Beruflich Dokumente
Kultur Dokumente
ADMINISTRATIVE LAW
M.P. Jain*
I INTRODUCTION
THE YEAR 2001 has witnessed a number of cases in the area of administrative
law. But these cases are of a routine nature reiterating well established legal
propositions. No case can be characterized as one giving any new direction or
dimension to Indian administrative law. No new ground has been broken during
the year in this area.
II DELEGATED LEGISLATION
Excessive delegation
It is a well established proposition that a legislature cannot delegate
unrestrained and unqualified legislative power on an administrative authority. It
is known as the doctrine of excessive delegation. It envisages that "excessive
delegation may amount to abdication" and "delegation unlimited may invite
despotism uninhibited".1 So the principle has been evolved that "the legislature
cannot delegate its essential legislative function". The legislature must lay down
policy and principle while delegating legislative power.
The doctrine of excessive delegation has been explained by the Supreme
Court in Kishan Chand Sharma v. Union of India.2 The legislature cannot delegate
uncanalised and uncontrolled power. The legislature must set the limits of the
power delegated by declaring the policy of the law and by laying down standards
for guidance of those on whom the power to execute the law is conferred.
To assess whether a legislation suffers from excessive delegation "the scheme,
the provisions of the statute including its preamble and the facts and circumstances
in the background of which the statute is enacted, the history of the legislation,
the complexity of the problems which a modern state has to face, will have to
be taken note of \ If, on a liberal construction given to a statute, a legislative
policy and guidelines for its execution are brought out, "the statute will be
upheld as valid. But the Supreme Court has warned that the 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
conferred on the executive".
The Supreme Court has also applied the above proposition in B. Krishna
Kant v. State of Karnataka? The Karnataka legislature conferred on the
Bangalore Development Authority [BDA - a statutory body] power to levy
and collect property tax. This was challenged on the ground of excessive
delegation of legislative power. But the Supreme Court rejected the
contention, holding that the authority to collect property tax given to BDA
was neither arbitrary nor in excess of the power of delegation. Delegation
has been made to a statutory body which is entrusted with the duty of
developing the City of Bangalore. The process of development is statutorily
controlled. An elaborate machinery has been provided for the levy and
collection of the tax and so levy and collection of the tax has not been left
to the arbitrary discretion of the BDA.4
The fact that the regulations may have the force of law or when made
have to be laid down before the legislature concerned do not confer any
more sanctity or immunity as though they are statutory provisions
themselves. Consequently, when the power to make regulations is
confined to certain limits and made to flow in a well defined canal with
stipulated banks, those actually made or shown and found to be not
made within its confines but outside them, the courts are bound to
ignore them when the question of their enforcement arises and the mere
fact that there was no specific relief sought for to strike down or declare
them ultra vires . . . .
In the instant case, the court declared certain regulations made by the All
India Council for Technical as void and unenforceable.
Framing of rules
The general principle laid down in a number of cases so far is that the
judiciary cannot direct the legislature or the executive to frame a particular Act
or rules.6 But in the Chandrakant,1 the Gujarat High Court has sought to engraft
an exception on this general rule, viz. if the purpose and object of the Act
already passed and brought into force is being defeated or frustrated by inaction
on the part of the executive to carry out the mandate of the legislature, the court
cannot sit on the fence feeling helpless. It is open to the court to direct the
government to frame the rules. Of course, the court cannot direct what type of
rules should be framed, "but certainly the court can direct to frame the rules that
may be deemed just and proper in the facts and circumstances and keeping in
mind as well as policy adopted and guidelines given in the Act."8
In the instant case, the legislature passed an Act sanctioning a monthly
pension to the ex-members of the state legislature. The state government was
given power to make rules for carrying out the purposes of the Act. The Act was
passed in 1984 but no rules were framed until 2001. Pensions were not being
paid to the ex-MLA's in the absence of the rules. It appeared that by not making
the rules, the government wanted to avoid payment of pension to the ex-MLAs.
In these circumstances, the high court directed the government to frame the
rules.
In the opinion of the present author, the high court decision is commendable.
Bureaucratic inertia is proverbial in India. Rules are not made for years after the
statute is passed making it operationally ineffective. May be that the high court's
pronouncement in the instant case will instil some sense of responsibility and
accountability in the administration. The power to make rules should be
charactered not as purely discretionary but as 'discretion coupled with duty'.9
6 Narinder Chand Hem Raj v. Lt. Governor Union Territory H.R, AIR 1971 SC 2399; Supreme
Court Employees Welfare Association v. Union of India, AIR 1990 SC 334; State of Jammu &
Kashmir v. A.R. Zakki, AIR 1992 SC 1546; A.K. Roy v. Union of India, AIR 1982 SC 710. Also
see under Mandamus, infra.
1 Chandrakant Muljibhai Parikh. v. State of Gujarat, AIR 2001 Guj 234.
8 Id. at 243.
9 Jain, Treatise, II, Ch. XX . For a detailed discussion on 'Delegated Legislation', see, Jain, A
Treatise on Administrative Law, I, Chs. IV-VI; Jain, Cases and Materials, I, Chs. Ill - V.
10 MM. Dolichan v. State of Kerala, AIR 2001 SC 216. In service matters, power to make rules
is conferred on the President/Governor under art 309 of the Constitution. Failing the making
of rules, the concerned government can issue administrative instructions which operate subject
to the rules. See, Baleshwar Dass v. State of Uttar Pradesh, AIR 1981 SC 41.
subordinate.11 But then there are situations when courts have held directions as
binding.12
The Gauhati High Court has considered this specific question in Anil Kumar
Bhattacharya v. Union of India.13 The telephone department has issued an
instruction to the effect that if the telephone service of a subscriber remains
interrupted continuously for 15 days or more due to department reasons, rebate
in rental should be granted for the period. The question before the Gauhati High
Court in Anil was whether the instruction issued by the telephone department
was enforceable against the department. The high court held it was binding on
the department. An instruction laying down policy, and after adoption and
communication to all, is binding on the concerned authority.14 The department
must adopt a uniform policy in all cases.15
IV NATURAL JUSTICE
of presenting his case and that the administrative authority concerned should act
fairly, impartially and reasonably. The duty is not so much to act 'judicially' as
'fairly'.
