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CMA Foundation · Fundamentals of Business Laws and Business Communication · Primary and Subordinate Legislation

An Act states that 'the Central Government may, by notification, add any item to the Schedule, and may also decide what the penalty for any offence under the Act shall be, without any upper limit or guidance'. Which objection to this provision is most sound in law?

The strongest objection is excessive delegation. Parliament may delegate details but must itself lay down the policy and standards, and cannot abdicate its essential legislative function. Giving the Government unguided, unlimited power to fix penalties crosses that line and makes the provision open to challenge.

  1. AIt is valid because Parliament may delegate any power whatsoever including its entire essential legislative function
  2. BIt is invalid because delegation of the power to issue notifications is always prohibited
  3. CIt is valid only if the notification is published in a newspaper
  4. DIt amounts to excessive delegation, since the legislature must lay down the policy and standards and cannot abdicate its essential legislative functionCorrect

Explanation

Courts hold that the legislature may delegate details but not its essential legislative function, such as laying down policy and guiding standards. Giving unguided power to fix penalties without limits is excessive delegation. Delegation by notification is not itself prohibited, and newspaper publication is not the test.

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