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TMI Blog1985 (2) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act runs thus : "28. Money-lending business not to be carried on in licensed premises. - No licensed dealer shall unless authorised by the Administrator so to do, - (a) carry on business as a money-lender or banker on the security of any article, or ornament, or both, (b) permit any other person to carry on money-lending, banking or any other business, in the same premises in which he carried on business as such dealer." 3. The High Court has struck down the aforesaid provision only on the ground that it suffers from the vice of excessive delegation of legislative power inasmuch as no criteria or guidelines have been provided by reference to which the power conferred on the Administrator to refuse permission or grant p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1970) 1 SCR 479 while declaring Section 27(6) of the Act, as it stood prior to its amendment by the Amending Act No. 26 of 1969, constitutionally invalid on the ground of conferral of a very wide and vague power upon the Administrator to grant or renew a licence to a dealer. 4. For the reasons which we shall indicate presently it is impossible to sustain the reasoning given by the High Court for striking down Section 28 in the manner done and in our view the analogy drawn by the High Court from the reasoning adopted by this Court while dealing with unamended section 27(6) of the Act is clearly inapplicable. 5. It is true that no express rule prescribing the conditions or circumstances under which the permission can be granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was passed for this purpose. In other words, the several restrictions that have been put on the activities of the traders doing business in gold will have to be viewed from the aforesaid perspective. It is also clear that the restrictions which have been imposed in section 28 are meant to prevent the circumvention of other provisions of the Act. Therefore, in our view the objective, the policy and the Scheme of the Act together with the necessity to ensure prevention of circumvention of the other provisions of the Act afford more than sufficient guidance to the Administrator in the matter of exercising the power or discretion conferred on him under Section 28. In fact Section 5(1) of the Act requires that the Administrator should have regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 28, cannot be struck down on the ground of excessive delegation of legislative power and its validity has to be upheld. 7. We may indicate that the same provision (Section 28) was challenged before the Patna High Court in Bihar State Bullion Merchants' Association v. Union of India-AIR 1971 Patna 240 and the Gujarat High Court in Ramanlal Purshottamdas Chokshi v. Union of India and Others - 14 GUJ. L.R. 112 and those High Courts have upheld its validity. We approve the view taken in those cases. 8. As regards the analogy drawn by the High Court from the reasoning adopted by this Court in Harakchand Banthia's case (supra) while declaring unamended Section 27(6) of the Act invalid we would like to point out that while conferr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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