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CS Executive · Jurisprudence, Interpretation and General Laws · Administrative Laws

A municipal commissioner has power to grant or refuse a trade licence 'as he thinks fit'. He refuses an application only because he dislikes the applicant's family. Which statement best describes the refusal in administrative law?

The refusal is an abuse of discretion. Even where a statute says 'as he thinks fit', the authority must act in good faith, for the statutory purpose and on relevant grounds. Refusing a licence from personal dislike is an irrelevant consideration, so a court can set it aside.

  1. AIt is valid because the statute uses subjective words such as 'as he thinks fit'
  2. BIt is an abuse of discretion because the power was exercised for an improper purpose and on irrelevant considerationsCorrect
  3. CIt is valid because courts can never review discretionary powers
  4. DIt is valid provided the commissioner records the refusal in writing

Explanation

Discretion, even when worded subjectively, must be exercised in good faith, for the purpose of the statute and on relevant grounds. Refusal based on personal dislike is an irrelevant consideration and a colourable exercise of power, so courts can quash it. Option A is wrong because subjective wording does not exempt a decision from judicial review.

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