In their classic order in (2001) 249ITR554 the Supreme Court upheld the High Court decision quashing/setting it aside the ex parte order of preemptive purchase by Central Government on the ground of gross Breach of principles of natural justice.
The Apex Court further declined plea for remitting the matter in the following fact situation:
- The show cause notice neither share opinion of the appropriate authority that the FMV was more than 15% of the consideration value nor make any reference to material relied upon for holding any such opinion
- No document or material relied upon were annexed to the show cause notice
- Adjournment for hearing was given for a very short period
- Venue was changed without giving sufficient time to the respondent for making travel arrangements in disregard of reported illness of the respondent.