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1 - 10 of 15 (2.14 seconds)M.P. Oil Extraction And Anr. Etc vs State Of Madhya Pradesh And Ors on 9 July, 1997
This Court in M.P. Oil Extraction v. State of M.P. (1997) 7 SCC 592 held
that unless the policy framed is absolutely capricious, unreasonable and
arbitrary and based on mere ipse dixit of the executive authority or is
invalid in constitutional or statutory mandate, court's interference is not
called for.
Narmada Bachao Andolan vs Union Of India And Others on 18 October, 2000
117. However, we hasten to add and do not wish to be misunderstood so as to
infer that howsoever gross or abusive may be an administrative action or a
decision which is writ large on a particular activity at the instance of
the State or any other authority connected with it, the Court should remain
a passive, inactive and a silent spectator. What is sought to be emphasised
is that there has to be a boundary line or the proverbial “laxman rekha”
while examining the correctness of an administrative decision taken by the
State or a central authority after due deliberation and diligence which do
not reflect arbitrariness or illegality in its decision and execution. If
such equilibrium in the matter of governance gets disturbed, development is
bound to be slowed down and disturbed specially in an age of economic
liberalisation wherein global players are also involved as per policy
decision.”
Minimal interference is called for by the Courts, in exercise of judicial
review of a Government policy when the said policy is the outcome of
deliberations of the technical experts in the fields inasmuch as Courts are
not well-equipped to fathom into such domain which is left to the
discretion of the execution. It was beautifully explained by the Court in
Narmada Bachao Andolan v. Union of India[4] and reiterated in Federation of
Railway Officers Assn. v. Union of India[5] in the following words:
Federation Of Railway Officers ... vs Union Of India on 13 March, 2003
117. However, we hasten to add and do not wish to be misunderstood so as to
infer that howsoever gross or abusive may be an administrative action or a
decision which is writ large on a particular activity at the instance of
the State or any other authority connected with it, the Court should remain
a passive, inactive and a silent spectator. What is sought to be emphasised
is that there has to be a boundary line or the proverbial “laxman rekha”
while examining the correctness of an administrative decision taken by the
State or a central authority after due deliberation and diligence which do
not reflect arbitrariness or illegality in its decision and execution. If
such equilibrium in the matter of governance gets disturbed, development is
bound to be slowed down and disturbed specially in an age of economic
liberalisation wherein global players are also involved as per policy
decision.”
Minimal interference is called for by the Courts, in exercise of judicial
review of a Government policy when the said policy is the outcome of
deliberations of the technical experts in the fields inasmuch as Courts are
not well-equipped to fathom into such domain which is left to the
discretion of the execution. It was beautifully explained by the Court in
Narmada Bachao Andolan v. Union of India[4] and reiterated in Federation of
Railway Officers Assn. v. Union of India[5] in the following words:
G.Sundarrajan vs Union Of India & Ors on 6 May, 2013
“12. In examining a question of this nature where a policy is evolved by
the Government judicial review thereof is limited. When policy according
to which or the purpose for which discretion is to be exercised is clearly
expressed in the statute, it cannot be said to be an unrestricted
discretion. On matters affecting policy and requiring technical expertise
the court would leave the matter for decision of those who are qualified to
address the issues. Unless the policy or action is inconsistent with the
Constitution and the laws or arbitrary or irrational or abuse of power, the
court will not interfere with such matters.”
Limits of the judicial review were again reiterated, pointing out the same
position by the Courts in England, in the case of G. Sundarrajan v. Union
of India[6] in the following manner:
Ugar Sugar Works Ltd vs Delhi Administration And Ors on 22 March, 2001
Reference may also be made of the judgments of this Court in Ugar Sugar
Works Ltd. v. Delhi Admn.
M/S Dhampur Sugar (Kashipur) Ltd vs State Of Uttranchal & Ors on 21 September, 2007
Delhi Bar Association (Regd.) vs Union Of India (Uoi) And Ors. [Alongwith ... on 15 May, 2008
Prag Ice And Oil Mills And Anr. Etc. Etc. vs Union Of India (Uoi) [Alongwith Writ ... on 21 February, 1978
We are, therefore, firmly of the opinion that we cannot sit in judgment
over the decision taken by the Government of India, NPCIL, etc. for setting
up of KKNPP at Kudankulam in view of the Indo-Russian Agreement.”
When it comes to the judicial review of economic policy, the Courts are
more conservative as such economic policies are generally formulated by
experts. Way back in the year 1978, a Bench of seven Judges of this Court
in Prag Ice & Oil Mills v. Union of India and Nav Bharat Oil Mills v. Union
of India[7] carved out this principle in the following terms:
Peerless General Finance And ... vs Reserve Bank Of India And Ors. on 3 May, 1995
“We have listened to long arguments directed at showing us that producers
and sellers of oil in various parts of the country will suffer so that they
would give up producing or dealing in mustard oil. It was urged that this
would, quite naturally, have its repercussions on consumers for whom
mustard oil will become even more scarce than ever ultimately. We do not
think that it is the function of this Court or of any court to sit in
judgment over such matters of economic policy as must necessarily be left
to the government of the day to decide. Many of them, as a measure of
price fixation must necessarily be, are matters of prediction of ultimate
results on which even experts can seriously err and doubtlessly differ.
Courts can certainly not be expected to decide them without even the aid of
experts.”
Taking aid from the aforesaid observations of the Constitution Bench, the
Court reiterated the words of caution in Peerless General Finance and
Investment Co. Limited v. Reserve Bank of India[8] with the following
utterance: