Unit 3 Administrative Discretion For Class
Unit 3 Administrative Discretion For Class
Unit 3 Administrative Discretion For Class
Administrative discretion
Meaning:
Definition:
1. Salmond
2. Lord Diplock
▪ “The very concept of administrative discretion involves a right
to choose between more than one possible course of action
upon which there is room for reasonable people to hold
different opinions as to which is to be preferred.
3. Edward Coke
▪ “Discretion is a science or understanding to discern between
falsity and truth, between right or wrong, between shadows
and substance, between equity and colourable glosses and
pretences and not to do according to their wills and private
affections.”
Administrative Discretion and its Control
4. Prof. Freund
▪ “When we speak of administrative discretion, we mean that a
determination may be reached, in part at least, upon the basis
of consideration not entirely susceptible of proof or disproof.”
Doctrine of Discretion
▪ It implies power to make a choice between an alternative
course of action or inaction. A public officer has discretion
whenever the effective limits of his power leave him free to
make a choice among possible courses of action or inaction.
Administrative Discretion and its Control
1) At the time of laying down a law the legislators leave certain gaps and
ambiguities in the law. These gaps and ambiguities are to be filled by the
exercise of administrative authorities on case to case basis.
2) Determination of rights and interest of people that depends upon the
exercise of discretion of the authorities.
3) The policy objectives are sought to be widened by the use of
administrative discretion.
4) It is used to handle matters which require technical expertise as the
officers of a technical department are more equipped to handle such
matters as compared to the legislatures.
Administrative Discretion and its Control
• In this case two convicts by competent courts of M.P. and Maharashtra were transferred to
A.P. jail. The Governor of A.P. granted remission UNDER Article 161 of the CN to -
a) all convicted prisoners sentenced to imprisonment for life and governed by Section
433-A, Cr.P.C., who have completed 14 years of total sentence including 10 years of actual
sentence as on 14.1.1995 shall be released.
b) all convicted prisoners sentenced to imprisonment for life and governed by Section
433-A, Cr.P.C. aged more than 65 years and have undergone more than 5 years of actual
sentence and a total sentence of 7 years as on 14.01.1995 shall be released".
• But these two convicts were not granted remission under this notification.
• The SC held that the High Court was not justified in
obliterating a part of the G.O. and extending the benefits to
the concerned prisoners. It amounts to the Court re-making
the policy and redoing the G.O. itself. The High Court's
judgment to that extent is erroneous and needs to be set
aside.
• But after serving the requisite sentence, the appropriate
Government which according to this Court in the present case
are States of Madhya Pradesh and Maharashtra respectively,
their cases shall be considered by those two State
Governments who shall take necessary decision as to whether
their release is permissible and desirable.
Administrative Discretion and its Control
2. Mala fide (dishonest intention and corrupt motive)
▪ Mala fide exercise of discretionary power is always bad and taken as
abuse of discretion. If the discretionary power is exercised by the
authority with bad faith or dishonest intention, the action is squashed by
the court.
Hem Lall Bhandari v. State of Sikkim (AIR 1987 SC 762)
• Hem Lall Bhandari, residing in Bombay, practicing 'law' there as an
advocate, was detained under 8(1) of the National Security Act, 1980. He
alleged that the C.M. of Sikkim wanted him to join politics. But he was
refused to do so, then he was detained. No material whatsoever placed on
record to substantiate the allegations.
• The SC held that if reasons are not so recorded, the order of detention will
automatically fail. Even if reasons are recorded they have to inspire
confidence in the Court and are subject to legal scrutiny. If the reasons are
unsatisfactory, Courts would still quash the order of detention. The Court
held that the order of detention is bad and quashed.
Administrative Discretion and its Control
4. Irrelevant consideration
▪ The consideration will be irrelevant if there is no reasonable
connection between the facts and the grounds.
