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1972 (10) TMI 127

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..... apers are prevented any increase in page number. Both page numbers and circulation are relevant for calculating the basic quota and allowance for increases. In the garb of distribution of newsprint the Government has tended to control the growth and circulation of newspapers. Freedom of the press is both qualitative and quantitative. Freedom lies both in circulation and in content. The newsprint policy which permits newspapers to increase circulation by reducing the number of pages, page area and periodicity, prohibits them to increase the number of pages, page area and periodicity by reducing circulation. These restrictions constrict the newspapers in adjusting their page number and circulation. The newsprint policy is not a measure to combat monopolies. The newsprint policy should allow the newspapers that amount of freedom of discussion and information which is needed or will appropriately enable the Members of the society to preserve their political expression of comment not only upon public affairs but also upon the vast range of views and matters needed for free society. the newsprint policy for 1972-73 violates Articles 19 (1) (a) and 14 of the Constitution. The restricti .....

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..... ting paper (including water lined newsprint which contained mechanical wood pulp amounting to not less than 70% of the fibre content). The import of newsprint is restricted under the 1955 Import Order. This restriction of newsprint import is also challenged because it infringes Article 19(1)(a). It is said that the restriction of import is not a reasonable restriction within the ambit of Article 19(2). The Newsprint Control Order 1962 (referred to as the 1962 Newsprint Order) is made in exercise of powers conferred by section of the Essential Commodities Act. 1955 (referred to as the 1955 Act). Section 3 of the 1955 Act enacts that if the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supply of essential commodities or for securing their equitable distribution and availability at fair prices, it may, by order, provide for regulating or prohibiting production, supply and distribution and trade and commerce therein. Section 2 of the 1955 Act defines "essential commodity" Paper including newsprint, paper board and straw board is defined in section 2 (a) (vii) of the 1955 Act to be an essential commodity. The 1962 Newsprint O .....

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..... quantity of printing and writing paper in addition to their allocation of newsprint. The Newsprint Policy of 1972-73 referred to as the Newsprint Policy deals with white printing paper (including water lined newsprint which contained mechanical wood pulp amounting to not less than 70 per cent of the fibre content). Licences are issued for newsprint. The validity of licences is for 12 months. The Newsprint Policy defines "common ownership unit" to mean newspaper establishment or concern owning two or more news interest newspapers including at least one daily irrespective of the centre of publication and language of such newspapers. Four features of the Newsprint Policy are called in question. These restrictions imposed by the Newsprint Policy are said to infringe rights of freedom of speech and expression guaranteed in Article 19 (1)(a) of the Constitution. First, no new paper or new edition can be started by a common ownership unit even within the authorised quota of newsprint. Secondly, there is a limitation on the maximum number of pages to 10. No adjustment is permitted between circulation and the pages so as to increase the pages. Thirdly, no inter-changeability is permitted .....

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..... ry. From 1963-64 quota of newsprint for dailies has been calculated on the basis of page level of 1957 and circulation of 1961-62 with ad hoc increases for growth on the basis of percentage of pages calculated on circulation and allowance of page increase of not more than 2 pages at a time subject to a maximum of 12 pages. The bulk of newsprint was imported in the past. Indigenous newsprint was limited in supply. From 1963-64 till 1970-71 printing and writing paper available in our country was taken into account for framing the import policy. The quantity which could be made available to consumers of newsprint for the requirements of publishers of text books were considered in that behalf. After 1971-72 printing and writing paper was in short supply. According to the Government this was adversely affecting the requirements of the publishers of text books. The loss to newsprint consumer from the non-availability of white printing paper was made good in additional quantity of imported newsprint. The import quota of newsprint was increased from 1,40,000 tonnes in 1970-71 to 1.80,000 tonnes in 1971-72. From 1972-73 with regard to daily newspapers three principal changes were effected .....

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..... re Express Newpapers (Private) Ltd. Anr. v. The Union of India Ors.( [1959] S.C.R. 12.)'and Sakal Papers (P) Ltd. Ors. v. The Union of India ([1962] 3 S.C.R. 842). In Express Newspapers case (supra) the Express News papers (Private Ltd. was the petitioner in a writ petition under Article 32. The Press Trust of India Limited was another petitioner in a similar writ petition. The Indian National Press (Bombay) Private Ltd. otherwise known as the "Free Press Group" was a petitioner in the third writ petition. The Saurashtra Trust was petitioner for a chain of newspapers in another writ petition. The Hindustan Times Limited was another petitioner. These petitions in the Express Newspapers case (supra) challenged the vires of the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955. The petitioners contended that the provisions of the Act violated Articles 19(1) (a), 19(1)(g) and 14 of the Constitution. In Sakal Papers case (supra) the petitioners were a Pri- vate limited company carrying on business of publishing daily and weekly newspapers in Marathi and two shareholders in the.company. There were two other petitions by readers of "Sakar" newspa .....

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..... Newspapers case (supra) that the impugned, measures were enacted for the benefit of the working journalists and it was, therefore, neither the intention nor the effect and operation of the impugned Act to take away or abridge the right of freedom of speach and expression enjoyed by the petitioners. There are ample observations of this Court in the Express Newspapers case (supra) to support the right of the petitioner companies there to invoke fundamental right in aid of freedom of speech and expression enshrined in the freedom of the press. This Court said that if the impugned measure in that case fell within the vice of Article 19(1) (a) it would be struck down. This observation is an illustration of the manner in which the truth and spirit of the freedom of press is preserved and protected. In Sakal Papers case (supra) this Court struck down section 3(1) of the Newspaper (Price and Page) Act, 1956 and allowed the petitioner company relief-on that basis. In the, Sakal Papers case (supra) relief was granted to the shareholders and the company. The Court thought it unnecessary to express any opinion on the right of the readers to complain of infraction of fundamental rights in Ar .....

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..... e ground that no fundamental right of the petitioner there was directly impaired by the enactment of the Ordinance and the Act or any action taken thereunder. The petitioner in the Bank Nationalisation case (supra) claimed that the rights guaranteed to him under Articles 14, 19 and 31 of the Constitution were impaired. The petitioner's grievances were these. The Act and the Ordinance were without legislative competence. The Act and the Ordinance interfered with the guarantee of freedom of trade. They were not made in public interest. The President had no power to promulgate the Ordinance. In consequence of hostile discrimination practiced by the State the value of the petitioner's investment in the shares is reduced. His right to receive dividends ceased. He suffered financial loss. He was deprived of the right as a shareholder to carry on business through the agency of the company. The ruling of this Court in Bank Nationalisation case (supra) was this : "A measure executive or legislative may impair the rights of the company alone, and not of its shareholders; it may impair the rights of the shareholders not of the Company; it may impair the rights of the shareholders as well .....

