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Delhi High Court on Centre’s Power to Relax Conditions Under Rule 9C 

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Centre’s Power to Relax Conditions Under Rule 9C : Delhi High Court Ruling

Discretionary power to relax Rule 9C conditions is limited and guided by specified factors. Courts will not interfere unless the decision is unreasonable or contrary to law. Petitioner’s failure to meet the prescribed production level justified rejection of relaxation.


Legal Framework & Provisions


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Petitioner’s Plea:


Revenue’s Argument:


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Court’s Findings:

  1. Nature of Power Under Rule 9C:
    • Power to relax conditions is exceptional and discretionary.
    • Not ordinarily subject to judicial review unless exercised:
      • Arbitrarily
      • Mala fide
      • Capriciously
      • Unreasonably
  2. Conditions for Relaxation:
    • Rule 9C allows relaxation of:
      • Capacity utilization level
      • Time period for achieving it
    • Factors considered:
      • Genuine efforts made to attain the prescribed production level.
      • Circumstances preventing achievement of the same.
  3. Judicial Review Scope:
    • Courts can interfere only if:
      • The decision is perverse.
      • No reasonable authority could reach such a decision.
      • Decision based on irrelevant/extraneous factors or disregard of relevant ones.
  4. Outcome:
    • Petitioner failed to satisfy the 50% production condition even within the extended period.
    • No grounds for judicial interference found.
    • Petition dismissed.

Legal Precedents Cited by Court:


Conclusion:

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