Supreme Court Raps State Over Illegal Delegation Of Power: 'Statutory Duty Of Government Cannot Be Abdicated To Subordinate Officers'

"The power of delegation which is traceable in sub-section (1) of Section 17 cannot be borrowed therefrom to apply it to a situation requiring action under sub-section (2) of Section 17." Supreme Court, in a significant ruling, held that a State Government cannot delegate its statutory power to refer industrial disputes to a Labour Court unless the statute expressly provides for such delegation.

A bench comprising Justice Dipankar Datta and Justice Sheel Nagu observed that in the absence of explicit legislative authorization, the "administrative power to make a reference rests with the State Government and none else," emphasizing that a statutory functionary cannot simply delegate its essential duties to subordinate officers.

Delegation Must Be Expressly Authorized

The appeals arose from a series of judgments by the Bombay High Court, which had previously set aside references made by officers of the Labour Department, rather than the State Government itself. The central dispute involved the interpretation of Section 17 of the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955. The court scrutinized whether the Government of Maharashtra had the authority to delegate its power of referral to Additional or Deputy Commissioners of Labour via a 2016 notification.

Legislative Silence On Delegation

The court conducted a comparative analysis between sub-sections (1) and (2) of Section 17 of the Act. It noted that while sub-section (1) explicitly permits the State Government to specify an authority for the purpose of issuing recovery certificates, the legislature chose to remain conspicuously silent regarding delegation under sub-section (2). Invoking the Latin maxim unius est exclusio alterius, the bench concluded that the express mention of delegation in one sub-section effectively excludes it in the other, reflecting a clear legislative intent to vest the power of reference solely in the State Government.

Administrative Power Not To Be Abdicated

Addressing the contention that the State could delegate its administrative functions, the court clarified that the principle of administrative convenience does not permit the abdication of an ultimate statutory duty. While acknowledging that public authorities often rely on subordinate officials for information, the court held that the decision to refer a dispute is a distinct responsibility that must be exercised by the designated statutory authority. It found that the notification issued by the Government of Maharashtra effectively stripped the State Government of its mandatory statutory duty, rendering the delegation legally invalid.

"The power of delegation which is traceable in sub-section (1) of Section 17 cannot be borrowed therefrom to apply it to a situation requiring action under sub-section (2) of Section 17."

No Termination Of Ongoing Proceedings

Despite declaring the delegation improper, the Supreme Court, in an exercise of its powers under Article 142 of the Constitution, refused to nullify all proceedings that had reached an advanced stage. The court directed the State Government to revisit all references made by the specified authorities to confirm, independently and upon reaching its own satisfaction, whether a valid dispute existed. The bench ordered that in cases where the State confirms such satisfaction, fresh references should be issued, but emphasized that proceedings should continue from the stage already reached in the Labour Courts to prevent unnecessary hardship to employees.

Future Litigation Avoided By Repeal

The court noted that the Working Journalists Act was repealed by the Occupational Safety, Health and Working Conditions Code, 2020, with effect from November 21, 2025. Consequently, the legal anomaly addressed in this judgment is unlikely to recur in future cases. The bench disposed of the appeals with a strict directive for the State Government to complete this review process within six months, ensuring that no further proceedings move forward until the Government has personally applied its mind to the necessity of the referrals.

Date of Decision: 11 August 2026