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..... yond challenge after the ruling of this Court in the Bank Nationalisation case (supra). The presence of the company is on the same ruling not a bar to the grant of relief. The rulings in Sakal Papers case (supra) and Express News- papers case (supra) also support the competence of the petitioners to maintain the proceedings. Article 358 of the Constitution was invoked by the Additional Solicitor General to raise the bar to the maintainability of the petition. Under Article 358 while a proclamation of a emergency is in operation nothing in Article 19 shall restrict the power of the State to make any law or to take any executive action which the State would but for the provisions contained in that Part be competent to make or to take. It was, therefore, said on behalf of the Government that the petitioners could not challenge the 1972-73 Newsprint Policy during the proclamation of emergency. Counsel on behalf of the petitioners contended that Article 358 is inapplicable because it has no application to the law or executive action taken prior to the proclamation of emergency. The Newsprint Policy was said by the petitioners to be a, continuation of the old newsprint policy which h .....

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..... executive action or previous law would otherwise be violative of Article 19 or be otherwise unconstitutional. The contention on behalf of the Government that the 1972-73 policy is protected during the proclamation of emergency and is a mere administrative action is unsound Executive action which is unconstitutional is not immune during the proclamation of emergency. During the proclamation of emergency Article 19 is suspended. But it would not authorise the taking of detrimental executive action during the emergency affecting the fundamental rights in Article 19 without any legislative authority or in purported exercise of power conferred by any pre-emergency law which was invalid when enacted. This Court in State of Madhya Pradesh Anr. v. Thakur Bharat Singh([1967] 2 S.C.R. 454) considered whether the State Government could make an order under the Madhya Pradesh Public Security Act 1959 directing that Thakur Baharat Singh shall not be in any place in Raipur District and that he was to reside in a named town. The Order was made on 24 April, 1963. The Government contended in the Madhya Pradesh case (supra), that Article 358 protected legislative and executive action taken after .....

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..... to be regulation of newspaper business even though there might be the incidental result of curtailing circulation. Reliance was placed on the decisions in Express Newspapers case (supra) and Hamdard Dawakhana (Wakf) Lal Kuan, Delhi Apr. v. Union of India Ors.( [1960] 2 S.C.R. 671.), in support of the contention that there would be no abridgement of fundamental right of the press if as a result of regulation of newspaper business there was the incidental effect of curtailing circulation. The Newsprint Policy was defended by the Government to be in aid of allowing small newspapers to grow and to prevent a monopolistic combination of big newspapers. The power of the Government to import newsprint cannot be denied. The power of the Government to control the distribution of newsprint cannot equally be denied. It has, of course, to be borne in mind that the distribution must be fair and equitable. The interests of the big, the medium and the small newspapers are all to be taken into consideration at the time of allotment of quotas. In the present case, there was some dispute raised as to whether there should be more import of newsprint. That is a matter of Government policy. This .....

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..... alise its freedom of choice as to personnel, prevent newspapers from being started and compel' the press to Government aid. This would violate Article 19 (1)(a), and would fall outside the protection afforded by Article 19 (2). In Sakal Papers case (supra) it is said that the freedom of speech and expression guaranteed by Article 19 (1) gives a citizen the right to propagate and publish his ideas to disseminate them, to circulate them either by words of mouth or by writing. This right extends not merely to the matter it is entitled to circulate but also to the volume of circulation. In Sakal Papers case (supra) the Newspaper (Price and Page) Act 1956 empoweredthe Government to regulate the prices of newspapers in relation to their pages and sizes and to regulate the allocation of space for advertisement matter. The Government fixed the maximum- number of pages that might be published by a newpaper according to the price charged. The Government prescribed the number of supplements that would be issued. This Court held that the Act and the Order placed restraints on the freedom of the press to circulate. This Court also held. that, the freedom of speech could' no+. be restricted fo .....

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..... in Article 19 (1)(a). The test of violation is the subject matter and not the effect or result of the legislation. If the direct object of the impugned law or action is other than freedom of speech and expression Article 19 (1)(a) is not attracted though the right to freedom of speech and expression may be consequentially or incidentally abridged. The rulings of this Court in Express Newspapers case (supra) and Hamdard Dawakhana case (supra) were referred to. In the Express Newspapers case (supra) the Act was said to be a beneficent legislation intended to regulate the conditions of service of the working journalists. It was held that the direct and inevitable result of the Act could not be said to be taking away or abridging the freedom of speech and expression of the petitioners. In. the Hamdard Dawakhana case (supra) the scope and object of the Act and its true nature and character were found to be not interference with the right of freedom of speech but to deal with trade or business. The subject matter of the import policy in the present case was rationing of imported commodity and equitable distribution of newsprint. The restrictions in fixing the page level and circulation w .....

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..... tified by the Government under clause 5 of the 1955 Import Control Order read with section 3(1) of the 1947 Import 'and Export Act and they are also justified under the provisions of clause 3 of the Newsprint Control Order- 1962.. The Newsprint Control Order 1962 was said to give sufficient guidance with regard to exercise of powers. Clause 3(5) of the Control Order of 1962 indicated that the Controller was to have regard to the principles. The import policy was upheld by the Government to have administrative character for guidance. in the matter of grant of licences. It was said that the impeached newsprint policy was given to the public as information regarding principles governing issue of import licences. The import policy was evolved to facilitate mechanism of the Act. The Import policy was said to have necessary flexibility for six years prior to April 1961. The Newsprint Policy operated successfully. The Controller has not abused his power. Mr. Palkhivala said that the tests of pith and substance of the subject, matter and of direct and of incidental effect of the legislation are relevant to questions of legislative competence but they are irrelevant to the question of i .....

