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DELEGATED LEGISLATION
SYNOPSIS
1. INTRODUCTION
A trend very much in vogue at the present time in all democratic
countries is that only a relatively small part of the total legislative output
emanates directly from the Legislature. The bulk of the legislation is
promulgated by the Executive as a delegate of the Legislature, and this is
known as delegated legislation. Salmond defines the expression
Delegated legislation as that which proceeds from any authority other
than sovereign power and is therefore dependent for its continued
existence and Va- lidity on some superior or supreme authority. 1
Usually, what happens is that the Legislaiire enacts a law covering only
the general principles and policies relating to th subject matter in
1 See Salmond, Jurisprudence, 12th Edn, p. 116.
(b)
(i)
Under the Essential Commodities Act, 1955, the Central and State
Govern- ments have promulgated a large number of orders and
rules. The Act in itself is a small piece of legislation containing only
1 6 sections, but under it the Government carries on the whole
operation of controlling and regulating production, movement,
supply, sale, and prices of a number of commodities characterised
as essential commodities.5
The crucial provision in this Act is section 3. See the Bagla case, AIR 1954 SC
465 : (1955) 1 SCR 380.Also, Indian Law Institute, Administrative Process under the
Essential Commodities Act, 1955
(1964). For an extract from this work see, JAIN, CASES ON ADMINISTRATIVE LAW,
I, 1.
6 See, infra, Chap. 7 on Directions and the chapter on Public Sector Undertakings.
Chapter 27.
7 The power to make bye-laws by the respective statutory authority is to be found inter
alia in the following statutes: the Coir Industry Act, 1953; the Tea Act, 1953; and the
Delhi Municipal Corporation Act, 1957.
8 For Public Sector Undertakings,see, Chapter 27.
(iii)
(iv)
DELEGATED LEGISLATION
socio-economic
development
in
the
country.
In
India,
since
12
to
amplify
the
main
provisions,
to
meet
unforeseen
breakdown of law and or- der, strikes, etc. Such situations cannot be met
adequately unless the executive has standby powers. The Legislature
cannot meet at short notice and turn out legislation on the spur of the
moment. It is, therefore, a desirable expedient to pre-arm the government
with necessary powers so as to enable it to take action at a moments
notice by promuulationg the needed rules and regulations according to
the needs of the situation the defence on India Act, 1971 is a case in
point.
The supreme Court of India has mentioned the following as the dominant
as the dominant reasons for giving power of delegated legislations to the
government:14
1. The are for which powers are give to make delegated legislation may be
technically complex, so much so, that it may be possible and may
even
St.
Johns
Teachers
Training
Institute16
the
Supreme
Court
emphasized the need for delegated legislation. It was held that delegated
legislation i5 framed with care and minute- ness when the statutory
authority after coming into force of the Act, is in a better position to
adapt the Act to special circumstances. Delegated legislation permits
utilization of expeffence and consultation with interests affected by
practical operation of statutes. It was further held that main justification
for delegated legislation is that legislature being over burdened and the
needs of modern society being complex, it cannot possibly foresee every
administrative difficulty that may arise after statute has begun to
operate. Delegated legislation fills those needs. There was a time when
15 Committee on Ministers Powers, at 4,5,23,51,52,(1932).
16 St. Johns Teachers Training Institute v. Regional Director, NCTE, (2003) 3 SCC
321, para 10, p. 331 : AIR 2003 SC 1533
of
its
legislative
function
by
the
Legislature
and
use
of
the
technique
of
delegated
legislation
by
the
Administration.
Therefore, though the technique of delegated legislation has definite
advantages, has become generally acceptable, and the exigencies of
modern Government make its use necessary, yet the dangers inherent in
its indiscriminate use cannot be lost sight of. Rights of the people can be
as vitally affected by delegated legislation as by primary legislation.
Accordingly, becomes necessary to evolve proper safe- guards to minimize
the feeling of insecurity and distrust generated from an apprehension
that the Government may misuse its powers of delegated legislation, to
ensure that the statutory powers are exercised and statutory functions
performed properly and that the Government is not able to capriciously
injure private rights of person or property.
