November 7, 2024
Administrative lawDU LLBSemester 4

Atlas Cycle Industries Ltd. v. State of Haryana(1979) 2 SCC 196 : AIR 1979 SC 1149

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JASWANT SINGH, J. – During the course of on spot check carried out by him on December
29, 1964 of B.P. sheets lying in Appellant 1’s factory at Sonepat, the Development Officer of
the Directorate General of Technical Development, New Delhi, discovered from an
examination of the said appellant’s account books that it had, during the period intervening
between January 1, 1964 and January 12, 1965, acquired black plain iron sheets of prime
quality weighing 60-03 metric tens from various parties at a rate higher than the maximum
statutory price fixed for such sheets by the Iron and Steel Controller (the ‘Controller’) in
exercise of the powers vested in him under Clause 15(1) of the Iron and Steel (Control) Order,
1956 (the ‘Control Order’). On the basis of this discovery, the appellants were prosecuted in
the Court of the Special Magistrate, Ambala Cantonment for an offence under Section 120B
of the Indian Penal Code read with Section 7 of the Essential Commodities Act, 1955 as also
for an offence under Section 7 of the Act read with Clause 15(3) of the Control Order. After
the Special Magistrate had framed the charges and examined sixteen prosecution witnesses,
the appellants made an application before him on February 12, 1970 under Sections 251A(11)
and 288(1) of the Code of Criminal Procedure, 1898 praying that in view of the submissions
made therein, the case against them be not proceeded with and they be acquitted. The trial
Magistrate dismissed the application vide his order dated June 4, 1970, relevant portion
whereof is extracted below for facility of reference:
In the light of the above observations, I am prevented from determining the case otherwise
than by making an order of acquittal or conviction which I can pass only after recording
further evidence both of prosecution and in defence.
Regarding various objections raised by the learned Counsel for the accused on the points that
the notifications were not placed before the Parliament and within a reasonable time and also
on the points of formation of opinion and delegation of powers I may submit that the
prosecution cannot be prevented from adducing evidence regarding the formation of opinion
and laying of the notifications before the Parliament which can be proved by the
contemporaneous record. Regarding the non-prosecution of the sellers of the black iron sheets
it does not lie in the mouth of the accused to say that such and such person has not been
prosecuted. I need not give any observations on merits on the points regarding subsequent
exemption of control order, mens rea, formation of opinion and delegation of powers in
laying notifications before the Parliament and also need not discuss the citations as I will have
to consider all these points at the time of final arguments and any order given now will not be
proper.
I dismiss the application of the accused on the short ground that it is not possible for this
Court to hold that the cognizance was taken on an invalid report and the order of the Court
ordering framing of charge is a nullity on the ground that on record no offence is committed
and no cognizance could be taken.

  1. Aggrieved by the aforesaid order of the special Magistrate, the appellants moved the High
    Court of Punjab and Haryana under Articles 226 and 227 of the Constitution and Section
    561A of the Code of Criminal Procedure, 1898 challenging their prosecution inter alia on the
    66
    grounds that the Control Order and the Notification which formed the basis of their
    prosecution did not have the force of law as they had not been laid before the Houses of
    Parliament within a reasonable time as required under Section 3(6) of the Act; that the
    Control Order and the Notification fixing the maximum selling price of the commodity in
    question for the contravention of which the appellants had been hauled up were invalid as the
    same did not appear to be preceded by the formation of the requisite opinion under Section
    3(1) of the Act which was a sine qua non for issue of any order by the Central Government or
    by the Controller; that none of the 18 concerns which, according to the prosecution, sold the
    aforesaid B.P. sheets to the appellants and who were equally guilty of the offence under
    Section 7 of the Act having been proceeded against in the Court of the competent jurisdiction,
    the prosecution of the appellants was violative of Article 14 of the Constitution and that the
    purchase of the aforesaid B.P. sheets having been openly made and entered in the account
    books of Appellant 1, the mens rea which was a necessary ingredient of the offence under
    Section 7 of the Act was totally lacking in the case.
