( 1 ) THIS case comes before us because it raises tbe question of validity of Section 90 of the Central Provinces and Berar Local Government Act, 1948, and the division Bench seized of the case was of opinion that, in view of the importance of the question, it should be heard by a Full Bench.

( 2 ) BEFORE proceeding to the points arising in the case, we may briefly state the facts of the case. By a resolution dated 10 June, 1957 passed in a special meeting convened for the purpose, the Janapada Sabha, Sihora, decided to impose on persons engaged in the business of manufacture of bidis within the Janapada area an annual tax. In due course, the resolution was forwarded to the State government. In exercise of the powers under Sub-section (2) of Section 90 of the central Provinces and Berar Local Government Act, 1948 (hereinafter called the act), the State Government, by a Gazette Notification No. 6165-8889-R dated 4 november 1960, sanctioned, with effect from 1 April 1961, the imposition of the tax at the following rates: (1) Bidi-makers or persons otherwise engaged in the process--Rs. 3/-per year. (2) Bidi contractors. . . Rs. 25/- per year. (3) Owners of Bidi manufacturing factory of firm. Rs. 200/- per year. The Janapada Sabha subsequently confirmed the imposition by a resolution dated 15 February, 1961 passed in a general meeting. Even before that, by a notice dated 15 December 1960, the petitioner was required to pay the tax for the year 1961-62. He has moved this Court for a writ of certiorari to quash the resolution dated 10 June 1957, and the Notification dated 4 November 1960. He has also prayed for a writ of mandamus directing the Janapada Sabha to forbear from giving effect to the aforesaid Notification and the notice dated 15 December, 1960. He has called in question the imposition of the tax under Section 90 of the Act mainly on the ground that by enacting that section, the Legislature abdicated its essential legislative function.

( 3 ) SECTION 90 of the Act reads:

" (1) Subject to the provisions of any law or enactment for the time being in force, a Sabha may, by a resolution at a special meeting convened for the purpose, impose any tax, toll or rate other than those imposed under Sections 85 and 89. (2) The first imposition of any tax, toll or rate under Sub-section (1)shall be subject to the previous sanction of the State Government. "

( 4 ) ON the basis of Article 265 of the Constitution, it is urged that no tax can be levied or collected without the authority of law. 'law', as contemplated by that article, means statute taw: P. J. Joseph v. Asst. Excise Commissioner, ILR (1952)Trav Co. 960: (AIR 1953 Trav Co. 146. ). If the impugned tax had been levied prior to the commencement of the Constitution, it would have been saved under Article 277. Not having been so levied, Section 90 of the Act must, in view of Article 372, be regarded as subject to other provisions of the Constitution. Under Article 13, the section can be valid only in so far as it is not inconsistent with other provisions of the Constitution including Article 265. The section suffers from the infirmity of excessive delegation of legislative power and is not, therefore, a valid law within the meaning of Article 265.

( 5 ) SINCE the challenge to the validity of Section 90 of the Act is grounded upon excessive delegation of legislative power, it is necessary to consider the nature and extent of constitutionally permissible delegation of such power. In In re Delhi laws Act, 1912 etc. , 1951 SCR 747: (AIR 1951 SC 332), Mukherjea, J. observed: "these I consider to be the fundamental principles and in respect of the powers of the Legislature the constitutional position in India approximates more to the American than to the English pattern" (p. 985 (of SCR): (p. 401 of AIR) ).

( 6 ) IN America, the rule which inhibits the delegation of legislative power is mainly grounded Upon the theory of separation of powers. Since the different classes of ower