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1968 Supreme(AP) 151
Andhra Pradesh High Court
Judges : GOPALRAO EKBOLE
Maram Subrahmanyam Stores by Proprietor Pullaya, etc - Appellant
Versus
State OF A.P. - Respondent
Decided On : 09-02-68
A delegate cannot re-delegate his powers, and the legislative power must be exercised only by those to whom it is given, and not by further delegation.
Headnote:
ESSENTIAL COMMODITIES ACT, 1955 - Sections 3, 5, 7 - ANDHRA PRADESH EXHIBITION OF PRICE LISTS OF GOODS ORDER, 1966 - Clauses 1(3), 3, 4, 6, 7 - Validity - Discrimination - Delegated legislation - Sub-delegation - Retrospective effect - Vires.
Fact of the Case:
The petitioners, businessmen dealing in various commodities, challenged the vires of some provisions of the Andhra Pradesh Exhibition of Price Lists of Goods Order, 1966, issued under the Essential Commodities Act, 1955. They contended that the Order was discriminatory as it did not require the State orders to be laid before the Parliament, unlike the Central orders, and that the State Government could not re-delegate its power to fix prices to its subordinate officers or outside agencies.
Finding of the Court:
The Court held that the discrimination alleged was not violative of Article 14 of the Constitution since the State orders were not subject to Parliamentary control, unlike the Central orders, and that the State Government could not re-delegate its legislative power to fix prices to its subordinate officers or outside agencies.
Issues: 1. Whether the Andhra Pradesh Exhibition of Price Lists of Goods Order, 1966 was discriminatory as it did not require the State orders to be laid before the Parliament, unlike the Central orders? 2. Whether the State Government could re-delegate its power to fix prices to its subordinate officers or outside agencies?
Ratio Decidendi: 1. The Court held that the discrimination alleged was not violative of Article 14 of the Constitution since the State orders were not subject to Parliamentary control, unlike the Central orders. The Court reasoned that the Parliament could not have validly prescribed that the State-made orders shall be laid before the Parliament or before the State legislature concerned for modification or annulment, as any such provision would amount to conferring a power to impose a duty on the State Legislature, which is not possible under the Constitution. The Court further observed that the State Government acts as the delegate of the Central Government and consequently that of Parliament and not of the State Legislature and so it is not responsible to the latter. 2. The Court held that the State Government could not re-delegate its legislative power to fix prices to its subordinate officers or outside agencies. The Court reasoned that a delegate cannot re-delegate his powers, and that the legislative power must be exercised only by those to whom it is given, and not by further delegation. The Court further observed that the power to fix prices being a legislative function, it is for the State Government to apply its mind and discharge that legislative function itself.
Final Decision: The Court dismissed the writ petitions, subject to the observations made. The Court held that the Andhra Pradesh Exhibition of Price Lists of Goods Order, 1966 was not discriminatory and that the State Government could not re-delegate its power to fix prices to its subordinate officers or outside agencies. However, the Court also held that the amendment made to the Order by G.O. Ms. No. 327, dated 23rd February, 1967, which gave retrospective effect to the Order, was bad in law.
( 2 ) THE Sub Inspector of Police filed criminal cases against the petitioners before the munsif-Magistrate charging them for violation of section 7 of the Essential commodities Act, hereinafter called "the Act", read with section 3 of the Andhra Pradesh exhibition of Price Lists of Goods Order, 1966 hereinafter called "the Order", for failure to exhibit the price lists of goods. These petitions have been filed challenging the vires of some of the provisions of the Order.
( 3 ) IN order to appreciate the various contentions raised before me, it is necessary to read some of the provisions of the Act. The Act defines essential commodity to mean the classes of commodities mentioned in section 2 which includes foodstuffs including edible oilseeds and oils. The same section authorises the Central Government to declare any other class of commodity by notified order to be an essential commodity fcr the purposes of the Act. The commodity, however, must be such with respect to which Parliament has the power to make the laws by virtue of entry 33 of List III of the Seventh Schedule to the Constitution. Section 3 relates to the power to control production, supply, distribution, etc. of essential commodities. Sub-section (1) of section 3 provides that if the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. Sub-section (2) of that section says that without prejudice to the generality of the powers conferred by sub-section (i), an order made thereunder may provide for the things mentioned in that sub-section. Sub-section (3-A) of section 3 states that if the Central Government is of opinion that it is necessary for controlling the rise in prices or preventing the hoarding of any stuff in any locality it may by notification direct that the price at which the foodstuff shall be sold in the locality shall be regulated in accordance with the provisions of that sub-section. Clause (iv) of that sub-section reads as follows : " For the purposes of sub-clause (c) of clause (iii) the average market rate prevailing in the locality shall be determined by an officer authorised by the central Government in this behalf, with reference to the prevailing market rate for which published figures are available in respect of that locality or a neighbouring locality ; and the average market rate so determined shall be final and shall not be called in question in any Court. " sub-section (6) of Section 3, being material has to be read in full : " Every order made under this section by the Central Government or by any officer or authority of the Central Government shall be laid before both Houses of Parliament, as soon as may be, after it made. "
( 4 ) SECTION 4 imposes duties on State Governments and their officers in pursuance of any order made under section 3. Section 5 is relevant. It reads as follows : "the Central Government may, by notified order direct that the power to make orders under section 3 shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be excrcisable also by- (a) such officer or authority subordinate to the Central Government; or (b) such Government or such officer or authority subordinate to a State government. " section 7 relates to penalties. It enjoins that if any person contravenes any order made under section 3, he shall be punishable in the case of an order with reference t
