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Mayor, Councillors & Burgesses of The Borough of New Plymouth v. Thranaki Electric Power Board
Mayor, Councillors & Burgesses of The Borough of New Plymouth v. Thranaki Electric Power Board
Fact: The respondents commenced the action for a determination of the question of the
validity of certain agree- ments to supply electricity to a certain territory. The validity
depended upon the question whether that territory was an "adjoining district" to the
appellant.
Application of principle:
There is presumption that words are used in an Act of Parliament correctly and exactly
and not loosely and inexactly. Upon those who assert that the rule has been broken, the
burden of establishing their proposition lies heavily.' Meaning, they need to show that
something in the Statute means Near. And they can discharge it only by pointing to
something in the context which goes to show that the loose and inexact meaning must be
preferred.
Facts: Chinubai (plaintiff-respondent) filed a suit for rendition of accounts and the suit
was decreed. The plaintiff thereafter supplied the deficit court fee and on the date he did
so the decree was prepared and signed.
Nerno potest mutare consilium suum in alterius injuriam - No one can change his
plans to the injury of another. This applies for the legislature as well.
laws should be construed as prospective and not retrospective, except when they are
expressly made applica- ble to past or pending transactions.
A statute, gener- ally, is not construed to operate retrospectively and take away a
vested right, except when the cases in which it is to have such retrospective operation
are set out therein.
Therefore, an intention to forfeit established rights will not be presumed, nor will a
statute having such an effect be carried beyond the purpose plainly indicated by
construc- tion. Thus, a court will not so construe a statute as to deprive per- sons of
their properties and transfer them to others without payment of compensation unless
such a conclusion is ineluctable on account of policy or express words.
Cases:
Principle: on a contract for sale and purchase of land it is the practice to require the
purchaser to pay interest on his purchase money from the date he took possession.
Expropriation under the Act in question is not effected for private gain, but for the
good of the public at large, but for all this, the owner is deprived of his property in
this case as much as in the other, and the rule has long been accepted in the
interpretation of statutes that they are no! to be held to deprive individuals of property
without compensation unless tilt intention to do so is made quite clear.
** There is Right to compensation.
Principle: a right or appeal from an order of a Single Judge to a Division Bench w/o a
certificated vested in a person. The appellant could not be deprived of this right by a
subsequent change in the law, unless the later enactment provides expressly or by
necessary implication for retrospective effect being given.
(iii) The institution of the suit carries with it the implication that all rights of appeal
then in force are preserved to the parties thereto till the rest of the career of the
suit.
(iv) The right of appeal is a vested right and such a right to enter the superior court
accrues to the litigant and exists as on and from the date the lis commences and
although it may be actually exercised when the adverse judgment is pronounced
such right is to be gov- erned by the law prevailing at the date of the institution of
the suit or proceeding and not by the law that prevails at the date of its deci- sion
or at the date of the filing of the appeal.
(v) This vested right of appeal can be taken away only by a subsequent enactment, if
it so provides expressly or by necessary intendment and not otherwise.
IMP Points:
- Majority opinion in cases: - It is an existing right and is triggered at the time of filing
the suit and NOT at the time of filing an appeal.
- Right to appeal is not merely a procedure but a substantive right.
- statutes are not to be held to act retrospectively unless a clear intention to that effect is
manifested.
Contention: Will the employer be held vicariously liable for the fault of employee?
Employer arg: I did not have the mens rea, some employee was doing this.
IMP POINTS:
- Instances which lead to conviction w/o mens rea - minor cases. For major cases, you
should and ought to have the mens rea. W/o mens rea, one cannot be prosecuted.
- Mens rea is always required unless the statute or necessary implication that it is not
required.
Master will not be held liable for the acts of the servant.
Issue: Should the employee be held liable for his employer under the Prevention of
Food Adulteration act, 1954?
Decision: Owner (Employer) is punished w/o mens rea because strict liability. You
had inferior goods @ your shop. You directly go to the jail. Similarly, why should the
employee not be held liable?
