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The Doctrine of Separation of Power in India with Special Reference to Administrative Law


 

History and Origin of the Concept

The Doctrine of Separation of Powers is a crucial component of a constitutional form of government. It first developed and flourished within the American constitution. Some commentators have considered its wide acceptability the chief reason why the administrative process was relatively slow to develop in the USA.

The Doctrine of Separation was conceived in its modern form by the French philosopher Montesquieu within the intellectual milieu that prevailed during the period preceding the French Revolution. He emphasized the significance of keeping the three branches of the modern state- the judiciary, executive and legislative separate from each other. Montesquieu gave voice to an emerging political doctrine in late eighteenth-century France that considered too much concentration of political power in the hands of one individual a factor of tyranny and arbitrariness. It was argued that each of these organs must confine its area of authority to one domain- the legislature should be confined to legislative function only and it should have no executive or judicial function to discharge; the executive should restrict itself to executive functions and the judiciary should discharge only judicial, and neither executive nor legislative functions. Besides ensuring efficiency by allocating each function to the institution best suited to discharge it, the main democratic motivation behind the separation of powers is to prevent too much power from getting concentrated in the hand of one authority, which, it is argued leads to tyranny and arbitrariness.

The doctrine of separation of power forms the basis of the American constitutional structure. Articles 1, 2 and 3 embody the concept of separation of powers. Article 1 vests legislative power in the Congress; article 2 vests executive power in the President and article 3 vests judicial power in the Supreme Court. Described as the presidential form of government, it confers upon the president the status of the head of the state and its chief executive. All policies and executive actions of the state lie under the control and supervision of the president. He appoints a number of secretaries to head the various departments of the state, but they enjoy their offices at his pleasure and he is not bound by their advice. Neither the president nor the various secretaries of the state are members of Congress; a clear separation is maintained between the executive and legislature. The American Presidential form of government is very different from the parliamentary system that prevails in common-law countries. For instance, in India, the Prime Minister, as well as his ministers are members of the Parliament, and take an active part in the law-making process, despite being members of the executive. While the legal status of the Secretaries of the State in the US is little more than that of glorified advisors, in the Westminster Parliamentary form of government, the cabinet is collectively responsible to the Parliament, and the Prime Minister cannot remain in power unless he enjoys the confidence of the House.

In the Parliamentary form of government, a fair degree of overlap is seen between the executive and the legislature. A Prime Minister in the Westminster model can seek the dissolution of the Parliament, but in the Presidential form, as we have seen above, the President’s role is relatively autonomous from that of Congress. He enjoys a fixed tenure, meaning that the fate of the majority in Congress does not affect his position. Neither can he dissolve the Congress, nor can the latter remove him through a simple majority. The process of impeachment is an extremely cumbersome one in the American system.

This does not mean though that the three organs of the state function as water-tight compartments. Some overlaps between the three have been introduced with a view to maintaining some measure of mutual checks and balances among them. For instance, the President may veto a bill passed by Congress, even though he is not a part of the legislature. Likewise, the Senate has a say in the appointment of certain high executive functionaries. The Supreme Court has the right to declare bills passed by Congress unconstitutional. But the judges of the Supreme Court are appointed by the President with the consent of the Senate. Through such overlaps, the three organs keep each other’s authority in check and prevent each other from exercising power arbitrarily in their respective domains.

On the face of it, the doctrine of separation of powers and administrative law seem mutually incompatible. Whereas the purpose of the former is to keep the three organs of the state apart, the raison d’etre of the latter is to govern the conferment of legislative power on the executive (the administrative apparatus). However, the two in fact complement each other. The process of governance throws up complex socio-economic challenges. Abstract philosophical principles are rarely equipped to tackle the diversity of everyday life. This does not, however, warrant wholesale casualization of state processes. A right balance between principles and practices is indispensable for the efficient functioning of the three state organs. Therefore, despite their seemingly contradictory purposes, the doctrine of separation of powers and administrative law complement each other. The extent of implementation of each is determined legally by successive judgments of courts.

Relevant case laws shed light on the complexity of issues that Courts are sometimes faced with in this regard-

In Express Newspapers Ltd v Union of India, (1958), a statutory wage board was appointed to fix the rates of wages for working journalists. The Board consisted of members representing employers nominated by the government and an equal number of working journalists. The chairmanship was reserved for an independent person.

The matter of the nature of this board’s functions came before the Court-

Two questions were mainly discussed-

Whether the decision of the wage board was open to judicial review, and

Whether the principle of natural justice applied to its proceedings.

If it could be established before the Court that the nature of the functioning of the board was legislative in character, then cases pertaining to it could not be heard by the Supreme Court under Article 136 of the constitution, nor would the principle of natural justice apply to its proceedings.

The overlapping nature of the functioning of the board made the question of the determination of its status difficult. Since the determinations of the Board were binding on the employers and employees not just in the present but for the future as well, it could be argued that the nature of its functioning was legislative. But since the Board also performed the function of adjudicating between the employees and employers, it was also possible to argue that its actions, being like that of an industrial tribunal, could be deemed to be quasi-judicial in nature. After an animated exchange of arguments from both sides, the Court refrained from pronouncing the character of the Board.

