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Brief Facts: The petitioner J.N. Sinha was Government servant. He was
compulsorily retired from service by giving three months notice under
fundamental Rule 56 without furnishing any reasons. The petitioner challenged
it as unconstitutional under Article 311, and against to the principles of natural
justice.
JUDGEMENT: The Supreme Court held that the petitioner was removed from
the service as per rule 56 which was a specific rule. Article 311 can be invoked
only in cases of dismissal and suspensions compulsorily retirement shall not
come under Article 311. The order of the Government was purely
administrative. It was not a quasi-judicial action. No doubt, the principles of
natural justice would be applicable to quasi –judicial and administrative actions.
Here in this case, no principles of natural justice were violated.
Questions/Issued raised:
1. Was Sec.7 the Delhi Laws Act, 1912 or any of the provisions thereof, and in
what particular or particulars or to what extent ultra vires the legislature which
passed the said Act?
2. Was the Ajmer-Merwara (Extension of Laws) Act,1947, or any of the
provisions thereof, and in what particular or particulars or to what extent ultra
vires the legislature which passed the said Act?
3. Is Sec. 2 of the Part-C States Laws Act, 1950, or ‘any of the provisions
thereof, and in what particular or particulars or to what extent ultra vires the
Parliament?
This Act empowered the Central Government –i) to extend to a part-C
state any Act in force in apart A state, ii) to repeal any law applicable to a part-c
state. This could be done by the Central Government notification in the Official
Gazette. The President got a doubt whether such delegation was proper and
permissible. He made a reference to the Supreme Court under Article 143 for
the advisory opinion seeking its opinion on the validity of the Part-C states
(Laws) Act, 1950 and more particularly Section 2 of that Act which provided a
delegation of legislative power to the Executive.
JUDGEMENT: The Supreme Court held by majority that the provisions
contained in Qns. 1& 2 are not ultra vires the Legislature which passed the Act
containing those provisions. As regards the section mentioned in Qn 3, the first
part was held to be intra vires, but the second portion, which is in the following
terms, “Provision may be made in any enactment so extended, for the repeal or
amendment of any corresponding law (other than a Central Act) which is for the
time being applicable to the Part-C state”, is ultra vires the Indian Parliament
which passed the Act.
IN RE DELHI LAWS ACT,(AIR 191 SC 322) {GWALIOR RAYON MILLS
vs. ASST. COMMR, OF SALES TAX AIR 1974 SC 1471}
Here under some of the circumstances are explained, in which essential
legislative functions cannot be delegated.
A. RETROSPECTIVE OPERATION: The Parliament can make the laws
making them enforceable wit retrospective effect.i.e. with back date. This is the
most important legislative feature. This important legislative feature cannot be
delegated. If the parent Act permits the delegated authorities, then they can
legislate to that extent and to that permissions.
B. REMOVAL OF DIFFICULTIES: Some times, the parent Act empowers the
executive to remove modify some clauses or sections of the parent Act, for the
better application and force of it. It is called ‘Remove of Difficulty clauses’ But
under the veil of this clause, the executive should not be allowed to enact
‘Henry VIII Clauses’(refer topic no 4.E for Henry VIII clause)
C. FUTURE ACTS: To legislate future Acts is an essential feature of the
legislature. This important function cannot be delegated to the executive
D. TAXING STATUTES: Imposing of taxes on the citizens and persons is a very
important feature and function of the legislature. This important function
cannot be delegated to the subordinate authorities. However, the parent Act
may delegate the tax laws after fully enacted, and with some guidelines to
implement them with slight variations. This little relaxation viz. to example a
particular commodity from levy of tax etc. is also upheld by the Supreme court
in its various decisions (Municipal corporation Delhi vs. Birla cotton Mills (AIR
1968 SC 1232) Corporation of Calcutta vs liberty cinema etc.
E. OFFENCES AND PENALTIES: Deciding an act as an offence and fixing its
liability imposing the penalities.etc are the essential features and functions of
the legislature. This important function cannot be delegated to the executive.
