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        Case ID :

        1963 (6) TMI 40 - HC - Indian Laws

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        Inclusive statutory power to notify additional commercial crops upheld; delegation, equality and free-trade challenges rejected. An inclusive definition in a commercial crops statute can validly authorise the Government to notify additional commodities where the Act's policy, object ...
                      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.

                          Inclusive statutory power to notify additional commercial crops upheld; delegation, equality and free-trade challenges rejected.

                          An inclusive definition in a commercial crops statute can validly authorise the Government to notify additional commodities where the Act's policy, object and scheme supply adequate guidance. The power under Section 2(i-a) was therefore not excessive delegation and did not violate Article 14, because it was confined to crops of commercial significance needing regulation. Notifications issued under the existing Act were also not repugnant to Article 301, as they operated within the parent law and were protected by Article 305. The objection that the Section 4 notification was issued without considering representations failed on the record, which showed that objections were examined before issuance.




                          Issues: (i) Whether Section 2(i-a) of the Madras Commercial Crops Markets Act, 1933 could validly empower the Government to notify additional crops as commercial crops. (ii) Whether the power conferred by Section 2(i-a) amounted to excessive delegation or violated Article 14 of the Constitution of India. (iii) Whether the notifications issued under Sections 2(i-a), 3 and 4 were repugnant to Article 301 of the Constitution of India and outside the saving of Article 305 of the Constitution of India. (iv) Whether the notification under Section 4 was invalid for non-consideration of objections.

                          Issue (i): Whether Section 2(i-a) of the Madras Commercial Crops Markets Act, 1933 could validly empower the Government to notify additional crops as commercial crops.

                          Analysis: The definition clause was held to be capable of including an empowering element where the Legislature itself has so enacted. The amended provision expressly authorised the State Government to notify other crops or products as commercial crops. The Act's scheme and object were to regulate trade in commercial crops, establish markets, and prevent exploitation of growers. In that setting, the inclusive definition operated as part of the legislative design and not as an impermissible assumption of power by the executive.

                          Conclusion: The power under Section 2(i-a) was validly conferred and the challenge failed.

                          Issue (ii): Whether the power conferred by Section 2(i-a) amounted to excessive delegation or violated Article 14 of the Constitution of India.

                          Analysis: The statutory policy was found in the preamble and the structure of the Act, which furnished sufficient guidance for the Government to determine which crops required regulation. The power was confined to crops having commercial significance and a market requiring control. The provision therefore did not leave the executive with an unguided or uncontrolled discretion. The Article 14 challenge also failed because the extension of the Act to a major chilli-growing district did not amount to hostile discrimination.

                          Conclusion: Section 2(i-a) did not suffer from excessive delegation and did not offend Article 14.

                          Issue (iii): Whether the notifications issued under Sections 2(i-a), 3 and 4 were repugnant to Article 301 of the Constitution of India and outside the saving of Article 305 of the Constitution of India.

                          Analysis: The notifications were held not to be independent legislation but only exercises of power under an existing law. They derived their force from the parent Act and operated within its framework. Since the Act was an existing law, the notifications issued under it were protected by Article 305 and did not constitute a fresh law requiring compliance with Article 304.

                          Conclusion: The notifications were not hit by Article 301 and were saved by Article 305.

                          Issue (iv): Whether the notification under Section 4 was invalid for non-consideration of objections.

                          Analysis: The record showed that the objections and suggestions submitted by the petitioners and others were considered before the notification was issued. The Government acted only after being satisfied that chillies were a commercial crop and that regulation in the notified area was necessary.

                          Conclusion: The notification under Section 4 was valid and the objection was rejected.

                          Final Conclusion: The statutory scheme and the impugned notifications were upheld in full, and the writ petitions were dismissed with costs.

                          Ratio Decidendi: An inclusive definition clause may validly authorise notification of additional commodities where the Act's policy and scheme furnish adequate guidance, and such notifications issued under an existing law do not offend Article 301 when protected by Article 305.


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