17 March 1961
Supreme Court
Download

THE SWADESHI COTTON MILLS CO. LIMITED Vs THE STATE OF U. P. AND OTHERS(And Connected Appeals)

Bench: GAJENDRAGADKAR, P.B.,SARKAR, A.K.,WANCHOO, K.N.,GUPTA, K.C. DAS,AYYANGAR, N. RAJAGOPALA
Case number: Appeal (civil) 363 of 1958


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 11  

PETITIONER: THE SWADESHI COTTON MILLS CO.  LIMITED

       Vs.

RESPONDENT: THE STATE OF U. P. AND OTHERS(And Connected Appeals)

DATE OF JUDGMENT: 17/03/1961

BENCH: WANCHOO, K.N. BENCH: WANCHOO, K.N. GAJENDRAGADKAR, P.B. SARKAR, A.K. GUPTA, K.C. DAS AYYANGAR, N. RAJAGOPALA

CITATION:  1961 AIR 1381            1962 SCR  (1) 422  CITATOR INFO :  F          1974 SC1232  (16)  F          1977 SC 183  (31)  RF         1978 SC1428  (14)  RF         1990 SC 322  (9)

ACT: Industrial Dispute-Delegated Legislation--Statute  authoris- ing  Government  to appoint industrial courts and  lay  down procedure-Validity  of-Condition  precedent  to  making   of order-Recital   Order,  if  necessary-Failure  to  set   out condition in order-Effect of-Affidavit showing fulfilment of condition,  if  admissible-U.  P. Industrial  Disputes  Act, 1947 (28 of 1947), s. 3(c), (d) and (g)-G.   O.   No.    615 dated March 15, 1951.

HEADNOTE: Clauses  (c),  (d) and (9) of S. 3 of the U.  P.  Industrial Disputes  Act,  1947, empower the State Government  to  make provision,  by  general  or special  order,  for  appointing industrial courts, for referring any industrial dispute  for conciliation  or adjudication in the manner provided in  the order and for any incidental or supplementary matters  which appear  to the State Government necessary or  expedient  for the  purposes of the order.  Section 3 provides that such  a general or special order is to be made if, in the opinion of the  State Government it is necessary or expedient to do  so for  securing  the  public safety  or  convenience,  or  the maintenance  of  public  order  or  supplies  and   services essential  to the life of the community, or for  maintaining employment.  On March 15, 1951, the State Government made  a general  order  No. 615 under these provisions but  did  not recite  in the order its opinion as to the existence of  the conditions prescribed in S. 3. A reference of an  industrial dispute  was  made under the G. O. and an  award  was  given against the appellant.  The appellant contended that the  G. O.  setting up the industrial tribunals was invalid as s.  3 of  the Act was unconstitutional as it  delegated  essential legislative functions to the Government so far as cls.  (c), (d) and (g) were concerned and that the G. O. was bad as the

