Khoday India Limited Reptd. By Its ... vs The State Of Karnataka Reptd. By Its ... on 29 January, 2007
In
Khoday Distilleries Ltd. v. State of Karnataka
[Khoday Distilleries Ltd. v. State of Karnataka,
(1996) 10 SCC 304], this Court held: (SCC p. 314,
para 13)
‗13. It is next submitted before us that the
amended Rules are arbitrary, unreasonable
and cause undue hardship and, therefore,
violate Article 14 of the Constitution. Although
the protection of Article 19(1)(g) may not be
available to the appellants, the Rules must,
undoubtedly, satisfy the test of Article 14,
which is a guarantee against arbitrary action.
However, one must bear in mind that what is
being challenged here under Article 14 is not
executive action but delegated legislation.
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The tests of arbitrary action which apply to
executive actions do not necessarily apply to
delegated legislation. In order that delegated
legislation can be struck down, such
legislation must be manifestly arbitrary; a law
which could not be reasonably expected to
emanate from an authority delegated with the
law-making power.