The basic problem, therefore, in the area of delegated legislation is that of
devising suitable controls and safeguards so that the advantages of the
technique of delegated legislation may be available, while the dangers and
risks of abuse inherent therein may be minimized. The focus of the
inquiry thus shifts from the question of desirability of delegated
The question here is: how much power should the Legislature be
permitted to delegate? This is known as pre-natal control. The
question at this stage is whether the Legislature should be free to
delegate any amount of legislative power to the Executive, or the
Legislature should be restrained in this respect?
(b) At the point of exercise of delegated
power
by
the
Administration.
The question here is subject to what restraints and safeguards
should the delegate function in exercising the delegated legislative
powers? In short, what controlMechanism should be put into being so as to minimize the hazards
of the technique of delegated legislation? This is known as postnatal control.
It may be noted that both levels of control are supplementary to
each other. The efficacy of the control at the second stage, to a large
extent, depends upon the first. If the Legislat confers power in very
broad terms, its exercise by the delegate cannot be effectively
controlled later. If the Legislature confers power subject to certain
norms and standards, then the exercise of the power can be tested
in the light of those standards, and any attempt by the delegate to
ignore those standards may be checked iw voiding the deleted
legislation produced by the delegate by applying the do trine of
ultra vires.18
An attempt is made below to discuss controls over delegated legislation at
both the levels ill certain democratic countries as well as in India.
4. RESTRAINTS ON DELEGATION OF LEGISLATIVE POWER
(a) Britain
Even in the earliest years of British Parliament, broad power to legislate
by proclamation remained with the Crown. In 1539 Royal Power to issue
proclamation for good order and governance was recognized by T4enry
VIII s Statute of Proclamations and such proclamations were enforced as
if made by Act of Parliament However the aforesaid statute was replaced
18 For discussion on the Doctrine of ultra vires, see, Ch. 4.
making the instrument.19 However, since 1998 the scope for challenges to
the validity of delegated legislation has been significantly widened. In
1998, the Parliament enacted Human Rights Act, 1998. Section 3(1) of
the Human Rights Act, 1998 casts a duty to interpret the legislation
consistently with the European Convention Rights where it is possible to
do so. Thus, the requirement of a valid subordinate law is that it should
be in conformity with European Convention Law. A Northern Ireland Sex
discrimination order made a certificate of the Secretary of State
Conclusive evidence of the ground of dismissal of a woman public officer
which was violate of an European Community Council directive requiring
an effective judicial remedy, in such matters. It was held that dismissed
officer could enforce the remedy in a domestic court. 20 In Bourgeois v.
Ministry of Agriculture21 a ministerial order was held to be unlawjj on
account of conflict with EC treaty.
19 R v. Environment Sec. Exp. Spath Holme Ltd., (2001) 1 All ER 195 : (2001) 2 AC
349. See also, Rohinson v. Secretary ofStatefor Northern Ireland (Northern Ireland),
(2002) UKHL 32.
20 Johnston v. chief Constable, (1986) 3 All ER 135 : (1987) QB 129 (ECJ).
21 (1985) 3 WLR 1027 : (1986) QB 716.
construes,
bye-laws
benevolently
and
upholds
them
if
possible.28
have
declared
invalid
statutory
instruments
which
have
snuff was held illegal, as during consultation process the company was
not given scientific grounds on which the ban was made. It was further
held that unfair consultation process can lead to instrument being
quashed.34 Where a Department failed to allow sufficient time it was held
that there was no effective consultation.35
The doctrine of severability has also been applied in the context of
delegated leg- isolation. It has been held that where either on the
grounds of substance or procedure an instrument is to some extent
defective this does not mean necessarily that whole instrument is a
nullity. It may be operative to its lawful extent or be binding on the
persons not affected by the defect of procedure. 36 The decision of such
severance is permissible only when after deletion the unlawful part of
34 R. v. Secretary ofState, Fxparte U.S. Tobacco International Inc., 1992 QB 53; see
also The North- em Ireland Commission for Children and Young People v. Peter
Ham, The Secretary of State,(2007) NIQB 52.
37
(b) U.S.A.
In the United States, the position is substantially different from what
prevails in Britain. The U.S. Congress functions under a written
Constitution, and the courts have power to interpret the Constitution
and declare a Congressional statute unconstitutional if it does not
conform with their view of the Constitution. In the celebrated case of
Yongstown & Tube Co. v. Sawyer,38 the United States Supreme Court
ruled that American Constitution is inconsistent with the notion of
executive law making authority.
iii) Yakus V. U.S.,43 is a case on the other side of the line. During World
War II, the office of the Price Administrator was set up to control prices.