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..... rine is used in ascertaining whether the Act falls under one Entry while incidentally encroaching upon another Entry. Such a question does not arise here. The Newsprint Control Policy is found to be newspaper control order in the guise of framing an Import Control Policy for newsprint. This Court in the Bank Nationalisation case (supra) laid down two tests. First it is not the object of the authority making the law impairing the right of the citizen nor the form of action that determines the invasion of the right. Secondly, it is the effect of the law and the action upon the right which attracts the jurisdiction of the court to grant relief. The direct operation of the Act upon the rights forms the real test. In Sakal Papers case (supra) this Court referred to the ruling in Dwarkadas Shrinivas v. The Sholapur Weaving Co. Ltd.( [1954] S.C.R. 674)' that it is the substance and the practical result of the act of the State that should be considered rather than the pure legal form. The correct approach _should be to enquire what in substance is the loss or injury caused to the citizen and not merely what manner and method has been adopted by the State in placing the, restrictions. i .....

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..... rican decisions in support of the submission that the right of the press of free expression is of all citizens speaking, publishing and printing in all languages and the grave concern for freedom of expression which permitted the inclusion of Article 19 (1)(a) is not to be read as a command that the Government of Parliament is without power to protect that freedom. The Constitutional guarantees of freedom of speech and expression are said by the Additional Solicitor General to be not so much for the benefit of the press as for the benefit of all people. In freedom of speech, according to the Additional Solicitor General, is included the right of the people to read and the freedom of the press assures maintenance of an open society. What was emphasized on behalf of the Government was that the freedom of the press did not countenance the monopolies of the market. It is indisputable that by freedom of the press is meant the right of all citizens to speak, publish and express their views. The freedom of the press embodies the right of the people to read. The freedom of the press is not antithetical to the right of +,he people to speak and express. Article 13 of our Constitution sta .....

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..... The Sherman Act was invoked in that case to prevent non-governmental combinations which tended to impose restraints upon constitutional guarantee of freedom. The regulation of business is one thing. The American case is an instance of the power of the Government to regulate newspaper industry. The other American decision on which the Additional Solicitor General relied is United States v. O'Brien (supra). In O'Brien's case (supra) the Court held that one who had burnt one's selective service registration certificate did so in violation of a federal statute making the knowing destruction or mutilation of such a certificate a criminal offence. It was contended in O'Brien's case (supra) that whenever the person engaging in the conduct of burning the certificate intends thereby to express an idea the idea of both "speech" and "non-speech" elements were combined to the same course of conduct. It was held that there was- a sufficiently important governmental interest in regulating the non-speech element. The Court noticed there that such incidental limitation on First Amendment freedom was justified because an important and substantial governmental interest was involved. The Governmen .....

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..... n given. In the policies prior to 1971-72 the growth achieved in circulation as a result of the grant of the additional quota for elections was taken into consideration in determining the quota for the following year. The Petitioners, therefore, contend that the policy in Remark V instead of increasing circulation win result in the reduction of circulation. The petitioners are, in our judgment, right in their submission that this policy negatives the claim of the Government that this policy is based on circulation. With regard to dailies over 10 pages Remark V proceeds on the calculation of the basic entitlement to be on an average of 10 pages and either the average circulation in 1970-71 or the admissible circulation in terms of 1971-72 Newsprint Policy plus increases admissible in terms of Remark VII whichever is more. The Bennett Coleman Group contends that the Times of India Bombay, the Times of India Delhi and the Times of India Ahmedabad had 13.13, 13.99 and 17.83 as the average number of pages in 1971-72. The average number of pages in 1972-73 under Remark V of the Policy is fixed at 10. Therefore, the percentage of cut in pages is 23.8, 28.4 and 43.8 per cent respectively .....

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..... tment is marginal. By way of illustration it is said that the Bennett Coleman group gets 828.79 metric tonnes less. Sixthly, it is said that 500 dailies applied for quota. Newprint has to be equitably rationed. Allowing some dailies more than 10 pages will adversely effect those dailies with less than 10 pages. In our view shortage of newsprint can stop with allotment. If the Government rests content with granting consumers of newsprint a quantity equitably and fairly, the consumers will not quarrel with the policy. The consumers of newsprint are gravely concerned with the other features. The fixation of 1 0 page limit is said by the Government to be on account of short supply of newsprint and equitable distribution of newsprint. In the year 1972-73 the quantity available for allocation was 2,15,000 tonnes. In the previous year the quantity was 2,25,000 tonnes. The shortfall is 10,000 tonnes. The percentage therefore will be 10,000 X 100 / 2,25,000 = 4-1/2% If the reduction is only 4-1/2% the cut in the Hindu was calculate 'by Mr. Nambiar to be 16-10=6 viz. 6X100=37-1/2 per cent. ----- In other words, the cut worked out to much higher proportion. Mr. Palkhivala for the Benn .....

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..... etermining quota the page level of 1957 was taken. Dailies operating on a page level of less than 10 have been granted increase in pages from time to time. Such dailies operating on a page level of less than 10 have chosen to increase circulation rather than to increase the number of pages, because of lack of advertisement support. From 1963-64 upto and including 1971-72 any quota for increase in pages could always be used for or adjusted against increase in circulation. Similarly any quota for increase in circulation, could be used for or adjusted against increase in number of pages. It is only because the newspapers were allowed to adjust between pages and circulation in the past that the big dailies' had an actual page level of more than the permissible page level of 1957. But most of the big language dailies which had a page level of less than 10 did not increase their pages though they were permitted to do so. In the past, newspapers which had 12 page limit were allowed to increase the page number. This is said to be the justification on the part of the Government to wipe out any inequity. It appears that 19 language dailies reduced their page numbers on the basis of which t .....

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..... f the medium and the small dailies. The difference in pages coupled with the difference in circulation affords a reason for difference in the percentage of total allocation given to the big dailies as compared to the medium and the small dailies. _The average number of pages for the big dailies is 10.3, for the medium 'dailies 8.3, and for the small dailies 4.4 (See Press in India 1971 page 134). The percentage of allocation for the big dailies reflects really the large number of pages they publish. The big dailies therefore have not only larger requirements but also they render larger services to the readers. The Newprint Policy of fixing the page level at 10 is seeking to make unequals equal and also to benefit one type of daily at the expense of another. The historical reason given by the Government for fixing the maximum number of pages at 10 is that the effect of the policy on allowing any page increase and circulation increase from time to time has been to help the growth of the Press. This is how newspapers like Ananda Bazar Patrika, Jugantar and Deccan Herald are said to have come up. The Government also relies on the recommendation of the newspaper proprietors in the yea .....

