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1952 Supreme(All) 143

IN THE HIGH COURT OF ALLAHABAD
Agarwala, V. Bhargava and Brij Mohan Lall, JJ.
BHUSHAN LAL - Appellant
Versus
STATE - Respondents
Criminal Revn. 1262 Of 1950
Decided On : 05/14/1952

Advocates Appeared:
GOPAL SARUP PATHAK, KANHAIYA LAL MISHRA

Headnote:

ESSENTIAL SUPPLIES ACT - Sections 3, 4 and 6 - Validity - Delegation of legislative power - Whether the provisions are ultra vires the Indian Legislature - Severability.

Fact of the Case:

The Essential Supplies (Temporary Powers) Act, XXIV [24] of 1946 was challenged on the ground that Sections 3, 4 and 6 of the Act were ultra vires the Indian Legislature which passed the Act.

Finding of the Court:

The Court held that Sections 3 and 4 of the Act were intra vires, while Section 6 was ultra vires the Indian Legislature which passed the Act. The Court further held that the invalidity of Section 6 did not affect the validity of the rest of the Act.

Issues: 1. Whether Sections 3, 4 and 6 of the Essential Supplies (Temporary Powers) Act, XXIV [24] of 1946, or any part thereof are ultra vires of the Indian Legislature which passed the Act? 2. If the provisions of any of these sections be ultra vires, whether that affects the validity of the entire Act or not.

Ratio Decidendi: 1. The Court held that Sections 3 and 4 of the Act were intra vires as they laid down a definite policy and did not confer arbitrary powers on the Central Government. The Court also held that the delegation of power to subordinate authorities was permissible as long as the Legislature laid down a policy and standard for the guidance of the delegatee. 2. The Court held that Section 6 was ultra vires as it authorized the Central Government to repeal existing laws, which was an essential legislative function that could not be delegated.

Final Decision: The Court held that Sections 3 and 4 of the Essential Supplies (Temporary Powers) Act, XXIV [24] of 1946 were intra vires, while Section 6 was ultra vires the Indian Legislature which passed the Act. The Court further held that the invalidity of Section 6 did not affect the validity of the rest of the Act.

AGARWALA, J.

( 1 ) TWO questions have been referred to this Full Bench :

(1) Whether Sections 3, 4 and 6 of the Essential Supplies (Temporary Powers) Act, XXIV [24] of 1946, or any part thereof are ultra vires of the Indian Legislature which passed the Act?

(2) If the provisions of any of these sections be ultra vires, whether that affects the validity of the entire Act or not.

( 2 ) THE Essential Supplies (Temporary Powers) Act, XXIV [24] of 1946 was passed by the central Legislature as it was constituted under the Government of India Act, 1935. Under entries 27 and 29 of List 2 of the Government of India Act trade and commerce within the province and production, supply and distribution of goods were Provincial subjects. By the India (Central government and Legislature) Act, 1946, 9 and 10, George VI, Chap. 39, the Central Legislature was empowered to make laws with respect to trade and commerce in, and the production, supply and distribution of, certain specified goods. In exercise of the power thus conferred on it, the central Legislature passed the Essential Supplies Act for controlling the production, supply and distribution of, and trade and commerce in those goods.


( 3 ) THE original Act was for a period of one year. Questions about its validity on the grounds of its extension from time to time were considered by the Supreme Court in Joylal Agarwala v. The state, A. I. R. 1951 S. C. 484 and it was held that the Act was not invalid on that ground. The validity of Sections 3, 4 and 6 of the Act on the ground that they purport to delegate essential powers of legislation has not yet been considered by the Supreme Court. This is the question that falls to be considered in the present reference.

( 4 ) THE sections of the Act the validity of which is challenged are Sections 3, 4 and 6. Section 3 is the main section in the Act and confers on the Central Government power to make rules for regulating or prohibiting the production, supply and distribution and trade and commerce in certain specified articles. It runs as follows : section 3.--Powers to control production, supply distribution, etc. , of essential commodities.

(1) The Central Government, so far as it appears to it necessary or expedient for maintaining or increasing, supplies of any essential commodity, or for securing their equitable distribution and availability at fair prices, may by notified order provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein.

(2) Without prejudice to the generality of the powers conferred by Sub-section (1) an order made thereunder may provide :

(a) for regulating by licences, permits or otherwise the production or manufacture of any essential commodity;

(b) for bringing under cultivation any waste or arable land, whether appurtenant to a building or not, for the growing thereon of food-crops generally or of specified food-crops, and for otherwise maintaining or increasing the cultivation of food-crops generally, or of specified food-crops;

(c) for controlling the prices at which any essential commodity may be bought or sold; (d) for regulating by licenses, permits or otherwise the storage, transport, distribution disposal, acquisition, use or consumption of any essential commodity;

(e) for prohibiting the withholding from sale of any essential commodity ordinarily kept for sale; (f) for requiring any person holding stock of an essential commodity to sell the whole or a specified part of the stock at such prices and to such persons or class of persons or in such circumstances, as may be specified in the order;

(g) for regulating or prohibiting any class of commercial or financial transactions relating to foodstuffs or cotton textiles, which, in the opinion of the authority making the order are, or if unregulated are likely to be, detrimental, to public interest;

(h) for collecting any information or statistics with a view to regulating or prohibiting any of the aforesaid matters;

(i) f










































































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