Vehicle Builders44 (for short “Leary”) is
    a leading authority on the point that a failure of natural justice at
    the initial stage cannot be cured at the appellate stage. The case
    involved the plaintiff’s expulsion by a Branch Committee of his trade
    union, at a meeting about which he was unaware. He approached the
    Appeals Council for relief against the order of the branch Committee,
    which conducted a full rehearing but upheld the Branch Committee’s
    decision. The plaintiff then filed a writ, seeking declarations that his
    expulsion from union membership as well as his position as area
    organizer was unlawful, invalid, and void. Megarry J framed the
    question thus:
              “if a man has never had a fair trial by the appropriate trial
              body, is it open to an appellate body to discard its appellate
              function and itself give the man the fair trial that he has
              never had?. If the rules and the law combine to give the
              member the right to a fair trial and the right of appeal,
              why should he be told that he ought to be satisfied with
              an unjust trial and a fair appeal?... Even if the appeal is
              treated as a hearing de novo, the member is being stripped
              of his right to appeal to another body from the effective
              decision to expel him’
58. It was held that the proper course in such a situation would be to
    hear the matter afresh:
              “If one accepts the contention that a defect of natural
              justice in the trial body can be cured by the presence of


43   [1961] AC 945 (PC)
44   (1970) 2 All ER 713
[2025] 1 S.C.R.                                                                                1205

                   Krishnadatt Awasthy v. State of M.P. & Ors.


              natural justice in the appellate body, this has the result
              of depriving the member of his right of appeal from the
              expelling body. If the rules and the law combine to give
              the member the right to a fair trial and the right of appeal,
              why should he be told that he ought to be satisfied with
              an unjust trial and a fair appeal? Even if the appeal is
              treated as a hearing de novo, the member is being stripped
              of his right to appeal to another body from the effective
              decision to expel him. I cannot think that natural justice
              is satisfied by a process whereby an unfair trial, though
              not resulting in a valid expulsion, will nevertheless have
              the effect of depriving the member of a right of appeal
              when a valid decision to expel him is subsequently made.
              Such a deprivation is a powerful result to be achieved by
              what in law is a mere nullity; and it is no mere triviality
              that might be justified on the ground that natural justice
              does not mean perfect justice. As a general rule, at all
              events, I hold that a failure of natural justice in the trial
              body cannot be cured by a sufficiency of natural justice
              in an appellate body.”
59. In Calvin v Carr45(for short “Calvin”), the Judicial Committee of
    the Privy Council only gave a qualified endorsement to the Leary
    principle. In Lloyd v McMahon46, Lord Templeman considered the
    Calvin principle but commented that instead of laying down general
    principles, the question arising in that case must be answered by
    considering the particular statutory provisions applicable therein. In
    that case, a distinction was drawn between full appeals where all the
    evidence may be examined and limited appeals on questions of law
    only or where the appellate body does not investigate findings of fact.
60. Indian courts have applied the Leary principle as a rule47 and
    the Calvin principle as an exception48. This is more so due to the


45   (1979) 2 WLR 755
46   (1987) 1 AC 625
47   Institute of Chartered Accountants v. L.K. Ratna (1986) 4 SCC 537; Fareed Ahmed v Ahmedabad
     Municipality, AIR 1976 SC 2095; Shri Mandir Sita Ramji v Government of Delhi (1975) 4 SCC 298;
     Mysore SRT Corp v Mirza Khasim, AIR 1977 SC 747; Laxmidhar v State of Orissa, AIR 1974 Ori 127;
     Kashiram Dalmia v State, AIR 1978 Pat 265; G Rajalakshmi v Appellate Authority, AIR 1980 AP 100;
     Serajuddin Co. v State of Orissa, AIR 1974 Cal 296
48   Charan Lal Sahu v Union of India (1990) 1 SCC 613; Jayantilal Ratanchand Shah v Reserve Bank of
     India (1996) 9 SCC 650; United Planters’ Association of Southern India v KG Sangameswaran (1997) 4
     SCC 741
1206                                                                                [2025] 1 S.C.R.

                                  Supreme Court Reports


      institutional structure as the writ court does not usually go into
      facts and judicial review of administrative action is limited to the
      decision-making process and not the decision itself. In our view,
      the provision for an appeal should not rest on the assumption
      that the appellate body is infallible. When one party is denied the
      opportunity to present their case, the initial decision fails to provide
      meaningful guidance to the appellate authority, in achieving a fair
      and just resolution.
61. In this context, Professor Wade49 has observed as under:
              “In principle, there ought to be an observance of natural
              justice at both stages… If natural justice is violated at the
              first stage , the right to appeal is not so much a true right
              to appeal as a corrected initial hearing: instead of fair trial
              followed by appeal., the procedure is reduced to an unfair
              trial followed by fair trial”
62. Professor Laurence Tribe50 had pertinently observed that whatever
    the outcome, a valued human interaction in which the affected person
    experiences atleast the satisfaction of participating in the decision
    that vitally concerns her is of utmost importance:
              “Both from the right to be heard and the right to be told
              why, are analytically distinct from the right to secre a
              different outcome; these rights to interchange express the
              elementary idea that to be a person, rather than a thing,
              is at atleast to be consulted about what is done with one.”
63. In Institute of Chartered Accountants v. L. K. Ratna51, the Indian
    Supreme Court endorsed the position adopted by Megarry J. Rejecting
    the argument that an appeal to the High Court under Section 22A of
    the Chartered Accountants Act, 1949, could rectify the initial defect,
    Pathak J. declared the order null, void, and of no effect. This ruling
    was consistent with two earlier Supreme Court decisions in State
    of U.P. v. Mohammed Nooh52 and Mysore State Road Transport
    Corporation v. Mirja Khasim53, both of which established that an
    appeal cannot validate what is clearly a nullity.


