Case Note & Summary
The Government of India appointed a Commission of Inquiry under Section 3 of the Commissions of Enquiry Act, 1952, by notification dated 11 December 1956, to investigate into the affairs of certain companies named in the schedule and the nature and extent of control and interest exercised over them by specified persons. The four persons named in the notification filed three writ petitions in the Bombay High Court under Article 226 of the Constitution, challenging the constitutional validity of the Act and the notification. They contended that the Act violated Article 14 of the Constitution and that the notification was ultra vires the Act. The High Court dismissed the petitions but partly struck down the notification, holding that the last part of clause 10, which empowered the Commission to recommend action for securing redress or punishment, was beyond the scope of the Act. Both the petitioners and the Union of India appealed to the Supreme Court. The Supreme Court examined the legislative competence of Parliament to enact the law and found it valid under Entry 94 of List I and Entry 45 of List III of the Seventh Schedule. The Court held that the Act did not infringe Article 14 as it applied to a specific class of cases based on reasonable classification. The notification was held valid except for the impugned words in clause 10, which were struck down as going beyond the Act. Thus, the appeals were substantially dismissed, and the Act was upheld.
Headnote
A) Constitutional Law - Legislative Competence - Commission of Inquiry Act enacted under Entry 94 List I and Entry 45 List III of Seventh Schedule - Held that the Act is within the legislative competence of Parliament (Paras not mentioned). B) Constitutional Law - Equality before law - Article 14, Constitution of India - Classification for inquiry into specific companies and persons does not violate equal protection - Held that the Act does not offend Article 14 as it provides for reasonable classification based on intelligible differentia (Paras not mentioned). C) Administrative Law - Delegated Legislation - Notification under s.3 of the Commissions of Enquiry Act, 1952 - Validity of terms beyond the Act - Held that the part of clause 10 empowering the Commission to recommend redress or punishment is ultra vires the Act and must be struck down (Paras not mentioned).
Issue of Consideration
Whether the Commissions of Enquiry Act, 1952 is constitutionally valid under Articles 14 and 246; whether the notification dated 11-12-1956 is valid and intra vires; whether clause 10 of the notification empowering the Commission to recommend action is ultra vires
Final Decision
Appeals dismissed; the Commissions of Enquiry Act, 1952, is valid and intra vires; the notification dated 11 December 1956 is valid except the words 'as and by way of securing redress or punishment' in clause 10, which are struck down as ultra vires the Act.
Law Points
- Legislative competence under Entry 94 List I and Entry 45 List III
- validity of classification under Article 14
- delegated legislation cannot exceed parent Act
