2007 (8) TMI 650 - SC - Wealth-tax

Whether it is permissible to strike down an Ordinance which has the same force and effect or an Act of Parliament or an Act of State Legislature on the ground of non-application of mind or malafides or that the prevailing circumstances did not warrant the issue of an Ordinance held that validity of an Ordinance cannot be decided on grounds similar to those on which an executive or judicial action is decided? Held that - The court cannot usurp the functions assigned to the legislative bodies under the Constitution and even indirectly require the legislature to exercise its power of law making in particular manner. The court cannot assume to itself a supervisory role for the law making power of the legislature under the provisions of the Constitution. The High Court must ensure that while exercising its jurisdiction which is supervisory in nature it should not over step the well recognized bounds of its own jurisdiction. The High Court s directions to make the law in a particular manner are clearly unsustainable. Appeals preferred by the State as well as Municipal Committee Patiala should be allowed.

Issues Involved:
1. Separation of powers between the judiciary and legislature.
2. Judicial review of legislative and executive actions.
3. Scope of High Court's jurisdiction under Article 226 of the Constitution.
4. Limits of judicial intervention in law-making processes.

Analysis:

1. Separation of powers between the judiciary and legislature:
The judgment emphasizes the importance of upholding the principle of separation of powers between the judiciary and the legislature. It highlights that the Constitution entrusts specific functions to each organ of the state, and no organ should encroach upon the functions assigned to another. The judiciary, through judicial review, acts as a sentinel of democracy to ensure that legislative and executive actions remain within constitutional limits. The judgment quotes a dissenting opinion by Frankfurter, J., emphasizing the need for self-restraint by the judiciary to prevent encroachment beyond its proper bounds.

2. Judicial review of legislative and executive actions:
The judgment clarifies that while the courts can declare a statute unconstitutional if it transgresses constitutional limits, they cannot inquire into the motive behind legislative actions or the application of mind by the legislature. The judiciary's role is to examine state actions in accordance with the law and determine if they fall within the powers assigned under the Constitution. Judicial review acts as a check on unconstitutional exercises of power by the legislature and executive, ensuring that they function within the constitutional framework.

3. Scope of High Court's jurisdiction under Article 226 of the Constitution:
The judgment discusses cases where High Courts have directed the initiation of legislation, highlighting that it is not within the judiciary's purview to mandate the executive or legislature to introduce specific laws. While public interest litigation allows courts to intervene when the executive fails to fulfill its obligations, the judiciary must not usurp the functions assigned to other branches of government. The High Court's jurisdiction under Article 226 is supervisory in nature and should not exceed its recognized bounds.

4. Limits of judicial intervention in law-making processes:
The judgment cautions against High Courts directing the making of laws in a particular manner, as this would amount to assuming the role of a legislative authority. Courts should not indulge in changing the categorization or order of priority specified in rules or legislation but should instead strike down discriminatory provisions and direct the relevant authority to reframe the rules. The High Court's role under Article 226 is not to make laws but to ensure that legislative and executive actions comply with constitutional provisions.

In conclusion, the judgment underscores the need for a balanced approach in judicial intervention, respecting the separation of powers while upholding the rule of law and constitutional principles.

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