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TMI Blog2020 (3) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... her the authority would be an independent authority or the Central Government itself HELD THAT:- Where the provisions of a statute are vague and ambiguous and it is possible to gather the intention of the legislature from the object of the statute, the context in which the provisions occur and purpose for which it is made, the doctrine of reading down can be applied - DTC v. Mazdoor Congress [ 1990 (9) TMI 334 - SUPREME COURT] . To save Rule 3(v) from being declared as unconstitutional, the Court can apply the doctrine of reading down . A balance has to be drawn between the object that is sought to be achieved by the legislation and the rights of the voluntary organisations to have access to foreign funds. The purpose for which the statute prevents organisations of a political nature from receiving foreign funds is to ensure that the administration is not influenced by foreign funds. Prohibition from receiving foreign aid, either directly or indirectly, by those who are involved in active politics is to ensure that the values of a sovereign democratic republic are protected. On the other hand, such of those voluntary organisations which have absolutely no connection wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 5 (4) of the Foreign Contribution (Regulation) Act, 2010 (hereinafter referred to as the Act ) and Rules 3 (i), 3 (v) and 3 (vi) of the Foreign Contribution (Regulation) Rules, 2011 (hereinafter referred to as the Rules ), are violative of Articles 14, 19 (1) (a), 19 (1) (c) and 21 of the Constitution of India. The High Court dismissed the Writ Petition, aggrieved by which this appeal has been filed. The Appellant is a registered society involved in resisting globalization, combating communalism and defending democracy. In the Writ Petition filed before the High Court, the Appellant-organisation stated that it firmly believes in a secular and peaceful social order and opposes communalism and the targeted attacks on the lives and rights of people including religious minorities. Several activities of the Appellant-organisation in the interest of the society have been referred to in the Writ Petition. The power conferred by the Act on the Central Government to declare an organisation to be an organisation of a political nature under Section 5 (1) of the Act was challenged by the Appellant on the ground that no guidelines are provided for the exercise of such power. Section 5 (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing for the Respondent defended the judgment of the High Court by arguing that all the relevant points have been rightly adjudicated by the High Court. He argued that the constitutional validity of a statute can be challenged only on two grounds which are legislative competence and violation of any of the fundamental rights guaranteed under Part III of the Constitution. Additionally, he submitted that a subordinate legislation can be challenged successfully only on the ground of the subordinate legislation being ultra vires the Act. The learned Additional Solicitor General contended that the Appellant organisation is not entitled to invoke Article 19 of the Constitution of India. According to him, Article 19 provides for fundamental rights which are guaranteed only to citizens. The Appellant organisation cannot be considered as a citizen. Moreover, no individual member of the organisation has been made a party to the Writ Petition or in this Appeal. In support of this submission, he relied upon judgments of this Court reported in Tata Engineering and Locomotive Co. Ltd. v. State of Bihar (1964) 6 SCR 885 and Shree Sidhbali Steels Ltd. vs. State of Uttar Pradesh (2011) 3 SCC 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at some of the foreign countries were funding individuals, associations, political parties, candidates for elections, correspondents, columnists, editors, owners, printers or publishers of newspapers. They were also extending hospitality. The effects of such funding and hospitality were quite noticeable and to have some control over such funding and hospitality and to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain persons or associations, with a view to ensuring that Parliamentary institutions, political associations and academic and other voluntary organisations as well as individuals working in the important areas of national life may function in a manner consistent with the values of a sovereign democratic republic the Foreign Contribution (Regulation) Act, 1976 (49 of 1976) was enacted. 7. The long title of the 2010 Act indicates that it is made to consolidate the law to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves in its Memorandum of Association or bylaws; (ii) any Trade Union whose objectives include activities for promoting political goals; (iii) any voluntary action group with objectives of a political nature or which participates in political activities; (iv) front or mass organisations like Students Unions, Workers' Unions, Youth Forums and Women's wing of a political party; (v) organisation of farmers, workers, students, youth based on caste, community, religion, language or otherwise, which is not directly aligned to any political party, but whose objectives, as stated in the Memorandum of Association, or activities gathered through other material evidence, include steps towards advancement of Political interests of such groups; (vi) any organisation, by whatever name called, which habitually engages itself in or employs common methods of political action like 'bandh' or 'hartal', 'rasta roko', 'rail roko' or 'jail bharo' in support of public causes. 10. A plain reading of Section 3 of the Act shows that foreign contributions should not be accepted by a candidate in an election or by a political p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich result in conferring unbridled and unfettered power on the executive. Therefore, the Appellant-organisation contended that Section 5 (1) is violative of Article 14 of the Constitution. Section 5 (4) is also challenged on the ground that the authority to whom a representation should be made has not been specified and it is not clear whether the authority would be an independent authority or the Central Government itself. The High Court held that the words activities of the organisation, the ideology propagated by the organisation and the programme of the organisation having nexus with the activities of a political nature are expansive but cannot be termed as vague or uncertain. Sufficient guidance is provided by the Parliament in Section 5 and it is for the rule making authority to lay down the specific grounds. We are in agreement with the High Court that Section 5 (1) does not suffer from the vice of vagueness inviting the wrath of Article 14. Section 5 (4) cannot be declared as unconstitutional only on the ground that the authority to whom representation should be made is not specified. It is relevant to note that no serious attempt has been made by the Appellant-organisati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if a law is vague or appears to be so, the court must try to construe it, as far as may be, and language permitting, the construction sought to be placed on it, must be in accordance with the intention of the legislature. Thus, if the law is open to diverse construction, that construction which accords best with the intention of the legislature and advances the purpose of legislation, is to be preferred. Where however the law admits of no such construction and the persons applying it are in a boundless sea of uncertainty and the law prima facie takes away a guaranteed freedom, the law must be held to offend the Constitution, this is not application of the doctrine of due process. The invalidity arises from the probability of the misuse of the law to the detriment of the individual. If possible, the Court instead of striking down the law may itself draw the line of demarcation where possible but this effort should be sparingly made and only in the clearest of cases . 17. It is settled principle of interpretation that the provisions of the statute have to be interpreted to give the words a plain and natural meaning. But, if there is scope for two interpretations, the Courts hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess and ambiguity and whether they can be stated to be conferring uncanalised power on the executive. According to Rule 3 (i) an organisation having avowed political objectives in its memorandum of association or bye laws is an organisation of a political nature. As the intention of the legislature is to prohibit foreign funds in active politics, an Association with avowed political objectives (i.e. to play a role in active politics or party politics) cannot be permitted access to foreign funds. There is no ambiguity in the provision and hence, cannot be termed as vague. Therefore, we find no substance in the contention of the Appellant that Rule 3 (i) is ultra vires the Act. 19. Rule 3 (v) deals with organisations of farmers, workers, students etc. which are not directly aligned to any political party but objectives of which include steps towards advancement of political interests of such groups. The submission made on behalf of the Appellant is that such organisations agitating for their legitimate claims cannot be prevented access to foreign funds by resorting to the vague term political interests . We are in agreement that the words political interests are vague and ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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