2

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 11  

condition  precedent for its formulation was not recited  in the  order itself.  The respondent filed an  affidavit  that Government  had formed the requisite opinion  before  making the G. O. Held,  that s. 3 was not unconstitutional as there  was  no delegation   of  essential  legislative  functions  to   the Government.   The legislature has indicated its  policy  and has made it a binding rule of conduct.  Section 3 lays  down the  conditions in which the Government is to act;  it  lays down  that Government may make general or special  order  if the conditions are satisfied; it SC6213                             423 also provides what those orders are to contain.  All that is left  to the Government is to provide by  subordinate  rules for carrying out the purpose of the legislation. In re The Delhi Laws Act, 1912, [1951] S.C.R. 747 and Queen v.   Burah, (1878) L.R. 5 I.A. 178, applied. Held,  further, that the G. O. was valid and the failure  to mention  the  condition precedent in the  order  itself  was remedied by the filing of the affidavit.  Where a  condition precedent has to be satisfied before a subordinate authority can  pass  an  order,  (executive  or  in-  the  nature   of subordinate  legislation),  it  is not  necessary  that  the satisfaction of the condition should be recited in the order itself, unless the statute requires it.  But it is desirable that  it  should be so mentioned for’ then  the  presumption that the condition was satisfied would immediately arise and the burden would be on the persons challenging the order  to show that the recital is not correct.  Even when the recital is  not made in the order, it will not become void  abinitio and  only a further burden is cast on the authority  passing the  order  to satisfy the court by other means, e.  g.,  by filing  an  affidavit,  that  the  condition  precedent  was satisfied. The  State of Bombay v. Purushottam jog Naik, [1952]  S.C.R. 674,  Biswabhusan"  Naik v. The State of  Orissa,  [1955]  1 S.C.R.  92 and The State of Bombay v. Bhanji Munji,  [19551, S.C.R. 777, applied. King Emperor v. Sibnath Banerjee, [1944] F.C.R. 42 and  King Emperor  v. Sibnath Banerjee,. [1945] F.C.R.  216,  referred to. Wichita  Railroad & Light Company v. Public  Utilities  Com- mission  of.  the  State of Kansas, (1922) 67  L.  Ed.  124, Herbert  Mahler  v.  Howard Eby, (1924) 68 L.  Ed.  549  and Panama Refining Company v. A. D. Ryan, (1935) 79.L. Ed. 446. distinguished.

JUDGMENT: CIVIL APPELLATE JURISDICTION: Civil Appeal No. 327 of 1958. Appeal from the judgment and decree dated March 6, 1956,  of the  Allahabad High Court in Civil Misc.  Writ Petition  No. 967 of 1953.                             WITH CIVIL APPEAL Nos. 363 to 369 of 1958. Appeals  from  the judgments and decrees dated  February  1, 1957,  of  the  Allahabad High Court in  Civil  Misc.   Writ Petitions  Nos. 51 (Lucknow Bench), 523, 524, 607, 632,  633 and 634 of 1955. G.   S. Pathak and S.P. Varma, for the appellant (In C. A. No. 327 of 1958). 424 C.   B.   Agarwala,  G.  C.  Mathur  and  C.  P.  Lal,   for

3

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 11  

respondents Nos. 3 to 4 (In C. A. No. 327 of 1958). H.   N. Sanyal, Additional Solicitor-General for, India,  H. S. Brar, S. N. Andley, J. B. Dadachanji, Rameshwar Nath  and P.  L. Vohra, for the appellants (In C. As. Nos. 363 to  369 of 1958). C.   B.  Agarwala and.  C. P. Lal, for respondent No. 1  (In C. AB.  Nos. 363 to 369 of 1958). Bhawani  Lal and Dharam Bhusan, for respondent No. 4 (In  C. A. No. 369 of 1958). J.   P. Goyal, for respondent No. 4 (In C. As.  Nos. 366 and 368 of 1958). S.   C.  Das in person, for respondent No. 4 (In C.  A.  No. 367 of 1958). 1961.  March 17.  The Judgment of the Court was delivered by WANCHOO,  J.-This group of appeals raises a  question  about the  constitutionality  of  s. 3  of  the  United  Provinces Industrial  Disputes  Act, 1947, (U.  P.  XXVIII  of  1947), (hereinafter referred to as the Act) and the validity of two general  orders  passed thereunder an March 15,  1951.   The appellants  are  certain industrial  concerns.   There  were disputes between them and their workmen which were  referred for  adjudication to industrial tribunals alleged  to  have, been  set  up under the general orders of  March  15,  1951. Certain awards were passed which were taken in appeal by the present appellants to the Labour Appellate Tribunal and they failed there also.  They then filed petitions under Art. 226 of the Constitution in the Allahabad High Court  challenging the constitutionality of s. 3 of the Act and the validity of the  two general orders passed on March 15, 1951,  by  which industrial tribunals were set up.  The High Court held  that s.  3 of the Act was constitutional.  It however  held  that the  two general orders dated March 15, 1951, were  invalid; but  it went on to hold that orders of reference  passed  in these  cases were special orders as envisaged under s. 3  of the  Act and were therefore not invalid; in  consequence  it dismissed 425 the petitions.  The appellants then applied for and obtained certificates for leave to appeal, and that is how the matter has come up before us. It is unnecessary to set out the facts further in respect of these appeals, as the only points argued before us are about the  constitutionality of s. 3 and the validity of  the  two general  orders of 1951 and also of the references  made  in these cases.  It is not disputed that if the appellants fail on  these points their appeals in this Court must fail.   We shall   therefore  first  take  up  the  question,  of   the constitutionality of s. 3 of the Act. The  relevant provision of s. 3 in 1,951 with which  we  are concerned was in these terms:-               "If, in the opinion of the State Government it               is  necessary  or  expedient  so  to  do   for               securing the public safety or convenience,  or               the  maintenance of public order  or  supplies               and  services  essential to the  life  of  the               community,  or for maintaining employment,  it               may,   by  general  or  special  order,   make               provision-               (c)   for appointing industrial courts;               (d)   for referring any industrial dispute for               conciliation  or  adjudication in  the  manner               provided in the order;               (g)   for  any  incidental  or   supplementary               matters which   appear to the State Government               necessary or expedient for the purpose; of the

