Introduction:

In a significant legal victory, the Karnataka High Court has set aside an order by the Union Ministry of Home Affairs cancelling the registration of a trust under the Foreign Contribution (Regulation) Act, 2010. The Centre for Wildlife Studies, represented by Senior Advocate a/w Advocate V Vinayak Kulkarni, challenged the cancellation on grounds of denial of natural justice, highlighting the absence of a personal hearing before the adverse order was issued.

Arguments of Both Sides:

The Centre for Wildlife Studies argued that the cancellation order lacked reasons and that they were not provided a personal hearing, which they contended was essential given the severe civil and economic consequences under Section 14(3) of the Act. The Union Government, however, argued that issuing a show cause notice fulfilled the requirement of a reasonable opportunity to be heard, challenging the necessity of a personal hearing.

Court’s Judgment:

Justice M Nagaprasanna, delivering the judgment, emphasized that principles of natural justice must be adhered to, particularly when the consequences of an order are grave. Citing Section 14(2) and (3) of the Act, the court ruled that cancellation of registration under such circumstances necessitates a personal hearing, as mere issuance of a show cause notice does not suffice. Drawing from precedent and statutory interpretation, the court quashed the cancellation order and upheld the trust’s right to fair procedure.