Identify the statutory and non-statutory pre-conditions for the exercise of discretionary powers;

Discretionary Powers in Administrative Law: Pre-conditions and Explanation

What are Discretionary Powers?

Discretionary powers are powers granted to administrative authorities that allow them to make decisions based on judgment or choice within the framework of law. Unlike mandatory powers, discretion involves choice, but it is not unfettered and must be exercised according to law.

1. Statutory Pre-Conditions

These are conditions explicitly prescribed by statute that must be fulfilled before discretion can be exercised.

Existence of Power: The statute must clearly confer discretion.

Conditions Precedent: Statute may specify conditions or circumstances that must exist before discretion can be exercised. For example, the power to grant or refuse a license may depend on criteria like suitability or compliance.

Objective Criteria: The statute may require consideration of particular facts or guidelines.

Time Limit: The discretion must be exercised within a specified time.

Mandatory Procedures: Certain procedural steps may be prescribed before exercise.

Failure to meet these statutory preconditions renders the exercise of discretion invalid (ultra vires).

2. Non-Statutory Pre-Conditions

These arise from principles of administrative law, natural justice, and judicial interpretation even if not explicitly stated in the statute.

Reasonableness: The decision must be reasonable and not arbitrary.

Fairness and Natural Justice: Affected parties must be given a fair hearing before an adverse decision.

Proper Purpose: Discretion must be exercised for the purpose intended by the statute.

No Malafide Use: The power cannot be exercised with malicious intent or bad faith.

Relevant Considerations: Decision-maker must take into account relevant factors and ignore irrelevant ones.

Consistency: Discretion should be exercised consistently unless justified by differing facts.

3. Case Laws Illustrating Pre-Conditions for Discretionary Powers

1. Maneka Gandhi v. Union of India, AIR 1978 SC 597

Facts:

Maneka Gandhi’s passport was impounded without giving her an opportunity of hearing.

Principle:

The Court held that discretionary power must be exercised fairly.

Procedural fairness is a non-statutory pre-condition even if the statute does not expressly require it.

The power must be exercised according to law and not arbitrarily.

Importance:

This case expanded the scope of natural justice as a pre-condition for discretionary decisions affecting fundamental rights.

2. Romesh Thappar v. State of Madras, AIR 1950 SC 124

Facts:

A government order banned the circulation of a newspaper.

Principle:

The discretionary power must be exercised for the purpose intended by law.

The Court struck down the order because discretion was exercised for a collateral or improper purpose.

Importance:

Established that improper purpose is a ground for judicial review, highlighting the pre-condition that discretion must be exercised bona fide.

3. Ramana Dayaram Shetty v. International Airport Authority of India, AIR 1979 SC 1628

Facts:

The authority had discretion in awarding contracts but refused to consider some applicants.

Principle:

The discretion must be exercised by considering all relevant facts and ignoring irrelevant factors.

Failure to consider relevant factors vitiates the decision.

Importance:

Outlined the principle of relevant and irrelevant considerations as essential pre-conditions.

4. Shanti Lal Gupta v. Delhi Administration, AIR 1964 SC 40

Facts:

The discretionary power to allot land was challenged as being exercised arbitrarily.

Principle:

The Court held that discretion must be exercised reasonably and not arbitrarily.

Exercising discretion on extraneous grounds or without proper inquiry is invalid.

Importance:

Reinforced reasonableness as a non-statutory pre-condition.

5. Union of India v. R. Gandhi, AIR 2007 SC 3183

Facts:

Challenge to the exercise of discretionary power in disciplinary proceedings without providing a proper hearing.

Principle:

Procedural fairness (natural justice) is a necessary pre-condition.

Discretion exercised without giving an opportunity to explain is illegal.

Importance:

Reaffirmed natural justice as a mandatory pre-condition.

4. Summary

TypePre-Conditions
StatutoryConditions explicitly prescribed by statute, such as eligibility criteria, procedures, timelines.
Non-StatutoryPrinciples derived from natural justice, reasonableness, bona fide exercise, relevant considerations.

How to Critically Analyze?

Examine statutory language: Are the pre-conditions clearly defined?

Judicial interpretation: Courts often read in fairness and reasonableness as implicit conditions.

Effect of breach: Non-compliance leads to invalidation or judicial review.

Balance of power: Pre-conditions protect individuals from misuse of discretion but may limit administrative efficiency.

Practical application: Real-life cases show courts actively enforcing these preconditions to ensure just governance.

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