4

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 11  

             order: The  main  contention  of the appellants is  that  s.  3  is unconstitutional  as  it  delegates  essential   legislative function to the Government so far ’as cls. (c), (d) and  (g) are concerned.  Reliance in this connection is placed on the following  observations  of Kania C. J. in In re  The  Delhi Laws Act, 1912 (1), where he. was considering the meaning of the word "delegation":-               "When a legislative body passes an  Act it has               exercised   its  legislative  function.    The               essentials   of   such   function   are    the               determination  of the legislative  policy  and               its formulation as a rule of conduct.               (1)   [1951] S.C.R. 747,767-54               426               These essentials are the characteristics of  a               legislature    by    itself.........     Those               essentials are preserved, when the legislature               specifies the basic conclusions of fact,  upon               ascertainment of which, from relevant data, by               a designated administrative agency, it ordains               that its statutory command is to be effective.               The legislature having thus made its laws,  it               is clear that every detail for working it  out               and for carrying the enactments into operation               and  effect may be done by the legislature  or               may  be left to another subordinate agency  or               to some executive officer.  While this also is               sometimes   described  as  a   delegation   of               legislative powers, in essence it is different               from  delegation  of legislative  power  which               means  a  determination  of  the   legislative               policy  and formulation of the same as a  rule               of conduct." To the same effect were the observations of Mukherjea J.  in that case at p. 982:               "The  essential legislative function  consists               in  the  determination  or  choosing  of   the               legislative  policy and of  formally  enacting               that  policy into a binding rule  of  conduct.               It is open to the legislature to formulate the policy  as br oadly and with as little  or  as               much  details as it thinks proper and  it  may               delegate the rest of the legislative work to a               subordinate  authority who will work  out  the               details  within the framework of that  policy.               ’So  long  as  a policy is  laid  down  and  a               standard    established    by    statute    no               constitutional delegation of legislative power               is    involved   in   leaving   to    selected               instrumentalities  the making  of  subordinate               rules   within  prescribed  limits   and   the               determination   of   facts   to   which    the               legislation is to apply’."  What we have to see therefore is whether the legislature in this  case performed its essential legislative  function  of determining  and  choosing  the legislative  policy  and  of formally  enacting  that  policy  into  a  binding  rule  of conduct.   It was open to the legislature to formulate  that policy  as broadly and with as little or as much details  as it  thought proper.  Thereafter once a policy is  laid  down and a standard established by statute, there is no  question of delegation of 427 legislative  power  and all that remains is  the  making  of

