TMI Blog1996 (8) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... t as well as complaints of jack of reasonable opportunity. Thus as urged the before forfeiting the advance amount or the security deposit, a fresh opportunity of hearing ought to have been provided. From a perusal of the judgment under appeal, however, we do not find that any such contention was urged before it. For this reason, we decline to entertain this plea, which may involve investigation of factual aspects. - C.A. 10226 OF 1996 - - - Dated:- 8-8-1996 - JEEVAN REDDY, B.P. AND SEN, S.C., JJ. JUDGMENT: B.P.JEEVAN REDDY.J. Leave granted. These appeals are preferred against the judgment of a Division Bench of the Madhya Pradesh. High Court allowing the Letters Patent Appeal preferred by the State of Madhya Pradesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g.) On 2.9.94, a notification was issued - communicated to a large number of excise officers and other departments and a copy of which was also sent to the appellant stating that if the appellant did not clear the arrears on or before 12.9.94, the shops would be sold by reauction to be held at 2.00 p.m. on 12.9.94. The said notification is marked exhibit R-12. It was also published in the daily newspaper, Nav Bharat Tixes, The notification mentioned the precise amount of arrears due from the appellant and stated that on the reauction being held, the existing licence in favour of the appellant shall stand cancelled. Since the appellant failed to pay, reauction was held on 12.9.94, whereafter, a demand was made upon the appellant for loss of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be appropriate to set out subsection (1-A) of Section 31. It reads: "(1-A) Before making an order cancelling of suspending a licence, permit or pass under sub-section (1), the authority aforesaid shall record in writing the reasons for the proposed action, furnish to the holder thereof a brief statement of the same and afford him a reasonable opportunity of being heard." The Division Bench held that as held by that Court in an earlier decision, "the court cannot take a hypertechnical view of the provisions and must understand the same in a reasonable manner. Substantial compliance with the requirements of the provisions would meet the ends of justice. Where a specific order of cancellation of licence is not passed but if the requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... litate avoidance of obligations voluntarily incurred." At the same time, it was observed that the licences are not precluded from seeking to enforce the statutory provisions governing the contract. lt must, however, be remembered that we are dealing with parties to a contract, which is a business transaction, no doubt governed by statutory provisions. While examining complaints of violation of statutory rules and conditions, it must be remembered that violation of each and every provision does not furnish a ground or the Court to interfere. The provision may be a directory one or a mandatory one. In the case of directory provisions, substantial compliance would be enough. Unless it is established that violation of a directory provision ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a mechanical on. It is always a considered course of action. There is yet another fact. The contract provides for payment of monthly rental on or before a, particular date. If the amount of monthly rental not paid before the due date, the licence is liable to be cancelled as provided by sub-section (1) of Section 31. It is true that before cancelling the licence, an opportunity of hearing should be given as provided by sub-section (1-A). While the opportunity to be given should be reasonable, the reasonableness or otherwise of the opportunity given must be judged keeping in view the time-frame available. It is a case of a contract stipulating monthly payments. If there is a default in paying a month s rental, notice proposing cancellatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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