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        2009 (7) TMI 1313 - SC - Indian Laws

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        Executive memorandum and reasonable service fees may operate where statute contemplates rules but does not make them a condition precedent A statute requiring rules does not prevent the State from acting by executive memorandum where the enactment does not make rule-making a condition ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Executive memorandum and reasonable service fees may operate where statute contemplates rules but does not make them a condition precedent

                          A statute requiring rules does not prevent the State from acting by executive memorandum where the enactment does not make rule-making a condition precedent. The Court also distinguished a fee from a tax and held that a reasonable charge may be levied for a special service rendered in implementing statutory obligations. On that basis, the absence of framed rules did not by itself invalidate the memorandum or the collection of weighbridge fees. The contrary view taken by the High Court was not sustained, and the impugned judgment was set aside.




                          Issues: Whether the State could issue an executive memorandum governing installation and operation of weighbridges and levy fees in the absence of framed rules under the Motor Vehicles Act, 1988.

                          Analysis: The statutory scheme contemplated regulation of vehicle weight, installation and use of weighing devices, and levy of fees for services rendered in connection with the Act. The executive power of the State under Articles 162 and 166 of the Constitution extends to matters within legislative competence, and a power conferred by statute subject to rules does not remain inoperative merely because rules have not yet been framed, unless the statute expressly makes rule-making a condition precedent. The Court also distinguished a fee from a tax and held that where services are rendered for implementation of statutory obligations, a reasonable charge may be levied. The absence of rules, therefore, did not by itself invalidate the memorandum or the collection of fees, and the High Court's contrary view could not be sustained.

                          Conclusion: The State was competent to act by executive memorandum in aid of the statutory scheme, and collection of reasonable fees for weighbridge services was not invalid merely because rules had not yet been framed.

                          Final Conclusion: The impugned judgment was set aside and the appeals succeeded, leaving the writ petitioners at liberty to challenge the memorandum before the High Court on appropriate grounds.

                          Ratio Decidendi: Where a statute confers power subject to rules, the absence of framed rules does not bar exercise of the statutory power unless the enactment expressly makes rule-making a condition precedent, and the State may levy a reasonable fee for a special service rendered in furtherance of the statutory scheme.


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                          ActsIncome Tax
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