Case Note & Summary
The petitioners, five proprietary firms engaged in the business of repairing weights, measures, and scales, held valid repairing licences issued under Section 28 of the Legal Metrology Act, 2009 by the Legal Metrology Department. They challenged two circulars issued by the Controller of Legal Metrology, Maharashtra State, dated 22 October 2014 and 27 October 2014. The circulars stated that repairers were not entitled to collect fees prescribed for verification of weights, measures, and scales, and that such fees must be deposited directly with the Inspector. The circulars noted that the licences did not contain any clause authorising recovery of verification fees and that complaints had been received regarding amounts collected by repairers. The petitioners argued that the circulars were ultra vires the Act, as the Act does not prohibit repairers from collecting verification fees, and that the Controller lacked the authority to issue such directions. The respondents contended that the circulars were issued to prevent malpractices and that repairers could only repair, not collect government fees. The court examined the provisions of the Legal Metrology Act, 2009, particularly Sections 28 to 34, which deal with licensing of repairers and verification of weights and measures. The court noted that the Act does not contain any provision prohibiting repairers from collecting verification fees or requiring them to deposit such fees with inspectors. The circulars imposed additional restrictions not found in the statute and were issued without any delegated legislative power. The court held that the Controller cannot, by executive instructions, add conditions to licences that are not authorised by the Act. The circulars were therefore ultra vires and liable to be quashed. The court allowed the writ petition, quashed the impugned circulars, and directed the respondents to refund any amounts collected from the petitioners pursuant to the circulars within four weeks. The court also made the rule absolute and disposed of the petition.
Headnote
A) Administrative Law - Ultra Vires - Circulars Issued Without Statutory Authority - Legal Metrology Act, 2009, Sections 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100 - The Controller issued circulars dated 22.10.2014 and 27.10.2014 directing that repairers cannot collect verification fees and must deposit amounts with inspectors. The court held that the circulars are ultra vires the Act as they impose restrictions not found in the statute and are issued without any delegated legislative power. (Paras 1-10) B) Legal Metrology - Repairers' Licences - Scope of Licence - Section 28 Legal Metrology Act, 2009 - The Act provides for licensing of repairers under Section 28 but does not prohibit them from collecting fees for verification. The circulars attempted to add conditions not in the licence, which is impermissible. (Paras 2-5) C) Constitutional Law - Right to Carry on Business - Article 19(1)(g) Constitution of India - The circulars unreasonably restricted the petitioners' right to carry on their business of repairing weights and measures. The court quashed the circulars as they were not saved by any law and were arbitrary. (Paras 6-10)
Issue of Consideration
Whether the Controller of Legal Metrology has the authority to issue circulars prohibiting licensed repairers from collecting verification fees and depositing them with inspectors, and whether such circulars are ultra vires the Legal Metrology Act, 2009.
Final Decision
The writ petition is allowed. The impugned circulars dated 22.10.2014 and 27.10.2014 are quashed and set aside. The respondents are directed to refund any amounts collected from the petitioners pursuant to the circulars within four weeks. Rule is made absolute.
Law Points
- Statutory interpretation
- Ultra vires
- Delegated legislation
- Natural justice
- Legitimate expectation
