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TMI Blog2020 (3) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... alism and the targeted attacks on the lives and rights of people including religious minorities. Several activities of the Appellant-organisation in the interest of the society have been referred to in the Writ Petition. The power conferred by the Act on the Central Government to declare an organisation to be an organisation of a political nature under Section 5 (1) of the Act was challenged by the Appellant on the ground that no guidelines are provided for the exercise of such power. Section 5 (4) of the Act was assailed on the ground that the authority to which a representation made by the aggrieved party is to be forwarded, has not been specified. According to the Appellant, the guidelines provided in Rule 3 of the Rules are impermissibly wide, giving arbitrary discretion to the authorities which would result in abuse of the power. It was alleged in the Writ Petition that the Rules suffer from unreasonableness and arbitrariness. Hence, the Appellant prayed for declaring Rules 3 (i), 3 (v) and 3 (vi) as violative of the fundamental rights enshrined in Articles 14, 19 (1) (a), 19 (1) (c) and 21 of the Constitution. 2. After considering the relevant provisions of the Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to him, Article 19 provides for fundamental rights which are guaranteed only to citizens. The Appellant organisation cannot be considered as a citizen. Moreover, no individual member of the organisation has been made a party to the Writ Petition or in this Appeal. In support of this submission, he relied upon judgments of this Court reported in Tata Engineering and Locomotive Co. Ltd. v. State of Bihar (1964) 6 SCR 885 and Shree Sidhbali Steels Ltd. vs. State of Uttar Pradesh (2011) 3 SCC 193. According to the learned Additional Solicitor General, right to receive foreign contribution is not a fundamental right guaranteed under Article 19 of the Constitution. We were taken through the provisions of the Act and the Rules by the learned Additional Solicitor General who submitted that sufficient safeguards against possible abuse of power are incorporated in the Act and the Rules. That apart, it was contended that possibility of abuse of power cannot be a ground to challenge legislation. It was submitted that the object and purpose of the Act has to be taken into consideration by this Court while interpreting the provisions of the Act. The further submission on behalf of the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner consistent with the values of a sovereign democratic republic the Foreign Contribution (Regulation) Act, 1976 (49 of 1976) was enacted." 7. The long title of the 2010 Act indicates that it is made to consolidate the law to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto. Section 3 of the Act prohibits acceptance of foreign contribution by the following: (a) candidate for election; (b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; (c) Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government; (d) member of any Legislature; (e) political party or office-bearer thereof; (f) organisation of a political nature as may be specified under sub-section (1) of section 5 by the Central Government; (g) association or company engaged in the production or broadcast of au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal interests of such groups; (vi) any organisation, by whatever name called, which habitually engages itself in or employs common methods of political action like 'bandh' or 'hartal', 'rasta roko', 'rail roko' or 'jail bharo' in support of public causes." 10. A plain reading of Section 3 of the Act shows that foreign contributions should not be accepted by a candidate in an election or by a political party or office bearer thereof and member of any legislature apart from Judges and Government servants and those belonging to the press, print and electronic media. As the dispute in this case revolves around the organisations which are not actively involved in politics, it is necessary to focus on the provisions of the Act and the Rules governing such organisations. Section 3 (1) (f) of the Act provides that an organisation of a political nature is also barred from receiving foreign contributions. Such an organisation of a political nature may be specified under Section 5(1) by the Central Government. 11. Section 5 of the 1976 Act provides that any organisation of a political nature not being a political party shall not accept any foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and it is for the rule making authority to lay down the specific grounds. We are in agreement with the High Court that Section 5 (1) does not suffer from the vice of vagueness inviting the wrath of Article 14. Section 5 (4) cannot be declared as unconstitutional only on the ground that the authority to whom representation should be made is not specified. It is relevant to note that no serious attempt has been made by the Appellant-organisation to assail Section 5 (4) of the Act. 14. The contention of the Appellant is that the guidelines in Rule 3 of the Rules are vague giving scope for misuse and abuse of power by roping in voluntary organisations within the sphere of the Act. Thereby, an organisation which has no interest in active politics can be deprived of the right to receive foreign contribution at the whims and fancies of the executive by resorting to the vague guidelines in Rule 3. It was further submitted on behalf of the Appellant that the words 'political objectives', 'political activities', 'political interests' and 'political action' used in Rule 3 have no clarity and any activity though not connected with party politics can be brought into the fold of Rule 3. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e detriment of the individual. If possible, the Court instead of striking down the law may itself draw the line of demarcation where possible but this effort should be sparingly made and only in the clearest of cases". 17. It is settled principle of interpretation that the provisions of the statute have to be interpreted to give the words a plain and natural meaning. But, if there is scope for two interpretations, the Courts have preferred purposive construction, which is now the predominant doctrine of interpretation - Shailesh Dhairyawan v. Mohan Balkrishna Lulla, (2016) 3 SCC 619. In case of ambiguity in the language used in the provision of a statute, the Courts can take aid from the historical background, the Parliamentary debates, the aims and objects of the Act including the long title, and the endeavour of the Court should be to interpret the provisions of a statute to promote the purpose of the Act. (See: Chiranjit Lal Chowduri v. Union of India, (1950) SCR 869; Union of India v. Elphinstone Spinning and Weaving Co. Ltd., (2001) 4 SCC 139). 18. The object sought to be achieved by the Act is to ensure that Parliamentary institutions, political associations and academic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not directly aligned to any political party but objectives of which include steps towards advancement of 'political interests' of such groups. The submission made on behalf of the Appellant is that such organisations agitating for their legitimate claims cannot be prevented access to foreign funds by resorting to the vague term 'political interests'. We are in agreement that the words 'political interests' are vague and are susceptible to misuse. However, possible abuse of power is not a ground to declare a provision unconstitutional - Collector of Customs v. Nathella Sampathu Shetty, (1962) 3 SCR 786. 20. Where the provisions of a statute are vague and ambiguous and it is possible to gather the intention of the legislature from the object of the statute, the context in which the provisions occur and purpose for which it is made, the doctrine of "reading down" can be applied - DTC v. Mazdoor Congress, 1991 Supp (1) SCC 600. To save Rule 3(v) from being declared as unconstitutional, the Court can apply the doctrine of "reading down". 21. A balance has to be drawn between the object that is sought to be achieved by the legislation and the rights of the voluntary organisations t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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