[Landmark Judgement] Sharma Transport V. Govt. of A.P. (2002)

Landmark Judgment Law Insider (1)

Published on: 09 September 2023 at 11:54 IST

Court: Supreme Court of India

Citation: Sharma Transport v. Govt. of A.P. (2002)

Honourable Supreme Court of India has held that Delegated Legislation can be declared as Arbitrary when it is evidently demonstrated that particulare rule or regulation was not reasonable and not in consonance with the Fundamental / Constitutional Rights. The expression “arbitrarily” has been defined as an unreasonable act which is executed without adequate determining principle and not founded on reasons and rationale.

25. It has been pleaded as noted above that withdrawal is without any rational or relevant consideration. In this context, it has to be noted that the operators in the State of Andhra Pradesh are required to pay the same tax as those registered in other states. Therefore, there cannot be any question of irrationality.

The tests of arbitrary action applicable to executive action do not necessarily apply to delegated legislation. In order to strike down a delegated legislation as arbitrary it has to be established that there is manifest arbitrariness. In order to be described as arbitrary, it must be shown that it was not reasonable and manifestly arbitrary.

The expression “arbitrarily” means : in an unreasonable manner, as fixed or done capriciously or at pleasure, without adequate determining principle, not founded in the nature of things, non-rational, not done or acting according to reason or judgment, depending on the will alone. In the present cases all persons who are similarly situated are similarly affected by the change. That being so, there is no question of any discrimination. That plea also fails.

Drafted By Abhijit Mishra

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