Debate Alert: Ul haq v. Sindh Govt - Which Principle Applies?

Arre, I'm stuck on this MCQ for CUET PG Law and need your help, guys! In 'Ul haq v. Sindh Govt', my friend and I have different answers. Question is: The principle of natural justice (ultravires doctrine) can be applied to administrative actions if they are outside the scope of the statute, only if the administrative action is taken in exercise of discretionary powers.

Friend says: True, because discretionary power means that there's a subjective element, and natural justice should apply to prevent abuse.

Me: No way, because discretionary power is inherent in the statute, so it's not like the authority is going beyond the scope of the law. So, principle of natural justice doesn't apply.

Please settle this debate for us, community!