5

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 11  

subordinate rules within prescribed limits which may be left to selected instrumentalities.  If therefore the legislature in  enacting s. 3 has chosen the legislative policy and  has formally enacted that policy into a binding rule of conduct, it  could  leave the rest of’ the details to  Government  to prescribe  by means of subordinate rules  within  prescribed limits.   Now s. 3 lays down under what conditions it  would be  open  to Government to act under that section;  it  also lays down that the Government may act by passing general  or special order, once those conditions are fulfilled; it  also provides  what will be contained in the general  or  special order of Government.  The power given to Government is inter alia  to appoint industrial courts, to refer any  industrial dispute  for  conciliation  or adjudication  in  the  manner provided  in  the  order,  and to  make  any  incidental  or supplementary provision which may be necessary or  expedient for  the  purposes of the order.  Thus the  legislature  has indicated  its  policy  and has made it a  binding  rule  of conduct.   It has also indicated when the  Government  shall act  under  s.  3  and how it shall  act.   It  has  further indicated what it shall do when it acts under s. 3. In these circumstances  we are of the opinion that it cannot be  said that  the  delegation  made by s. 3 is  excessive  and  goes beyond  permissible limits.  The order to be passed  by  the Government  under  s.  3  would  provide,  inter  alia,  for appointment   of  industrial  courts,  for   referring   any industrial dispute for conciliation or adjudication, and for incidental  or supplementary matters which may be  necessary or expedient.  The Government will have to act within  those prescribed limits when it passes, an order under s. 3  which will have the force of subordinate rules.  What  has  been urged  on behalf of the appellants is that the section  does not  indicate what powers the industrial courts  will  have, what will be the qualifications of persons constituting such courts  and Where they will sit; and it is urged that  these are  essential  matters which the  legislature  should  have provided for itself Reference in this connection was made to the observations of the Privy Council in 428 Queen  v.  Burah  (1),  which  was  a  case  of  conditional legislation.   The  Privy Council observed  there  that  the proper  legislature  having  exercised its  judgment  as  to place,  person,  laws  and powers and  the  result  of  that judgment having been conditional legislation as to all these things,  the  legislation would be absolute as soon  as  the conditions  a re fulfilled.  These observations have in  our opinion  nothing  to do with such matters of detail  as  the place   where   a  court  or  tribunal  will  sit   or   the qualifications  of persons constituting the  tribunal;  they refer to more fundamental matters when the words "place" and "person"  are used therein.  The place there must  mean  the area  to  which the legislation would apply; and so  far  as that  is concerned, the legislature has determined the  area in this case to which s. 3 will apply, namely, the whole  of the  State of Uttar Pradesh.  Similarly, the  word  "Person" used there refers to persons to whom legislation will apply- and that has also been determined by the legislature in this case,  namely, it will apply to employers and  employees  of industrial   concerns.   We  have  already  said  that   the conditions  under which the order will be passed  have  also been  set  out  in the opening part of s.  3,  and  how  the Government  will act is also set out, namely,  by  referring any  industrial dispute that may arise for  conciliation  or adjudication.  As to the power of the industrial court  that in  our  opinion is also provided by s. 3, namely,  that  an

