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Issues: Whether Section 22-A of the Registration Act, 1908, as inserted by the State amendment and the notifications issued thereunder, were constitutionally valid.
Analysis: Section 22-A empowered the State Government to declare by notification that registration of any document or class of documents was opposed to public policy, and required the registering officer to refuse registration accordingly. The provision conferred an unguided and uncanalised power on the executive to decide, without statutory standards, what transactions or documents would be treated as opposed to public policy. The concept of public policy was held to be inherently uncertain and incapable of being defined with precision for conferral upon the executive as a legislative standard. The Court held that the essential legislative function of identifying matters opposed to public policy could not be delegated through subordinate legislation, particularly where the result was to curtail citizens' rights to deal with property and to restrict registration without adequate legislative guidance. The notifications issued under the provision were also found to rest on the same unconstitutional foundation.
Conclusion: Section 22-A of the Registration Act, 1908, and the consequential notifications were unconstitutional and invalid.
Ratio Decidendi: A statutory power enabling the executive to classify documents as opposed to public policy for refusing registration, without clear legislative standards or guidance, amounts to impermissible delegation of an essential legislative function and is ultra vires the Constitution.