In the Kumaon case, cited above, disciplinary inquiry conducted by the
body concerned against an employee was quashed on the ground of denial to
him of a reasonable opportunity to defend himself as there were many flaws in
the procedure adopted. No documents were shown to him; there was no presenting
officer; no defence witness was examined and no cross-examination of the
witnesses testifying against him was allowed. The Supreme Court emphasized:19
Disciplinary inquiries
The principles of natural justice directly come into play in the area of
disciplinary enquiries against civil servants. This is amply shown by the Kumaon
case mentioned above. It is a well-established proposition of law that in
disciplinary inquiries against civil servants, principles of natural justice are to be
compiled with.20
There are a few Supreme Court cases reported during the year concerning
disciplinary inquiries. An inquiry was conducted against an official of the State
Bank of India, a statutory body. The disciplinary authority differed with some
of the conclusions reached by the inquiry officer. While the inquiry officer had
held some of the charges not proved against he delinquent official, the disciplinary
authority held them to have been fully proved. On this basis, his service was
terminated.
The matter came before the Supreme Court to resolve the following
question:21
The Supreme Court answered the question in the affirmative in view of its
earlier discussion on the same point in Punjab National Bank v. Kunj Behari
Misra.22
Bias
In Kumaon,32 from the phraseology of the charge-sheet, the Supreme Court
concluded that the disciplinary authority was actuated with bias against the
concerned officer.
Interestingly, in Kumaon, the Supreme Court has taken note of the recent
changing shifts in the judicial thinking in England on the question of bias.
Taking note of the recent English cases, noted below,33 the Supreme Court has
observed:34
30 See Apparel Export Promotion Council v. A.K. Chopra, AIR 1999 SC 625.
31 Om Kumar v. Union of India, see, infra note 83.
32 See, supra note 18.
33 Reg. v. Bow Street Metropolitan Stipendiary Magistrate, Exp, Pinochet Ugarte (No.2) 2000(1)
AC 119; Locabail Ltd. v. Bayfield Properties Ltd., 2000 QB. 491; Reg. v. Gough, [1993] AC
646.
34 Kumaon, supra note 18 at 35.
35 See, Metropolitan Properties Ltd. v. Lannon, [1968] 2 All ER 304, Also see, Jain, Treatise, I,
407-410; Jain, Cases, I, Ch. X, 866.
36 AIR 2001 SC 339.
37 Supra note 18.
feature of this case is that the Supreme Court has sought to equate the "real
danger" test with the "real likelihood" test.
In Rattan Lai Sharma's case,38 the court had observed that the test for bias
is "real likelihood of bias". The court had then attributed a meaning to "real
likelihood" to the effect that there must be at least "a substantial possibility of
bias in order to render an administrative action invalid."
The court, therefore, says in Khanna that "Rattan Lai Sharma thus, in fact,
has not expressed any opinion which runs counter to that in Kumaon Mandal
case and the decision in the last noted case thus follows the earlier judgment in
Rattan Lai Sharma s case even though not specifically noted therein."
The Supreme Court is, thus, trying to fudge the "real danger" test with the
"real likelihood" test. The fact of the matter is that the "real danger" test seems
to be more stringent than the "real likelihood" test. In laying down the "real
danger" test, the court is seeking to ignore the real rationale of the test, viz.
public credibility of the system, as stated above. The "real danger" test comes
dangerously close to the test of existence of actual bias.
In Khanna,39 the Punjab Government, issued a charge sheet against Kapoor
who was the former Chief Secretary to the Punjab Government. Even before
Kapoor could file his reply, the Chief Minister (Prakash Singh Badal) announced
appointment of an inquiry officer to go into the charges against Kapoor. This
was held to show bias against Kapoor. In service jurisprudence, the disciplinary
authority has to apply its mind upon receipt of reply to the charge-sheet, or the
show-cause notice, as to whether, a further inquiry is called for. Only thereafter,
the inquiry follows and not otherwise. But here the inquiry officer was appointed
even before receiving the reply of the delinquent officer and without applying
mind whether in the light of the reply of the concerned officer, a further inquiry
was called for.40 This fact along with the tenor of the chargesheet showed bias
on the part of the government. "Bias admittedly negates fairness and
reasonableness by reason of which arbitrariness and mala fide may creep in".
In Khanna, the Supreme Court took the rare step of quashing the inquiry as
such. But the court pointed out that "in the event there is an element of malice
or mala fide motive involved in the matter of issue of a chargesheet or the
concerned authority is so biased that the inquiry would be a mere farcical show
and the conclusions are well known then and in that event law courts are otherwise
justified in interfering at the earliest stage so as to avoid the harassment and
humiliation of a public official". The court insisted that it is the duty of the
courts to ensure that due procedure of law permeates the society and if such
process is affected then "law courts ought to rise up to the occasion."41
38 Rattan Lai Sharma v. Managing Committee Dr. Hari Ram Higher Secondary School, AIR 1993
SC 2155. For discussion on 'Bias', see, Jain, A Treatise on Admn. Law, Ch. X; Jain, Cases and
Materials, I, Ch. X.
39 Supra note 18.
40 For discussion on the concept of "non-application of mind", see, Jain, Treatise, I, 959; Jain,
Cases, Ch. XVI.
41 AIR 2001 SC 357.
V TRIBUNALS
There has been a proliferation of tribunals in India during the last several
years. These bodies, existing outside the regular hierarchy outside of courts,
perform adjudicatory functions.42 There have been a few cases during the year
expounding certain aspects of the functioning of these bodies.