Another legal question that has given rise to spirited litigation is that of price regulation-

In the period immediately after the independence, Courts in general tended to treat it as an administrative issue. However, this changed after Saraswati Industrial Syndicate v Union of India (1974) when a notification issued by the Central Government under the Sugar (Control) Order 1966 was passed, fixing ex-factory prices of sugar for the sugar factories specified in the order. The Supreme Court characterized the government’s price-fixing power as being more of a legislative power than an administrative one. The Court observed that the criterion adopted to fix the price ‘must be reasonable’ and not based on extraneous considerations; there should be a reasonable nexus between the matters which are considered for the exercise of a particular power and the purposes for the exercise of that power.

Following this landmark decision, in most instances, the Supreme Court has tended to characterize price-fixing power as legislative in nature.

In Union of India v Cynamide India Ltd., 1987, the Supreme Court examined the question of price-fixing at length and ruled that price fixing under the Drugs (Price Control) Order, 1979 was a legislative activity.

It observed that with the proliferation of delegated legislation the distinction between the legislature and administration is disappearing into an illusion, and so it has become difficult in theory and impossible in practice to draw a sharp line between the state’s legislative and administrative functions. Nevertheless, the task of drawing such a distinction is a significant one if the principles of natural justice are to retain any measure of relevance.

The test laid down by the Court to distinguish the legislative functions of the government from its administrative functions is as follows,

“A legislative act is the creation and promulgation of a general rule of conduct without reference to cases; an administrative act is the making and issue of a specific direction or the application of a general rule to a particular case in accordance with the requirements of Policy…

And again,

“Legislation is the process of formulating a general rule of conduct without reference to particular cases and usually operating in future, whereas the administration is the process of performing particular acts of issuing particular orders or of making decisions which apply general rules to particular cases.”

Here, the Court drew attention to two aspects that distinguish a legislative act from an administrative act- its generality, that is, its aspect of being applicable in general to all cases and its futurity, that is, its ability to determine all future cases. Thus, generality and futurity are the two aspects of a legislative act that distinguish it from an administrative action.

The legally significant point between this distinction is that legislative activity is not subject to the rules of natural justice, but an administrative/quasi-judicial act is subject to it.

In State of UP v Renusagar Power Co., 1988, a company sought exemption from payment of the electricity duty on the ground that it self-generated all the electricity used by it. The government’s decision on the exemption requested by Renusagar Power Co. was held to be quasi-judicial in character. This means that the government was obligated to give the company a hearing before deciding upon the matter.

It may, however, be emphasized that the courts should be wary of unduly extending the frontiers of the legislative function, as this concept is often invoked by the Administration to deny hearings to the affected persons. The more the concept of legislative function expands the less scope there will be to involve procedural safeguards for the affected interests. This may cause the concept of natural justice to be neutralized to the extent the ambit of legislative function is expanded.

A relevant case in this regard is the State of Assam v Bharat Kala Bhandar, 1967. Under the Defence of India Rules, 1962 the executive issued a notification, declaring certain employments as essential ‘for securing the public safety and for maintaining supplies and services necessary to the life of the community.” The Supreme Court ruled that a notification of such nature cannot be issued without consulting the interests concerned as it unsettles at one stroke the relations between employers and employees which may have existed for a long time, and which may have been the outcome either of contractual relations or industrial awards. The Court observed that such wide and far-reaching powers ought not to be exercised without consulting the interests concerned. What is significant about this case is that as per the classification test laid down later in Cynamide India Limited a notification of this nature would be considered as being of legislative character and yet the Court insisted on some kind of consultation before its issue. This seems to be a more engaged approach as the Court did not put any label on the power exercised and focused its attention on the effect created by it.

The legal principle laid down by this judgment is that if a government rule lays down a prospective law, maybe no hearing or consultation is mandated, but when established rights or interests are sought to be disturbed, then the affected interests ought to be given some participation in the decision-making process.

Hearing in a legislative order is often sought to be excluded from the scope of the application of natural justice on the ground that legislature being a representative body is not likely to take arbitrary action; but when the Administrative acting in its quasi-judicial capacity exercises legislative function, there is no such in-built safeguard. But this line of reasoning is not always correct.

This was the approach adopted by the Supreme Court in K I Shephard and Others v Union of India, 1987. The Reserve Bank effected an amalgamation of three private banks with nationalized banks resulting in the termination of 125 private employees of the bank. This scheme was challenged by the employees, inter alia, on the grounds that no opportunity to be heard was given to them. The Reserve Bank argued that the scheme was legislative in character and, thus, was outside the purview of the ambit of natural justice. The Supreme Court rejected the Reserve Bank’s Contention and upheld the employees’ right to be heard.

Thus, it appears from the case law we examined that the test of generality to distinguish between a legislative or an adjudicatory act is only a broad test which may not necessarily be true or decisive always, and other considerations may have to be considered by the courts to decide the nature of a particular act of the Administration.

These cases show that while the general principle is that no hearing needs to be given by the Administration when it is discharging a legislative function, there may be circumstances when the courts may adopt a broader approach on the matter of procedural safeguards to the affected persons.

The doctrine of separation of power exists to strengthen the democratic spirit and negate the possibility of concentration of power. It is a useful tool to protect citizens from the arbitrary exercise of administrative powers against private citizens and to establish a legal regime based on the principle of natural justice.

 

 

 

 

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