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Section 37: Repeal and saving

Recovery of Debts and Bankruptcy Act, 1993 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1993
Section 36 All 37 Sections of Recovery of Debts and Bankruptcy Act, 1993 End of Act

Legal Commentary & Landmark Judgments: Section 37

Section 37 enacts a transitional 'removal of difficulties' clause (the Henry VIII clause), empowering the Central Government to resolve operational anomalies within an express statutory sunset period of three years from commencement.

  • Executive Power to Remove Difficulties: Sub-section (1) provides that if any difficulty arises in giving effect to the provisions of the Act, the Central Government may, by order published in the Official Gazette, make provisions not inconsistent with the Act as appear necessary or expedient.
  • Statutory Three-Year Sunset Clause: The proviso to Sub-section (1) strictly commands that no such order shall be made after the expiry of a period of three years from the commencement of the Act, extinguishing this exceptional executive power after June 24, 1996.
  • Mandatory Parliamentary Tabling of Orders: Sub-section (2) mandates that every order made under Section 37 shall be laid, as soon as may be after it is made, before each House of Parliament, preserving legislative supervisory control.
Key Landmark Precedents:
  • Madeva Upendra Sinai v. Union of India (1975) 3 SCC 765: The Supreme Court established the definitive constitutional doctrine governing Henry VIII clauses, holding that the power to remove difficulties can only be used to iron out operational creases and cannot alter the essential policy, structure, or substance of the parent statute.
  • Union of India v. Delhi High Court Bar Association (2002) 4 SCC 275: The Supreme Court observed that the time-limited removal of difficulties power under Section 37 expired after the three-year transitional phase, requiring all subsequent substantive adjustments to be enacted through plenary parliamentary amendments.
Courtroom Practice & Strategic Litigation Guidance:

The executive power under Section 37 is defunct due to the three-year sunset limit. If the Central Government attempts to resolve administrative or jurisdictional deadlocks (such as tribunal vacancies or pecuniary threshold confusions) by issuing executive circulars under the guise of 'removing difficulties', such circulars are ultra vires; any systemic modification can now only be effected via Section 35 rules or parliamentary statutory amendment.

Section 36 All 37 Sections of Recovery of Debts and Bankruptcy Act, 1993 End of Act