1979 (11) TMI 263 - SC - Indian Laws

Court affirms constitutionality of Madras Act Section 60, upholding delegation of legislative power.

The Supreme Court upheld the constitutionality of Section 60 of the Madras Cooperative Societies Act, 1932, emphasizing that it does not amount to ... Delegated legislation - Henry VIII clause - essential legislative function - policy and guidelines doctrine - permissible delegation in welfare legislation - executive power to exempt or modify statutory provisionsDelegated legislation - Henry VIII clause - policy and guidelines doctrine - permissible delegation in welfare legislation - Validity of Section 60 of the Madras Cooperative Societies Act, 1932 insofar as it empowers the State Government to exempt or modify application of the Act to registered societies. - HELD THAT: - The Court examined whether s. 60 constituted an unconstitutional abdication by permitting excessive delegation of legislative power. Relying on established authorities recognising that the legislature must lay down policy and principles while delegating detailed or technical matters to the executive, the Court held that the permissibility of delegation must be assessed in the light of the statute's preamble, scheme and other provisions which may furnish guidance. The Madras Cooperative Societies Act is welfare legislation whose preamble and provisions articulate clear objects - facilitating formation and working of societies for promotion of thrift, self-help and mutual aid among persons with common economic needs and improving living and methods of production. Those stated objectives and the statutory scheme furnish discernible guidelines and standards to govern the exercise of power under s. 60. Given the welfare character of the Act and the need for administrative flexibility to deal with complex and unforeseen situations, a generous degree of latitude is permissible. Consequently s. 60 is not an unconstitutional delegation merely because it authorises exemptions or modifications by executive order; the power must be exercised to advance the policy and objects of the Act in accordance with the guidance derivable from the preamble and other provisions.Section 60 is not void for excessive delegation and is constitutionally valid.Final Conclusion: The appeal is dismissed; Section 60 of the Madras Cooperative Societies Act, 1932 is upheld as a valid delegation of power subject to the policy and guidelines derivable from the Act's preamble and scheme. Issues Involved:1. Constitutionality of Section 60 of the Madras Cooperative Societies Act, 1932.2. Validity of the High Court's decision on unconstitutional delegation of legislative power.3. Examination of the Henry VIII clause in the context of delegated legislation.Summary:1. Constitutionality of Section 60 of the Madras Cooperative Societies Act, 1932:The Supreme Court examined the constitutionality of Section 60 of the Madras Cooperative Societies Act, 1932, which allows the State Government to exempt any registered society from any provisions of the Act or to apply such provisions with modifications. The Court noted that the provision is a near Henry VIII clause but emphasized that the mere naming of the clause does not invalidate it. The Court found that the preamble and the scheme of the Act provide clear policy and guidelines, stating that the Act aims to facilitate the formation and working of cooperative societies for the promotion of thrift, self-help, and mutual aid among agriculturists and other persons with common economic needs to bring about better living, better business, and better methods of production.2. Validity of the High Court's Decision on Unconstitutional Delegation of Legislative Power:The High Court of Kerala had struck down Section 60 and a related notification on the grounds of unconstitutional delegation of legislative power. The Supreme Court disagreed with this view, stating that the power to legislate includes the power to delegate, provided that the delegation does not amount to abdication. The Court emphasized that the legislature must lay down policy and principle and may delegate the authority to fill in details and carry out the policy. The Court found that Section 60 is within permissible limits of delegation as it is guided by the policy and objectives stated in the preamble and other provisions of the Act.3. Examination of the Henry VIII Clause in the Context of Delegated Legislation:The Court discussed the theory of delegated legislation, noting that modern legislative bodies are not equipped to handle every technical and situational intricacy, which necessitates delegation to expert executive bodies. The Court referred to several precedents, including Harishankar Bagla v. State of Madhya Pradesh, Edward Mills Co. Ltd. v. State of Ajmer, and others, to illustrate that delegation is permissible when the legislature provides clear policy and guidelines. The Court concluded that Section 60 of the Madras Cooperative Societies Act is not void for excessive delegation as it is designed to advance the policy and objectives of the Act.Conclusion:The Supreme Court declared that Section 60 of the Madras Cooperative Societies Act, 1932, is not void on the ground of excessive delegation of legislative power and dismissed the appeal. The Court upheld the validity of the provision, emphasizing that it is guided by clear policy and objectives aimed at facilitating the formation and working of cooperative societies.