The Supreme Court has ruled in Jaiswal43 that the doctrine of stare decisis
also applies to the tribunals. When a bench of a tribunal has finally decided a
question, another bench of the same tribunal should not later re-open the same
question. This is necessary to import some consistency, to the tribunal decisions.
The Supreme Court has emphasized upon this aspect as follows:44
The court referred in this connection to one of its earlier decisions, viz., £.7.
Rooplal v. Lt. Governor through Chief Secretary, Delhi.45
In Rooplal, the Supreme Court had expressed its "serious dissatisfaction"
when one coordinate bench of the tribunal in effect overruled an earlier judgment
of another co-ordinate bench of the same tribunal. "This is opposed to all principles
of judicial discipline". If at all a subsequent bench is not satisfied with the view
taken by the earlier bench then it ought to refer the matter to a larger bench. The
court had then observed: "Precedents which enunciate rules of law form the
foundation of administration of justice under our system. This is a fundamental
principle which every presiding officer of judicial forum ought to know, for
consistency in interpretation of law alone can lead to public confidence in our
judicial system."
A tribunal decision cannot be reviewed by an administrative body. To permit
review of a tribunal decision by an administrative body amounts to executive
interference with the exercise of quasi-judicial function which is not permissible.46
This is a principle of great significance as it seeks to achieve the laudable object
of keeping administrative adjudication free from executive interference.
Special court
Power to punish for contempt can be conferred on a tribunal by a statutory
provision.
A special court has been instituted under the Special Court (Trial of Offences
Relating to Transactions in Securities) Act, 1992. Section 11-A of the Act provides
42 For a full fledged discussion on the system of administrative adjudication in India, see, Jain,
Treatise, 1, Chs. XIII and XIV; Jain, Cases and Materials, II, Chs. XII and XIII.
43 Govt. ofA.R v. A.R Jaiswal, AIR 2001 SC 499.
44 Id. at 507.
45 AIR 2000 SC 594.
46 Union of India v. K.N. Shankarappa, (2001) 1 SCC 582.
that the special court will have and exercise the same jurisdiction, powers and
authority in respect of contempt of itself as a high court has47 and may exercise,
for this purpose.
Explaining the implications of the above provision, the Supreme Court has
observed in Pallav Sheth v. Custodian** that just as the high court, being a court
of record, has the power under article 215 of the Constitution of India to punish
for contempt of itself, similarly, the special court can also exercise the same
power as is available to a high court under article 215.
Court martial
A court martial is held under the provisions of the Army Act to try offences
committed by the army personnel. The court martial functions according to the
principles of natural justice subject to the relevant rules made for the purpose.
The court martial proceedings are subject to judicial review under article 226,
but not subject to the superintendence of the high court under article 227 of the
Constitution.53
47 The high courts enjoy the power to punish for contempt of court under art 215 of the Constitution.
Art. 215 declares a high court to be a court of record.
48 AIR 2001 SC 2763.
49 Mudit Entertainment - Industries v. Banaras State Bank Ltd, Allahabad, AIR 2000 All. 181.
50 AIR 2001 Kant 176.
51 Delhi High Court Bar Association v. Union of India, AIR 1995 Del 323.
52 Union of India v. Delhi High Court Bar Association, AIR 2002 SC 1479.
53 Union of India v. Major A. Hussain, AIR 1998 SC 577. See, infra, "Judicial review."
The Supreme Court has ruled in Union of India v. R.K Sharma54 that the
awarding of sentence is within the powers of court martial, and the high court
ought not to interfere with such a matter. A court while exercising powers under
article 226 or 227, or under article 32, cannot interfere with the punishment
awarded by a court-martial on the ground that it is disproportionate. The Supreme
Court has observed on this point:55
The court passed severe strictures against the officer concerned for passing
the impugned order. The court said: ... we are not recording, for want of adequate
material, any positive finding that the impugned order was passed at the behest
of or dictated by some one else than its author. Yet we have no hesitation in
holding that the impugned order betrays utter non-application of mind to the
facts of the case and the relevant law. The manner in which the power under
Section 1264 has been exercised by the competent authority is suggestive of
betrayal of the confidence which the State Government reposed in the Principal
Secretary in conferring upon him the exercise of drastic power like removal of
President of a Municipality under Section 22 of the Act. To say the least what
has been done is not what is expected to be done by a senior official like the
Principal Secretary of a wing of the State Government. We leave it at that and
say no more on this issue."65
The above observation is a strong indictment of the way in which the
administration presently functions. The instant case vividly depicts the
demoralization which has set in even in the ranks of senior bureaucrats.
Extracts from the Supreme Court judgment have been cited in extenso because
this case underlines the rot which has set in the present day Indian administration.
There exists an unholy nexus between the politician and the bureaucrat and the
bureaucrat has become a willing tool in the hands of the politician in his
unprincipled (and even illegal) exercise of power. Even senior officials feel no
compunction in misusing their statutory powers for pleasing their political masters
with a view to gain their favours.
A strong suggestion was made by the appellant in the case that he was
removed from office because his election did not suit the political bosses of the
officer passing the order. The court, however, avoided giving any definitive
finding on this aspect of the matter as there was not sufficient material to give
any such finding.
The court has now insisted that the officials while exercising the statutory
powers vested in them ought to exercise them in their individual judgment
according to the norms of administrative law rather than dance to the tune of
their political bosses. Otherwise, the whole system will stink not only as illegal
but also as immoral.