6

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 11  

industrial  court will adjudicate on the industrial  dispute referred  to  it.   Therefore  all  that  was  left  to  the Government to provide was to set up machinery by means of  a general  order which has the force of subordinate  rules  to carry out that legislative policy which has been enacted  in broad  details in s. 3 and has been formally enacted into  a binding rule of con. duct.  We are therefore of opinion that s. 3 is not unconstitutional in any manner, for there is  no delegation of essentials of legislative function thereunder. All that has been left to the Government by that section  is to provide by subordinate rules for carrying out the purpose of the legislation.  We must therefore reject (1)  (1878) L.R. 5 I.A. 178 429 the  contention that s. 3 is unconstitutional on the  ground that it suffers from the vice of excessive delegation. This brings us to the validity of the general order No.  615 of  March 15, 1951, passed under s. 3. The preamble to  that order was in these terms:-               "In  exercise  of  the  powers  conferred   by               clauses (b), (c), (d) and (g) of section 3 and               section  8  of the U. P.  Industrial  Disputes               Act, 1947, (U.  P. Act No. XXVIII of 1947) and               in   supersession  of  Government  order   No.               781(L)/XVIII dated  March  10,  1948,   the               Governor  is  pleased to  make  the  following               order,  and  to  direct,  with  reference   to               section  19  of the said Act, that  notice  of               this  Order  be given by  publication  in  the               Official Gazette." Then  follows the order setting up conciliation  boards  for the purpose of conciliation and industrial tribunals for the purpose  of adjudication.  The main contention on behalf  of the  appellants is that s. 3 prescribes  certain  conditions precedent  before  an order could be passed  thereunder  and those  conditions precedent must be recited in the order  in order that it may be a valid exercise of the power conferred by s. 3. Now there is no doubt that s. 3 gives power to  the State  Government to make certain provisions by  general  or special  order,  if,  in its opinion,  it  is  necessary  or expedient   so   to  do  for  securing  public   safety   or convenience, or the maintenance of public order or  supplies and  services essential to the life of the community or  for maintaining  employment.  The forming of such opinion  is  a condition  precedent  to  the  making  of  the  order.   The preamble to the second order also does not contain a recital that the State Government had formed such opinion before  it made the order.  It is therefore contended on behalf of  the appellants  that  the  orders  were  bad  as  the  condition precedent  for  their  formulation was not  recited  in  the orders  themselves.   At a later stage the  appellants  also contended that in any case the orders were bad because as  a fact they were passed without any satisfaction of the State Government  as required under s. 3, though no affidavit  was filed by the appellants in this behalf in support 430 of  this averment.  Unfortunately, the State also  filed  no affidavit  to  show that the conditions  precedent  provided ins.  3  had been complied with, even though there  was  no recital  thereof on the face of the order.  We  should  have expected  that  even though the appellants did not  file  an affidavit  in  support of their case on this aspect  of  the matter, the State would as a matter of precaution have filed an  affidavit to indicate whether the  conditions  precedent set out in s. 3 had been complied with, considering that  it

7

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 11  

was  a general order which was being attacked under which  a large  number of adjudications must have taken  place.   The High  Court has commented on this aspect of the  matter  and has  said  that  the  State  Government  did  not  file  any affidavit  in  this connection to show that as a  matter  of fact the State Government was satisfied as required by s.  3 even though there was no recital of that satisfaction in the order itself Taking into account, however, the importance of the matter, particularly as it must affect a large number of adjudications  affecting  a large number  of  employers  and workmen, we asked the State Government if it desired to file an  affidavit before us even at this stage.   Thereupon  the State  Government filed an affidavit sworn by the  Secretary to  Government, Labour Department.  The affidavit says  that the  drafts of G. O. No. 615 and the consequential order  G. O. No. 671 passed on March 15, 1951, were put up before  the then  labour Minister.  The said notifications  were  issued only  after  all  the  aspects  of  the  matter  were  fully considered  by  the State Government and  it  had  satisfied itself that it was necessary and expedient to issue the same for   the  purpose  of  securing  public  convenience,   and maintenance of public order and supplies and services essen- tial to the community and for the maintenance of employment. We  accept this affidavit and it follows therefore that  the satisfaction required as a condition precedent for the issue of  an order under s. 3 of the Act was in fact there  before the order No. 615 was passed on March 15, 1951, followed  by the  consequential order No. 671 of the same date.  In  view of  this  the  only question that we  have  to  consider  is whether 431 it  is necessary that the satisfaction should be recited  in the order itself and whether in the absence of such  recital an order of this nature would be bad. The first contention of Shri Patliak, who appears for one of the appellants, is that where a condition precedent is  laid down  for  a, statutory power being’ exercised  it  must  be fulfilled  before a subordinate authority can exercise  such delegated  power.   As to this contention there  can  be  no dispute.  Further, according to Shri Pathak, there must be a recital. in the order that the condition is fulfilled before the  subordinate  authority  acts in the  exercise  of  such delegated  power.   If  there  is no  such  recital  in  the instrument  by which the delegated power is  exercised,  the defect  cannot  be  cured  by  an  affidavit  filed  in  the proceedings  and  the order would be bad ab initio.   It  is urged that where subordinate rules of this nature have to be made  and  they  affect  the general  public  or  a  section thereof,  conditions precedent to the exercise of the  power must  be recited when the power is exercised in  order  that the  public  may know that the rules are  legal  and  framed after satisfying the conditions necessary for the,  purpose. Moreover,  some  of  the subordinate rules may  have  to  be enforced  by courts and tribunals and it is  necessary  that courts and tribunals should also know by the presence of the recital  in the order that the rules are legal  and  binding and have been ’framed after the condition precedent had been satisfied.  In particular, it is urged that where the  rules are of a general nature and are subordinate legislation  the satisfaction  of the condition precedent becomes a  part  of the legislative process so far as the subordinate  authority is concerned and the defect in legislative process cannot be remedied later by affidavit. Shri C. B. Aggarwala on the other hand contends that where a statute  gives  power to make an order  subject  to  certain

