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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 ..... ed:- 21-2-1985 - V.D. Tulzapurkar, Ranganath Misra and V. Khalid, JJ. JUDGMENT In these 11 appeals only that part of the judgment of the Andhra Pradesh High Court is assailed by the Union of India where the challenge to the validity of Section 28 of the Gold Control Act, 1968 has succeeded. The challenge to the other provisions of the Act at the instance of persons engaged in gold trade, i.e., manufacturers, shroffs and dealers in gold was rejected by the High Court. 2. Section 28 of the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncanalised power without any criteria for guiding the discretion of the Administrator. Further, the section does not provide nor is any rule brought to our notice which enjoins upon the Administrator to give a hearing to dealer who seeks permission under this Section and give reasons in case he decides to refuse the permission. Incidentally the High Court also proceeded to draw analogy from the reasoning adopted by this Court in its decision in Harakchand Ratanchand Banthia s case reported in (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been banned considerable quantities of contraband gold were finding their way into the country through illegal channels affecting the national economy and hampering the country s economic stability and progress, that the Customs Department was not in a position to effectively combat the smuggling over the long borders and coast-line, that therefore anti-smuggling measures had to be supplemented by a detailed system of control over internal transactions and that the Gold (Control) Act, 1968 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other business in the same premises is not absolute inasmuch as the Administrator can authorise the third person to carry on the business in the licensed premises of the dealer and while implementing such limited restrictions or granting relief against the same he will be guided by the policy and purposes of the Act and by the prime consideration that circumvention of the other provisions of the Act shall not be permitted. Having regard to this position which obtains in the case Section 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 Merchant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd vague expressions or concepts had been used in some of the clause under Section 27(6) this Court struck down Section 27(6) on the ground that it conferred a very wide and vague power on the Administrator. It may be mentioned that after this provision was struck down by this Court. Parliament has carried out the necessary amendment in the Act. No such vague or indefinite expressions or concepts are to be found in section 28 by reference to which the Administrator is required to exercise his power. In the absence of parity of situation or circumstances the doctrine of parity of reasoning cannot be invoked. 9. In the result we set aside the impugned judgment of the High Court and declare section 28 of the Act valid. The appeal succeeds b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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