H.L. TREHAN AND ORS. ETC. vs UNION OF INDIA AND ORS. ETC.

The Supreme Court upheld the High Court's decision to quash a circular issued under the Caltex (Acquisition of Shares of Caltex Refining (India) Ltd. and of the Undertakings in India of Caltex (India) Ltd.) Act, 1977, which rationalized management staff perquisites without affording them an opportunity to be heard. The Court emphasized that any deprivation of existing rights of government servants must comply with the principles of natural justice, as mandated by Article 14 of the Constitution. The Court held that post-decisional opportunities do not suffice to meet the requirements of natural justice, thereby affirming the High Court's ruling against arbitrary administrative action.