The relevant Act declared that the prices fixed ought to effectuate the
declared policy of the Act to stabiornmodity prices with a view to prevent
wartime inflation and its disruptive causes and effects. In addition, the
prices fixed had to be fair and equitable. In fixing prices the
Administrator had to give due consideration to the prices prevailing 1n
a designated base-period.
The delegation, though in effect extremely broad, was, nevertheless, held
valid by d Supreme Court for the Congress had stated the legislative
objective and had prejbed the method of achieving that objective
maximum price-fixingand had laid down the standards to guide the
Administrators determination. The Court found a t the standards
prescribed were sufficiently definite and precise so as to enable every one
to ascertain whether or not the Administrator, in fixing the designated
prices had conformed to those standards.
There are not many examples of the United States Supreme Court
declaring
Con-
gressional
legislation
unconstitutional
because
of
the
power
to
declare
delegation
of
legislative
power
broad and indefinite. Till that extreme point is reached, courts permit
delegation realising that Legislature to-day has to deal with complex
socio-economic problems and it may not be practical for it to
meticulously lay down standards for the delegate to follow.
Nevertheless, the academic and judicial view is in favour of maintaining
the docthne that delegation by Congress should be accompanied by
discernible standards. It is argued that the doctrine serves two primary
functions.
First, it ensures that the fundamental policy decisions will be made not
by an appointed official but by the body elected by, immediately
responsible to, the people. Formulation of policy is the primary
responsibility of the Legislature which task is entrusted to it by the
electorate.
Second, it prevents judicial review from becoming merely an exercise at
large by providing the courts with some measure against which to judge
the official action that has been challenged.46
46 J. SKELLY WRIGHT, BEYOND DISCRETIONARY JUSTICE, 81 Yale U 575 (1972);
U.S. v. Robel, 389 US 258 (1967); JUSTICE HARLAN (Joined by JUSTICES DOUGLAS
AND STEWART) in Arizona v. California, 373 US 546 (1963).
Even though the U.S. Supreme Court has upheld broad delegations
because of the exigencies of the Government in modern times, the Court
always reiterates the doc trine of excessive delegation. The doctrine has
never been repudiated, though in ts practical application the courts
adopt a flexible approach. Also, the existence of t doctrine may lead the
court to read the delegating provisions narrowly to avoid co stitutional
problems.47 In recent years, there have been calls for revitalization of th
excessive delegation doctrine from many quarters, even from those who
have antipathy towards social legislation.48 However, justice Frank
Furter49 has aptly warned the power which must more and more be
lodged in administrative experts, like all power is open to abuse unless it
s exercise is properly circumscribed and zealously scrutinized for we have
greatly widened the field of administrative discretion and thus opened
the doors to arbitrariness.49
are
similarities
and
dissimilarities
between
the
Indian
Constitution, on the oue hand, and the Constitutions of Britain and the
U.S.A., on the other. India and ftain both have parliamentary formof
Government in which the Executive is also a nart of the Legislature and
can be closely supervised by it. On the other hand, while dia has a
wanton constitution, Britain functions mostly under an unwritten
constriction. The British Parliament is Sovereign. One of the hallmarks of
such sovereignty is the right to make or unmake any law which no court
or body or person can seethed or override. The Indian Parliament is a
creature of the Constitution and its powers privileges and obligations are
specified and limited by the Constitution. 54 Also, while India, like the
U.S.A., has the system of judicial review of legislation, the same does not
prevail in Britain. This means that while the courts in India can declare
law unconstitutional, such a power is not available to any court in
Britain.
But then, while in the U.S.A., the presidential form of Government is
based on the principle of separation of powers, the Indian system does
not follow that principle in the area of Executive-Legislative relationship.
The parliamentary form of Govern- mint is based not on the principle of
separation, but on that of co-operation, rather unison, of the two organs.
Because of these similarities and dissimilarities between the Indian,
British and the American Constitutions, it was open to the Supreme
Court in Independent India to follow either the English or the American
model on the question of delegation of legislative power.
