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Issues: (i) Whether section 4 of the Bombay City Civil Court Act, 1948, amounted to an impermissible delegation of legislative power or was valid conditional legislation; (ii) Whether the Bombay City Civil Court Act, 1948, was beyond the legislative competence of the Provincial Legislature in conferring jurisdiction on the City Civil Court, including over suits arising on promissory notes and other civil matters.
Issue (i): Whether section 4 of the Bombay City Civil Court Act, 1948, amounted to an impermissible delegation of legislative power or was valid conditional legislation
Analysis: The statutory scheme fixed the policy and the outer limit of enhanced pecuniary jurisdiction in the Act itself, while leaving to the Provincial Government only the choice of the time and occasion for bringing the higher limit into force. The power conferred was therefore one of executing a legislative policy already laid down, not of making a new law. Such an arrangement falls within conditional legislation and does not amount to abdication of legislative power.
Conclusion: Section 4 was valid and was not ultra vires on the ground of delegation.
Issue (ii): Whether the Bombay City Civil Court Act, 1948, was beyond the legislative competence of the Provincial Legislature in conferring jurisdiction on the City Civil Court, including over suits arising on promissory notes and other civil matters
Analysis: The legislative entries dealing with administration of justice and constitution and organisation of courts were read as conferring power on the Provincial Legislature to establish courts and vest them with general civil jurisdiction. The separate entries relating to jurisdiction and powers of courts with respect to matters in the several Lists were treated as enabling provisions for special jurisdiction, not as exhaustively cutting down the general power to create and equip ordinary civil courts. The Act was, in pith and substance, a law on administration of justice and court organisation, and any overlap with Central subjects was only incidental.
Conclusion: The Act was within the legislative competence of the Provincial Legislature and was not ultra vires.
Final Conclusion: The impugned Act and the notification issued under section 4 were upheld, the City Civil Court jurisdiction was recognised, and the High Court lacked jurisdiction to try the suit.
Ratio Decidendi: A provincial law establishing a civil court and fixing its general jurisdiction is valid where the legislative field of administration of justice and court organisation is within provincial competence, and a statutory provision empowering the government to bring the fixed jurisdictional limit into force by notification is valid conditional legislation if the policy and limits are determined by the legislature itself.