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2002 (11) TMI 88 - SUPREME COURTWhether the petitioners herein can be directed to bear the burden although they have no statutory liability in this behalf? Held that:- The respondents being a State, cannot in view of the equality doctrine contained in article 14 of the Constitution of India, resort to the theory of "take it or leave it". The bargaining power of the State and the newspapers in matters of release of advertisements is unequal. Any unjust condition thrust upon the petitioners by the State in such matters, in our considered opinion, would attract the wrath of article 14 of the Constitution of India as also section 23 of the Indian Contract Act. It is trite that the State in all its activities must not act arbitrarily. Equity and good conscience should be at the core of all governmental functions. It is now well settled that every executive action which operates to the prejudice of any person must have the sanction of law. The executive cannot interfere with the rights and liabilities of any person unless the legality thereof is supportable in any court of law. The impugned action of the State does not fulfil the aforementioned criteria. Thus the impugned orders dated September 24, 1991, and October 16, 1991, are unconstitutional and void and must be declared as such.
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