In today's India, one of the chief sources of administrative corruption is the
vast discretionary power vested in the officials and the lack of any proper
64 S. 22 of the Punjab Municipal Act, under which the impugned order was passed.
65 Supra note 59 at 2532.
supervisory mechanism to police the exercise of these powers. The courts adopt
a very restrictive role in this area.66
Communication of an order
In State of West Bengal v. M.R. Mondal,61 the Supreme Court has
reiterated the well established proposition that an order passed but retained
in file without being communicated to the person concerned has no force or
authority whatsoever. An uncommunicated order has no valid existence in
the eye of law.
Inquiry commission
An example of exercise of discretionary power is to be found in case of
appointment of an inquiry commission under section 3 of the Commissions of
the Inquiry Act, 1952. Under section 3(1), a government can appoint an inquiry
commission if "it is of opinion that it is necessary to do so" to make an inquiry
into any definite matter of public importance.
The Andhra Pradesh Government appointed an inquiry commission. It was
argued that the state government appointed the Commission without forming
any opinion that it was necessary to do so. The high court did set aside the
appointment of the commission on this ground but, on appeal, the Supreme
Court set aside the high court ruling.68
In the Supreme Court's view, the high court had adopted a 'hyper technical'
view of the matter. The appointment of an inquiry commission is a matter falling
within the discretion of the government. The commission does not adjudicate
upon any matter; it is meant primarily for the purpose of information for the
government. There is no prescribed form for the government to express its
opinion that it is necessary to appoint a commission of inquiry. There was a
serious matter of public importance which was giving rise to criticism from
various quarters which called for a proper inquiry. "It is desirable that activities
of public functionaries be above board and if allegations and criticisms are
received in that regard the matter should be promptly inquired into and appropriate
follow-up action taken".
In T.T. Anthony v. State of Kerala,69 the Supreme Court has clarified that the
report and the findings of the commission of inquiry are meant for the information
of the government. These findings are not binding on the courts or the police.
The duty of the police which is the investigating agency of the state is to act in
accordance with the law of the land.
In a number of earlier cases,70 it has been held by the Supreme Court that
66 For exposition of the scope of judicial review of discretionary decisions, see: Tata Cellular v.
Union of India, AIR 1996 SC II.
67 (2001) 8 SCC 443.
68 R Janardhana Reddy v. State of A.R, AIR 2001 SC 2631.
69 AIR 2001 SC 2637.
70 R.K. Dalmia v. Justice SR Tendolkar, AIR 1958 SC 538; State of Karnataka v. Union of India,
AIR 1978 SC 68; Sham Kant v. State of Maharastra, AIR 1992 SC 1879.
Mala fides
The Supreme Court has insisted in London Bros. v. State of West Bengaf2
that government action must be based on utmost good faith and belief and ought
to be supported with reason on the basis of the state of law. If the action is
otherwise, or runs counter to the same, the action cannot but be "ascribed to be
mala fide" and "it would be a plain exercise of judicial power to countenance
such action and set the same aside for the purpose of equity, good conscience
and justice."
In the instant case, without characterizing the state action as mala fide, the
court quashed the action because "it appears prima facie to be tainted with
motive and thus not sustainable".
The Supreme Court has emphasized in M/s Tandon Bros. v. State of West
BengaP that a discretionary power is to be exercised upon materials on record
and not de hors the same. In the instant case, the Supreme Court quashed an
order made by the state government as it appeared prima facie to be "tainted
with motive and, thus, not sustainable. The court observed in this connection:74
71 For further discussion on this theme, see, Jain, A Treatise on Admn. Law, I, Ch. XVI; Jain,
Cases and Materials on Admn. Law, II, Ch, XVII.
72 AIR 2001 SC 1866.
On Mala fides, see, Jain, Treatise, 890; Jain, Cases and Materials, II, Ch. XVI.
73 AIR 2001 SC 1866.
74 Id. at 1877.
75 Supra note 36.
76 Id. at 354.
Municipality, AIR 2001 J&K 77. In Faridabad C.T Scan Centre v. D.G. Health Services, AIR
1997 SC 3801, the Supreme Court has observed:
"We fail to see how Article 14 can be attracted in cases where wrong orders are issued in
favour of others. Wrong orders cannot be perpetuated with the help of Article 14 on the basis
that such wrong orders were earlier passed in favour of some other persons, and, therefore,
there will be discrimination against others if correct orders are passed against them."
81 Union of India v. Dinesh Engineering Corpn., (2001) 8 SCC 491
see, infra, under "Conferment of largess by the state."
82 AIR 2001 SC 324.
On this topic, see, Jain, Treatise, I, 765-791; Jain, Cases and Materials, II, Ch. XV.
83 (2001) 2 SCC 386.
The court had discussed the doctrine earlier in Union of India v. Ganayutham, (1997) 7 SCC 463.
The court has now stated that where administrative action is challenged
under article 14 as being discriminatory, equals are treated unequally or unequals
are treated equally, the question is for the constitutional courts as primary
reviewing courts to consider correctness of the level of discrimination applied
and whether it is excessive and whether it has a nexus with the objective intended
to be achieved by the administrator. Hence the court deals with the merits of the
balancing action of the administrator and is, in essence, applying "proportionality"
and is a primary reviewing authority.
But where administrative action is challenged as "arbitrary" under article
14,84 the question will be whether the administrative order is "rational" or
"reasonable' as the test to apply is the Wednesbury*5 test.
The doctrine of proportionality is of European origin.86 From there it has
migrated to Britain87 and is now applied in some form or other in other common
law countries. The doctrine of proportionality ordains that administrative measures
must not be more drastic than is necessary for attaining the desired result.
The subject of * proportionality' is a big one and needs a full-fledged article
for treatment.88 This is not the place to say more on this subject.
However, one comment needs to be made here on the Supreme Court decision
in Om Kumar. Is it viable to draw a line of distinction between 'discrimination'
and 'reasonableness' for the purpose of the applicability of doctrine of
proportionality? Does not the concept of 'reasonableness' itself imply
'proportionality' ? A failure to maintain a proper balance between various interests
may be struck down both for 'disproportionality' as well as for
"unreasonableness". In both, the courts are bound to assess whether the restriction
is excessive than what the needs of the situation actually demand.
