Case: Registrar Of Co-Operative Societies, Trivandrum And Anr Vs. K. Kunhambu &amp; Ors

The perennial, nagging problem of delegated legislation and thed Henry VIII clause have again come up for decision in this appeal by the State of Kerala. Section 60 of the Madras Cooperative Societies Act 1932 and a notification issued under that provision were struck down by the High Court of Kerala on the ground of unconstitutional delegation of legislative power. Certain consequential directions were issued by the High Court. Those directions have long since worked themselves out and so the party who invoked the jurisdiction of the High Court under Article 226 of the Constitution has no longer any surviving interest. The State of Kerala is, however, interested in sustaining the validity of Section 60 and has filed this appeal.

Court's reasoning:
Lawyers and judges have never ceased to be interested in the question of delegated legislation and since the Delhi Laws Act case, we have been blessed(?) by an abundance of authority, the blessing not necessarily unmixed. We do not wish, in this case, to search for the precise principles decided in the Delhi Laws Act case, nor to consider whether N. K. Papiah &Sons v. Excise Commissioner(1) beats the final retreat from the earlier position. For the purposes of this case we are content to accept the policy and guidelines theory and seek such assistance as we may derive from cases where near identical provisions have been consideredThe policy of the Act is there and so are the guidelines. Why the legislation ? To facilitate the formation and working of Cooperative Societies. Cooperative Societies, for what purpose ? For the promotion of thrift,p and mutual aid. Amongst whom ? Among agriculturists and other persons with common economic needs. To what end ? To bring about better living, better business and better methods of production. The objectives are clear; the guidelines are there. There are numerous provisions of the Act dealing with registration of societies, rights and liabilities of members , duties of registered societies, privileges of registered societies, property and funds of registered societies, inquiry and inspection, supersession of committees of societies, dissolution of societies, surcharge and attachment , arbitration etc. We refrain from referring to the details of the provisions except to say that they are generally designed to further the objectives set out in the preamble. But, numerous as the provisions are, they are not capable of meeting the extensive demands of the complex situations which may arise in the course of the working of the Act and the formation and the functioning of the societies. In fact, the too rigorous application of some of the provisions of the Act may itself occasionally result in frustrating the very objects of the Act instead of advancing them. It is to provide for such situations that the Government is invested by s. 60 with a power to relax the occasional rigour of the provisions of the Ac t and to advance the objects of the Act. Section 60 empowers the State Government to exempt a registered society from any of the provisions of the Act or to direct that such provision shall apply to such society with specified modifications. The power given to the Government under s. 60 of the Act is to be exercised so as to advance the policy and objects of the Act, according to the guidelines as may be gleaned from the preamble and other provisions which we have already pointed out, are clear.We are therefore of the view that s. 60 is not void on the ground of excessive delegation of legislative power.