  2. In the return statement filed by it in opposition to the writ petition, the respondent while
    denying that the Control Order had not been placed before both Houses of Parliament, as
    required by sub-section (6) of Section 3 of the Act or that the issue of the Control Order or the
    Notification fixing maximum selling prices of various categories of iron and steel including
    the commodity in question was not based on the formation of the opinion envisaged by subsection (1) of Section 3 of the Act conceded that the notification fixing the maximum selling
    prices of the categories of iron and steel including the commodity in question had not placed
    before both Houses of Parliament but contended that the provisions of sub-section (6) of
    Section 3 of the Act requiring the placing of the order contained in the aforesaid notification
    before both Houses of Parliament were directory and not mandatory and the omission to
    comply with that requirement did not have the effect of invalidating the notification. The
    respondent further contended that the notification fixing the maximum selling prices of
    various categories of iron and steel including the black plain iron sheets being a part of the
    Control Order and a piece of delegated legislation, it was not necessary to lay it before the
    Houses of Parliament. It was also pleaded by the respondent that the mens rea of the accused
    was manifested from various manipulation resorted to by them as also from the fact that they
    wanted to increase their production and earn more profits. The respondent also averred that
    launching of prosecution against any person depended on the availability of sufficient
    guidance and that non-prosecution of the sellers of the iron sheets in question did not involve
    any discrimination as envisaged by Article 14 of the Constitution but was due to nonavailability of adequate and reliable evidence against them.
  3. After careful consideration of the rival contentions of the parties, the High Court by its
    elaborate judgment and order dated May 31, 1974 dismissed the petition overruling the
    contentions of the appellants. One of the learned Judges of the High Court constituting the
    Bench which dealt with the writ petition also observed that the Notification in question had
    not in reality been issued under Section 3 of the Act which required it to be laid before both
    Houses of Parliament but was issued in exercise of the power conferred by Section 4 of the
    Act which plainly related to issue of incidental orders arising out of the nature of the powers
    conferred and duties imposed thereunder and the purpose whereof was to enable the various
    authorities mentioned therein to provide the details to fill up gaps in the Control Orders issued
    67
    under Section 3 of the Act so as to ensure the harmonious and rational working of the orders.
    The High Court, however, being of the opinion that the case involved a substantial question of
    law relating to the vires of the notification fixing the maximum selling prices of various
    categories of iron and steel including the commodity in question certified the case as
    eminently fit for appeal to this Court. This is how the case is before us.
  4. At the hearing of the appeal though the learned Counsel for the appellants have reiterated
    all the contentions raised by them in the aforesaid writ petition, the only substantial question
    of law which we are concerned with at the present stage is whether the aforesaid notification
    fixing the maximum selling price of the commodity in question is void for not having been
    laid before both Houses of Parliament.
  5. Section 2 is a glossary of the Act. According to clause (a)(vi) of the said section, iron and
    steel and manufactured products thereof fall within the ambit of the expression “essential
    commodity”.
  6. Sub-section (1) of Section 3 of the Act confers on the Central Government the general
    power of making and issuing orders providing for regulating or prohibiting the production,
    supply and distribution of on essential commodity and trade and commerce therein if it is of
    opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any
    essential commodity or for securing its equitable distribution and availability at fair prices or
    for securing any essential commodity for the defence of India or the efficient conduct of
    military operations.
  7. Sub-section (2) of Section 3 of the Act specifies the orders which without prejudice to the
    generality of the powers conferred by sub-section (1) of Section 3 can be issued thereunder.
  8. Clause (c) of sub-section (2) of Section 3 of the Act authorises the issue of an order for
    controlling the price at which any essential commodity may be bought or sold.
  9. Sub-section (6) of Section 3 of the Act ordains that 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 is made.
  10. Section 4 of the Act lays down that an order made under Section 3 may confer powers and
    impose duties upon the Central Government or the State Government or officers and
    authorities of the Central Government or State Government and may contain directions to any
    State Government or to officers and authorities thereof as to the exercise of any such powers
    or the discharge of any such duties.
  11. Section 5 of the Act deals with delegation of powers. It provides that the Central
    Government may, by notified order, direct that the power to make orders or issue notifications
    under Section 3 shall, in relation to such matters and subject to such conditions, if any, as may
    be specified in the direction, be exercisable also by (a) such officer or authority subordinate to
    the Central Government, or (b) such State Government or such officer or authority
    subordinate to a State Government, as may be specified in the direction.
  12. Section 6 of the Act which embodies a non obstante clause lays down that any order made
    under Section 3 shall have effect notwithstanding anything inconsistent therewith contained in
    any enactment other than this Act or any instrument having effect by virtue of any enactment
    other than this Act.
  13. Section 7 of the Act lays down the penalties which any person contravening any order
    made under Section 3 shall entail.