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..... ourt held in Hamdard Dawakhana case (supra) that an advertisement is no doubt a form of speech but its true character is reflected by the object for the promotion of which it is employed. In Sakal Papers case (Supra) this Court held that if the space for advertisement is reduced earnings would decline and if the price is raised that would affect circulation. It appears to us that in the present case, 'fixation of page limit will not only deprive the petitioners of their economic viability but also restrict the freedom of expression by reason of the compulsive re- duction of page level entailing reduction of circulation and denuding the area of coverage for news and views. The estimated loss on account of reduction of page limit is Rs. 39 lakhs in the case of Bennett Coleman group, Rs. 44 lakhs in the case of Hindustan Times and Rs. 38 lakhs in the case of the Hindu. If as a result of reduction in pages the newspapers will have to depend on advertisements as their main source of income, they will be denied dissemination of news and views. That will also deprive them of their freedom of speech and expression. On the other hand, if as a result of restriction on page limit the newspa .....

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..... and 6 pages in 1962-63. Most of them could not even fully utilize the page increase allowed. The present impeached policy seeks to remove iniquities created by previous policies. It depends upon facts as to how much more newsprint a group of newspapers started after 1961-62 will require and secondly whether they are in a position to increase the page number. It also appears that 19 language dailies reduced their page numbers on the basis of which the quota was calculated in order to increase their circulation. Therefore, there appears to be no justification for giving them additional quota for increasing page numbers by reducing the quota of the big dailies by imposing upon them the 10 page ceiling. The 10 page ceiling imposed affecting 22 big newspapers operating above 10 page level with approximate circulation of over 23 lakhs i.e. more than 25% of the total circulation is arbitrary and treats them equally with others who, are unequal irrespective of the needs and requirements of the big dailies and thus violates Article 14 of the Constitution. The impeached policy violates Article 14 because it treats newspapers which are not equal equally in assessing the needs and requiremen .....

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..... ey are denied the right of circulation. In, our view, these features were rightly said by counsel for the petitioners to be not newsprint control but newspaper control in the guise of equitable distribution of newsprint. The object of the impeached policy is on the one hand said to increase circulation and on the other to provide for growth in pages for others. Freedom of speech and expression is not only in the volume of circulation but also in the volume of news and views.Remark VIII in the Newsprint Policy of 1972-73 imposes two types of restrictions. First a daily is not permitted to increase its number of pages by reducing circulation to meet its individual requirements. Secondly, dailies belonging to a common ownership unit are not permitted interchangeability between them of the quota allotted to each even when the publications are different editions of the same daily published from different places. The first prohibition in Remark VIII against increase in pages, by reducing circulation has been introduced for the first time in the policy for 1972-73. The reason given by the Government for this feature is that newspapers would obtain a quota on the basis, of a certain stat .....

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..... nce with the dictates of Article 19 (1)(a) of the Constitution. Counsel for the petitioners contended that the second prohibition in Remark VIII in the Newsprint Policy prevented common ownership units from adjusting between them the newsprint quota allotted to each of them. The prohibition is to use the newsprint quota of one newspaper belonging to a common ownership unit for another newspaper belonging to that unit. On behalf of the petitioners it was said that from 1963-64 till 1966-67 inter,changeability was permitted between different editions of the same publication to the extent of 20 per cent. In 1967-68 and 1968-69 complete interchangeability between different editions of the same newspaper and between different newspapers and periodicals was permitted. In 1969-70 and 1970-71 the total entitlement was give" as an aggregate quota, though there was a separate calculation made for each newspaper. The present policy does not permit interchangeability. Interchangeability by using the quota for a new newspaper or a new edition or for another newspaper of the same unit will put common ownership unit in an advantageous position. Newsprint is allotted to each news; paper. The newsp .....

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..... tion have been given 10% increase in circulation whereas those with more than 1,00,000 circulation have been given only 3% increase in circulation. Mr. Palkhivala said the policy worked admirably in the past because adjustability between pages and circulation was permitted. In our view the Newsprint Control has now been subverted to newspaper control. The growth of circulation does not mean that there should not be growth in pages. A newspaper "expands with the news and views. A newspaper reaches different sections. It has to be left to the newspapers as to how they will adjust their newsprint. At one stage the Additional Solicitor General said that if a certain quantity of steel was allotted the Government could insist as to how it was going to be used. It was said that the output could be controlled. In our view, newsprint does not stand on the same footing as steel. It has been said that freedom of the press is indispensable to proper working of popular Government. Patna jali Sastri, J. speaking for this Court in Ramesh Thappar's case (supra) said that "Thus, every narrow and stringent limits have been set to permissible legislative abridgment of the right of free speech and exp .....

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..... ermitted the use of white printing paper. That is because of Public Notice No. 4-ITC(PN)/63 dated 1 1 January, 1963. That may be one of the reasons why periodicals have not complained of the Policy. The periodicals can supplement their newsprint quota. Further, the clientele of the periodicals is different. The Prices of periodicals are also different. In any event, it cannot be said that the newspapers can buy white printing paper to meet their requirements. Nor can such plea be an answer to the violation of fundamental rights in Article 19 (1) (a) or infraction of Article 14 by the provisions of the impeached Newsprint Policy. In the present case, it cannot be said that the newsprint policy is a reasonable restriction within the ambit of Article 19(2). The newsprint policy abridges the fundamental rightS of the petitioners in regard to freedom of speech and expression. The newspapers are not allowed their right of circulation- The newspapers are not allowed right of page growth. The common ownership units of newspapers cannot bring out newspapers or new editions. The newspapers operating above 10 page level and newspapers Operating below 10 page level have been treated equally fo .....

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..... r upon a section of the public. The Additional Solicitor General contended that the business aspect of the press had no special immunity and the incidental curtailment in the circulation could not be freedom of speech and expression of the press. This Court in Sakai Papers case (supra) dealt with the measures for the fixation of price in relation to pages and the regulation of allotment of space for advertisement by each paper. These measures were said to be com- mercial activities of newspapers. This Court said that restrictions could be put upon the freedom to carry on business but the fundamental right of speech and expression could not be abridged or taken away. There could be reasonable restrictions on that right only as contemplated under Article 19(2). Mr. Nambiar contended that the Newsprint Policy did not fall within clause 5(1) of the Import Control Order 1955 and it was not validly made by the Central Government. The records with regard to the making and publication of the newsprint policy for 1972-73 were looked into by this Court. It appears that the policy was published under the authority of the Cabinet decision. The policy was therefore validly brought into exis .....

