1975 (5) TMI 88 - SC - Indian Laws

Summary

Issues Involved:
1. Validity of amendments to the Mysore Silkworm Seed and Cocoon (Regulation of Production, Supply, and Distribution) Act, 1960.
2. Alleged infringement of fundamental rights under Article 19(1)(g) of the Constitution.
3. Requirement of Presidential sanction under Article 304(b) of the Constitution.
4. Whether amendments imposed additional restrictions on trade and commerce.

Detailed Analysis:

1. Validity of Amendments to the Mysore Silkworm Seed and Cocoon (Regulation of Production, Supply, and Distribution) Act, 1960:
The petitioners challenged the amendments to the Principal Act by the Amending Act of 1969, asserting that these amendments imposed additional restrictions on their business without Presidential sanction. The State of Mysore argued that the amendments did not introduce new restrictions but merely formalized existing statutory rules into statutory provisions. The Court examined the rules and found that the amendments did not impose any significant additional restrictions beyond what was already present in the Principal Act and the rules framed thereunder.

2. Alleged Infringement of Fundamental Rights under Article 19(1)(g) of the Constitution:
The petitioners claimed their fundamental right to carry on business was adversely affected by the amendments. The Court noted that the reasonableness of the restrictions was not challenged by the petitioners. It was held that restrictions without legal authority are inherently invalid. The Court emphasized that the impact on individual rights must be direct, and in this case, the amendments did not impose new restrictions but maintained the regulatory framework of the Principal Act.

3. Requirement of Presidential Sanction under Article 304(b) of the Constitution:
The petitioners argued that the amendments required Presidential sanction as per Article 304(b). The Court clarified that Article 304(b) mandates that restrictions on trade and commerce must be reasonable and in the public interest, and such restrictions require Presidential sanction. However, Article 255 allows for retrospective curing of the defect of want of Presidential sanction. The Court found that the amendments did not introduce new restrictions that would necessitate fresh Presidential sanction, as the Principal Act already had such sanction.

4. Whether Amendments Imposed Additional Restrictions on Trade and Commerce:
The Court examined whether the amendments introduced additional restrictions on trade and commerce. It was argued by the State that the amendments were within the scope of the Principal Act, which had already obtained Presidential sanction. The amendments were seen as formalizing existing rules rather than introducing new restrictions. The Court concluded that the changes did not significantly increase the restrictiveness of the regulations and were within the purposes of the Principal Act.

Conclusion:
The Court dismissed the petitions, holding that the amendments did not impose additional restrictions requiring Presidential sanction and did not infringe upon the petitioners' fundamental rights under Article 19(1)(g). The penalties introduced by the amendments were viewed as procedural enforcement measures rather than new restrictions. The Court emphasized that the amendments aimed to maintain the quality and trade of Mysore silk, contributing to the public interest and the overall trade and commerce framework. Consequently, the petitions were dismissed with costs.