“If the owner of a shop in which adulterated food is sold is without proof of mens rea
liable to be punished for sale of adulterated food, we fail to appreciate why an agent
or a servant of the owner is not liable to be punished for con- travention of the same
provision unless he is shown to have guilty knowledge.”
Author of the Book disagrees with the decision: To ensure that he takes proper care,
he is punished even w/o the proof of mens rea. But the employee does not store the
food in the shop, only gives it to the customer. Therefore, he would come under the
category of a person who is morally innocent of the blame.
Cases:
a. Province of Bombay v. Municipal Corporation of Bombay
(This was the position in V.S: Rice & Oil Mills v. State of A.P(c ))
Whether the Crown is bound by Sections 222(1) & City of Bombay Municipal Act?
Held:
The Crown may be bound, as has often been said, 'by necessary implication'. If that is
to say, it is manifest from the very terms of the statute, that it was the intention of the
legislature that the Crown should be bound, then the result is the same as if the Crown
had been expressly, named.
Every statute must be supposed to be 'for the public good, at least in intention, and
even when, as in the present case, it is apparent that one objects of the legislature is to
promote the welfare and convenience of a large body of the King's subjects by giving
extensive powers to a local authority, it cannot be said, consistently with the decided
cases, that the Crown is necessarily bound by the enactment.
The apparent purpose of the statute is one element, and may be an important element,
to be considered when an intention to bind the Crown is alleged. If it can be affirmed
that, at the time when the statute was passed and received the royal sanction, it was
apparent from its terms that its beneficent purpose must be wholly frustrated unless
the Crown were bound, then it may be inferred that the Crown has agreed to be
bound. Their Lordships will add when the court is asked to draw this inference, it
must always be remembered that, if it be the intention of the legislature that the
Crown shall be bound, nothing is easier than to say so in plain words.
Can the State is liable to be proceeded against under Order 39 Rule 2(3) CPC?
Held: State is bound by the CPC, the scheme of the Code being that subject to any special
provision made in that regard, as respects Governments, it occupies the same position as any
other party to a proceeding before the court.
Issue: whether the State was exempt from and not bound by the section?
Principle:
The English rule of construction is - Crown is not bound by statutes unless stated therein.
This rule of construction was applied only in Madras and Calcutta and not in all parts of
India. Infact, the English rule of construction brought opposite results in Calcutta and
Madras.
It is, therefore, clear that the said rule of construction was not accepted as a rule of
construction throughout India and even in the Presidency.
It has been held by this Court that 'laws in force' in Article 372 includes not only
enactments of the Indian legislatures but also the common law of the land which was
being administered by the courts in India. But it is not possible to hold that a mere rule of
construc- tion adopted by English courts, and also by some of the Indian courts, to
ascertain the intention of the legislature was a law in force within the meaning of this
term. This is an essential distinction between a law and a canon of construction, and a
canon of construction is not a rule of law.
We are not concerned here with the statutory rules of interpretation. Therefore, the rule of
construction is not a 'law in force' within the meaning of Article 372.
Next question was: whether this Court should adopt the rule of construction accepted by
the Privy Council in interpreting statutes vis-à-vis the Crown Decided: NO!
Held: the said rule of construction is inconsistent with the rule of law based on the
doctrine of equality. There is, no justification for this Court to accept the English canon
of construction, for it brings about diverse results and conflicting decisions. On the other
hand, the normal construction, namely, that the general Act applies to citizens as well as
to State unless it expressly or by necessary implication exempts the State from its
operation, steers clear of all the said anomalies.
5. THE JURISDICTION OF COURTS IS NEITHER ENLARGED NOR DECREASED.
The Legislature of Alberta in 1907 passed a Supreme Court Act establishing a Supreme Court
of Alberta as a Supreme Court of civil and criminal jurisdiction in and for that Province.
Section 9 of the Act confers on the Supreme Court all the capacity given by Divorce Acts to
judges of other courts in England to act as the court established by those Acts.