IX GOVERNMENT POLICY
From case to case, the Supreme Court has laid down the proposition that,
ordinarily speaking, it is not normally within the domain of a court to weigh the
pros and cons of the policy or to scrutinize it and test the degree of its beneficial
or equitable disposition for the purpose of varying, modifying and annulling it,
except where "it is arbitrary or violative of any constitutional, statutory or any
other provisions of law".89
Accordingly, when the central government decided to close the Kendriya
Vidyalaya at Jobnez, the high court refused to interfere with the policy decision.
84 Also see, E. P. Royappa v. State of T.N., (1974) 4 SCC 3, supra note 77.
85 Associated Provincial Picture Houses v. Wednesbury Corpn., (1947) 2 All ER 680. For discussion
on the case, see, Jain, Treatise, I, 871, 909,946-950. The test has been adopted in India by the
Supreme Court in Tata Cellular v. Union of India, (1994) 6 SCC 651. For the text of Wednesbury,
see, Jain, Cases and Materials, I, 187,188, 213. Also see, note.
86 Schwarze, European Administrative Law, 680.
87 Wade, Administrative Law, 368-70 (VIII Ed. 2000).
88 For a brief discussion on the doctrine, see, M.P. Jain, A Treatise on Administrative Law, I, 953-
58. Also see, Jain, Cases and Materials on Indian Admn. Law III, 2243-50.
89 State of Punjab v. Ram Lubhaya Bagga, AIR 1998 SC 1703.
The court also rejected the plea that the board of governors of the school should
have given a hearing to the students as well as their parents before closing the
school. It was a "policy decision" of the government and there was no need and
necessity to hear any one.90
Again, the principle of judicial restraint in reviewing government policy has
been expounded by the Supreme Court in Ugar Sugar Works Ltd. v. Delhi
Admn9i In the exercise of their power of judicial review, courts do not ordinarily
interfere with the policy decisions of the government unless the policy can be
faulted on grounds of mala fides, unreasonableness, arbitrariness or unfairness
etc. Arbitrariness, irrationality, perversity and mala fides will render the policy
unconstitutional. In the area of economic regulation, there are good reasons for
judicial restraint. The courts do not express any opinion whether the policy
ought or ought not to have been adopted. This matter is best left to the discretion
of the government.
Ordinarily, as stated above, the courts are reluctant to interfere in policy
matters since these matters are usually based on expert knowledge of the persons
concerned and the courts are normally not equipped to question the correctness
of a policy decision. As the Supreme Court has observed in Dinesh92 in support
of the above proposition:93
There is no doubt that this Court has held in more than one case that
where the decision of the authority is in regard to a policy matter, this
Court will not ordinarily interfere since these policy matters are taken
based on expert knowledge of the persons concerned and courts are
normally not equipped to question the correctness of a policy decision.
But, then, the Supreme Court has placed a rider on the above proposition.
This judicial reluctance does not amount to judicial abdication of its review
function in all situations. As the Supreme Court has asserted in Dinesh:94
But then this does not mean that the courts have to abdicate their right
to scrutinize whether the policy in question is formulated keeping in
mind all the relevant facts and the said policy can be held to be beyond
the pale of discrimination or unreasonableness, bearing in mind the
material on record.95
In the instant case, the court quashed the policy decision because it was
taken ignoring certain vital facts, "an ignorance which is fatal to its policy
decision". The court observed:96
90 Parents Teachers v. Chairman, Kendriya Vidyalaya Sangathan, AIR 2001 Raj 35.
91 AIR 2001 SC 1447.
92 Supra note 81. Also see, infra note 137.
93 Id at 498.
94 Supra note 81 at 498.
95 Ibid
96 Ibid.
For a fuller discussion on article 14, see, Jain, Indian Constitutional Law, Ch. XXI (2002).
The court also stated that the so-called policy suffered from the "vice of
non-application of mind' and, hence, it had to be quashed.97
X PROMISSORY ESTOPPEL
XI JUDICIAL REVIEW
Article 227
The Supreme Court has taken an opportunity in State of Maharashtra v.
Milind102 to clarify the scope of the power of the high court under article 227.
The power of high court while exercising the power of judicial review under
article 227 against an order of an inferior tribunal is not appellate but of
supervisory nature. The high court would be justified in interfering with the
conclusion of the tribunal only when it records a finding that the inferior tribunal's
conclusion is based upon exclusion of some admissible evidence or consideration
of some inadmissible evidence or the inferior tribunal has no jurisdiction at all
or that the finding is such, which no reasonable man could arrive at, on the
materials on record.103
Article 226
As usual, there are a number of cases reported during the year on article
226, but they are all of a routine nature reiterating the well-established proposition
of law. No new proposition concerning article 226 seems to have been laid down
during the year. Reference may, however, be made to a few pronouncements
concerning the writ jurisdiction of the high courts.
In Dinesh Chandra Gahtori v. Chief of Army Staff,104 the Supreme Court
has ruled that the Chief of Army Staff may be sued anywhere in the country. In
the instant case, court-martial proceedings against the appellant were conducted
in the State of Punjab. The Supreme Court has ruled that dismissal of the writ
petition filed by the appellant before the Allahabad High Court, on the ground
of lack of territorial jurisdiction, was not justified.
While the general proposition is that a high court does not entertain a writ
petition under article 226 to enforce purely a contractual matter because it raises
questions of fact,105 it cannot be laid down as a general proposition of law that
in no case a high court can entertain a writ petition to enforce a claim under a
life insurance policy.106 This is in view of the fact that the scope of article 226
is wide and expansive and the Constitution in no way fetters the exercise of
extraordinary jurisdiction under article 226. The Supreme Court has, however,
refused to enumerate exhaustively the circumstances as to when a claim under
an insurance policy can, or cannot, be entertained through a writ petition.