Further, the constitution of India is neutral on this point as there is
nothing in the Indian Constitution either by way of expressly prohibiting,
or permitting the Legislature of delegate its legislative power to the
54 Rajaram Patel v. Hon ble Speaker Lok Sabha, (2007) 3 5CC 184, para 720 : (2007)
2 JT 1.
Kalota Shaikh v.Union ofindia, (2009) 2 5CC 1, paras 34, 35 and 36 : (2009) 1 5CC
(Cr1) 620; Rajaram Patel v.
Hon ble Speaker Lok Sabha, (2007) 3 5CC 184, para 720; State of Rajasthan v.
Basant Nahata,
(2005) 12 5CC 77, para 19 : AIR 2005 SC 3401; Raineshwar Prasad v. Union ofindia,
(2006) 2
SCC 1 , para 104, 105, 106, 1 17, 154, 196 and 201 : AIR 2006 SC 980; M.P. High
Court Bar Association v. Union ofindia, (2004) 1 1 5CC 766, para 38 : (2005) AIR
SCW 3208; Peoples Union for
Civil Liberties v. Union of India, (2004) 2 5CC 476, para 36, 37 and 39 : AIR 2004 SC
1442; B.
Krishna Bhat v. State ofKarnataka, (2001) 4 5CC 227, para 5 : AIR 2001 SC 1885;
Kiran Gupta v.
State of UP., (2000) 7 5CC 719, para 12.
legislate for these States. As it was very difficult for Parliament to find the
necessary time to do so in view of its other manifold en- agreements,
Parliament passed a law, the Part C States (Laws) Act, 1950. The Act
authorized the Central Government to extend to any Part C State, with
such restrictions and modificatiolis as it thought fit, any enactment in
force in a Part A State. While doing so, the Government could repeal or
amend any corresponding law (other than a Central Law) which might be
operative at the time in the Part C State concerned.
Undoubtedly, it was a very sweeping kind of delegation. The Government
c extend to a Part C State any law made by a State Legislature (and not
by Parliam at any time (not only laws prevailing in 1950 but even those
made subsequently), even modify the law before extension. And if there
was already a law in force in concerned Part C State on the point, it
could either be repeated or modified by Government when the law was
being extended.
The Supreme Court was called upon to adjudge the validity of this aboveminted provision. Seven Judges participated in the decision and seven
opinions v delivered exhibiting a cleavage of judicial views on the
One view propounded was that the Indian Legislature could delegate its
power to any extent subject to the limit that it did not efface itself, or
abdicate its powers, which meant that the Legislature should never give
up its control over the delegate; that it must not destroy its own
legislative power; that it must retain in its hands the ultimate control
over the authority so as to be able to withdraw the delegation when- ever
the delegate did something wrong or foolish.
The other view which approximated to the American approach, and
which in the- ory at least is somewhat more restrictive than the first, was
that the Legislature should not delegate its essential legislative function
which comprised the formulation of policy and enacting it into a binding
rule of conduct. That means that the Legislature should lay down
standards or policy in the delegating Act and the delegate may be left
with the power to execute the policy.
By a majority, the Court laid down, in the instant case, that the
Legislature should not delegate its essential legislative function which
comprises the formulation of policy and enacting it into a binding rule of
conduct. The Supreme Courtropuiided the thesis in the instant case that
the Legislature is the care Ctureorme Constitution, the constitutionmakers have placed their confidence in the collective wisdom of the
Legislature, the constitution has chosen to vest legislative power in the
elected representatives of the people. It is inevitable that the Legislature
should itself discharge the essential legislative function, viz., the
Legislature should itself lay down standards or policy in the delegating
Act leaving the delegate with the power to make rules to execute the
policy laid down by the Legislature.56
The specific provision involved in the instant case was held valid by a
majority of Judges subject to two riders:
(1) that part of it was bad which authorised the Government to repeal a
law already in force in a Part C State;
(2)
56 Same proposition is reiterated in later case. See Krishna Prakash Sharma v. Union
oflndia, (2001)5CC 212, para 18 : AIR 2001 SC 1493; State ofRajasthan v. Basant
Nahata, (2005) 12 5CC 77,
paras 19 and 20 : AIR 2005 SC 3401.
(2)
Bench opted for the American position that the Legislature itself must set
the essential policy, or lay down standards or policy in the delegating Act,
and the delegate would then legislate to further the legislative policy. This
has come to be known as the Doctrine of Excessive Delegation of
Legislative Power.