49   H. W. R. Wade, Administrative Law ((Oxford: Clarendon Press 1982)
50   Lawrence H. Tribe, ‘American Constitutional Law’ ((The Foundation Press 1978)
51   (1986) 4 SCC 537
52   [1958] SCR 595
53   (1977) 2 SCC 457
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                  Krishnadatt Awasthy v. State of M.P. & Ors.


64. The Supreme Court has invoked the Calvin principle only in exceptional
    circumstances. For instance, in Charan Lal Sahu v Union of India54
    in a case concerning a challenge to the validity of the Bhopal Gas
    Leak Disaster (Processing of Claims) Act, 1985, the Court applied
    the Calvin principle, given the fact that the settlement fund was held
    to be sufficient to meet the needs of just compensation to the victims
    of the Bhopal gas leak tragedy, it was held that the grievance on
    the score of not hearing the victims first would not really survive. It
    recorded that “to do a great right” after all it is permissible sometimes
    “to do a little wrong”.
65. What is also of fundamental importance in the present case is that
    Rule 5(b) clearly provided that application for revision could be only
    entertained on the point of law and not on facts:
             “(b) An application for revision by any party shall only be
             entertained if it is on the point of law and not on facts.”
66. Additionally, a perusal of the order(s) of the Collector and
    Commissioner in Revision would also show that they are practically
    identical. An ineffective hearing at the initial stage therefore taints
    the entire decision-making process leading to a cascade of flawed
    orders at subsequent stages. Providing a hearing to the affected
    individual, minimizes the risk of administrative authorities making
    decisions in ignorance of facts or other relevant circumstances, as
    it allows all pertinent issues to be brought to light. This process not
    only aids the administration in arriving at a correct decisions but also
    enables courts to more effectively review such actions. The primary
    purpose of natural justice is to assist the administration in reaching
    sound decisions at the outset, reducing the likelihood of decisions
    being overturned later. Its significance lies in fostering fair and well-
    informed decision-making at the very first instance.
67. Following the above discussion, it must be concluded that a defect
    at the initial stage cannot generally be cured at the appellate stage.
    Even in cases where a ‘full jurisdiction’ may be available at the
    appellate stage, the Courts must have the discretion to relegate it
    to the original stage for an opportunity of hearing. Therefore, the
    ex-parte decision to set aside the appellants selection stands vitiated.



54   (1990) 1 SCC 613
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                                 Supreme Court Reports


                                       V.     CONCLUSION
68. The principle of audi alteram partem is the cornerstone of justice,
    ensuring that no person is condemned unheard. This principle
    transforms justice from a mere technical formality into a humane
    pursuit. It safeguards against arbitrary decision-making, and is needed
    more so in cases of unequal power dynamics55.
69. An allegation of bias, can only be proved if facts are established
    after giving an opportunity of hearing. This process requires a fair
    and transparent procedure in which the concerned parties are given
    an adequate opportunity to present their case. Such an opportunity
    allows the accused party or the affected individuals to respond to the
    allegations, provide evidence, and clarify any misgivings regarding
    the decision-making process. Therefore, for an allegation of bias to
    be proved, it is imperative that the procedural safeguards of a fair
    hearing are observed allowing for establishment of the relevant facts.
70. In light of the foregoing, we uphold the opinion of Justice KV
    Vishwanathan allowing the appeal(s) and setting aside the judgment
    of the Division Bench. Resultantly, this Court is not able to endorse
    the opinion rendered by Justice JK Maheshwari.
71. Since the selection pertains to the year 1998, and the appellants have
    continuously held office and performed their duties for over twenty-five
    years under interim orders, remanding the matter for a fresh inquiry
    would hardly be a practical exercise and will be an injustice to the
    appointees. The time lag can be better appreciated by bearing in
    mind that one of the appellants has already superannuated.
72. The matters stand answered and allowed on the above terms. Parties
    to bear their own cost.

      Result of the case: Appeals allowed.



      †
          Headnotes prepared by: Divya Pandey




55   Upendra Baxi, ‘Preface: The Myth and Reality of the Indian Administrative Law’, in IP Massey(ed)
     ‘Administrative Law’ (8th edn, EBC 2012)


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