    68
  14. Section 10 of the Act which deals with offences by the companies provides as follows:
  15. (1) If the person contravening an order made under Section 3 is a company, every person
    who, at the time the contravention was committed, was in charge of, and was responsible to,
    the company for the conduct of the business of the company as well as the company, shall be
    deemed to be guilty of the contravention and shall be liable to be proceeded against and
    punished accordingly:
    Provided that nothing contained in this sub-section shall render any such person liable to any
    punishment if he proves that the contravention took place without his knowledge or that he
    exercised all due diligence to prevent such contravention.
    (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act
    has been committed by a company and it is proved that the offence has been committed with
    the consent or connivance of, or is attributable to any neglect on the part of, any director,
    manager, secretary or other officer of the company, such director, manager, secretary or other
    officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded
    against and punished accordingly.
    Explanation.- For the purposes of this section,-
    (a) “company” means any body corporate, and includes a firm or other association of
    individuals; and
    (b) “director” in relation to a firm means a partner in the firm.
  16. We may also at this stage advert to the Control Order which was issued by the Central
    Government vide S.R.0. 1109/ESS. COMM/IRON AND STEEL dated May 8, 1956 in
    exercise of the powers conferred on it by Section 3 of the Act. Sub-clause (1) of Clause 15 of
    this Order authorises the Controller to fix by notification in the Gazette of India the maximum
    prices at which any iron and steel may be sold (a) by a producer, (b) by a stockholder
    including a controlled stockholder and (c) any person or class of persons. Sub-clause (3) of
    Clause 15 of ^he Control Order which is material for the purpose of the case provides:
  17. (3) No producer or stockholder or other person shall sell or offer to sell, and no person
    shall acquire, any iron or steel at a price exceeding the maximum prices fixed under subclause (1) or (2).
  18. It was under sub-clause (1) of Clause 15 of the Control Order that the notification in
    question was issued.
  19. Though sub-section (6) of Section 3 of the Act provides that every order made 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 is made, the important point to be
    considered in the absence of analogous statutes like the Statutory Instruments Act, 1946 and
    the Laying of Documents Before Parliament (Interpretation) Act, 1948 prescribing the
    conditions, the period and the legal effect of the laying of order before the Parliament is
    whether the provision is directory or mandatory. It is well to remember at the outset that the
    use of the word ‘shall’ is not conclusive and decisive of the matter and the Court has to
    ascertain the true intention of the Legislature, which is the determining factor, and that must
    be done by looking carefully to the whole scope, nature and design of the statute. Reference
    in this connection may be made to the decision of this Court in State of U. P. v. Manbodhan
    Lal Srivastava [AIR 1957 SC 912. Reference in this behalf may also be made with advantage
    to another decision of this Court in the State of Uttar Pradesh v. Babu Ram Upadhya [AIR
    69
    1961 SC 751], where Subba Rao, J. (as he then was) after quoting with approval the passage
    occurring at pages 516 in Crawford “On the Construction of Statutes” as well as the passage
    occurring at page 242 in ‘Craies on Statute Law’, 5th Edition, observed as follows:
    The relevant rules of interpretation may be briefly stated thus: When a statute uses the word
    “shall”, prima facie, it is mandatory, but the Court may ascertain the real intention of the
    Legislature by carefully attending to the whole scope of the statute. For ascertaining the real
    intention of the Legislature, the Court may consider, inter alia, the nature and the design of
    the statute, and the consequences which would follow from construing it one way or the other,
    the impact of other provisions whereby the necessity of complying with the provisions in
    question is avoided, the circumstances namely, that the statute provides for a contingency of
    the non-compliance with the provisions, the fact that the non-compliance with the provisions
    is or is not visited by some penalty, the serious or trivial consequences that flow there from,
    and, above all, whether the object of the legislation will be defeated or furthered.
  20. Thus two considerations for regarding a provision as directory are: (1) absence of any
    provision for the contingency of a particular provision not being complied with or followed,
    and (2) serious general inconvenience and prejudice that would result to the general public if
    the act of the Government or an instrumentality is declared invalid for non-compliance with
    the particular provision.
  21. Now, the policy and object underlying the provisions relating to laying the delegated
    legislation made by the subordinate law making authorities or orders passed by subordinate
    executive instrumentalities before both Houses of Parliament being to keep supervision and
    control over the aforesaid authorities and instrumentalities, the “laying clauses” assume
    different terms depending on the degree of control which the Legislature may like to exercise.