In Ramesh Birch V. Union of India, 57 a provision relating to Chandigarh
similar to the one involved in the Delhi Laws Act case regarding Delhi.
has been held valid.
5. DOCTRINE OF EXCESSIVE DELEGATION
In course of time, through a series of decisions, the Supreme Court has
confirmed the principle that the Legislature can delegate its legislative
power subject to its laying down the policy. The Legislature must declare
the policy of the law, lay down legal principles and provide standards for
the guidance of the delegate to promulgate delegated legislation,
otherwise the law will be bad on account of excessive delegation.
57 AIR 1990 SC 560 : 1989 Supp(1) 5CC 430; JAIN, CASES, I, 72.
be
58 Humdard Dawakhana (Wakf) v. Union of India, AIR 1960 SC 554 : (1962) 2 SCR
671; KishanPrakash Sharma v. Union oflndia, (2001) 5 5CC 212 : AIR 2001 SC
1493; Krishna Mohan (P)
Ltd. v. Municipal Corporation ofDelhi, (2003) 7 5CC 15 1 : AIR 2003 SC 2935; State of
Rajasthan
V. Basant Nahata, (2005) 12 5CC 77.
59 State ofRajasthan v. Basant Nahata, (2005) 12 5CC 77, para 19 : AIR 2005 SC
3401 ; M.P. High Court Bar Association v. Union oflndia, (2004) 1 1 5CC 766, para 38 :
AIR 2005 SCW 3208; Un- ion ofindia V. Azadi Bachao Andolan, (2004) 10 5CC 1, para
69 : AIR 2004 SC 1107.
60 1K. Industries Ltd. v. Union ofindia, (2007) 13 5CC 673, para 130, 131.
61 LIC oflndia v. Retired LIC Officers Assn., (2008) 3 5CC 321, para 17 : AIR 2008 SC
1485; Chair- man Indore Vikas Pradhikaran v. Pure Industrial Coke and Chemicals
Ltd., (2007) 8 5CC 705, para 99 : AIR 2007 SC 2458.
62 Sitaram Vishambhar Dayal v. State of UP., AIR 1972 SC 1 168, para 7, p. 1 170 :
(1972) 2 SCR141.
63 See Kishan Prakash Sharma v. Union ofindia, (2001) 5 5CC 212, para 18 : AIR
2001 SC 1493.
64 AIR 1970 SC 1453 (para 17, page 1464) : (1969) 2 5CC 166.
65 See, infra, Ch. 5, for 1aying procedure.
The question sought to be settled in the Delhi Laws Act case and
subsequent cases was again re-opened in Gwalior Rayon 66 after a period
of twenty-four years since the doctrine was laid down in Delhi Laws Act
case. MATHEW, I., in his opinion argued that so long as Parliament
retains the power to repeal the delegating provision, it does not abdicate
its legislative function and, therefore, there should be no objection to
delegation howsoever broad its extent.
MATHEW, J., argued that since the Legislature can repeal the statutory
provision delegating power, there should be no need to lay down policy or
standard in the statute because through its repeal power, the Legislature
retains an ultimate control over the delegate; and the Legislature could
never be regarded as abdicating its legislative power. If accepted,
MATHEW, I. 5 view would have resulted in a complete emasculation of
the doctrine of excessive delegation, and there would remain no
semblance of restraint on the Legislature in the matter of delegation.
However, the majority of the Judges on the Bench did not agree with this
thesis of MATHEW, J. The majority reiterated the proposition that when a
66 Gwalior Rayon Co. v. Asst. Commr. of Sales Tax, AIR 1974 SC 1660 : (1974) 4 5CC
98.
The power to legislate carries with it the power to delegate. But excessive
delegation may amount to abdication. Delegation unlimited may invite
despotism Un- limited. So the theory has been evolved that the
Legislature cannot delegate its essential legislative function. Legislate it
must, by laying down policy and principle and delegate it may to fill in
detail and carry out policy. . . . If guidance there is, wherever it may be
found, the delegation is valid.
