Penalties, if any, which can be prescribed by the Executive through Subordinate Legislation, can, at best, be less than and within the limit of the penalty, already provided for by the Parliamentary legislation. The upper cap must be provided for in the Act itself by the Parliament. There should be no scope for delegated powers on penalties to traverse beyond the Act and extend to new areas. But, the proposed Sec. 165.2 (liv) and Sec.166.2 (xxxv) do not adhere to these norms in law-making. The proposed Act / Code confers unlimited jurisdiction to the Executive in imposing penalties and traverses beyond Sec.156 and the Sixth Schedule.
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Flourishing ESIC 