Ordinarily, a high court does not exercise its writ jurisdiction if an alternative
remedy is available to the petitioner. But this is a self imposed rule which does
not affect the high court's jurisdiction. In Baxiym the Supreme Court by-passed
this rule because in the instant case, recourse to alternative remedy was onerous
as it involved depositing a huge sum of money amounting to Rs.46 lakhs and
the demand itself was barred by limitation. The Supreme Court ruled that
interference by the high court on merits was necessary in spite of the availability
of an alternative remedy.
Then comes the question of locus standi to file a writ petition. In Vinoy
Kumar v. State of Uttar Pradesh,m the Supreme Court has clarified that, generally
speaking, a person has no locus standi to file a writ petition if he is not personally
affected by the impugned order, or there is an imminent danger of his rights
being invaded. The relief under article 226 is based on the existence of a right
in favour of the person invoking the jurisdiction under article 226. There are,
however, a few exceptions to this general rule of locus standi, e.g.:
(i) where a petition is filed for the issue of a writ of habeas corpus or
certiorari; and
(ii) a public interest litigation writ petition is filed.109
The court has clarified that the general rule of locus standi, as stated above,
is a matter of prudence.
Article 32
At times, the Supreme Court has used its jurisdiction under article 32 to
issue directions of a general nature because, on the specific matter before the
court, there exist no statute or statutory rules and the matter being of general
public interest, some guidelines are necessary to regulate the same.
An instance of the above is Vishwa Jagriti Mission v. Central Government"0
where the Supreme Court has issued general guidelines to curb the practice of
ragging in educational institutions.
It may be noted that the guidelines issued by the court may be characterized
as 'quasi-legislation' in nature. The directions issued by the Supreme Court are
binding because, under article 144 of the Constitution, all authorities, civil and
judicial, in the territory of India shall act in aid of the Supreme Court. Under
article 141, the law declared by the Supreme Court is binding on all courts
within the territory of India. Over all the Supreme Court has, under article 129,
has power to punish for its contempt.
Mandamus
Parliament enacted the Delhi Rent Bill, 1995, which received the assent of
the President on the 23.8.1995 and was published as the Delhi Rent Act, 1995.
But the Act has not been brought into force so far by the central government.
Consequently, in Common Cause v. Union of India,111 a writ of mandamus was
sought from the Delhi High Court directing the central government to bring the
Act into force.
The court negatived the request for mandamus citing in support A.K. Roy v.
Union of India.U2 The Supreme Court had observed therein that in the absence
of any objective norms, it was not for the court to substitute its own judgment
for that of the government. The court had also emphasized that the executive
being responsible to Parliament, if Parliament "considers that the executive has
betrayed its trust'* by not bringing the Act into force, it can censure the
executive.113
The court referred to a recent English case decided by the House of Lords,
viz., R. v. Secretary of State for the Home Department, Fire Brigades Union.114
In the instant case, power was given to the Secretary of State to appoint a day
for bringing the Criminal Justice Act, 1988, into force. The Act was not brought
into force and the matter came before the House of Lords. The question before
the House was whether the Secretary of State had acted unlawfully in not bringing
the Act into force. The House ruled by majority that the Act in question conferred
a legislative power (as distinguished from a duty) and that any intervention by
the courts would not be appropriate. The House however, held that the Secretary
of State could not unreasonably refuse to bring the relevant provisions of the
said Act into force.
The Kerala High Court has reiterated, in the case noted below,115 the
proposition that contractual obligations are matters of private law and are
enforceable by such remedies as damages, injunctions, specific performance and
declarations but not by mandamus.116 Mandamus is used to enforce the
performance of public duties by public authorities; "the essence of mandamus
is that it is a command ordering the performance of a public legal duty."117
Ordinarily, mandamus is not issued to order refund of money even though
it may have been collected illegally. But, there may arise a case where the court
may deem it fit to issue mandamus for the purpose.
One such example is to be found in U.P. Pollution Control Board v. Kanoria
Industrial Ltd.,m where collection of water cess was found to be unconstitutional.
The court ordered refund of the cess collected for the following reasons: (1) no
facts were in dispute in the instant case; (2) cess was paid under protest; (3) there
was no laches on the part of the petitioner; (4) There was no case of undue
enrichment.
The A.P. High Court has reiterated the well established proposition that
mandamus cannot be issued to direct the legislature to enact a law on a particular
subject, nor to direct a delegated legislative authority to makes rules in furtherance
of a statutory provision. Accordingly, the high court has refused to issue mandamus
to the State Government to provide for a policy of reservation in view of the fact
that article 16(4A) of the Constitution is an enabling provision.119 If the state
makes no reservation, the high court has no jurisdiction under article 226 of the
Constitution to issue any direction therefore.120
Quo warranto
When the governor of a state appoints a person as chief minister who is not
qualified, or is disqualified, to be a member of the state legislature, there is
violation of article 164 of the Constitution. Therefore, the authority of the appointee
to hold the said office through a quo warranto petition can be questioned.
Although, under article 361 of the Constitution, the governor enjoys immunity
from being sued in a court, this immunity does not extend to his appointee.
The Supreme Court has clarified the nature and scope of quo warranto in
B.R. Kapur v. State of Tamil Nadu.m When an application for issue of quo
warranto is being considered by the court, the governor is not being made
amenable to the jurisdiction of the court. It is the appointee whose duty it is to
satisfy the court about his eligibility to hold the office and that there has not
been any illegal usurpation of public office. From this view of the matter, there
would be no infraction of article 361.
The basic purpose of quo warranto is to protect the public from an illegal
usurpation of a public office by an individual. The necessary ingredients to be
satisfied before quo warranto may be issued are:
(i) the office in question is a public office;
(ii) it is -created by the Constitution or the law;
(iii) the person is not legally qualified to hold the said office.