The Supreme Court has stated in Mahe Beach Trading Co. v. Union
Territory of Pondicherry71 that if there is abdication of legislative power,
or there is excessive delegation, or if there is a total surrender or transfer
by the Legislature of its legislative functions to another body, then that is
not permissible. There is, however, no abdication, surrender of legislative
functions or excessive delegation so long as the Legislature has expressed
its will on a particular subject matter, indicated its policy and left its
effectuation to subordinate legislation, provided the Legislature has
retamed the control in its hand with reference to it so that it can act as a
72 (1995) Supp (1) 5CC 642, para 23, 24 & 26; Also see, Organon (India) Ltd. v.
Collector of Excise,AIR 1994 SC 2489, p. 2505 : 1994 Supp(1) 5CC 53; Agricultural
Market Committee v. Shalimar
Chemical Works Ltd., AIR 1997 SC 2502, p. 2507 : (1997) 5 5CC 516; BR. Enterprises
v. State of
Uttar Prdesh, AIR 1999 SC 1867, p. 1910 : (1999) 9 5CC 700; Kishan Prakash
Sharma v. Union
oflndia, AIR 2001 SC 1493, at 1502 : (2001) 5 5CC 212.
73 In Consumer Action Group v. State of Tamil Nadu, (2002) 7 5CC 425, at 439 : AIR
2002 SC 3302, the Supreme Court discerned the policy underlying the Act from the
Preamble and Objects andReasons of the Act. See also, Ashok Lanka v. Rishi
Dikshit, (2006) 9 5CC 90, para 36 : AIR 2006 SC 2382; Mahendra Babu Rao
Mahadik v. Subhash Krishna Kanitkar, (2005) 4 5CC 99, para 46:
AIR 2005 SC 1794.
thus it is clear from the above that the courts adopt a liberal stance in
the matter of brining out the legislative policy and guidelines with a view
to uphold delegation of legislative power. But there is a danger in this
approach. The process of liberal interpretation should not be carried so
far as to always trying to discover dormant and t legislative policy and,
thus, sustain an arbitrary power conferred on the Exertive. If this
happens, the doctrine of excessive delegation will become effective 4 the
Legislature will be enabled to confer unlimited power of delegated
legislator .74 Again following the principles laid down in Kunjabmu s
case, the Supreme Gurt in St. John s Teachers Training Institute, 75 held
that question whether a perjurer legislation suffers from the vice of
excessive delegation has to be examined in the context of subject matter,
the scheme, the provisions of statute including its preamble and the
facts and circumstances in the background of which statute is enacted.
74 Kishan Prakash Sharma v. Union oflndia, AIR 2001 SC 1493, at 1502 : (2001) 5
5CC 212.
75 St. John 5 Teachers Training Institute v. Regional Director, NCTE, (2003) 3 5CC
321, para 12, p.332 : AIR 2003 SC 1533. See also, Novva Ads v. Secretary,
Department ofMunicipal Administration and Water Supply, (2008) 8 5CC 42, para
38 and 40 : AIR 2008 SC 2941 ; State of TN. v. P.
Krishnamurthy, (2006) 4 5CC 517, para 15, 16, 22 & 27 : AIR 2006 SC 1622.
76 Ashoka Kumar Thakur v. Union ofindia, (2008) 6 5CC 1, para 212 and 230.
These categories are not mutually exclusive and have been adopted
because of their most common occurrence and for the sake of
convenience to facilitate analysis of cases. They are governed by the same
overall principle of excessive delegation.
The truth, however, remains that, in practice, difficulties arise in
applying the doctrine of excessive delegation to concrete situations and
by and large the judicial tendency is to uphold the power of delegated
legislation. It is only rarely that such, a power may be struck down on
the ground of excessive delegation. This will be- come clear from the
following discussion.
. (a) Skeleton Legislation
In Bagla v. State ofMadhya Pradesh, 78 the following two sections of the
Essential Supplies (Temporary Powers) Act, 1946, were questioned on the
ground of excessive delegation:
S. 3(1)The Central Government, so far as it appears to it to be
necessary or expedient for maintaining or increasing supplies of any
78 AIR 1954 SC 465 : (1955) 1 SCR 380. See also, Bhandara District Central Co-
operative Bank Ltd.v. State ofMaharashtra, (1993) Supp 3 5CC 259, Para 7 : AIR
1993 SC 59.
79 AIR 1954 SC 465 at 468 : (1955) 1 SCR 380; See also, C. Lingam v. Govt. ofindia,
AIR 1971 SC474, para 7 : (1970) 3 5CC 768. See also, Agriculture Market
Committee v. Shalimar Chemical Works Ltd., (1997) 5 5CC 516, para 24 & 26 : AIR
1997 SC 2502.
oflndia, AIR 1982 SC 1126 : (1982) 1 5CC 205, the Supreme Court upheld a
statutory provision in the L.I.C. Act, 1956 which provided that the rules made
under the Act shall have effect notwithstanding anything in the Industrial Disputes
Act or any other law.