Dr. Ram Manohar Lohia v. State of Bihar( AIR 1966 SC 740)
▪ Under Rule 30(1)(b) of Defence of India Rules 1962 of the
Defence of India Act, 1962, the authority was empowered to
detain a person to prevent subversion of “public safety and
“maintenance of public order“. The petitioner was detained
with a view to prevent him from acting in a manner prejudicial
to the maintenance of ‘law and order.’ The petitioner moved
this Court under Art. 32 of the Constitution for a writ of
habeas corpus directing his release from detention
▪ The SC set aside the order of detention and held that the term
‘law and order’ was wider than the term ‘public order’.
Administrative Discretion and its Control
• The expression "law and order” does not find any place in the
rule and is not synonymous with "public order'.
• The SC held that "law and order" is a comprehensive
expression in which would be included not merely public
order, but matters such as public peace, tranquility,
orderliness in a locality or a local area and perhaps some
other matters.
• "Public order" is something distinct from order or orderliness
in a local area. Under Rule 30(1)(b) of Defence of India Rules
1962, no power is conferred upon that authority to detain a
person on the ground that it is necessary so to do in order to
prevent that person from acting in a manner prejudicial to the
maintenance of public order in a local area.
Administrative Discretion and its Control
5. Mixed consideration
• When the discretionary power exercised by the authority on both
relevant and irrelevant grounds, the court will examine whether or
not the exclusion of irrelevant or non-existence considerations
would have affected the ultimate decision.
Pyare Lal Sharma v. Managing Director, Jammu & Kashmir
Industries Ltd. (AIR 1989 SC 1854)
• The Regulation 16.14 of the Jammu & Kashmir Industries
Employees Service Rules & Regulations, was amended on April 20,
1983 which stated that ‘if the employee remains on an
unauthorized absence or if he takes part in active politics, in such
cases the services shall be terminated if he fails to explain his
conduct satisfactorily within 15 days from the date of issue of
notice and the management shall be empowered to take a
decision without resorting to further enquiries.’
• Pyare Lal Sharma was employed as a Chemical Engineer by
the Jammu & Kashmir Industries Ltd. The Company issued a
show cause notice on 21/4/1983 in terms of the added
clauses for his unauthorized absence from duty. As no reply
was submitted, the M.D. terminated his services by an order
dated 14/6/1983. Sharma challenged the order of termination
by way of a writ petition before the J & K High Court on
three grounds namely:
1) violation of Rules of Natural Justice,
2) that the Board of Directors having appointed Sharma, the
M.D. who is subordinate authority could not terminate his
services and
3) that the regulation 16.14 was arbitrary and violative of Art.
14 of the Constitution of India.
• The High Court agreed with the petitioner’s contentions and
dismissed the appeal of the Company.
• Dismissing the appeal of the Company, the SC stated that it is
a basic principle of natural justice that no one can be
penalized on the ground of a conduct which was not penal on
the day it was committed. The date of show cause notice
being April 21, 1983 the unauthorized absence from duty
which has been taken into consideration is from December
20, 1982 to April 20, 1983. Whole of this period being prior to
the date of amendment of regulation 16.14, the same could
not be made as a ground for proceeding under ground (c) of
Regulation 16.14.
• The notice served on the appellant was thus illegal and as a
consequence the order of termination cannot be sustained
and has to be set aside.
Administrative Discretion and its Control
6. Colourable exercise of power
▪ Where a power is exercised by the authority ostensibly for the purpose for which it was
conferred, but in reality for some other purpose, it is called colourable exercise of power. This is
also known as fraudulent exercise of power. It is based on the principle that an AA cannot exercise
power for a purpose not warranted by law.
Dr. D.C. Wadhwa & Ors v. State of Bihar & Ors. (AIR 1987 SC 579)
• The State of Bihar adopted a practice of repromulgating the ordinances on a
massive scale from time to time without their provisions being enacted into acts of
the legislature. The practice was that, after the session of the State Legislature was
prorogued, the same ordinances which had ceased to operate were repromulgated
containing substantially the same provisions almost in a routine manner.