(1) the competing tenderers have not raised any grievance about the
modalities observed and adopted by the DMC;
(2) there was no flaw in acceptance of the tender in question.124
The State of Kerala has created a very interesting institution, viz. Ombudsman
for Local Self Government (LSG) bodies. The object of the ombudsman is 'to
conduct a detailed inquiry regarding any proceedings of the LSG bodies and the
public servants holding office thereunder concerning corruption, maladministration
or defects in the administration and settle such complaints.'*
The authority known as Ombudsman is to consist of seven persons as follows:
(1) a person who is or has been a high court Judge; (2) two district judges;
(3) two government officials not below the rank of government secretary; (4) two
"honest and respectable" social service workers. Adequate provisions heave been
made in the relevant Act to ensure their independence and objectivity.
The institution has been created on the recommendation of the Sen
Committee. The committee suggested that while tribunals would adjudicate upon
appeals from decisions taken in exercise of regulatory authority, there should be
an institution "to investigate the field of administrative activity, i.e. to investigate
independently complaints from individuals and groups and even the government
The Ombudsman system thus lies outside the court system. Its main objectives
are two: (1) redressal of grievances of people against maladministration of the
LSG bodies; (2) supervisory so as to spot systemic deficiencies and suggest
improvements.125
There is need for other states to emulate the Kerala system. Local bodies
which are immediately in contact with the people are in very bad shape. Their
administration needs to be improved if they have to serve the people well. The
Kerala system may go a long way to improve the administration by local bodies.
The matter raised here has in reality a much wider dimension. As early as
1967, the Administrative Reforms Commission chaired by Shri Morarji Desai
had recommended the Ombudsman type institution on a national level to redress
grievances of the people against the central administration.126 Even after nearly
40 years, no such institution is on the horizon. It is time that such an institution
be established at the central level as well as in each state. In the absence of such
a supervisory mechanism, the gap is being filled to some extent by PIL which
has grown immensely over the years throwing a load of work on the high courts
and the Supreme Court.127
130 Tata Cellular v. Union of India, AIR 1996 SC 11; Air India Ltd. v. Cochin International
Airport Ltd, AIR 2000 SC 801; M/S Asian Techs Ltd. v. State of Kerala, AIR 2001 Ker. 388.
131 Alok Prasad Varma v. Union of India, AIR 2001 Pat 211.
132 Manager, Govt. Branch Press v. D.B. Belliappa, AIR 1979 SC 429; Khudi Ram v. State of
West Bengal, AIR 1975 SC 550; Sardar Govindrao v. State ofMadhya Pradesh, AIR 1965 SC
1222; Union of India v. M.L. Capoor, AIR 1974 SC 87.
133 Manager, Govt. Branch Press v. D.B. Belliappa, AIR 1979 SC 429.
134 See, E.P. Royappa v. State ofTN., AIR 1974 SC 555; Maneka Gandhi v. Union of India, AIR
1978 SC 597; Ajay Hasia v. Khalid Mujib; AIR 1981 SC 487.
135 Common Cause, a Registered Society v. Union of India, AIR 1999 SC 2979; LIC of India v.
Escorts Ltd., AIR 1986 SC 1370,
136 Mahabir Auto Stores v. Indian Oil Corp, AIR 1990 SC 1031.
137 Union of India v. Dinesh Engineering Corporation, (2001) 8 SCC 491.
offer in contracts, the same will have to be done within the four corners of the
requirements of law, especially article 14 of the Constitution.
In the instant case, the decision of the Railway to deny contract to the
tenderer was quashed as being "arbitrary".138
When tenders are invited for execution of a work, the contract is awarded
to the lowest tenderer, which is in public interest. The principle of awarding
contract to the lowest tenderer applies when all things are equal. The tender
system eliminates favoritism and discrimination in awarding public works. It is
also in public interest to adhere to the rules and regulations subject to which
tenders are invited.
Ignoring the instructions subject to which the tenders are invited would
encourage and provide scope for discrimination, arbitrariness and favouritism
"which are totally opposed to the Rule of Law and our constitutional values".
The very purpose of issuing rules/instructions is to ensure their enforcement
lest "the Rule of Law should be a casualty". "Merely because a bid is the lowest
the requirements of compliance of rules and conditions cannot be ignored".
Also, the concerned authority is not obliged to award contract to a tenderer at
the quoted price bid. The authority can always negotiate with the next tenderer
(in case the lowest tender is out for any reason) for awarding the contract on
economically viable price bid.139
The apex court had ruled in Ramana v. International Airport Authority140
that the terms and conditions issued in the advertisement inviting tenders cannot
be altered to the advantage of a particular person having regard to the fact that
if such favourable term and conditions had been known to all other participants,
they would have participated in the tender.
Applying this principle, the A.R High Court quashed award of a contract in
S.Y. Nawab v. Municipal Cornpn. of Hyderabad.141 The committee awarded the
contract to the second respondent with a view to help him throwing all norm to
the winds. The condition advertised were revised to help the second respondent
without advertising the same. The action of the committee was held to be arbitrary.
The high court admonished the committee that in future it "shall issue
advertisement clearly laying down the norms thereof in order to enable all the
eligible persons to take part in the tender.142
The basic principle is that a public authority does not have an open-end
discretion to dispose of its property at whatever price it likes. The principle is
that the sale should take place openly and the effort should be to get the best
price. The several methods, which can be employed for this purpose, are: (1) public
auction; (ii) inviting tenders for the property. As the Supreme Court has observed
in State of Uttar Pradesh v. Shiv Charan Sharma: 143 Public auction with open
participation and a reserved price, guarantees public interest being fully
subserved." In the instant case, the Supreme Court has laid down that mineral
rights ought not to be granted through private negotiations but by holding a
public auction where those interested in the matter may bid against each other.
