Penalty Orders Without Reasons: Why They're Invalid

2025 Supreme(Online)(ITAT) 6512

It was accordingly requested that as the penalty order was infructuous and invalid, the penalty order imposing penalty in its case of Rs.10 lakhs may be set aside. 3.0 Per contra, the Ld.DR relied upon the order of lower authorities. ... According to it, when by reason of action on the part of a statutory authority, civil or evil cons....

2025 Supreme(Online)(Kar) 23221

(2001)9 SCC 180 has held that even in the case of imposing a minor penalty the principles of natural justice must be followed and in cases where the charges are denied by the employee an enquiry should be conducted. ... Admittedly there is no enquiry held and an order was passed as per the Annexure-C dated 23.01.2014 imposing penalty of withholding of one increment #HL....

2025 Supreme(Online)(Guj) 8453

In this submission he is correct for the simple reason that the Gujarat High Court followed Rayala Corporation in holding that “omissions” would not amount to “repeals”, which this Court has now clarified is not the correct legal position. 35. ... The latter part of this "golden rule" must, however, be applied with much caution. ... This would be extremely arbitrary and violative of Article 14 for this reason as well. ... ....

2023 0 Supreme(Jhk) 1093

State of Bihar, reported in 2014(4) P-LJR 576, was of the view that even for imposing minor punishment, if procedure for imposing major punishment is followed then it has to be followed in its entirety and violation of such procedure cannot be defended by claiming that because the punishment was minor ... Procedure for imposing minor penalties – (1) Subject to the provisions of sub rule (3) of rule 18, no....

But from the fact that the judgment is binding on us I see no reason for doing so. The decision has been repeatedly followed, and is now settled law. ... With regard to the first question, it was contended that it must be inferred that the transfer was invalid from the fact that the section declares that the transferor and transferee, in a case where property is transferred without administration hav....

2025 Supreme(Online)(ITAT) 4830

Counsel for the assessee, at the outset, submits that penalty order is invalid and bad in law for the reason that the penalty proceedings were initiated and penalty was levied without assigning specific charge, the exact limb of section 271(1)(c) of the Act. ... According to it, when by reason of action on the part of a statutory authority, civil or ev....

2023 0 Supreme(Telangana) 68

d) The Government after examining, issued orders imposing a penalty of 15% cut in pension permanently beside recovery and against the same the petitioner had filed O.A. ... State of Bihar, JT 2003 (Supp.II) SC 354, the apex Court has held that "reason" is the heart beat of every conclusion and without the same it becomes lifeless. The same view has also been taken in State of Orissa v. DhaniramLuhar, JT (2004) 2 SC 172. .....

2025 Supreme(Online)(Kar) 41468

; reckoned from such reference, the order imposing penalty is time barred and therefore, unsustainable. ... The expression 'action for imposition of penalty is initiated' must, thus, clearly refers to the date on which the first introductory step for such action is taken, it must necessarily mean the start of such action. It must mean the commencement of action for impo....

2023 0 Supreme(Cal) 564

category of essential element for imposing penalty. ... It appears from records that the petitioner, without much ado, paid the penalty. The appeal against the order of the adjudicating authority also does not speak much. ... The petitioner is aggrieved because the authority did not exercise discretion to impose a lesser amount of penalty or to release the goods without....

2024 0 Supreme(All) 130

More so, there was no reason for the Revenue to have detained the goods and the consequential actions that followed, were obviously vitiated.” 12. ... This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order dated August 20, 2019, passed in appeal by the Respondent No. 2/Additional Commissioner Grade-II (Appeal), Commercial/State Tax, Gautam Budh Nagar and the penalty....

2012 0 Supreme(Jhk) 1436

9. In the circumstances, the impugned order of punishment dated 03.06.2008 cannot be sustained in law. Moreover, the impugned order is a non speaking order passed in mechanical manner without showing reason for imposing of such penalty by the Disciplinary Authority. In totality of circumstances, the impugned order is quashed and the matter is remanded back to the Disciplinary Authority to proceed afresh in accordance with law by framing proper charges and giving proper opport....

2011 0 Supreme(All) 2499

It is obvious that the recording in writing of the reason for dispensing with the inquiry must proceed the order imposing the penalty.” This is a Constitutional obligation and if such reason is not recorded in writing, the order dispensing with the inquiry and the order of penalty following thereupon would both be void and unconstitutional. “If the Court finds that the reasons are irrelevant, then the recording of its satisfaction by the disciplinary authority would be an abu....

2011 0 Supreme(All) 2166

It is obvious that the recording in writing of the reason for dispensing with the inquiry must proceed the order imposing the penalty.” “If the Court finds that the reasons are irrelevant, then the recording of its satisfaction by the disciplinary authority would be an abuse of power conferred upon it by clause (b) and would take the case out of the purview of that clause and the impugned order of penalty would stand invalidated.”

2011 0 Supreme(All) 2058

It would, however, be better to record the reason in the final order in order to avoid allegation that the reason was not recorded in writing before passing the final order but was subsequently fabricated. It would be usual to ------------reason separately and then consider the question of the penalty to be imposed and pass the order imposing the penalty. The reason for dispensing with the inquiry need not, therefore, find a place in the final order. The reason for dispensing....

2011 0 Supreme(Mad) 49

On the other hand, in a matter of imposition of penalty like stoppage of increment or increment, the monetary equivalent of the penalty can always be received. The O.A., do not contain the details on the date on which the petitioner was entitled to have his increments sanctioned. In any event, the factor that such penalty can never be fully imposed can't be a reason to hold that the authorities had passed an order without application of mind. Hence, it cannot be said that the....