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Issues: (i) Whether the notification appointing a Commission of Inquiry was within the scope of section 3 of the Commissions of Inquiry Act, 1952; (ii) whether the notification was vitiated as a mala fide exercise of power for a collateral purpose; (iii) whether the inquiry constituted contempt of court because related civil proceedings were pending.
Issue (i): Whether the notification appointing a Commission of Inquiry was within the scope of section 3 of the Commissions of Inquiry Act, 1952.
Analysis: Section 3 authorises the appropriate Government to appoint a Commission of Inquiry into any definite matter of public importance. The notification stated that the inquiry was intended to find facts so as to facilitate rectification, prevent recurrence of lapses, secure the ends of justice, and establish a moral public order in future. That objective was capable of supporting appropriate legislative or administrative action and therefore fell within the statutory purpose.
Conclusion: The notification was within the scope of section 3 and was legally valid.
Issue (ii): Whether the notification was vitiated as a mala fide exercise of power for a collateral purpose.
Analysis: The existence of political rivalry did not by itself establish bad faith. Where an administrative act is said to serve both authorised and unauthorised ends, legality depends on the dominant purpose. On the materials before it, the dominant purpose of the inquiry was to promote purity and integrity in public administration, not to destroy the political careers of particular individuals.
Conclusion: The notification was not shown to be mala fide or issued for a collateral purpose.
Issue (iii): Whether the inquiry constituted contempt of court because related civil proceedings were pending.
Analysis: The civil suits had not resulted in a factual adjudication on the allegations, and the scope of a Commission of Inquiry is distinct from that of a court trying a civil suit. A statutory inquiry conducted bona fide under the Act does not usurp the judicial function or interfere with the lawful process of the courts merely because some related matters are sub judice.
Conclusion: The inquiry did not amount to contempt of court.
Final Conclusion: The appeals failed in their entirety and the impugned notification appointing the Commission of Inquiry was upheld as a valid exercise of statutory power.
Ratio Decidendi: Where an administrative power is exercised for mixed purposes, the validity of the act depends on whether the dominant purpose is one authorised by statute; a bona fide inquiry into a matter of public importance under the Commissions of Inquiry Act is valid even if political considerations are also present, so long as the authorised purpose predominates.