Issue: whether the court had jurisdiction in matrimonial causes, including divorce?
Held:
The right to divorce had been introduced into the substantive law of the province,
before the setting up of a Supreme and Superior Court of Record in Alberta. This
means, there is a special law in place, that is the Province (one) that enforces these
rights.
In absence of any explicit and valid legislative declaration, the court was bound to
entertain and to give effect to proceedings for making that right operative. If the right
exists, the presumption is that there is a court which can enforce it.
However, if no other mode of enforcing it is prescribed, that alone is sufficient to
give jurisdiction to the King’s Court of Justice.
In order to oust jurisdiction it is necessary, in the absence of a special law excluding
it altogether, to plead that jurisdiction exists in some other court.
When you have to take away or create jurisdiction, you need to have a special law.
An order of assessment made by an authority under a taxing statute which was intra vires
and in the undoubted exercise of its jurisdiction could not be challenged on the ground
that it was passed on a misconstruction of a provision of the Act or of a notification
issued thereunder.
those cases where the provisions of the particular Act have not been complied
with or the statutory tribunal has not acted in conformity with the fundamental
principle of judicial procedure.
II. When express bar on civil court jurisdiction. Need to go through the powers of the
Tribunal (special one) and see if the tribunal has the same power of the court (ex.
Civil court) whose jurisdiction the tribunal has ousted.
III. Challenge to the provision of the alleged act could be challenged in the higher
court. Not before high court, not before the special tribunal.
V. Where the particular Act contains no machinery for refund of tax collected in
excess of constitutional limits or illegally collected, a suit lies.
VI. Questions of the correctness of the assessment apart from its constitutionality
are for the decision of the authorities a civil suit does not lie if the orders of the
authorities are declared to be final or there is an express prohibition in the
particular Act. In either case the scheme of the particular Act must be examined
because it is a relevant enquiry.
VII. An exclusion of the jurisdiction of the civil court be inferred unless the conditions
above set down apply.
A. INCORPORATION
In Jolly George Varghese v. Bank of Cochin
Krishna Iyer, J. held that the Indian Constitution has adopted the Transformation theory.
That is, international law has to undergo transformation by means of law enacted by
Parliament so that it can form part of the law of the land.
B. TRANSFORMATION
In People’s Union Liberties v. UOI Kuldip
Singh, J. observed that nation laws have to construed in conformity with the customary
principle of international law.
7. TERRITORIAL NEXUS
The power of a country allows it to legislate for its own subjects all over the world, and
for foreigners within its jurisdiction, but no further.
Power to make laws would not include a power to make such laws as might be broken by
anyone with impunity.
a sovereign legislature may pass a law having extra-territorial operation and though it
cannot be directly enforced, it would be invalid and the courts must enforce it with the
available machinery.
legislation of a State is primarily territorial and the general rule extra territorium jus
dicenti impune non paretur. One who exercises jurisdiction out of his territory is not
obeyed with impunity
Cases:
a. Bengal Immunity Co. Ltd. v. State of Bihar
Where there was sufficient territorial nexus between the person sought to be proceeded
against under a law, and the State which enacted the law, the law is not strictly speaking
extra-territorial and is not ultra vires on the ground that such person is not residing within
the enacting State.
b. S.K. Sahgal v. Maharaj Kishore Khanna
The decree under the U.P Encumbered Estates Act, 1934, of the Special Judge was
transferred to a court outside U.P for execution.
Held: Merely because a court outside U.P. is applying a statute of 'U.P. would not
amount to giving extra-territorial operation to the statute when the statute was being
applied to one of its legitimate objects.
Held:
The registration of the trust in Madhya Pradesh cannot be a bar against the enforcement of the
Hyderabad Endowments Rgulations 1940, The registration would not exclude the jurisdiction
of the AP State to legislate with respect to the trust which was undoubtedly situated in AP.
The law presumes that the Act did not intend to make any alteration; for if Parliament had
that design, they would, have expressed it in the Act.