There are a large number of other cases in line with the above judicial
approach. In Jjhatnagars & Co. v. Union of India, 81 was involved S. 3(l)(a)
of the Imports and Exports (Control) Act, 1947 authorizing the Central
Government to prohibit or restrict the import or export of goods of any
specified description by order. The statute is skeletal and gives no
indication as to what considerations and policies are to be kept in view
by the Government in controlling imports and exports. The whole
regulatory process over import and export of goods has been developed
by the Administration through delegated legislation under this statutory
provision. The Supreme Court upheld the statute as valid arguing that
the underlying policy was to be found in the preceding statute, the
Defense of India Act, 1939, whose provisions the statute i question
purported to continue.
It is, however, not clear as to how this relation between the old and the
new Acts was established by the Court. The only reference made to the
old provision by the Act in question was in S. 4 under which all orders
81 AIR 1957 SC 478, p. 485 : 1957 SCR 701. See also, Kashmir Singh v. Union
oflndia, (2008) 7 SCC 259; M.P. State Electricity Board v. Union of India, (2006) 10
5CC 736, para 59; Quarry Owners Association v. State ofBihar, (2000) 8 5CC 655,
para 36, 38 & 42 : AIR 2000 SC 2870.
made under Rule 84 of the Defense of India Rules, 1939 were to continue
in force so far as not inconsistent with the Act. It may also be noted that
the Defense of India Act was an emergency law and dealt not only with
imports and exports but also with a whole range of matters which
became relevant during the war emergency.
Further, the Defense of India Act was itself a skeletal piece of legislation.
The whole complexion of import and export control has changed in
Independent India and differs very much in details and fundamental
approach from what it was in the 1940 5. The control policies in the area
of import and export are developed by the Executive from time to time
and for this purpose the Act in question lays down no guidelines.
However, in support of the Courts decision it may be said that the
subject of import and export control is so variable in the modern world
that perhaps it is not possible for Parliament to lay down articulate
norms which could be valid for all time to come and, thus, broad powers
have to be left in this area to the executive.
contained the policy.83 This means that the policy of the statute is found
in the rules made by the Executive. But such an argument is hardly
tenable. It does not seem to be correct to control the discretion conferred
under the Act through the rules made under a prior Act as the rules
could be changed at any time. Further, to treat the existing rules as
laying down the policy could result in the further argument that these
rules could not ever be changed by the rule-making authority because
changing the rules would be tantamount to changing the policy approved
by the Legislature, and in substance that view could result in very much
restricting the rule-making power. It could certainly not be the intention
of the Legislature to fossilize or stratify the existing rules once for all. 84
(b) Power of Exclusion and Inclusion
A common legislative practice is to confer power on the Government to
bring mdi- viduals, bodies or commodities within, or to exempt them
83 Garewal v. State ofPunjab, AIR 1959 SC 512, p. 517 : 1959 Supp(1) 5CR 792.
84 A few other cases on the point are: Izhar Ahmad v. Union oflndia, AIR 1962 SC
1052, p. 10671962 Supp(3) 5CC 235; Vasanlal Maganbhai v. Bombay, AIR 1961 SC
4 : (1961) 1 SCR 341; Raghubar Dayal v. Union oflndia, AIR 1962 SC 263 : (1962) 3
SCR 547; State ofNagaland v.
Ratan Singh, AIR 1967 SC 212 : (1966) 3 SCR 830.
from, the purview of a statute. Several formulae are in vogue for the
purpose.85
A usual legislative formula is to say that the Act applies to the items
mentioned in the schdule annexed but Government has power to alter
the schedule by adding thereto or removing therefrom some items. Thus,
the range of operation of the Act can be expanded or reduced by making
alterations in the schedule through delegated legislation. To some extent,
this provision involves delegation of power to modify the parent Act, but
invariably such a provision has been upheld as valid.
