RE: SPECIAL REFERENCE N0.1 OF 2012 versus --

RE: SPECIAL REFERENCE N0.1 OF 2012 versus --

Auctions are not the only permissible or constitutionally mandated method for disposal or allocation of natural resources across all sectors in all circumstances. The method adopted must meet the standards of Article 14, including fairness, reasonableness, transparency, and pursuit of common good under Article 39(b). It is a matter of policy for the government, and courts may interfere only where policies are arbitrary or discriminatory. Retrospective application and impact on earlier allocations depend on factual circumstances, and the 2G Case ratio applies specifically to spectrum.

Parties
Referrer: President of India; Advisory Respondent: Attorney General for India; Notified Party: States of India; Notified Party: Federation of Indian Chamber of Commerce and Industry; Notified Party: Confederation of Indian Industry; Notified Party: Petitioners in 2G Case
Jurisdiction
India
Judgment Date
27 September 2012
Procedural Posture
Presidential Reference Under Article 143(1) of the Constitution of India / Advisory Opinion
Outcome
Reference answered partly.
Legal Topics
Allocation of Natural Resources, Judicial Review of Policy, Government Contracts, Auction Versus Other Methods, Equality, Common Good, Scope of Supreme Court Advisory Opinion
Constitutional Law Administrative Law Economic Policy Allocation of Natural Resources Judicial Review of Policy Government Contracts Auction Versus Other Methods Equality +2 more

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Parties

President of India

Referrer

Attorney General for India

Advisory Respondent

States of India

Notified Party

Federation of Indian Chamber of Commerce and Industry

Notified Party

Confederation of Indian Industry

Notified Party

Petitioners in 2G Case

Notified Party

Procedural Posture

Presidential Reference Under Article 143(1) of the Constitution of India / Advisory Opinion

Legal Issues

  1. 1 Is auction the only permissible method for disposal of all natural resources?
  2. 2 Does a broad proposition mandating auction conflict with Supreme Court precedents?
  3. 3 Does enunciation of a broad principle unsettle policy decisions?

Ratio Decidendi

Auctions are not the only permissible or constitutionally mandated method for disposal or allocation of natural resources across all sectors in all circumstances. The method adopted must meet the standards of Article 14, including fairness, reasonableness, transparency, and pursuit of common good under Article 39(b). It is a matter of policy for the government, and courts may interfere only where policies are arbitrary or discriminatory. Retrospective application and impact on earlier allocations depend on factual circumstances, and the 2G Case ratio applies specifically to spectrum.

Court Disposition

Reference answered partly.

Orders

  • Auction as a method is not a constitutional requirement for all natural resources; other methods may be permissible.
  • State must conform to Article 14 standards in allocation/disposal of resources.