G.C. KANUNGO versus STATE OF ORISSA

G.C. KANUNGO versus STATE OF ORISSA

Sections 2 and 3 of the 1991 Amendment Act, which nullify the awards of Special Arbitration Tribunals made under the 1984 Amendment Act and even judgments and decrees of Courts making those awards Rules of Court, constitute an unconstitutional encroachment by the legislature upon the judicial power of the State, violate the basic feature doctrine of the Constitution (Rule of Law), and are therefore invalid.

Parties
Petitioner: G.C. Kanungo; Respondent: State of Orissa
Jurisdiction
India
Judgment Date
12 May 1995
Procedural Posture
Writ Petition (civil) Under Article 32 of the Constitution / Supreme Court Decision on Constitutionality
Outcome
Petitions allowed.
Legal Topics
Legislative Competence, Judicial Power, Rule of Law, Nullification of Awards, Separation of Powers
Constitutional Law Arbitration Law Legislative Competence Judicial Power Rule of Law Nullification of Awards Separation of Powers

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Parties

G.C. Kanungo

Petitioner

State of Orissa

Respondent

Procedural Posture

Writ Petition (civil) Under Article 32 of the Constitution / Supreme Court Decision on Constitutionality

Legal Issues

  1. 1 Whether Orissa State Legislature was competent to enact the Arbitration (Orissa Second Amendment) Act, 1991 considering the Arbitration Act, 1940, a Central Act, was already applicable
  2. 2 Whether the 1991 Amendment Act is unconstitutional due to alleged malafides or ulterior motives attributed to the State Legislature
  3. 3 Whether awards of Special Arbitration Tribunals merge in judgments and decrees of Courts when made 'Rules of Court'

Ratio Decidendi

Sections 2 and 3 of the 1991 Amendment Act, which nullify the awards of Special Arbitration Tribunals made under the 1984 Amendment Act and even judgments and decrees of Courts making those awards Rules of Court, constitute an unconstitutional encroachment by the legislature upon the judicial power of the State, violate the basic feature doctrine of the Constitution (Rule of Law), and are therefore invalid.

Court Disposition

Petitions allowed.

Orders

  • Rules issued in the writ petitions made absolute.
  • The Arbitration (Orissa Second Amendment) Act, 1991, in so far as it nullifies the arbitral awards made by Special Arbitration Tribunals constituted by the respondent-State under the 1984 Amendment Act, including the awards made 'Rules of Court', is struck down as unconstitutional.