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2012 (6) TMI 433

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..... rule making power of the authority of framing the Rule. Therefore, the Rules cannot be declared as ultra vires the Act. It is trite law that there is a distinction between conferment of power and exercise of power. If the power by an authority is not properly exercised, the same can always be assailed in a court of law. It has nothing to do as regards the constitutional validity of a Rule or a guideline. The apprehension in the mind of the petitioner that there would be abuse of power and some organizations may be unnecessarily harassed, we are disposed to think, is not to be taken note of while dealing with the validity of a statutory provision or the Rule made thereunder. The same shall be subject to judicial scrutiny when the order is passed. Thus, the aforesaid submission, being bereft of merit, is rejected. Ex-consequenti, the writ petition, being sans substratum, stands dismissed without any order as to costs. - WP (C) NO. 5793 OF 2011 - - - Dated:- 16-9-2011 - DIPAK MISRA AND SANJIV KHANNA, JJ. Sanjay Parikh, Aagney Sail, Ms. Mamta Saxena and Pranav Raina for the Petitioner. Himanshu Bajaj for the Respondent. JUDGMENT Dipak Misra, CJ. - The .....

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..... in India, shall deliver any currency, whether Indian or foreign, which has been accepted from any foreign source, to any person if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to any political party or any person referred to in sub-section (1), or both. ( c ) No citizen of India resident outside India shall deliver any currency, whether Indian or foreign, which has been accepted from any foreign source, to ( i )any political party or any person referred to in sub-section (1), or both; or ( ii )any other person, if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to a political party or to any person referred to in sub-section (1), or both. (3) No person receiving any currency, whether Indian or foreign, from a foreign source on behalf of any person or class of persons, referred to in section 9, shall deliver such currency ( a )to any person other than a person for which it was received, or ( b )to any other person, if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to .....

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..... iod of one hundred and twenty days, the Central Government shall, after recording the reasons therefor, make an order under sub-section (1) within a period of sixty days from the expiry of the said period of one hundred and twenty days." 5. In this context, we may refer to Rule 3 of the 2011 Rules. It is as follows : "3. Guidelines for declaration of an organisation to be of a political nature, not being a political party. The Central Government may specify any organisation as organisation of political nature on one or more of the following grounds : ( i )organisation having avowed political objectives in its Memorandum of Association or bylaws; ( ii )any Trade Union whose objectives include activities for promoting political goals; ( iii )any voluntary action group with objectives of a political nature or which participates in political activities; ( iv )front or mass organizations like Students Unions, Workers' Unions, Youth Forum and Women's wing of a political party; ( v )organisation of farmers, workers, students, youth based on caste, community, religion, language or otherwise, which is not directly aligned to any political party, but whose objectives, as s .....

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..... ule nowhere defines what it is meant by political objective and that is why any action taken by a democratic institution in a democratic manner is likely to be covered within it and such an act clearly offends the right to protest and right to freedom of expression. Mr. Parikh has also advanced a contention that certain activities are sometimes undertaken for the advancement of the political interest of marginalized sections and the same cannot be put under the category of political interest and the organisation engaged in it cannot be said to be an organization of a political nature. It is contended that an organisation engaged in political actions which include 'bandh', 'hartal' or 'jail bharo' cannot be regarded as an organisation involved in political activities to be denied foreign contribution. To bolster the said submission, reliance has been placed on State of W.B. v. Anwar Ali Sarkar AIR 1952 SC 75, Ram Krishna Dalmiya v. Justice S.R. Tendolkar AIR 1958 SC 538, K.T. Moopil Nair v. State of Kerala AIR 1961 SC 552, Kameshwar Prasad v. State of Bihar AIR 1962 SC 1166, Smt. Damyanti Naranga v. Union of India [1971] 1 SCC 678, Himmat Lal K. Shah v. Commis .....

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..... eology propagated by the organisation" or the "programme of the organisation" having nexus with the activities of any political nature. The said terms are in large expanse but can never be regarded as vague or uncertain. That apart, the proviso clearly sets out that the Rules shall be framed specifying the grounds on which the organisation shall be classified and regarded as an organisation of a political nature. On a scrutiny of the language employed, it is quite vivid that the rule making authority has been empowered to specify the grounds. Thus, the Legislature after stating and laying down the area has left the specific grounds to the rule making authority. It by no means, can be regarded or treated as an abdication of the essential legislative function. At this juncture, we may state that despite the widening spectrum of Article 14 of the Constitution, it is to be borne in mind that the challenge on lack of guidance cannot be thought of in a vacuum. In Bidi Supply Co. v. Union of India AIR 1956 SC 479 it has been held that Article 14 is a way of life rendering precise rule of law and in a given case that it falls this side of the line or that, and because of that decisions .....

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..... . Article 19(2) enables the State to impose reasonable restrictions in the interest of sovereignty and integrity of India, security of the State, friendly relations with foreign States, public order, decency or morality, etc. Thus, an imposition of reasonable restriction is permissible. In this regard, we may refer to the Constitution Bench judgment in Virendra v. State of Punjab AIR 1957 SC 896 wherein after referring to the decision in State of Madras v. V.G. Row AIR 1952 SC 196 it has been held as follows : "The surrounding circumstances which the impugned law came to be enacted, the underlying purpose of the enactment and the extent and the urgency of the evil sought to be remedied have already been adverted to. It cannot be overlooked that the Press is a mighty institution wielding enormous powers which are excepted to be exercised for the protection and the good of the people but which may conceivably be abused and exercised for anti-social purposes by exciting the passion and prejudices of a section of the people against another section and thereby disturbing the public order and tranquility or in support of a policy which may be of a subversive character." 12. .....

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..... nd knowledge of the existing conditions on the part of a Legislature are to be resumed, if there is nothing on the face of the law or the surrounding circumstances brought to the notice of the Court on which the classification may reasonably be regarded as based, the presumption of constitutionality cannot be carried to the extent of always holding that there must be some undisclosed and unknown reasons for subjecting certain individuals or corporations to hostile or discriminating legislation." 14. Thus, the submission on this score by Mr. Parikh leaves us unimpressed and we repel the same. 15. The other challenge is to the Rule 3 of the 2011 Rules on the ground that it transgresses the statutory provision and in a way supplants it. The basic test is to determine whether a rule to have effect must have its source of power which is relatable to the rule making authority. Similarly, a notification must be in accord with the rules, as it cannot travel beyond it. In this context, we may refer with profit to the decision in General Officer Commanding-in-Chief v. Dr. Subhash Chandra Yadav AIR 1988 SC 876 wherein it has been held that before a rule can have the effect of a st .....

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..... ccording to us, is within the rule making power of the statutory authority. It confirms to the provisions of the statute and comes within the scope of purview of the rule making power of the authority of framing the Rule. Therefore, the Rules cannot be declared as ultra vires the Act. 20. We will be failing in our duty if we do not take note of another submission which has been urged with immense vehemence by Mr. Parikh to the effect that the manner in which the guidelines have been termed, it is most likely to be abused by the executive. It is trite law that there is a distinction between conferment of power and exercise of power. If the power by an authority is not properly exercised, the same can always be assailed in a court of law. It has nothing to do as regards the constitutional validity of a Rule or a guideline. The apprehension in the mind of the petitioner that there would be abuse of power and some organizations may be unnecessarily harassed, we are disposed to think, is not to be taken note of while dealing with the validity of a statutory provision or the Rule made thereunder. The same shall be subject to judicial scrutiny when the order is passed. Thus, the afo .....

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