• The petitioner, a Professor of Economics in Gokhale Institute of Politics and
Economics, Pune, challenged the validity of this practice and in particular they
challenged the constitutional validity of three different ordinances issued by the
Governor of Bihar, namely, (1) Bihar Forest Produce (Regulation of Trade) -Third
Ordinance 1983; (ii) The Bihar Intermediate Education Council - Third Ordinance
1983; and (iii) The Bihar Bricks Supply (Control) -Third Ordinance 1983, since these
Ordinances also suffered the same process of repromulgation from time to time.
• The SC held that when the constitutional provision stipulates that an Ordinance
promulgated by the Governor to meet an emergent situation shall cease to be in
operation at the expiration of six weeks from the reassembly of the Legislature and
the Government if it wishes the provisions of the Ordinance to be continued in
force beyond the period of six weeks has to go before the Legislature which is the
constitutional authority entrusted with the law making function, it would most
certainly be a colourable exercise of power for the Government to ignore the
Legislature and to re promulgate the Ordinance and thus to continue to regulate the
life and liberty of the citizens through Ordinance made by the Executive.
• Such a stratagem would be repugnant to the constitutional scheme, as it would
enable the Executive to transgress its constitutional limitation in the matter of law
making in an emergent situation and to covertly and indirectly arrogate to itself the
law making function of the Legislation.
• We must accordingly strike down the Bihar Intermediate Education Council
Ordinance, 1983 which is still in operation as unconstitutional and void. Petitioner
has done enormous research and brought this reprehensible practice of the
Government of Bihar to the notice of the Court and we would therefore direct that
the State of Bihar shall pay to Petitioner a sum of Rs. 10,000 as and by way of cost of
the writ petitions.
Administrative Discretion and its Control
7. Unreasonableness
▪ A discretionary power confined on an administrative authority must be exercised
by that authority reasonably. If the power is exercised unreasonably, here there is
an abuse of power and the action of the authority will be ultra vires.
• The SC held that the punishment of dismissal and sentencing of one year
rigorous imprisonment on an Army Official for disobeying an order of
superior officer to eat food was hold thoroughly unreasonable, grossly
disproportionate and excessively high. The Court set aside dismissal order
and held that appellant entitled to be reinstated with all monetary and
service benefits.
Administrative Discretion and its Control
8. Exceeding jurisdiction
▪ A question whether the authority acted within the limits of its power or
exceeded its jurisdiction depends upon he facts and circumstances of each case
and should be decided by keeping in view the provisions of the Act and
conferment of power on the authority.
Indian Council of Legal Aid & Advice v. BCI (AIR 1995 SC 691)
• The Bar Council of India by Resolution No. 64 of 1993 dated 22-8-1993 added
Rule 9 in Chapter III of Part VI of the Bar Council of India Rules which resolution
was gazetted on 25-9-1993. The said newly added rule reads as under:
"A person who has completed the age of 45 years on the date on
which he submits his application for his enrolment as an advocate to the
State Bar Council shall not be enrolled as an advocate."
• All the State Bar Councils in the country were duly informed about the insertion
of the said rule. The legality and validity of the said rule is questioned as
inconsistent with Articles 14, 19(1)(g) and 21 of the Constitution and Section
24 of the Advocates Act, 1961.
Administrative Discretion and its Control
• The Parent Act ( The Advocates Act, 1961) enabled the BCI to
laydown conditions subject to which an advocate “shall have
right to practice."
• Declaring the rule ultra vires, the SC held that the BCI can
make the rule only after a person is enrolled as an advocate,
i.e. at post - enrolment stage. It cannot frame a rule barring
persons from enrollment. The rule was thus inconsistent with
the Parent Act and other Articles of the Constitution.
Administrative Discretion and its Control
9. Non-compliance with procedural requirements and PNJ
• Violation of PNJ makes the exercise of power ultra vires and void. If the
exercise of power is purely administrative in nature , if it adversely affects
any person, the PNJ must be observed and the person concerned must be
heard.
