A competent Legislature can always validate a law which has been declared by Courts to be invalid, provided the infirmities and vitiating factors noticed in the declaratory Judgment are removed or cured. Such a validating law can also be made retrospective. All that Legislature does is to usher in a valid law with retrospective effect in the light of which earlier Judgment becomes irrelevant.
– Five-Judge Bench, Ujagar Prints & Ors. (II) v. Union of India, (1989) 3 SCC 488.
The consistent thread that runs through all decisions of this Court is, Legislature cannot directly overrule the decision or make a direction as not binding on it but has power to make the decision ineffective by removing the base on which the decision was rendered.
– Indian Aluminium Co. v. State of Kerala, (1996) 7 SCC 637.
The validity of a validating law depends upon whether Legislature possesses competence which it claims over the subject-matter and whether in making the validation law it removes the defect which Courts had found in the existing law.
– State of Tamil Nadu v. State of Kerala, (2014) 12 SCC 696.
It is beyond debate, Legislature can validate an invalidated law by removing the cause for such invalidity through a legislative exercise. However, no doubt, there are some judicially recognized limitations to such power as summed up in National Agricultural Cooperative Marketing Federation of India Ltd. v. Union of India, (2003) 5 SCC 23. The retrospective operation must be specified clearly. It is permissible for Legislature to make a decision of Court ineffective by removing the material basis of the decision in the manner Court would not have arrived at the same conclusion had the corrected/modified position prevailed at the time of rendering the said earlier decision.
– Hon’ble Justice A.M. Khanwilkar, G. Mohan Rao v. State of Tamil Nadu, [Writ Petition (Civil) No. 1411 of 2020].