In Haji T.M. Hassan v. Kerala Financial Corpn.,144 the Supreme Court has
emphasized that public property owned by the state or its instrumentality should
be sold generally by public auction or by inviting tenders. Observance of this
rule not only fetches the highest price for the property but also ensures fairness
in the activities of the state and public authorities. There should be no suggestion
of discrimination, bias, favoritism or nepotism. But there may be situations
when departure from this rule may become necessary. However, such situations
must be justified by compulsions and not by compromise. It must be justified
by compelling reasons and not by just convenience.
Balco,U5 is the latest pronouncement of the Supreme Court on the question
of disposal of government property. 51 percent equity in Balco, a government
undertaking, was sold to a private company by inviting tenders through global
advertisement. The sale was challenged on various grounds but the Supreme
Court rejected all the contentions and upheld the sale. The following three main
propositions emerge from the court decision:
The Andhra Pradesh High Court held in M. Vijaya v. Chairman and Managing
Director, Singareni Collories Co. Ltd.147 that the writ petition was maintainable.
The court referred to article 21 of the Constitution, which guarantees a dignified
human existence to the Indians and not a mere animal existence. Article 21
confers a right to enjoy all faculties of life. It casts an obligation on the state to
protect and preserve human life.148
The high court has taken note of several Supreme Court cases in which the
principle has now become established that when a person's fundamental right is
infringed, he has a public law remedy of seeking compensation from the State
and this public law remedy is in addition to the private law remedy of a civil
suit for tortious damages.149 Accordingly, the high court directed payment of Rs.
one lac to the petitioner by way of compensation as a public law remedy. This
is in addition to whatever compensation may be granted to her in a civil suit.
The highlight of the high court judgment, however, is the discussion by the
court of the dangers of the emerging menace of HIV in India. The court has also
issued several directions with a view of better management and control of AIDS
in the state. The high court has also taken note of several Supreme Court/high
court cases in which the question of legal position of AIDS patients has been
discussed.150
The Supreme Court quashed the FIR. Such a long delay in granting sanction
amounted to the violation of right of life and liberty as enshrined in article 21
of the Constitution.152
The prosecution has miserably failed to explain the long delay in granting
sanction for the prosecution of the writ petitioner. In cases of corruption, the
Supreme Court has insisted, "speedy justice is the mandate of the Constitution
being in the interests of the accused as well as that of society. Cases relating to
corruption are to be dealt with swiftly, promptly and without delay/153
Accordingly, the proceedings against the petitioner were quashed, as
permitting further prosecution would be "travesty of justice".
Under section 197 of the Code of Criminal Procedure, 1974, sanction of the
government is required before a public servant can be prosecuted under section
5(2) and 5(1) (d) of the Prevention of Corruption Act.
The Supreme Court has explained the meaning and purport of section 197
in PK. Pradhan v. State of Sikkim.154 section 197 uses the words "any offence
alleged to have been committed by him while acting or purporting to act in the
discharge of his official duty". This means that the offence alleged to have been
committed must have something to do, or must be related in some manner, with
the discharge of official duty.
No question of sanction can arise under section 197, unless the act complained
of is an offence. The main question to determine is whether it was committed
in the discharge of official duty. Thee must be a reasonable connection between
the act and the official duty. The Supreme Court has observed in this connection:155
What a Court has to find out is whether the act and the official duty are
so inter-related that one can postulate reasonably that it was done by
the accused in the performance of official duty, though, possibly in
excess of the needs and requirements of the situation.
The question of the scope of section 197, Cr PC, has been discussed by the
Supreme Court in several earlier cases.156 After referring to these cases, the court
has observed in Pradhan that for claiming protection under section 197 of the
Code, it has to be shown by the accused that there is reasonable connection
between the act complained of and the discharge of official duty.
152 Under art 21, it has been held that every person has aright to speedy trial of the case pending
against him.
See, Abdul Rehman Antulay v. R.S. Nayak, AIR 1992 SC 1701.
For discussion on Art. 21, see, Jain, Indian Constitutional Law, Ch. XXVI (2002).
153 AIR 2001 SC at 2991.
Also see, Ramanand Chaudhary v. State of Bihar, AIR 1994 SC 948.
154 AIR 2001 SC 2547.
155 Id. at 2550.
156 Shreekanth Ramayya Munipalli v. State of Bomaby, AIR 1955 SC 287; Amrik Singh v. State
ofPepsu, AIR 1955 SC 309; Malajog Dubey v. H.C Bhari, AIR 1956 SC 44; Baijnath Gupta
v. State ofM.P. AIR 1966 SC 220; Suresh Kumar Bhikamchand Jain v. Pandey Ajay Bushan,
AIR 1998 SC 1524; Abdul Wahab Ansari v. State of Bihar, AIR 2000 SC 3187; K Satwant
Singh v. State of Punjab, AIR 1960 SC 266.
On appeal, the Supreme Court has now accepted the view of the Delhi High
Court, stated above, in Union of India v. Association for Democratic Action.m
The case will be taken note of in detail in the Survey of the year 2002.
It may be hoped that the government-both central and state-would take
steps to make the people enjoy the right effectively and efficiently.
157 As early as 1966, the USA enacted the Freedom of Information Act; Canada has the Access
of Information Act, 1982. Australia also has enacted the Freedom of Information Act, 1982.
For discussion on these Acts, see, P. Bayne, Freedom of Information (1984).
158 AIR 2001 Del 128.
159 Id. at 135.
Also see, State of U.P. v. Raj Narain AIR 1975 SC 865; Secretary, Ministry of Information
and Broadcasting, Govt, of India v. Cricket Association of Bengal, AIR 1995 SC 1236; S.P
Gupta v. Union of India, AIR 1982 SC 149.
160 AIR 2002 SC 350.