1969 (1) TMI 75 - SC - Indian Laws

Summary

Issues Involved:
1. Validity of the Punjab Cattle Fairs (Regulation) Act, 1967.
2. Definition and scope of "cattle fair" versus "cattle market."
3. State monopoly on holding cattle fairs.
4. Restrictions on private individuals and local authorities from holding cattle fairs.
5. Authority of the State to declare private property as fair areas.
6. Fundamental rights under Articles 19(1)(b), 19(1)(d), 19(1)(f), and 19(1)(g).
7. Validity of Section 15 of the Act concerning the Cattle Fair Fund.

Detailed Analysis:

1. Validity of the Punjab Cattle Fairs (Regulation) Act, 1967:
The Act was initially challenged for being "vague and ambiguous," leading to the Punjab High Court striking it down. However, the Supreme Court held that the rule of striking down an Act for vagueness is alien to the Indian Constitutional system. The Legislature was competent to enact the law under Entry 28 of List II of the Seventh Schedule to the Constitution. The Act could not be invalidated solely on the ground of vagueness, and the defect was remedied by the Punjab Cattle Fairs (Regulation) Amendment Act 18 of 1968, which defined "cattle fair."

2. Definition and Scope of "Cattle Fair" versus "Cattle Market":
The Act differentiates between a "cattle fair" and a "cattle market." The definition of "cattle fair" in Section 2(bb) as a gathering of more than twenty-five persons for the general sale or purchase of cattle was upheld. The Act does not seek to monopolize all transactions of sale and purchase of cattle but only the conduct of cattle fairs.

3. State Monopoly on Holding Cattle Fairs:
The Act grants the State Government the exclusive right to hold, control, manage, and regulate cattle fairs. This monopoly is protected under Article 19(6) of the Constitution, which allows the State to create monopolies in certain trades or businesses.

4. Restrictions on Private Individuals and Local Authorities:
Section 3(2) of the Act prohibits any person or local authority from holding, controlling, managing, or regulating a cattle fair. This restriction is deemed reasonable and necessary to make the State monopoly effective.

5. Authority of the State to Declare Private Property as Fair Areas:
The State cannot declare private property or property of local authorities as fair areas without providing compensation as guaranteed under Article 31(2). The Act implicitly restricts the State to holding fairs on its own lands.

6. Fundamental Rights Under Articles 19(1)(b), 19(1)(d), 19(1)(f), and 19(1)(g):
- Article 19(1)(b) & 19(1)(d): The Act does not infringe the right to assemble peaceably or to move freely. It only restricts gatherings for the purpose of cattle fairs.
- Article 19(1)(f): The Act does not deprive citizens of their property but restricts the right to hold fairs, which is a necessary concomitant of the State monopoly.
- Article 19(1)(g): The Act's provisions relating to the State monopoly on cattle fairs are protected under Article 19(6) and do not impose unreasonable restrictions on the right to carry on trade or business.

7. Validity of Section 15 of the Act Concerning the Cattle Fair Fund:
Section 15, which authorizes the State to require local authorities to deposit funds for initial fair expenses, was declared invalid as it constitutes deprivation of property without compensation and is unreasonable.

Separate Judgments:
- Municipal Committee, Amritsar (Writ Petition No. 295 of 1968): The State's declaration of Municipal property as a fair area and the demand for Municipal resources were unauthorized and invalid.
- Sardara Singh (Writ Petition No. 362 of 1968): The State cannot hold a cattle fair on the petitioner's land without compensation. However, the petitioner cannot hold a cattle fair on his own land.
- Jagtar Singh (Writ Petition No. 443 of 1968): The declaration of the petitioner's leased land as a fair area was invalid. The petitioner's business was deemed a cattle market, not a fair, and he was not required to obtain a broker's license.
- Narain Singh and Another (Writ Petitions Nos. 444 and 365 of 1968): The petitioners were not entitled to hold cattle fairs but could continue their business of cattle markets on their own lands.

Conclusion:
The Supreme Court upheld the validity of the Punjab Cattle Fairs (Regulation) Act, 1967, as amended, while clarifying the scope of the State's monopoly and the rights of private individuals and local authorities. The restriction on holding cattle fairs was deemed reasonable, but the State's authority was limited to its own lands, and Section 15 was invalidated for being unreasonable.