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1979 (11) TMI 263

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..... ed this appeal. Lawyers and judges have never ceased to be interested in the question of delegated legislation and since the Delhi Laws Act case, we have been blessed(?) by an abundance of authority, the blessing not necessarily unmixed. We do not wish, in this case, to search for the precise principles decided in the Delhi Laws Act case, nor to consider whether N. K. Papiah Sons v. Excise Commissioner([1975] 3 SCR 607) beats the final retreat from the earlier position. For the purposes of this case we are content to accept the policy and guidelines theory and seek such assistance as we may derive from cases where near identical provisions have been considered. It is trite to say that the function of the State has long since ceased to be confined to the preservation of the public peace, the exaction of taxes and the defence of its frontiers. It is now the function of the State to secure to its citizens 'Social, economic and political justice', to preserve 'liberty of thought, expression, belief, faith and worship,' and to ensure 'equity of status and of opportunity' and 'the dignity of the individual' and the 'unity of the nation. Tha .....

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..... gation is valid. A good deal of latitude has been held to be permissible in the case of taxing statutes and on the same principle a generous degree of latitude must be permissible in the case of welfare legislation, particularly those statutes which are designed to further the Directive Principles of State Policy. In Harishankar Bagla and Anr. v. The State of Madhya Pradesh,([1955] 1 S.C.R., p. 380 @ 388:) the question arose whether Section 3 of the Essential Supplies (Temporary Powers) Act, 1946, which empowered the Central Government to make orders providing for the regulation or prohibition of the production, supply and distribution of essential commodities and trade and commerce therein was void for excessive delegation. The Court said it was not and observed: ....the legislature cannot delegate its function of laying down legislative policy in respect of a measure and its formulation as a rule of conduct. The Legislature must declare the policy of the law and the legal principles which are to control any given cases and must provide a standard to guide the officials or the body in power to execute the law. The essential legislative function consists in the determination .....

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..... ntal Maganbhai Sanjanwala v. The State of Bombay(1961] 1 S.C.R. 341:), s. 6 (2) of the Bombay Tenancy Agricultural Lands Act was challenged as permitting excessive delegation of legislative power as it enabled the Government to fix a lower rate of the maximum rent payable by the tenants of lands situate in any particular area or to fix such rate on any suitable cases as it thought fit. This Court noticed that the Act was undoubtedly a beneficent measure, as shown by the Preamble which stated that the object of the Act was to improve the economic and social conditions of peasants and ensure the full and efficient use of land for agricultural. Bearing in mind the Preamble and the material provisions of the Act, it was held that the power delegated was within permissible limits. In Jyoti Pershad v. The Administrator for the Union Territories of Delhi,([1962] 2 S.C.R. 125) Rajagopala Ayyangar, J. made some useful observations which may be extracted here: In regard to this matter we desire to make two observations. In the context of modern conditions and the variety and complexity of the situations which present themselves for solution, it is not possible for the Legislature to .....

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..... that such provisions shall apply to such society with such modifications as may be specified in the order. The provision is a near Henry VIII clause. But to give it a name is not to hang it. We must examine the preamble, the scheme and other available material to see if there are any discernible guidelines. Sure the Cooperative Societies Act is a welfare legislation. Its preamble proclaims: Whereas it is expedient further to facilitate the formation and working of co-operative societies for the promotion of thrift, self-help and mutual aid among agriculturists and other persons with common economic needs so as to bring about better living, better business and better methods of production and for that purpose to consolidate and amend the law relating to co-operative societies in the State of Madras. The policy of the Act is there and so are the guidelines. Why the legislation ? To facilitate the formation and working of Cooperative Societies . Cooperative Societies, for what purpose ? For the promotion of thrift, self-help and mutual aid . Amongst whom ? Among agriculturists and other persons with common economic needs . To what end ? To bring about better living, be .....

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