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..... 1972-73 violates Articles 19 (1) (a) and 14 of the Constitution. The restrictions by fixing 10 page limit in Remarks V and VIII of the policy infringe Articles 19 (1)(a) and 14 of the Constitution and are therefore, declared unconstitutional and struck down. The policy of basic entitlement to quota in Remark V is violative of Articles 19(1)(a) and 14 of the Constitution and is therefore struck down. The measure in Remark VII(a) is violative of Articles 14 and 19 (1) (a) of the Constitution and is struck down. The measures in Remark VII(C) read with Remark VIII are violative of Articles 19(1)(a) and 14 of the Constitution and are struck down. The prohibition in Remark X against common ownership unit from starting a new newspaper/periodical or a new edition is declared unconstitutional and struck down as violative of Article 19(1)(a) of the Constitution. For these reasons the petitioners succeed. The import policy for newsprint for the year 1972-73 in regard to Remarks V, VII(a), VII(c), VIII and X as indicated above is struck down. The parties will pay and bear their own costs. MATHEW, J. These four writ petitions concern the validity of sub-clauses (3) and (3A) of Cl. 3 of the .....

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..... trol policy promulgated from time to time,: On January 17, 1962, in the exercise of the powers under cl. 3 of the Essential Commodities Act, 1955, the Central Government promulgated the newsprint Control Order, 1962. Clause 3 and Schedule I of the Order are as follows "3. Restrictions on acquisition, sale and consumption of newsprint :- (1) No person other than an importer shall acquire newsprint except under and in accordance with the terms and conditions of an authorisation issued by the Controller under this Order. (2) No dealer in newsprint shall sell to any person newsprint of any description or in any quantity unless the sale to that person of newsprint of that description or in that quantity is authorised by the Controller. (3) No consumer of newsprint shall, in any licensing period, consume or use newsprint in excess of the quantity authorised by the Controller from time to time. all dailies with a circulation of 41.60 which represent aUf KHANNA AND Y. V. CHANDRACHUD, JJ.] SCHEDULE-1 1. White printing paper (excluding laid marked paper) with fibre Content of not less than 70 per cent mechanical wood pulp. 2. Glazed newsprint. 3.lndigenous newsprint man .....

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..... g to a Common Ownership Unit (Remark VIII); and (ii) Prohibition to start a new newspaper/periodical by the Common Ownership Unit (Remark VIII); and 4. Denial of newsprint quota to (i) an existing newspaper belonging to a Common Ownership Unit which has not been granted newsprint quota; and (ii) additional newspapers sponsored or acquired by a common Ownership Unit (Remark- X). 5. Prohibition to use white printing paper by the newspapers which have been allotted newsprint (Cl. 3(3A) of the Newsprint Control Order). That there can be no unlimited right to acquire or use a scarce commodity like newsprint can admit of no doubt. The argument of the petitioners that Government should have accorded greater priority to the import of newsprint to supply the need of all newspaper proprietors to the maximum extent is a matter relating to the policy of import and this Court cannot be propelled into the unchartered ocean of Governmental policy. Let me first take the general question whether the provisions of the Newsprint Policy and the Newsprint Control Order abridge the freedom of speech. The freedom of the press is no higher than the, freedom of speech of a citizen under Art .....

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..... of speech would be an abridgment of the freedom of speech. In other words, regulation of speech is not inconsistent with the concept of the freedom, of speech unless the regulation amounts to abridgment of that freedom. No freedom, however absolute, can be free from regulation. Though the right under Art. 30(1) is in terms absolute, this Court said In Re the Kerala Education Bill, 1957([1959] S.C.R. 995.), that the right is subject to reasonable regulation. The Privy Council said in Commonwealth of Australia v. Bank of New South Wales( [1950] A.C. 235, 310) that regulation of trade and commerce is compatible with the absolute freedom of trade and commerce. In fact, the very essence of freedom in an ordered society is regulation. The application of the term '-abridge' is not difficult in many cases but the problem arises in certain types of situations. The important ones are where a regulation is not a direct restriction of expression but is designed to accomplish another objective and the impact upon the expression is secondary or indirect. This problem may appropriately be formalized in terms of defining the key elements, namely, "freedom of speech "abridge" and "law". These defi .....

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..... Lee Gorsjean v. American Press Company ( 297 U.S. 233 ) and Robert Murdock v. Commonwealth of Pennsylvania( 319 U.S. 105). "In other words, though the speech itself be under the First Amendment,the manner of its exercise or its, collateral aspects may fall beyond the scope of the amendment"(1). This principles illustrated by the case of Naresh Shridhar Mirajkar and Others v. The State of Maharashtra and Another((1966) 3 S.C.R.744,762) where the Bombay High Court, by an order, prohibited the publication of the evidence of a witness and the question was, whether the order abridged the fundamental right of the freedom of speech of the petitioner in the case. This Court held by a majority that it did not. Gajendragadkar, C. J. said: "As we have already indicated, the impunged order was directly concerned with giving such protection to the witness as was thought to be necessary in order to obtain true evidence in the case with a view to do justice between the parties. If, incidentally, as a result of this order, the petitioners were not able to report what they heard in Court, that cannot be said to make the impugned order invalid under Article 19(1)(a) .... Any incidental consequence .....

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..... nd non-speech elements are combined in the same course of conduct, a sufficiently important governmental interest in regulating the non-speech element can justify incidental limitations on the freedom of speech. The Court further obseved that a government regulation is sufficiently justi- fied if it is within the constitutional power of the Government; if it furthers an important or substantial governmental interest; if the governmental interest is unrelated to the suppression of free expression and the freedom of speech is no greater than is essential to the furtherance of that interest. In Sakal Papers (P) Ltd. and others v. Union of India( [1962] 3 S.C.R. 842, 866.) this Court was concerned with the validity of the Newspaper (Price and Page) Act, 1956, and Daily Newspaper (Price and Page) Order, 1960. The whole subject matter fell directly under Art.' 19(1)(a). It was not a case where the impingement on the freedom of speech was indirect. The legislation in that case directly restricted circulation of newspapers. The direct effect of the legislation, in other words, was to abridge the freedom of speech by curtailing circulation. The learned judges, after referring to the Expre .....