The Minimum Wages Act, 1948 has been enacted, as stated in its
preamble, to provide for fixing minimum wages in certain employments.
The Act applies to employments mentioned in the schedule, but
Government is given power to add any other employment thereto and,
thus, to extend the Act to that employment.
The Act lays down no norms on which Government may exercise its
power to add any employment to the schedule. Nevertheless, in Edward
85 Ashoka Kumar Thakur v. Union oflndia, (2008) 6 5CC 1, para 170, 295, 357 & 358;
Lohia Ma- chines Ltd. v. Union oflndia, (1985) 2 5CC 197, para 26 : AIR 1985 SC 421.
Mills Co. v. State of Ajmer, 86 the Supreme Court upheld the provision
arguing that the policy was apparent on the face of the Act which was to
fix minimum wages in order to avoid exploitation of labour in those
industries where wages were very low because of unorganized labour or
other causes.
(c) power to Amend Schedule the
In a number of cases, the power to amend the schedule has been upheld
because the policy to give guidance to the Government was discernible
from the Act.87 It is not unconstitutional for the legislature to leave it to
the executive to determine details relating to the working of taxation
laws, such as selection of persons on whom tax is to be laid, the rates at
which it is to be charged, in respect of different classes of Banat
88
goods
427; Sable Waghire & Co. v. Union oflndia, AIR 1975 SC 1172, para 17 : (1975) 1
5CC 763; State of MadhyaPradesh v. Mahalaxmi Fabric Mills Ltd., AIR 1995 SC
2213 : 1995 Supp(1) 5CC 642. See also, J.K. Industries Ltd. v. Union oflndia, (2007)
13 5CC 673, para 130 131.
88 Banarasidas Bhanot v. State ofMadhya Pradesh, AIR 1958 SC 909 : 1959 SCR 427,
see also, Kishanlal v. State ofRajasthan, 1990 (Suppi) 5CC 42 para 4 : AIR 1990 SC
2269.
and the like. It was held in Banaras as Bhanot 89 that power conferred on
the Section state Government by Section 6(2) of the C.P. and Berar Sales
Tax Act, 1947 to amend the schedule relating to exemption is in
consonance with the accepted legislate tive practice relating to the topic
and is not unconstitutional.
The Punjab General Sales Tax Act, 1948 levied a purchase tax on goods
except the ns mentioned in the schedule annexed. The State Government
could add to, or *lete, any item from the schedule after giving three
months notice. This meant that 11 the Government added an item to the
schedule, it became tax exempt; if any item S excluded from the
schedule, it became subject to taxation. The Supreme Courted the
provision against challenge on the basis of excessive delegation on two
grounds:
(I) it is common to give to the Executive the power to amend schedules
and such power has been upheld in a number of cases;
(2) changes in the schedule could be made after giving three months
notice. This was a check on an arbitrary exercise of power. The
89 Babu Ram v. State ofPunjab, AIR 1979 SC 1475 : (1979) 3 5CC 616.
(1986) 3 5CC398; JAIN, CASES III, Ch. XVI. See also, State ofWest Bengal v. Rash
Bihari Sarkar, (1993) 1 5CC
479, para 21 : (1993) 1 JT 1.
94 AN. Parasuraman v. State ofTamil Nadu, AIR 1990 SC 40 : (1989) 4 5CC 683.Also,
K.T. Moopil Nair v. State ofKerala, AIR 1961 SC 552 : (1961) 3 SCR 77; Kunj Behari
Butail
V. State ofHimachal Pradesh, AIR 2000 SC 1069 : (2000) 3 5CC 40.
95 ConsumerAction Group v. State ofTamil Nadu, AIR 2000 SC 3060 : (2000) 7 5CC
425.Also see, Inder Singh v. State ofRajasthan, AIR 1957 SC 510 : (1957) SCR 605;
Premium Granites V. State ofTamil Nadu, AIR 1994 SC 2233 : (1994) 2 5CC 691.
the statute or indication of any clear will through its venous provisions. If
there be any, then this by itself would be a guiding factor to be exercised
by the delegate. In other words, then it cannot be held that such a power
is unbridled or uncanalised. The exercise of power of such delegatee is
controlled through such policy.