The cardinal principles of Constitutional law impose certain limitations on the delegation of powers in the following matters, among others, namely:-
1. Penal law:
No act or activity should be declared as offence and made punishable by a rule or regulation made under the delegated authority.
Where this is done, express authority should be given and the limits to such authority should be clearly defined in the Act itself.
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2. Retrospective operation:
ADVERTISEMENTS:
The rule should not be given retrospective operation. Giving a rule any retrospective effect is essentially a legislative act. In any case, no rule should operate from any date anterior to the date of the commencement of the Act under which it was made.
3. Execution of jurisdiction of courts:
The subject matters jurisdiction of the court and the administration of justice purely legislative in character and the administrative body would not have power to effect any alteration in the jurisdiction of any court of law by ordaining that:
(i) The court shall not take up any particular category of cases, or
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(ii) The jurisdiction of any court shall be barred in particular type of causes.
4. Monetary and financial matters:
The monetary and financial matters should be dealt with by the Lower House of the Legislature. It is desirable in the interest of the public that such matters are dealt with by the House itself.
Even when such power is given to the executive authority on special grounds, the rule should not operate before it is approved by the affirmative procedure of the legislature.
5. Compensation:
Under Article 31 (2) of the Constitution of India,-
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(i) The principles on which the compensation is to be determined, and
(ii) The manner in which the compensation is to be determined, in respect of any property compulsorily acquired or requisitioned for a public purpose, should be provided by a law.
Since such determination is an essential legislative function, the Legislature itself should enact such a law.
6. Taxation:
Under Article 265 of the Constitution, no tax shall be levied or collected save by the authority of law.
The expression ‘law’ therein does not include the statutory rules. Therefore, no tax should be levied or enhanced by means of rules. But when delegation becomes inevitable, the power should never be unlimited and:
(i) Specific conditions for its exercise,
(ii) Things to be taxed,
(iii) The range of rates etc. should be clearly laid down.
Where, within the strict limits, the power to work out the details relating to the administration of the taxation laws, such as:
(i) Selection of persons on whom the tax should be levied,
(ii) Rates at which such tax should be levied within the definite limits, is being given, that practice seems to have the grudging approval of the courts of law.