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..... pages off-.ends Art. 14. Before 1972-73, the newsprint, allocation policy was based on the page level of 1957 coupled with the circulation figures of 1961-62, and all entitlements were calculated, with allowable increases and adjustments, from year to year on that basis. As a result, the newspapers which entered the field after 1962-63 were at a disadvantage and were pegged to their own lower page and circulation level. There were many papers specially in the Indian Languages group where the actual circulation even during 1970-71 exceeded the notional circulation figure which was arrived at cumulatively based on the 1961-62 figures. The result of the previous policies was that some news papers which had already a very large circulation at the time of introduction of newsprint rationing and were not interested in in- creasing circulation substantially were able to use the newsprint allotted to them so as to increase the number of pages. On the other hand, the newspapers which were at a lower level of circulation but had the potential to increase the readership were restricted to the ad hoc percentage [1950] A.C. 235, 312-3. increase allowed under those policies but were unable, a .....

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..... culating the entitlement of quota for a newspaper is not a new feature.. The previous policies provided inter alia that, a location would be calculated on the basis of a page level upto 12 pages and restricted to an increase of not more than 2 pages at a time. Therefore, even under the prior policies, the newsprint allocation was calculated on the basis of a maximum page level which was 12 pages as mentioned above, except in the case of six newspapers whose page level in 1957 was more than 12 pages. Dailies are classified as 'big', 'medium' and 'small'. A newspaper With a circulation of over 50,000 is 'big', that with a circulation ranging from 15,000 to 50,000 is 'medium' and that with a circulation below 15,000 is 'small'. The average page number of big dailies was 10.3. Out of the 45 big dailies, 23 operated on a page level of less than 10 pages and 22 operated on a page level of more than 10. The average page level of all the dailies was 5.8. Out of the 45 big dailies, 30 are language, and 15 English. All the 15 big dailies in English operated on an average page level over 10 and their average page level was 13.45. Even the medium English dailies operated on a page level over .....

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..... reasonable assurance .... that the freedom which Congress was forbidden to abridge was not, for them.' some absolute concept which had never existed on earth." What Lincoln said on liberty is relevant here: "The world has never had a good definition of [it]". Justice Holmes gave at different times opposite interpretations of the historic meaning of the First Amendment. Speaking for himself and Justice Brandeis, he observed :( Abrams v. U.S., 250 U.S. 616, 630. "History seems to me against the notion (that) the First Amendment left the common law of seditious libel in force." A few years earlier, he had written for the Court "(T)he main purpose of such constitutional provisions 'to prevent all such previous restraints... as had been practices by other governments,' and they do not prevent the subsequent punishment of such as may be deemed contrary to the public welfare". In this statement Holmes had the support of Cooley, who maintained that its Blackstonian outlook "has been followed by American commentators of standard authority as embodying correctly the idea incorporated in the constitutional law of the country by the provisions in the American Bill of Rights." The .....

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..... The same sentiment was echoed by Justice Black when he said that the freedom of speech rests on the assumption that the widest possible dissemination of information from diverse and antagonistic sources is essential to the welfare of the public (Associated v. United States(326 U.S. Reports 1, 20 (1945)) But this fundamental presupposition is seriously weakened by concentration of power. Instead of several views of the facts and several conflicting opinions, newspaper readers in many cities, or, still worse, in wide regions, may get only a single set of facts and a single body of opinion, all emanating from one or two owners.( See Zechariah Chafee, Jr., Government and Mass Communications, Vol. 1, pp. 24-25.) Our Constitutional law has been singularly indifferent to the reality and implications of non-governmental obstructions to the spread, of political truth.' This indifference becomes critical when a comparatively few private hands are in a position to determine not only the content of information but its very availability (see Jerome A. Barren, "Access to the Press"-A New First Amendment Right").(1) With the concentration of mass media in a few hands, the chance of an idea anta .....

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..... facts, which ideas shall reach the public. Through concentration of ownership, the variety of sources of news and opinion has become limited. At the same time, the citizen's need for variety and new opinions has increased. He is entirely dependent on the quality, proportion and extent of his news supply,-the materials for the discharge of his duties as a citizen and a judge of public affairs-on a few newspapers. The Press Commission has observed in its report (Part 1, p. 3 1 0) that since the essence of the process of formation of opinion is that the public must have an opportunity of studying various points of view and that the exclusive and continuous advocacy of one point of view through the medium of a newspaper which holds a monopolistic position is not conducive to the formation of healthy opinion, diversity of opinion should be promoted in the interest of free discussion of public affairs, The mass media's development of an antepathy to ideas anta- gonistic to theirs or novel or unpopular ideas, unorthodox points of view which have no claim for expression in their papers makes the theory of market place of ideas too unrealistic. The problem is how to bring all ideas into .....

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..... igopoly ruling the market and thus check the tendency to monopoly in the market, that will not be open to any objection on the ground that the scheme involves a regulation of the press which would amount to an abridgment of the freedom of speech (see Citizen Publishing' Co. v. United States).( 394 U.S. 131.) Promoting effective competition of ideas in the market alone will ensure the emergence of truth out of the competition; at any rate that is the basis underlying the guarantee of free speech, and any distribution of newsprint calculated to promote competition by making the competitors equal in strength cannot but be characterized as a scheme to advance the freedom. One cannot promote competition by making the strong among the competitors stronger or the tall taller but by making the weak among them strong and the short tall. So, even if the scheme of distribution aims at making dailies with smaller page-level and less circulation attain a position of' equality in respect of page level and circulation with those, having a page level of 10 and enjoying greater circulation, that would not, in any way, be open to objection on the ground of violation of Art. 19 (1) (a). I am unable t .....

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..... ence between the right to an equal distribution of things and the equal- right with respect to a distribution of such things. According to the former, each individual is to receive numerically identical amounts of the benefit being distributed or the burden imposed in the public sector, whereas the latter means only that all will receive the same consideration in the distributional decision, but that the numerical amounts distributed may differ. Proportional equality means equality in the distribution according to merit or distribution- according to need (see Developments-Equal Protection). (Harvard Law Review, Vol. 82, p. 1165) But the Supreme Court of U.S.A. has departed froth this traditional aproach in the matter of equality and has adopted a more dynamic concept as illustrated by the decision in Griffin v. Illinois(351 U.S. 12) and Douglas v. California. (372 U.S. 353) In these cases it was held that the State has an affirmative duty to make compensatory legislation in order to make men equal who are really, unequal has undergone radical other words, the traditional doctrine that the Court is concerned with formal equality before the law and is not concerned to make men equal .....