    As evident from the observations made at pages 305 to 307 of the 7th Edition of Craies on
    Statute Law and noticed with approval in Hukam Chand v. Union of India [AIR 1972 SC
    2427], there are three kinds of laying which are generally used by the Legislature. These
    Three kinds of laying are described and dealt with in Craies on Statute Law as under:
    (i) Laying without further procedure,
    (ii) Laying subject to negative resolution,
    (iii) Laying subject to affirmative resolution.
    (i) Simple laying. – The most obvious example is in Section 10(2) of the 1946 Act. In earlier
    days, before the idea of laying in draft had been introduced, there was a provision for laying
    rules, etc., for a period during which time they were not in operation and could be thrown out
    without ever having come into operation (compare Merchant Shipping Act, 1894, Section
    417; Inebriates Act, 1898, Section 21) but this is not used now.
    (ii) Negative resolution. – Instruments so laid have immediate operative effect but are subject
    to annulment within forty days without prejudice to a new instrument being made. The
    phraseology generally used is “subject to annulment in pursuance of a resolution of either
    House of Parliament”. This is by far the commonest form of laying. It acts mostly as a
    deterrent and sometimes forces a Minister (in Sir Cecil Carr’s phrase) to “buy off opposition”
    by promising some modification.
    (iii) Affirmative resolution.- The phraseology here is normally “no order shall be made unless
    a draft has been laid before Parliament and has been approved by a resolution of each House
    of Parliament.” Normally, no time limit is fixed for obtaining approval – none is necessary
    70
    because the Government will naturally take the earliest opportunity of bringing it up for
    approval – but Section 16(3) of the Housing (Financial and Miscellaneous Provisions) Act,
    1946 did impose a limit of forty days. An old form (not much used nowadays) provided for an
    order to be made but not to become operative until a resolution of both Houses of Parliament
    had been obtained. This form was used in Section 10(4) of the Read Traffic Act, 1930. The
    affirmative resolution procedure necessitates a debate in every case. This means that one
    object of delegation of legislation (viz. saving the time of Parliament) is to some extent
    defeated. The procedure therefore is sparingly used and is more or less reserved to cases
    where the order almost amounts to an Act, by effecting changes which approximate to true
    legislation, or where the order replaces local Acts or provisional orders and, most important
    of all, where the spending, etc. of public money is affected.
    Sometimes where speedy or secret action is required (e.g. the imposition ( import duties), the
    order is laid with immediate operation but has to be confirmed within a certain period [cf.
    Import Duties Act, 1958, Section 13(4)]. This process of acting first and getting approval after
    has also been adopted in the Emergency Powers Act, 1920 under which a state of emergency
    can be proclaimed and regulations made. The proclamation must be immediately
    communicated to Parliament and does not have effect for longer than a month; but it can be
    replaced by another proclamation. Any regulations made under the proclamation are to be laid
    before Parliament immediately and do not continue in force after the expiration of seven days
    from the time when they are so laid unless a resolution is passed by both Houses providing for
    their continuance.
  22. Now at page 317 of the aforesaid Edition of Craies on Statute Law, the questions whether
    the direction to lay the rules before Parliament is mandatory or merely directory and whether
    laying is a condition precedent to their operation or may be neglected without prejudice to the
    effect of the rules are answered by saying that “each case must depend on its own
    circumstances or the wording of the statute under which the rules are made”. In the instant
    case, it would be noticed that sub-section (6) of Section 3 of the Act merely provides that
    every order made under Section 3 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 is made. It does not provide that it shall be subject to the negative or the affirmative
    resolution by either House of Parliament. It also does not provide that it shall be open to the
    Parliament to approve or disapprove the order made under Section 3 of the Act. It does not
    even say that it shall be subject to any modification which either House of Parliament may in
    its wisdom think it necessary to provide. It does not even specify the period for which the
    order is to be laid before both Houses of Parliament nor does it provide any penalty for nonobservance of or non-compliance with the direction as to the laying of the order before both
    Houses of Parliament. It would also be noticed that the requirement as to the laying of the
    order before both Houses of Parliament is not a condition precedent but subsequent to the
    making of the order. In other words, there is no prohibition to the making of the orders
    without the approval of both Houses of Parliament. In these circumstances, we are clearly of
    the view that the requirement as to laying contained in sub-section (6) of Section 3 of the Act
    falls within the first category, i.e. “simple laying” and is directory not mandatory. We are
    fortified in this view by a catena of decisions, both English and Indian. In Bailey v.
