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Question Bank
Question
Explain the scope of the State Government's power to make rules for regulating minor minerals under Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957. What are the limits, if any, on this power?
Solution
Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957, is an enabling provision that delegates power from the Parliament to the State Governments. It empowers State Governments to make rules for regulating the grant of quarry leases, mining leases, and other mineral concessions specifically for minor minerals. The rules framed under this section can cover various aspects, including the procedure for application, grant, renewal, and the terms and conditions of such leases. However, this power is not absolute. The rules created by the State must conform to the parent statute, the MMDR Act, and cannot violate fundamental rights guaranteed under the Constitution of India. Furthermore, any significant action, such as reserving an area for exclusive exploitation by the state, may require adherence to other specific sections of the Act, such as Section 17A(2), which mandates prior approval from the Central Government.
Question
What is the constitutional validity of creating a monopoly in trade or business through subordinate legislation, especially in the context of Article 19(1)(g) and Article 19(6) of the Indian Constitution?
Solution
Article 19(1)(g) of the Constitution of India guarantees all citizens the fundamental right to practice any profession, or to carry on any occupation, trade, or business. This right, however, is not absolute and is subject to reasonable restrictions under Article 19(6). The state can impose restrictions in the interest of the general public. Crucially, Article 19(6) explicitly states that nothing shall prevent the state from making any law relating to the carrying on by the state, or by a corporation owned or controlled by the state, of any trade, business, industry, or service, whether to the exclusion, complete or partial, of citizens or otherwise. This means that the creation of a monopoly in favour of the state or its corporations is constitutionally permissible, even if it is effected through subordinate legislation (like rules framed under a parent Act), provided the enabling Act grants such authority and the action is in the public interest.
Question
Under what circumstances can an executive policy decision override existing statutory rules? Discuss the principle of ultra vires in this context?
Solution
As a general rule, an executive policy decision cannot override existing statutory rules. Statutory rules have the force of law, as they are framed by a delegate of the legislature under a specific enabling Act. An executive order or policy that is inconsistent with or contradicts these statutory rules is considered ultra vires, meaning "beyond the powers." Such a policy is invalid and unenforceable. The executive power of the state is subordinate to the legislative power. Therefore, for a policy to validly change a regime established by statutory rules, it must either be backed by a subsequent legislative amendment or fall within the gaps not covered by the rules, without being inconsistent with them. A policy that renders a statutory rule otiose (i.e., redundant or ineffective) would typically be struck down as ultra vires.
Question
What is the legal requirement for a State Government under Section 17A(2) of the MMDR Act, 1957, before it can reserve any area for exclusive exploitation by the state?
Solution
Section 17A(2) of the Mines and Minerals (Development and Regulation) Act, 1957, prescribes a specific procedure that a State Government must follow if it intends to reserve any area for the purpose of conservation of minerals or for any other specified reason. The key requirement is that the State Government must obtain prior approval from the Central Government before issuing such a reservation. This provision acts as a legislative check on the state's power, ensuring that decisions to exclude private parties from mining areas are scrutinized at a higher level and are based on valid grounds like conservation. Failure to obtain this mandatory prior approval would render the reservation legally invalid.
Question
Explain the doctrine of "Legitimate Expectation" in administrative law. Can a change in government policy defeat such an expectation?
Solution
The doctrine of "Legitimate Expectation" is a principle in administrative law that protects individuals from arbitrary changes in policy by a public authority. It arises when a person has a reasonable expectation of being treated in a certain way based on past practice, promises, or an existing policy. However, a legitimate expectation does not create an absolute right. The government retains the power to change its policy. A change in policy can defeat a substantive legitimate expectation if the change is fair, reasonable, and made in the public interest. The change must not be arbitrary, irrational, or based on ulterior motives. The test is one of Wednesday reasonableness—whether a reasonable authority, acting reasonably, could have made the decision. Therefore, while the doctrine provides a safeguard against unfairness, it does not fetter the government's ability to alter policy for cogent and bona fide reasons.
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