Doctrine Of Ultra Vires In Administrative Law In India
The doctrine envisages that an authority can exercise only so much power as is conferred on it by law.
Doctrine of ultra vires in administrative law in india. The doctrine of ultra vires is produced by the constitutional principles of the rule of law the sovereignty of parliament and the independence of the judiciary. An action of the authority is intra vires when it falls within the limits of the power conferred on it but ultra vires if it goes outside this limit. Neither the company can sue nor it can be sued for such acts ashbury railway carriage and iron company v. The project would firstly elaborate upon the need for judicial control over delegated legislation after which it would discuss the doctrine of ultra vires.
This doctrine can be considered as the central principle in the whole of administrative law. If the administrative authority fails to follow required procedure prescribed by parent act or by the general rule it is known as procedural ultra vires. It means beyond the powers so that if ultra vires is the basis in which courts will interfere on matters of public administration then the point is that court will intervene on matters of public administration if the bodies have acted. For example section 3 04 a of the revised model business corporation act drafted in 1984 states that the validity of corporate action may not be challenged on the ground that the corporation lacks or lacked power to act.
Doctrine of ultra vires. State laws in almost every jurisdiction have also sharply reduced the importance of the ultra vires doctrine. Effects of ultra vires transactions doctrine of ultra vires. Beyond the powers is a latin phrase used in law to describe an act which requires legal authority but is done without it.
The doctrine of ultra vires is a fundamental rule of company law. The ultra vires acts are null and void ab initio. Administrative law is concerned with the way in which the gov ernment carries out. It states that the objects of a company as specified in its memorandum of association can be departed from only to the extent permitted by the act.
The doctrine of ultra vires is the basic doctrine in administrative law. The doctrine in india puts emphasizes on its need to control and prevent malpractices of business in the companies undertaken by the directors or other members of the company. On the other hand in india the doctrine of ultra vires is codified in the companies act 2013 under section 245 1 a b. To apply the doctrine of ultra vires the first question for the courts to decide is whether the provision in the act prescribing the procedure is mandatory or directory.
These acts are not binding on the company.