    Williamson [873 LR VIII QB 118], where by Section 9 of the Parks Regulations Act, 1872
    71
    passed on June 27, 1872 “to protect the royal parks from injury, and to protect the public in
    the enjoyment of those royal parks and other royal possessions for the purpose of innocent
    recreation and exercise” it was provided that any rules made in pursuance of the first schedule
    to the Act shall be forthwith laid before both Houses of Parliament, if Parliament be sitting, or
    if not, then within three weeks after the beginning of the then next ensuing session of
    Parliament; and if any such rules shall be disapproved by either House of Parliament within
    one month of the laying, such rules, or such parts thereof as shall be disapproved shall not be
    enforced and rules for Hyde Park were made and published on September 30, 1872 when
    Parliament was not sitting and in November 18, 1872, the appellant was convicted under
    Section 4 of the Act for that he did unlawfully act in contravention of Regulation 8 contained
    in the first Schedule annexed thereto by delivering a public address not in accordance with the
    rules of the said Park but contrary to the Statute, and it was inter alia contended on his behalf
    that in the absence of distinct words in the statute stating that the rules would be operative in
    the interval from the time they were made to the time when Parliament should meet next or if
    Parliament was sitting then during the month during which Parliament had an opportunity of
    expressing its opinion upon them, no rule made as supplementing the schedule could be
    operative so as to render a person liable to be convicted for infraction thereof unless the same
    had been laid before the Parliament, it was held by overruling the contention that the rules
    became effective from the time they were made and it could not be the intention of the
    Legislature that the laying of the rules before Parliament should be made a condition
    precedent to their acquiring validity and that they should not take effect until they are laid
    before and approved by Parliament. If the Legislature had intended the same thing as in
    Section 4, that the rules should not take effect until they had the sanction of the Parliament, it
    would have expressly said so by employing negative language.
  23. In Jan Mohammad Now Mohammad Bagban v. State of Gujarat [AIR 1966 SC 385],
    where it was urged by the petitioner that the rules framed by the Provincial Government in
    1941 in exercise of the powers conferred on it under Section 26(1) of the Bombay
    Agricultural Produce Markets Act (22 of 1939) had no legal validity as they were not !aid
    before each of the Houses of the Provincial Legislature at the session thereof next following
    as provided by sub-section (5) of Section 26 of the Act, this Court rejected the contention and
    upheld the validity of the said rules. The following observations made in that case by Shah. J.
    (as he then was) on behalf of the Constitution Bench are apposite:
    The rules under Act 22 of 1939 were framed by the Provincial Government of Bombay in
  24. At that time there was no Legislature in session, the Legislature having been suspended
    during the emergency arising out of World War II. The session of the Bombay Legislative
    Assembly was convened for the first time after 1941 on May 20, 1946 and that session was
    prorogued on May 24, 1946. The second session of the Bombay Legislative Assembly was
    convened on July 15, 1946 and that of the Bombay Legislative Council on September 3. 1946
    and the rules were placed on the Assembly Table in the second session before the Legislative
    Assembly on September 2, 1946 and before the Legislative Council on September 13, 1946.
    Section 26(5) of Bombay Act 22 of 1939 does not prescribe that the rules acquired validity
    only from the date on which they were placed before the Houses of Legislature. The rules are
    valid from the date on which they are made under Section 26(1). It is true that the Legislature
    has prescribed that the rules shall be placed before the Houses of Legislature, but failure to
    72
    place the rules before the Houses of Legislature does not affect the validity of the rules,
    merely because they have not been placed before the Houses of the Legislature. Granting that
    the provisions of sob-section (5) of Section 26 by reason of the failure to place the rules
    before the Houses of Legislature were violated, we are of the view that sub-section (5) of
    Section 26 having regard to the purposes for which it is made, and in the context in which it
    occurs, cannot be regarded as mandatory. (Emphasis supplied.) The rules have been in
    operation since the year 1941 and by virtue of Section 64 of the Gujarat Act 20 of 1964 they
    continue to remain in operation.
  25. In D. K. Krishnan v. Secretary, Regional Transport Authority, Chittoor [AIR 1956 AP
    129], where the validity of Rule 134A of the Madras Motor Vehicles Rules, 1940, made
    under the Motor Vehicles Act, 1939 empowering the Regional Transport Authority to
    delegate its functions to the Secretary was challenged on the ground that it was not laid before
    the Legislature of the Madras State as required, by Section 133(3) of the Act which provided
    that the rules, shall be laid for not less than fourteen days before the Legislature as soon as
    possible after they are made and shall be subject to such modification as Parliament or such
    Legislature may make during the session in which they are so laid, Subba Rao, J. (as he then
    was) after an exhaustive review of the case law and the text books on constitutional law by
    eminent jurists repelled the contention.
