Pnealty can not be imposed without adjudication by any authority – SC

Kesar Enterprises Ltd. Vs State of U.P. & Ors. (Supreme Court of India)- In the present case, before imposing the impugned demand of penalty and interest, there was absolutely no adjudication by any authority as regards the breach committed by the appellant, except the allegation that the appellant had failed to furnish the PD-25 pass certified by the Collector. In our opinion, therefore, the action of the respondents for the recovery of penalty and interest, being violative of principles of natural justice, is null and void.

IN THE SUPREME COURT OF INDIA

CIVIL APPEAL NO. 6896 of 2002

Kesar Enterprises Ltd.— Appellant

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