Distinguish discretionary powers and provisions that operate automatically;
Discretionary Powers vs. Provisions that Operate Automatically
What are Discretionary Powers?
Definition: Discretionary powers are powers granted to administrative authorities or officials that allow them to make choices or decisions based on judgment, conscience, or consideration of relevant factors.
Nature: The decision-maker has flexibility; they can decide whether and how to act.
Examples: Granting licenses, imposing penalties, granting relief or exemptions.
Subject to: Reasonableness, fairness, and adherence to law. Courts can review misuse or abuse of discretion but not the discretion itself if exercised properly.
What are Provisions that Operate Automatically?
Definition: These are provisions where the law mandates a certain consequence or action automatically upon the occurrence of a specified event or fulfillment of conditions, leaving no room for choice or discretion.
Nature: The outcome is mandatory and predetermined by the statute or rule.
Examples: Automatic forfeiture of property upon conviction, mandatory retirement age, entitlement to pension upon completion of service.
Subject to: Usually not reviewable since there is no discretion involved.
Key Differences
| Aspect | Discretionary Powers | Provisions Operating Automatically |
|---|---|---|
| Nature of Power | Flexible, involves judgment and choice | Mandatory, no room for choice |
| Decision-maker’s Role | Must weigh facts and exercise judgment | Simply apply the law as it stands |
| Judicial Review | Courts can review for abuse or arbitrariness | Courts ensure conditions are met, but not discretion |
| Examples | Granting licenses, imposing fines, pardons | Automatic termination of service at retirement age |
| Outcome | May or may not happen based on discretion | Happens automatically once conditions are met |
Landmark Case Laws Distinguishing Discretionary Powers and Automatic Provisions
1. Ramana Dayaram Shetty v. International Airport Authority of India (1979) 3 SCC 489
Facts: The issue was about granting contracts based on discretionary powers.
Held: The Court held that discretion should be exercised reasonably and not arbitrarily. Though discretion allows choice, it must be governed by relevant considerations and fairness.
Significance: Emphasized that discretionary powers are not unfettered and are subject to judicial review for misuse.
2. Union of India v. Angalakurthi Govindarajulu (1967) 3 SCR 232
Facts: The question was whether a government servant’s dismissal was based on discretion or mandatory rule.
Held: The Court distinguished between discretionary powers of dismissal and cases where dismissal is automatic upon certain conditions.
Significance: Clarified that automatic provisions are not subject to discretion.
3. Collector of Customs v. Nathella Sampathu Chetty (1962) 3 SCR 473
Facts: Whether forfeiture of goods under customs law was discretionary or automatic.
Held: The Court held that forfeiture was automatic once the specified conditions were fulfilled, and no discretion was involved.
Significance: Illustrated the concept of provisions operating automatically upon occurrence of an event.
4. S.P. Gupta v. Union of India (1982) 2 SCC 149
Facts: Concerned the discretionary appointment of judges and public officials.
Held: The Court held that even discretionary appointments must be guided by relevant considerations, and discretion should not be exercised arbitrarily.
Significance: Reinforced that discretionary powers must be exercised within legal limits.
5. K.K. Verma v. Union of India (1967) 1 SCR 611
Facts: About automatic retirement of government servants upon reaching the prescribed age.
Held: The Court held that retirement provisions operate automatically and do not require exercise of discretion.
Significance: Clear example of provisions that operate automatically once a condition is met.
Summary Table
| Case Name | Key Issue | Outcome Related to Discretion/Automatic Power |
|---|---|---|
| Ramana Dayaram Shetty v. IAAI | Reasonable exercise of discretion | Discretion must be reasonable and not arbitrary |
| Union of India v. Angalakurthi Govindarajulu | Dismissal - discretionary or automatic? | Automatic dismissal not subject to discretion |
| Collector of Customs v. Nathella Sampathu Chetty | Forfeiture of goods | Forfeiture is automatic upon conditions met |
| S.P. Gupta v. Union of India | Discretionary appointments | Discretion must be exercised with relevant considerations |
| K.K. Verma v. Union of India | Retirement on reaching age | Retirement operates automatically, no discretion involved |
Conclusion
Discretionary powers allow administrative authorities to make decisions based on judgment but are subject to legal constraints and judicial review.
Provisions operating automatically mandate a fixed legal consequence once certain criteria are met, leaving no room for discretion.
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