K.I. Shephard & Ors. v. Union of India (AIR 1987 SC 431)
• The Hindustan Commercial Bank, the Bank of Cochin Ltd. and Lakshmi
Commercial Bank were amalgamated with Punjab National Bank, Canara
Bank, State Bank of India respectively in terms of separate schemes
drawn under Sec. 45 of the Banking Regulation Act,1949, and pursuant
thereto 125 employees of these banks were excluded from employment,
and their services were not taken over by the respective transferee
banks. Some of these excluded employees filed writ petitions before the
High Court which granted partial relief, but on appeal by the transferee
Bank the Writ Petitions were dismissed by the Division Bench.
• The SC held that rules of natural justice apply to administrative action
and the decision to exclude a section of employees without complying
with requirements of natural justice was bad.
Administrative Discretion and its Control
• Act laid down a procedure for trial before Special Courts which was different in
several respects from that laid down by the Courts for trial of offences generally.
The respondent, who was convicted by a Special Court which tried his case under a
notification issued by the Government under Sec. 5, contended that the said section
was unconstitutional and void in as much as it contravened Art. 14 of the
Constitution, which provides that "the State shall not deny to any person equality
before the law or the equal protection of the laws within the territory of India".
• The HC of Calcutta agreed with the appellant argument and struck down Sec. 5 of the
Act.
• State of West Bengal appealed in Supreme Court of India to
overrule the judgement given by High Court of Calcutta.
• The SC held that the executive authorities could arbitrarily
select a case for trial by the special courts. It was held that in
so far as the Act empowered the government to have any
case or class of cases or offence or class of offences tried by
the special courts, violated Article 14 of the Constitution.
Administrative Discretion and its Control
2) R. Ratnakar Rao v. State of Andhra Pradesh (10/05/1996)
• The petitioners are the owners of goods motor vehicles and were
plying the same on the basis of national/State permits issued by the
appropriate transport authorities.
• When they challenged the validity of GO No.54 dated March 31,
1995 issued by the Department of Transport [Roads and Buildings]
enhancing the compounding fee U/s 200, from Rs.10 per k.g. to
Rs.100/- per k.g. as being violative of the Motor Vehicles Act, 1988
and arbitrary being violating Article 14 of the Constitution, the
Division Bench in the impugned judgment upheld the said GO.
• The SC held that normally the discretion is held not to be unguided,
unanalyzed or arbitrary if there are built in checks against its abuse.
The two built in checks are:-
1. If the power is given to a high official or authority;
2. There are provisions requiring that the exercise of discretion should
be preceded by an inquiry conducted in accordance with a
quasi-judicial procedure.
• The SC further held that the Government as a delegate, did not
exceed its power under Sec. 200 of the Act in prescribing the
compounding fee for the offence punishable under Section 194 of
the Act.
• Note: (Sec. 194. Driving vehicle exceeding permissible weight.—
• (1) Whoever drives a motor vehicle or causes or allows a motor
vehicle to be driven in contravention of the provisions of section
113 or section 114 or section 115 shall be punishable with
minimum fine of two thousand rupees and an additional amount of
one thousand rupees per tonne of excess load, together with the
liability to pay charges for off-loading of the excess load.
• (2) Any driver of a vehicle who refuses to stop and submit his
vehicle to weighing after being directed to do so by an officer
authorised in this behalf under section 114 or removes or causes
the removal of the load or part of it prior to weighing shall be
punishable with fine which may extend to three thousand rupees.
Administrative Discretion and its Control
Limitation on grant of Discretionary Power and Article 19
• Article 19 of the Constitution provides the right to freedom of
speech and expression along with several other rights. It is
basically a privilege given to the citizens of India that they
have right to speech and expression and other rights under
this chapter.
• When a person exercises this right other persons are under a
duty not to infringe or curtail such rights. Therefore grant of
any discretionary power which acts as a hindrance to the
fundamental right of the citizens or curtails such fundamental
rights is declared void. Therefore Art 19 acts as a regulator on
the conferment of discretionary power.
Administrative Discretion and its Control