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..... growth in page-level provided in Remark VII is based on a classification and that the classification is grounded on an intelligible differential. having a nexus to the object sought to be achieved. By, far the, most fundamental attack made by counsel for the petitioners was that levelled against the provision in Remark VIII which provides that within the quantity of newsprint authorized for the licensing period, each newspaper/periodical will be free to increase circulation by reducing the number of pages, page area and periodicity, but will not be free to increase the number of pages, page area and periodicity by reducting circulation, to meet its individual requirements. It was contended that this is direct inroad upon the freedom of speech and that by-no stretch of imagination can it be characterized as newsprint control The argument was that when once the quota has been determined and allotted, further direct-ions as regards circulation or page number is nothing but brazen-faced trespass into the domain of the guaranteed freedom. It was said that once the quota has been fixed and allotted, the control over newsprint as a commodity was over and any stipulation as regards its u .....

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..... ? The effect would have been the same, namely, that the proprietor would not have been entitled to increase the page level of the newspaper within the authorised quota. The incidental effect of the direction to maintain the circulation or increase it would be to tell the proprietor or publisher riot; to increase the number of its pages. If the Newsprint Policy could legitimately say, without abridging the freedom of speech, that a newspaper should maintain its present circulation, the fact that it also said that it, should not increase its page level and reduce circulation would not in any way affect the question. If telling a publisher or proprietor to maintain the circulation of a newspaper or increase it, is not an abridgment of the freedom of speech, the further express direction in the Newsprint Policy not to increase its page-level within the authorised quota would not be an abridgment of the freedom, of speech as it is an implied consequence of- the- direction to maintain the circulation. The matter can be looked at from another angle. The consti- tutional guarantee of the freedom of speech is not so much for the benefit of the press as it is for the benefit of the public .....

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..... ts upon, the newspapers concerned maintaining their present level of circulation does not abridge the freedom of speech but only enriches and enlarges it. In other words, under the theory of the freedom of speech which recognises not only the right of the citizens to speak but also the right of the community to hear, a policy in the distribution of newsprint for maintenance of circulation at its higher possible level, as it furthers the right of the community to hear, will only advance and enrich that freedom. At present, our circulation is only 1.3 copies for every 100 people and 4.6 copies for every 100 literates in the country. Circulation must be doubled if the press is to reach 'all the literates in the country. This is a sufficient justification for a circulation oriented policy. Newsprint which is in short supply must be used so as to help to achieve the widest possible dissemination of news and at the same time meet the demands of the press as a whole. Under Art. 41 of the Constitution the State has a duty to take effective steps to educate the people within limits of its available economic resources. That includes political education also. Public discussion of public .....

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..... anteed by Art. 19(1)(a) but for commercial advertisement for revenue which will not fall within the ambit of that sub-article. In every society, there are many interests. held in varying degrees, by individuals and groups, viz., the interest in, valuing of, or concern, for free speech, peace, quiet, protection of property, fair trial, education, national security, good highways, a decent minimum wage, etc. "The attainment of freedom of expression is not the sole aim of the good society. As the private right of the individual, freedom of expression is an end in itself, but it is not the only end of man as an individual. In its social and political aspects, freedom of expression is primarily a process or a method for reaching other goals. It is a basic element. in the democratic way of life, and as a vital process it shapes and determines the ends of democratic society. But it is not through this process alone that a democratic society will attain its ultimate ends"(1). (1) See Thomas 1, Emerson, Toward a General Theory of' the First Amendment Yale Law Journal, Vol. 72, 1962-63. 877, 907. Therefore, any theory of freedom of expression must take into account other values such as j .....

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..... ions Assn. v. Douds, 339 U.S. 382; Breard v. Alexandria 341 U.S. 622." It was contended on behalf of the petitioners that prohibition of interchangeability of quota between different newspaper,-,owned by a common ownership unit, or different editions of the same newspaper owned by that unit is an abridgment of their fundamental right under Art. 19(1)(a). A common ownership unit is defined to mean a newspaper establishment or concern owning two or more newspapers including at least one daily irrespective of the centers of publication and language of such papers. The newsprint is allotted to a newspaper. In other words, the unit of allotment is a newspaper. Clause 2(a) of the Newsprint Control Order defines "consumer of newsprint": "consumer of newsprint means a printer or publisher of newspapers, periodicals, text books or books of general interest who uses newsprint." The printer or publisher of each newspaper owned by a common ownership unit is a separate consumer and it is to that consumer that the quota is allotted. The application for quota made by the common ownership unit specifies the entitlement of each newspaper owned by it, and quota is granted to each n .....

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..... ll accelerate the tendency toward monopoly in the newspaper industry. When the prohibition against interchangeability of newsprint quota between or among the newspapers owned by a common ownership unit is found valid, the restriction imposed on common ownership unit to bring out a new newspaper from its authorised quota must be held to be valid and not offending Art. 19(1) (a). If the quota allotted for a newspaper owned by the common ownership unit cannot be used for any other newspaper, it stands to reason to hold that the prohibition against bringing out a new newspaper cannot be challenged as violative of Art. 19(1) (a). No doubt, if the system of rationing were not there, it would be open to any person to own or conduct any number of newspapers but, since the quantity of newsprint available for distribution is limited, any system of rationing must place some limitation upon the right of a person to express himself through newspapers. Mr. M. K. Nambiar, appearing for "The Hindu", contended that the Newsprint Policy is not law, that it is only an adminis- trative direction with no statutory backing and so, the restrictions which the policy impose are not binding. The Newsprint P .....