8

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 11  

conditions  then unless the statute requires the  conditions to  be set out in the order it is not necessary  that  the conditions  should  appear on the face of the order  and  in such  a  case it should be presumed that the  condition  was satisfied unless the 432 contrary  is  established.  He drew  a  distinction  between those cases where the condition precedent is the  subjective opinion  of the subordinate’ authority and those  where  the statute  requires  a hearing and a finding.  In  the  former case he contends that the presumption should be in favour of the  opinion having been formed before the order was  passed though  in the latter case it may be that the  order  should show that there was a hearing and a finding. The power to pass an order under s. 3 arises as soon as  the necessary  opinion  required  thereunder  is  formed.   This opinion  is naturally formed before the order is  made.   If therefore such  an  opinion was formed and  an  order  was passed  thereafter,  the subsequent order would be  a  valid exercise  of the power conferred by the section.   The  fact that in the notification which is made thereafter to publish the order, the formation of the opinion is not recited  will not take away the power to make the order which had  already arisen and led to the making of the order.  The validity  of the order therefore does not depend upon the recital of  the formation  of the opinion in the order but upon  the  actual formation  of  the opinion and the making of  the  order  in consequence.    It  would  therefore  follow  that   if   by inadvertence  or otherwise the recital of the  formation  of the  opinion is not mentioned in the preamble to  the  order the  defect can be remedied by showing by other evidence  in proceedings  where challenge is made to the validity of  the order,  that in fact the order was made after  such  opinion had  been formed and was thus a valid exercise of the  power conferred  by  the law.  The only exception to  this  course would  be where the statute requires that there should be  a recital in the order itself before it can be validly made. There is no doubt that where a statute requires that certain delegated  power may be exercised on fulfilment  of  certain conditions precedent, it is most desirable that the exercise should be prefaced with a recital showing that the condition had  been  fulfilled.  But it has been held in a  number  of cases  dealing with executive orders that even if  there  is some lacuna of 433 this  kind, the order does not become ab initio invalid  and the defect can be made good by filing an affidavit later  on to show that the condition precedent was satisfied.  In  The State  of  Bombay v. Purushottam Jog Naik (1), which  was  a case  relating to preventive detention it was held  by  this Court  that even if the order was defective in form  it  was open to the State Government to prove by other means that it was  validly  made.   In Biswabhusan Naik v.  The  State  of Orissa (2), which was a case relating to sanction under  the Prevention  of  Corruption Act, No. II of 1947,  this  Court held that "it is desirable to state the facts on the face of sanction,  because  when the facts are not set  out  in  the sanction,  proof has to be given aliunde that  sanction  was given  in  respect  of the facts  constituting  the  offence charged;  but  an  omission  to set out  the  facts  in  the sanction  is not fatal so long as the facts can be  and  are proved in some other way".  In a later case in The State  of Bombay  v. Bhanji Munji (3) which was a case of  requisition under the Bombay Land Requisition Act, this Court held  that

