Commission of Inquiry-Legislation empowering Government to appoint Commission-Constitutionality-If violates guarantee of equality before the law-Notification selling up Commission and conferring powers thereupon-Legality of If ultra vires the Act- Whether Commission usurps judicial functions-Commissions of Enquiry Act, 1952 (LX of 1952), s. 3-Constitution of India, Arts. 14 and 246: Seventh Schedule, Entry 94, List I and Entry 45, List III.
In exercise of the powers conferred upon it by s. 3 of the Commissions of Enquiry Act, 1952, the Central Government by a notification dated December 11, 1956, appointed a Commission of Inquiry to inquire into and report in respect of certain companies mentioned in the Schedule attached to the notification and in respect of the nature and extent of the control and interest which certain persons named in the notification exercised over these companies. By subsequent notifications the Central Government made all the provisions of sub-ss. (2), (3), (4) and (5) of s. 5 of the Act applicable to the Commission and fixed a period of 2 years from February 11, 1957, as the period within which the Commission was to exercise its function and to make its report. The four persons named filed three applications under Art. 226 of the Constitution before the Bombay High Court questioning the validity of the Act and of the notification and praying for writs for quashing the same. The High Court dismissed the applications and ordered that the said notification was legal and valid except as to the last part of cl. 10 thereof which empowered the Commission to recommend the action which should be taken as and by way of securing redress or punishment or to act as a preventive in future cases. The petitioners as well as the Union of India filed appeals.