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..... the newsprint after the allotment of the quota is ultra vires the powers of the licensing authority issuing the same. It is said that after newsprint has been imported, there was no Ion any power left in the Central Government or in the Chief Controller of Imports and Exports to direct the manner in which it should be utilized. Cl.5(1) of the Imports (Control) Order, 1955 provides; "5. Conditions of Licenses : (1) The licensing authority issuing a licence under this Order may issue the same subject to one or more of the conditions stated below :- (i) that the goods covered by the licence shall not be disposed of, except in the manner prescribed by the licensing authority, or otherwise dealt with, without the written permission of the licensing authority or any person duly authorised by it;" (1) John Chimpman Gray, the Nature and Sources of the Law, Second Edition In Abdul Aziz Aminuddin v. State of Maharashtra( [1964] 1 S.C.R. 830, 837-8), this Court said that the power conferred under s. 3(1) of the Act (Imports and Exports (Control) Act, 1947) is not restricted merely to prohibiting or restricting imports at the point of entry but extends also to controlling the subsequen .....

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..... ral Government or the State Government or officers and authorities of the Central Government or State Government, and may contain directions to any State Government or to officers and authorities thereof as to the exercise of any such powers or the discharge of any such duties. It was, therefore, open to the Government to confer such powers upon the "controller" as defined in the Newsprint Control Order, 1962: "2(b) Controller means the Chief Controller of Imports and Exports and includes any officer appointed by the Central Government to exercise the powers of the Controller under this Order." Sub-clause (3A) was introduced in cl. 3 of the Newsprint Control Order, 1962, for a particular purpose. There is only a limited quantity of white printing paper. In view of the shortage of white printing paper in the country, it was considered necessary by the Government to restrict its use by consumers of newsprint who were getting quota of imported newsprint. In fact, for newspapers and periodicals, newsprint is the more acceptable raw material than white printing paper. It was found that some of the more affluent papers had started drawing heavily on the limited quantity of white prin .....

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..... or the import of quotas of news print assigned to the licensees. They are meant to be obeyed if the licensees want their quotas. The implication of such an imposition clearly is that the licences could be revoked if terms of their grant are not complied with apart from other possible consequences in the future. It is alleged that these terms interfere with the fundamental rights of petitioners to freely express their opinions through their newspapers and to carry on the manufacture and sale of newspapers to the public. If, however, these terms and conditions do not fall under any provision of law but interfere with the exercise of petitioners' fundamental rights, the question of testing their reasonableness will not arise,. What is termed "policy" can become justiciable when it exhi- bits itself in the shape of even purported "law". According to Article 13(3) (a) of the Constitution, "law" 'Includes "any Ordinance, Order, bye-law, rule, regulation, notification, custom or usage having in the territory of India the force of law". So long as policy remains in the realm of even rules framed for the guidance of executive and administrative authorities it may bind those authorities as .....

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..... . That which, carrying a once famous phrase, we may call the genius of universal publicity, has some disagreeable results, but the wholesome ones are greater and more numerous. Selfishness, injustice, cruelty, tricks and jobs of all sorts, shun the light; to expose them is to defeat them. No serious evils, no rankling sort in the body politic, can remain long concealed, and, when disclosed, it is half destroyed. So long as the opinion of a nation is sound, the main lines of its policy cannot go far wrong". John Stuart Mill, in his essay on "Liberty", pointed out the need for allowing even erroneous opinions to be expressed on the ground that the correct ones become more firmly established by what may be called the 'dialectical' process of a struggle with wrong ones which exposes errors. Milton, in his "Areopagitica" 1 644) said: "Though all the winds of doctrine were let loose to play upon the earth, so Truth be in the field, we do injuriously by licensing and prohibiting to misdoubt her strength. Let her and Falsehood grapple; whoever knew Truth put to the worse, in a free and open encounter ? ..... I Who knows not that Truth is strong, next to the Almighty; she needs no polic .....

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..... of restrictions which can be imposed by "law" on freedom to carry on any occupation, trade, or business, guaranteed by Article 19 (1) (g) of the Constitution, is wider than that of restrictions on freedom of speech and expression, yet, these restrictions have also to be limited to those which are reasonably necessary "in the interest of the general public" as contemplated by Article 19(6) of the Constitution. Permissible restrictions on any fundamental right, even where they are imposed by duly enacted law- must not be excessive, or, in other words, they must not go beyond what is necessary to achieve the objects of the law under which they are sought to be imposed. The power to impose restrictions on fundamental rights is essentially a power to "regulate" the exercise of these rights. In fact, "regulation" and not extinction of that which is to be regulated is generally speaking the extent to which per- missible restrictions may go in order to satisfy the test of reasonableness. The term "regulate" has come up for interpretation on several occasions before American Courts which have held that the word "regulate" means "to adjust by rule, method, or established mode; to direct by r .....

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..... clause runs as follows :- "(1) No person other than an importer shall acquire newsprint except under and in accordance with the terms and conditions of an authorisation issued by the Controller under this Order. , (2) No dealer in newsprint shall sell to any person newsprint of any description or in any quantity unless the sale to that person of newsprint of that description or in the quantity is authorised by the Controller. (3) No consumer of newsprint, in any licensing period, consume or use newsprint in excess of the quantity authorised by the Controller from time to time. (3A) No consumer of newsprint, other than a publisher of text books or books of general interest, shall use any kind of paper other than newsprint except with the permission, in writing, of the Controller. (4) An authorisation under this clause shall be in writing in the form set out in Schedule II. (5) In issuing an authorisation under this clause, the Controller shall have regard to the principles laid down in the Import Control Policy with respect of newsprint announced by the Central Government from time to time". Section 3(1) of the Essential Commodities Act, 1955 lays down the conditio .....

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..... ts Exports (Control) Act, 1947, restricts the power of the Central Government, "by order published in the official Gazette", to making "provisions for prohibiting, restricting or otherwise controlling in all cases or in specified classes of cases, and subject to such exceptions if any as may be made by or under the order :- (a) the import, export, carriage coast-wise or shipment in ships stores of goods of any specified description; (b) the bringing into any port or place in India of goods of any specified description intended to be taken out of India without being removed from the ship or conveyance in which they are being carried". Clause 3 of the Imports (Control) Order, 1955, made in exercise of powers conferred by Sections 3 and 4A of the Imports Exports (Control) Act, 1947, says : .lm15 "3. Restriction of Import of certain goods:-- (1) Save as otherwise provided in this order, no person shall import any goods of the description specified in Schedule 1, except under, and in accordance, with a licence or a customs clearance permit granted by the Central Government or by any officer specified in Schedule 11". It seems to me that the ambit of the conditions in a l .....

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