9

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 11  

it  was  not  necessary  to  set  out  the  purpose  of  the requisition in the order; the desirability of such a  course was  obvious because when it was not done proof of the  pur- pose must be given in other ways.  But in itself an omission to set out the purpose in the order was not fatal so long as the facts were established to the satisfaction of the  court in some other way. We see no difficulty in following this principle in the case of those orders also which are in the nature of  subordinate legislation.  Whether orders are executive or in the  nature of subordinate legislation their validity depends on certain conditions  precedent being satisfied.  If those  conditions precedent  are not recited on the face of the order and  the fulfilment of the conditions precedent can be established to the  satisfaction  of  the court in the  case  of  executive orders  we  do not see why that cannot be made good  in  the same way in the case of orders in the nature of (1) [1952] S.C.R. 674.       (2) [1955] 1 S.C.R. 92. (3)  [1955] 1 S.C.R. 777. 55 434 subordinate  legislation.   We  cannot  accept  the  extreme argument of Shri Aggarwala that the mere fact that the order has been passed is sufficient to raise the presumption  that conditions precedent have been satisfied, even though  there is  no  recital  in  the order   to  that  effect.   Such  a presumption in our opinion can only be raised when there  is a  recital in the order to that effect.  In the  absence  of such  recital if the order is challenged on the ground  that in fact there was no satisfaction, the authority passing the order will have to satisfy the court by other means that the conditions  precedent  were satisfied before the  order  was passed.  We are equally not impressed by Shri Pathak’s argu- ment that if the recital is not there, the public or  courts and  tribunals  will  not know that the  order  was  validly passed  and therefore it is necessary that there must  be  a recital  on the face of the order in such a case  before  it can  be  held  to  be legal.   The  presumption  as  to  the regularity of public acts would apply in such a case; but as Boon  as the order is challenged and it is said that it  was passed without the conditions precedent being satisfied  the burden  would be on the authority to satisfy by other  means (in  the  absence of recital in the order itself)  that  the conditions precedent had been complied with.  The difference between  a case where a general order contains a recital  on the  face  of it and one where it does not  contain  such  a recital  is that in the latter case the burden is thrown  on the authority making the order to satisfy the court by other means  that the conditions precedent were fulfilled  but  in the former case the court will presume the regularity of the order including the fulfilment of the conditions  precedent; and  then it will be for the party challenging the  legality of  the order to show that the recital was not  correct  and that  the  conditions precedent were not  in  fact  complied with by the a uthority: [see the observations of Spens C. J. in King Emperor v. Sibnath Banerjee (1), which were approved by  the  Privy Council in King Emperor v.  Sibnath  Banerjee (2)].   Nor  are we impressed with the  contention  of  Shri Pathak that conditions become a part of (1) (1944) F.C.R. 1, 42.   (2) (1945) F.C.R 195, 216-7. 435 legislative  process  and  therefore  where  they  are   not complied with the subordinate legislation is illegal and the defect  cannot be cured by an. affidavit later.  It is  true that such power may have to be exercised subject to  certain

