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1991 Supreme(Ker) 300

Judges : CHIEFJAGANNADHA RAO,G.VISWANATHA IYER
State of Kerala - Appellant
Versus
Jacob Zacharia - Respondent
Case No : W.A.Nos. 522, 648 etc. of 1991
Decided On : 09/23/1991
Advocates Appeared :
Government Pleader (V. Bhaskara Menon) For Appellant

The provisions of Section 5(2) of the Notaries Act, 1952 do not confer any discretion on the Government at the time of renewal. The word 'shall' and the words 'be entitled' indicate that renewal is mandatory and automatic. Administrative orders or Rules cannot go contrary to the Act.

Headnote:

automatic renewal - Notaries Act, 1952, Section 5(2) - The court held that the provisions of Section 5(2) of the Notaries Act, 1952 do not confer any discretion on the Government at the time of renewal. The word 'shall' and the words 'be entitled' indicate that renewal is mandatory and automatic. The Act does not provide for any discretion at the time of renewal, and administrative orders or Rules cannot go contrary to the Act.

Fact of the Case:

The question in these appeals is whether a person registered as a Notary under the Notaries Act, 1952 has an automatic right of renewal under S.5(2) of the Act. The Law Secretary rejected the applications for renewal, stating that the Government has decided not to give more than two renewals to any Notary. The Notaries filed writ petitions challenging these orders. The single judge considered the position of Notaries in England and India, as well as the provisions of the Act and Rules. The judge held that the word 'shall' in Section 5(2) indicates that renewal is automatic. The judge allowed the writ petitions and declared that those who have already registered are entitled to automatic renewal of their registration. The State Government appealed against this decision.

Finding of the Court:

The court considered the provisions of Section 5(2) of the Notaries Act, 1952 and held that there is no discretion vested in the Government at the time of renewal. The use of the word 'shall' and the words 'be entitled' indicate that renewal is mandatory and automatic. The court stated that the Act provides for removal under Section 10 and an enquiry to be conducted at the time of removal, but does not provide for any discretion at the time of renewal. The court also noted that different statutes provide different conditions for renewal, based on policy decisions of the Government. However, once a policy is taken by the express provisions of the Act, it is difficult for the Government to pass an administrative order or make a rule contrary to the Act. The court referred to a decision of the Calcutta High Court which held that the Government cannot withhold the licence of a Notary who has the requisite qualifications as laid down in the Act and Rules. The court held that unless the Act itself is amended, the Government cannot claim any residuary discretion or introduce disqualifications through administrative orders or Rules. The court dismissed the appeals.

Ratio Decidendi: The provisions of Section 5(2) of the Notaries Act, 1952 do not confer any discretion on the Government at the time of renewal. The word 'shall' and the words 'be entitled' indicate that renewal is mandatory and automatic. The Act does not provide for any discretion at the time of renewal, and administrative orders or Rules cannot go contrary to the Act. Disqualifications can only be introduced through legislation made by the Legislature.

Result: The court dismissed the appeals.

Judgment :-

Jagannadha Rao, CJ.

The interesting point arising in these batch of appeals is whether a person registered as a Notary under the Notaries Act, 1952 has an automatic right of renewal under S.5(2) of the Act. In all the cases before us the Law Secretary has informed the various applicants that he is directed to inform them that their applications for renewal are rejected since the Government has taken a decision not to give more than two renewals to any Notary. The writ petitioners were also informed by the Law Secretary that they could apply afresh. Questioning the various orders the Notaries filed the writ petitions. The learned single judge considered the position of Notaries in England and India in a very elaborate judgment and also considered the various provisions in the Act and Rules including the provisions of the Negotiable Instruments Act containing references to the Notary public. The learned judge then considered Section 5(2) of the Act and observed as follows:

"The scheme of the enactment and the rules abundantly makes it clear that the greatest scrutiny is made at the time of the initial entry. Once enrolled, continuation is almost automatic. Application for renewal and payment of the fee are matters of a mechanical character. Removal is a matter of significance and for that separate provision is made."

The learned judge then pointed out that in various other enactments, similar schemes for automatic renewal are there even in relation to matters of trade, taxing enactments like Incometax Act and Sales tax laws etc. The learned judge finally observed that the word 'shall' in Section 5(2) is a clear indication that the renewal is automatic. The exercise of the powers is conditioned by the statutory provision and the Government, the learned judge held, has to function within the framework of the Act and Rules. Policy considerations are already taken care of when Parliament passed the law. The learned judge observed that the State Government cannot therefore inject into the system something which according to its notion, is a better nutrient. The learned judge considered various decisions in relation to the position of Notaries and also the judgment of P.B. Mukerji, J. of the Calcutta High Court in In re K.K.Ray (Private) Limited (AIR 1967 Cal. 636). Having construed Sec. 5(2) as mandatory, the learned judge allowed all the writ petitions and directed that the orders terminating the appointments of the writ petitioners are quashed and declared that subject to the provisions of the Act and Rules, those who have already registered are entitled to automatic renewal of their registration on the payment of the fee and making of the application.

2. These appeals are preferred by the State of Kerala. We have heard learned Government Pleader and learned counsel for the respondents.

3. We have given our anxious consideration to the important question involved and we have ultimately come to the conclusion that the provisions of Section 5(2) of the Notaries Act, 1952, as they stand today, do not intend to confer any discretion on the Government at the time of a renewal application made by a Notary. This is clear from the language in Section 5(2) of the Act itself which reads as follows:

"Every such notary who wishes to continue to practice after the expiry of the period for which his certificate of practice has been issued under this section shall on application made to the Government appointing him and payment of the prescribed fee, if any, be entitled to have his certificate of practice renewed for three years at a time." (emphasis supplied)

In our view, the Parliament deliberately included the word 'shall' and the words 'be entitled 'in Section 5(2) and in view of the said language it is difficult to say that there is any residuary discretion vested in the Government at the time of renewal of an application filed by a Notary. The Act contains a provision for removal under Section 10. the Rules also make provisions for an

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