  26. In State v. Karna [(1973) 24 RLW 487], where the very question with which we are
    concerned in the present case cropped up in connection with the Rajasthan Food grains
    (Restrictions on Border Movement) Order, 1959, a bench of Rajasthan High Court said as
    follows:
    It is important to note that laying the Order before both the Houses of Parliament is not a
    condition precedent for bringing into force the Order , all that sub-section (6) provides is that
    every Order made under Section 3 of the Essential Commodities Act by the Central
    Government or by any officer or authority of the Central Government shall be laid before
    both the Houses of Parliament, as soon as may be, after it is made. It is significant that the
    Order is valid and effective from the date it is duly promulgated. Even the limit or period
    within which it must be placed before the Parliament has not been specified. It is, therefore,
    not possible to hold that sub-section (6) of Section 3 of the Essential Commodities Act is
    mandatory. If the Legislature intended that in order to provide an adequate safeguard it was
    necessary to make the said provision mandatory it could have done so in express words. We
    are, therefore, of the opinion that the Order cannot be considered as invalid merely because
    the State was not able to put on record proof of the fact that the Order was laid before both the
    Houses of Parliament.
  27. In Mathura Prasad Yadava v. Inspector General, Railway Protection Force, Railway
    Board, New Delhi [(1974) 19 MPLJ 373], where it was contended that Regulation 14 of the
    Railway Protection Force Regulations, 1966 made under Section 21 of the Railway Protection
    Force Act (23 of 1957) was invalid as it was not laid before both Houses of Parliament as
    required by sub-section (3) of Section 21 of the Act, it was held:
    What then is the consequence of failure to lay the regulation?…. A correct construction of any
    particular laying clause depends upon its own terms If a laying clause defers the coming into
    force of the rules until they are laid, the rules do not come into force before laying and the
    requirement of laying is obligatory to make the rule operative so the requirement of laying in
    73
    a laying clause which requires an affirmative procedure will be held to be mandatory for
    making the rules operative, because, in such cases the rules do not come into force until they
    are approved, whether with or without modification, by Parliament. But in case of a laying
    clause which requires a negative procedure, the coming into force of the rules is not deferred
    and the rules come into force immediately they are made. The effect of a laying clause of this
    variety is that the rules continue subject to any modification that Parliament may choose to
    make when they are laid; but the rules remain operative until they are so modified. Laying
    clauses requiring a negative procedure are, therefore, construed as directory. The matter is put
    beyond controversy by the decision of the Supreme Court in Jan Mohd. v. State of Gujarat.
    Our conclusion, therefore, is that the laying requirement enacted in Section 21(3) of the Act is
    merely directory: It logically follows that failure to lay Regulation 14 has no effect on its
    validity and it continues to be effective and operative from the date it was made.
  28. The decision of this Court in Narendra Kumar v. Union of India [AIR 1960 SC 430], on
    which counsel for the appellants have heavily leaned is clearly distinguishable. In that case,
    the Non-ferrous Metal Control Order, 1958 was held to be invalid essentially on the ground
    that the principles specified by the Central Government in accordance with Clause 4 of the
    Order were not published either on April 2, 1958 on which the order was published in the
    Government Gazette or any other date. It would be noticed that while considering the effect
    of non-publication of the aforesaid principles which formed an integral part of the order by
    which alone the Central Government could regulate the distribution and supply of the
    essential commodities, it was only incidentally that a mention was made by the Court to the
    effect that the principles had not been laid before both Houses of Parliament.
  29. From the foregoing discussion, it inevitably follows that the Legislature never intended
    that non-compliance with the requirement of laying as envisaged by sub-section (6) of Section
    3 of the Act should render the order void. Consequently non-laying of the aforesaid
    notification fixing the maximum selling prices of various categories of iron and steel
    including the commodity in question before both Houses of Parliament cannot result in
    nullification of the notification. Accordingly, we answer the aforesaid question in the
    negative. In view of this answer, it is not necessary to deal with the other contention raised by
    the respondent to the effect that the aforesaid notification being of a subsidiary character, it
    was not necessary to lay it before both Houses of Parliament to make it valid.
  30. In the result, the appeal fails and is dismissed.

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