TaxTMI 
TaxTMI 
1973 (8) TMI 174
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.... Annexures A, B, C to the Collector, Hoshangabad who was the competent authority to grant the certificate. The said application was rejected by the Collector on 7-12-1972 vide Annexure 'D'. The contention of the petitioner is that the rejection of his application was mala fide due to personal grudge against Shri Ramlal Sharma, the natural father of the petitioner and that it was wholly unjustified. He has, therefore, filed this petition, praying that the order of the Collector, Hoshangabad be quashed and an appropriate writ be Issued directing the respondent to issue a solvency certificate for ₹ 1,00,000/-(One Lac) to the petitioner. In the return filed by the respondent it is denied that the action of the Collector was mala ....
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....and honestly with due regard to the purpose for which it is vested and not arbitrarily with an ulterior purpose. In Susannah Sharp v. Wakefield 1891 AC 173, Lord Halsbury L.C. observed as under while dealing with the exercise of discretion by Magistrates in the matter of grant of licences under the Licensing Act: "An extensive power is confided to the justices in their capacity as justices to be exercised judicially: and "discretion" means when it is said that something is to be done within the discretion of the authorities that something is to be done according to the rules of reason and justice, not according to private opinion: Rooke's case 5 Rep 100 a: according to law, and not humour. It is to be, not arbitrary, va....
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....ions of the Supreme Court in C.S. Rowjee v. State of Andhra Pradesh AIR 1964 SC 962 and Mohammad Ibrahim v. The State of Andhra Pradesh AIR 1970 SC 1399 where such a plea was considered. In Union of India v. Anglo Afghan Agencies AIR 1968 SC 718 their Lordships, while dealing with the right of the petitioner to import licence, held that the Court was competent to grant relief where the departmental authority acted arbitrarily. Thus it is clear that any action or order passed by an authority whether in exercise of its judicial, quasi judicial or administrative powers is vitiated and is liable to be struck down as null and void at the instance of the party adversely affected thereby if it amounts to an abuse of the power and is mala fide or ....