10

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 11  

conditions precedent but that does not assimilate the action of  the subordinate executive authority to something like  a legislative procedure, which must be followed before a  bill becomes  a  law.   Our conclusion therefore  is  that  where certain  conditions precedent have to be satisfied before  a subordinate authority can pass an order, (be it executive or of  the  character of subordinate legislation),  it  is  not necessary that the satisfaction of those conditions must  be recited in the order itself, unless the statute requires it, though,  as we have already remarked, it is  most  desirable that it should be so, for in that case the presumption  that the  conditions were satisfied would immediately  arise  and burden would be thrown on the person challenging the fact of satisfaction  to show that what is recited is  not  correct. But  even where the recital is not there on the face of  the order, the order will not become illegal ab initio and  only a  further  burden is thrown on the  authority  passing  the order  to  satisfy  the  court  by  other  means  that   the conditions  precedent  were complied with.  In  the  present case this has been done by the filing of an affidavit before us.  We are therefore of opinion that the defect in the  two orders  of  March 15, 1951, has been cured and it  is  clear that  they  were  passed  after  the  State  Government  was satisfied  as  required under s. 3 of  the  Act.   Therefore Government  Orders Nos. 615 and 671 of March 15, 1951,  with which  we  are concerned in the present  appeals  are  valid under s. 3 of the Act. It remains to consider certain cases cited by Shri Pathak in support  of  his  contention.   The  first  case  to   which reference may be made is Wichita Railroad & Light Company v. Public  Utilities  Commission of the State  of  Kansas  (1). That was a case of a Commission which had to give a  hearing and  a finding that they were unreasonable  before  contract rates with a public (1)  (1922) 67 L. Ed.  124. 436 utility company could be changed.  After referring to s.  13 of the Act under consideration, the U. S. Supreme Court held that  "a  valid order of the Commission under the  act  must contain  a finding of fact after hearing and  investigation, upon  which  the order is   founded, and  that,  for lack of such  a  finding,  the order in this  case  was  void".   It rejected the argument that the lack of express finding might be supplied by implication and by reference to the averments of  the petition invoking the action of the  Commission  and rested its decision on the principle that an express finding of  unreasonableness  by the  Commission  was  indispensable under  the statutes of the State.  This case in our  opinion is  based  on the provision of the statute  concerned  which required such a finding to be stated in the order and is  no authority  for  the proposition that an express  recital  is necessary  in the order in every case before a delegate  can exercise the power delegated to it. The  next  case is Herbert Mahler v. Howard Eby That  was  a case  dealing  with  deportation  of  aliens.   The  statute provided  for  deportation if the Secretary  (Labour)  after hearing finds that such aliens were undesirable residents of United States.  But the Secretary made no express finding so far  as the warrant for deportation disclosed it.   Nor  was the defect in the warrant of deportation supplied before the court.  The court held that the finding was made a condition precedent to deportation and it was essential that where  an executive  is  exercising  delegated  legislative  power  he should   substantially   comply  with  all   the   statutory

11

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 11  

requirements  in  its exercise, and that, if  his  making  a finding is a condition precedent to this act, the fulfilment of  that condition should appear in the record of  the  act, and  reliance was placed on the case of Wichita  Railroad  & Light  Company  v. Public Utilities  COmmission  (2).   This again was a case of a hearing and a finding required by  the statute  to  be stated in the order and  must  therefore  be distinguished  from a case of the nature before us.  It  may however  be  added  that the court  did  not  discharge  the deportees and (1) (1924) 68 L. Ed. 549- (2) (1922) 67 L. Ed. 124- 437 gave a reasonable time to the Secretary (Labour) to  correct and  perfect  his finding on the evidence  produced  at  the original  hearing or to initiate another proceeding  against them. The  last case is Panama Refining Company v. A. D.  Ryan(1). In  that case s. 9 (e) of the National  Industrial  Recovery Act  of  1933  was  itself struck  down  on  the  ground  of excessive  delegation, though it was further held  that  the executive order contained no finding and no statement of the grounds   of   the  President’s  action  in   enacting   the prohibition.   This case in our opinion is not in  point  so far  as  the matter before us is concerned,  for  there  the section  itself  was  struck down  and  in  consequence  the executive order passed thereunder was bound to fall. We  are  therefore  of  opinion that s.  3  of  the  Act  is constitutional so far as els. (c), (d) and (g) are concerned and  orders  Nos. 615 and 671 passed on March 15,  1951  are legal  and valid.  In the circumstances it is not  necessary to consider whether the High Court was right in holding that the orders of references in these cases were special  orders under  s.  3  and the references  under  those  orders  were therefore  valid.  In this view of the matter,  the  appeals fail and are hereby dismissed.  In the circumstances we pass no order as to costs. Appeals dismissed. (1) (1935) 79 L. Ed- 446. 438