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Amended law made inoperative cannot be replaced by old: SC
In a significant ruling, the Supreme Court has held that once a law amended by the government is rendered inoperative, the old rule in place of which it was brought, will not be revived.
In a significant ruling, the Supreme Court has held that once a law amended by the government is rendered inoperative, the old rule in place of which it was brought, will not be revived.
Allowing appeals by 18 Uttar Pradesh suger mills, challenging Allahabad High Court's judgement that after the substituted rule regarding payment of commission on sugar cane was made "inoperative" by the state, the old rule would revive.
Rejecting this preposition, a bench comprising Justice V N Khare, S N Phukan and Ashok Bhan said since the provisions of General Clause Act has not been applied to the statutory rule framed by the state, "the old rule will not be revived after the substituted rule became inoperative."
The suger mills in their petitions had challenged the Uttar Pradesh government notification of January 5, 1993 for payment of five per cent commission to cooperative cane societies on the basis of a rule which was substituted by an amendment to it but was subsequently made "inoperative" by the Government.
The rule amended in April 24, 1992 and made "inoperative" on September 30, the same year, had reduced the commission to 2.69 per cent from five per cent.
After rendering the amended rule inoperative, the state government had issued a subsequent order saying that the mills were required to pay commission at the rate of five per cent under the old rule, which the factory owners challenged in the high court saying the old rule could not be made applicable.
But the Apex Court ruled that there was no force in state government's contetion that the old rule could be revived and "it deserve to be rejected." Bureau Report
Allowing appeals by 18 Uttar Pradesh suger mills, challenging Allahabad High Court's judgement that after the substituted rule regarding payment of commission on sugar cane was made "inoperative" by the state, the old rule would revive.
Rejecting this preposition, a bench comprising Justice V N Khare, S N Phukan and Ashok Bhan said since the provisions of General Clause Act has not been applied to the statutory rule framed by the state, "the old rule will not be revived after the substituted rule became inoperative."
The suger mills in their petitions had challenged the Uttar Pradesh government notification of January 5, 1993 for payment of five per cent commission to cooperative cane societies on the basis of a rule which was substituted by an amendment to it but was subsequently made "inoperative" by the Government.
The rule amended in April 24, 1992 and made "inoperative" on September 30, the same year, had reduced the commission to 2.69 per cent from five per cent.
After rendering the amended rule inoperative, the state government had issued a subsequent order saying that the mills were required to pay commission at the rate of five per cent under the old rule, which the factory owners challenged in the high court saying the old rule could not be made applicable.
But the Apex Court ruled that there was no force in state government's contetion that the old rule could be revived and "it deserve to be rejected." Bureau Report