However, the parent Act may fix certain amounts as the maximum for certain
offences, and may leaves to the discretion to fix the penalty. This relaxation
may be allowed.
Example: the Electricity Act, 1910 is the parent Act. Sec 37 of hie Act
empowers the Central Government to legislate the punishments. However, it
should not exceed the maximum prescribed punishment mentioned in the parent
Act.
F. OUSTER CLAUSES: The parliament is empowered to include the ‘ouster
clauses’ in the parent Act” shall be conclusive evidence”, “shall not be called in
question in any court”, “shall not be called in question in any legal proceedings
whatsoever”, etc. are the clauses ousting the judicial review. This is the
essential feature of legislature. This essential feature cannot be delegated to the
subordinate legislative authorities (Refer Topic “finally clause)
G. MODIFICATION: ‘Modification’ means ‘a complete change of the provision
modification of the provisions of the statute is an essential legislative function.
This important function cannot be delegated to ht subordinate authorities. Even
if it is permitted, it can be done so in rarest of rare cases only.
H. EXEMPTION: Exemption of certain sections from the statute means it is a
change from the parent Act. Exemption is also an essential function of the
parliament. It cannot be delegated to the executive. However, it may be
permitted, if the parent Act permits and provides the guide line in this effect.
I. REPEAL OF LAW: Repeal of law is an essential function of the legislature. It
cannot be delegated to the executive. However, if the parent Act may authorize
the subordinate authorities to repeal certain clauses or certain provisions from
the statute with effect from certain time, or on the happening of certain event.
In fact, it becomes the conditional legislation. In such circumstances, the
executive can repeal the provisions of the statue to certain extent only.
HENRY VIII CLAUSE
MEANING: ‘Henry VIII Clause’ is a nick-name given to ‘executive autocracy’.
A statute is enacted by the Parliament, and in that statute, a clause is inserted
delegating powers to the executive to amend the statute. Such a clause is called
as ‘Henry VII Clause’. In England Henry ruled in autocratic manner. The
delegation of Parliamentary legislative powers to the executive means giving a
way to autocracy. Therefore, it is criticized with the nick-name ‘Henry VIII
Clause’.
OBJECT: Power of modification of the statute means it is an act of legislation
itself. Therefore, modification of the statute should be done by the competent
legislative bodies only. This important power should not be delegated to the
executive which may result in autocracy. Therefore, this valuable power should
be given to the executive only on exceptional cases to remove difficulties. The
delegating authorities must keep in mind two factors and these two factors must
be balanced- (i) the danger of misusing of powers by executive; and (ii) the
need and urgency for delegating the power.
JALAN TRADING COMPANY vs. MILL MAZDOOR UNION (AIR 1967
SC 497)
BRIEF FACTS: Section 37 (1) of the payment of Bonus Act1965 enacted by
the parliament empowered the central government to make provisions not
inconsistent with the purposes of the Act. Section 37(2) makes the order of the
Central Government made under sub-section (1) final. The petitioners/ mill
Mazdoor Union challenged Sec. 37 as it gave arbitrary and autocratic powers to
executive.
JUDGEMENT: The Supreme Court admitted the contention of the petitioners
and quashed Section 37 of the payment of Bonus Act1965.
CONCLUSION: The Parliament passes some Acts for implementing the new
socio-economic schemes. It does not know the real practical problems which
the executive knows. Therefore, a removal of difficulty clause equivalent to the
Henry VIII clause is incorporated in such Act. In India there are two types of
‘removal of difficulty clause’ One Is narrow one and another is broader one.
The narrow clause has to be exercised consistent with the provisions of the
parent Act. There must be a balance between the executive autocracy and
urgency to remove the difficulty. The Supreme Court suggested that such as
power should be limited in point of time, say one or two years.
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