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CONSTITUTINAL LIMIT OF DELEGATED LEGISLATION

Other Topics - By: - Mr. M. GOVINDARAJAN - Dated:- 5-5-2015 Last Replied Date:- 6-5-2015 - In India, Legislatures, consistent with their sovereign character, have been held to possess wide powers of delegation. This power is, however, subject to limitations. The Legislature cannot delegate essential legislative functions, which consist in the determination or choosing of the legislative policy and of formally enacting that policy into a binding rule of conduct. The Legislature cannot delegate un .....

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e background of which the statute is enacted. In Pandit Banarasi Das Bhanot V. State of Madhya Pradesh - 1958 (4) TMI 48 - SUPREME COURT OF INDIA it was held that the power to tax is a well recognized legislative power, ample latitude has been allowed to the Legislature to leave to a delegate the power to work out details of a tax policy. In upholding a power delegated to the State Government for amending the Schedule relating to exemptions in a Sales Tax legislation, Justice Venkatarama Aiyer o .....

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emporary Powers) Act, 1946, which gave wide powers to the Central Government to make orders for regulating or prohibiting the production, supply and distribution of essential commodities, was satisfied that it had laid a clear principle and offered sufficient guidance. It was held that the power conferred by the section therein is to be exercised for maintaining or increasing supplies of any essential commodity, or for, securing their equitable distribution and availability of fair prices. The C .....

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and the guidelines to implement it are adequately laid down and the delegate is only empowered to carry out the policy within the guidelines laid down by the Legislature. The Legislature may, after laying down the Legislative policy, confer discretion on an administrative agency to work out the details within the frame work of the policy. When the Constitution entrusts the duty of law-making to Parliament and Legislatures of the States, it impliedly prohibits them to throw away that responsibili .....

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istory of the legislation, the comheldplexity of the problems which a modern state has to face, will have to be taken note of and if, on a liberal construction given to a statute, a legislative policy and guidelines for its execution are brought out, the statute, even if skeletal will be upheld to be valid but this rule of liberal construction should not be carried by the court to the extent of always trying to discover a dormant or latent legislative policy to sustain an arbitrary power conferr .....

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a or standard so as to enable the delegatee to act within the framework of the statute. The principle on which the power of the Legislature is to be exercised is required to be disclosed. It is also trite that essential legislative functions cannot be delegated. The procedural powers are, therefore, normally left to be exercised by the executive by reason of a delegated legislation. There cannot be any doubt whatsoever that the court shall not invalidate a legislation on the ground of delegation .....

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non essential legislative function of fixation of rate of imposts is a necessity to meet the multifarious demands of a welfare State but while delegating such a function laying down of a clear legislative policy is pre requisite; and while delegating the power of fixation of rate of tax, there must be in existence, inter alia, some guidance, control, safeguards and checks of the Act concerned. It is manifest that the question of application of the second principle will not arise unless the impo .....

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to declare any entity as an NPA. Under the SARFAESI Act, the borrower had a very limited to right to question the proceedings and the consequences provided in the Act were drastic. Consequently, by empowering the banks/financial institutions/RBI to determine what NPA is, there had been a disastrous effect on business, profession and trade of the borrowers. The court analyzed the provisions of Section 2(1)(o) of the Act which defines NPA as an asset or accountable receivable of a borrower, which .....

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