Further, the legislature must not be taken to intend any alteration in the law beyond what it
explicitly declares in express terms or by unmistakable implication.
Cases:
so. This could be best achieved here by examining the by examining the objects and the
subject-matter of each enactment and by viewing each relevant provision as a limb of an limb
of an integrated whole meant to serve their underlying purposes. In this way, their separable
sphere of operation will be clarified so as to avoid possibilities of conflict between them or
any unnecessary overflow of what really appertains to one field into another.
Section 23 of the Urban Land (Ceiling and Regulation) Act, 1976. It mentions the
words “to any person for any purpose.” & meaning of industry - "industry" means any
business, profession, trade, undertaking or manufacture.
The dissenting judge, Mr Justice Tulzarpurkar held that the act was ultra vires because
s.23 used the phrase “to any person for any purpose.”
This limitation on the wide words of Section 23(1) is a matter of semantics and
reading down meanings of words with loose lexical amplitude is permissible as part
of the judicial process. The wide definition-of "industry" or the use of general words
like "any person" and "any purpose" cannot free the whole clause from the inarticulate
major premise that only a public purpose to sub-serve the common good and filling
the bill of Article 39(b) and (c) will be permissible. Even a private industry may be
for a national need and may serve common good. The touchstone is public purpose,
community good and like criteria. If the particular act of allotment is mala fide or
beyond the statutory and consituational parameters such exercise will be a casualty in
court and will be struck down. The power of judicial review to strike at excess or
mala fide is always there.
Applying “public purpose” to interpret “any purpose” is not permissible.
The doctrine of reading down does not apply when the provision explicitly clear and
unambiguous and there is no room for more than one construction.
10. TAUTOLOGY
(a) A statute ought to be so construed that if it can be prevented no clause, sentence or word
is rendered be superfluous, void or insignificant.
(b) To reject words as un-meaningful is permissible only when an absurdity would follow by
retaining the words and giving effect to them.
Cases:
a. Ghanshyamdas v. CSP
The appellant, a registered dealer, furnished for the year 1949-50, a return of his turnover for
the first quarter but failed to do so for the other 3 quarters. In 1954 notice was issued to him
to furnish the returns.
App contention: It was a case of "escaped turnover" under Section 11.-A and as the
assessment was not made. Within three years as required by the section, the assessment of his
turnover was barred by limitation.
Resp contention: In case of a registered dealer, there was a statutory obligation to make a
return and, therefore, the proceedings of assessment had to be deemed to be pending from the
date an assessee was bound to make his return and since the proceedings had to be deemed to
be pending there was no scope for invoicing Section 11-A of the Act.
Decision:
Court went with Respondent’s contention.
Under Section 10(1) the Commissioner need not issue a notice to a registered dealer
for furnishing the relevant returns but a statutory obligation is imposed on such a
dealer to do so by such dates and to such authority as may be prescribed.
The sub-section (2) is in two parts, the first part speaks of a dealer who may be
required by the Commissioner by notice to furnish returns; and the second part of a
registered dealer who shall furnish the returns by such prescribed dates and the sub-
section says that both of them shall furnish the returns.
If the 'dealer' in the first part includes a registered dealer, the mention of 'every
registered dealer' in the second part will become redundant for a registered dealer is
included in the expression 'dealer'.
A construction which would attribute redundancy to a legislature shall not be accepted
except for compel- ling reasons. This redundancy disappears if the expression 'dealer'
in the first part excludes a registered dealer mentioned in the second part.
Decision:
A plain reading of Section 6 of the Act makes it manifest that it deals with persons under
twenty-one years of age who are found guilty of having committed an offence punishable
with imprisonment, but not with imprisonment for life. As imprisonment for life can also
be awarded for the offence under Section 326 read with Section 149, a person that is found
guilty of such an offence would not be entitled to claim the benefit of s.6. To hold otherwise
would have the effect of ignoring the words “but not with imprisonment for life”' and
treating them to be otiose. Such a construction is plainly not permissible.