SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1972 Supreme(SC) 521

SUPREME COURT OF INDIA
S.M. SIKRI C.J.I., A.N. RAY, P. JAGANMOHAN REDDY, K.K. MATHEW AND M.H. BEG, JJ.
Bennett Coleman and Co. Ltd. and others (In W. P. No. 334 of 1971); Hindustan Times Ltd. and others (In W. P. No. 175 of 1972); G. Narasimhan and others (In W. P. No. 264 of 1972), Petitioners
Versus
Union of India and others, Respondents.
Writ Petn. Nos. 334 of 1971, 175 and 264 of 1972, D/- 39-10-1972.
1. Andhra Probha Pvt. Ltd. Express Estates, Madras,
2. B. D. Goenka, Express Estate, Madras.
3. The Hindustan Times Ltd. New Delhi Interveners (In P. No. 334 of 1971) with Writ Petn. No. 186 of 1972.
Advocates appeared
M/s. N. A. Palkhivala and S. J. Sorajbjee, Sr. Advocates (M/s. M. O. Chenoi and S. Swarup and M/s. Ravinder Narain, O. C. Mathur and J. B. Dadachanji Advocates of M/s. J. B. Dadachanji and Co. Advocates with 110 them for Petitioners. In W. P. No. 334 of 1971; M/s. C. K. Daphtary and M. C. Bhandare, Sr. Advocates (Mrs. Leila Seth, M/s. O. P. Khaitan and N. C. Shah Advocates with them), for Petitioners. In W. P. No. 175 of 1972; Mr. S. J. Sorabjee, Sr. Advocate (M/s. Ramanathan, J. B. Dadachanji, Ravinder Narain and O. C. Mathur Advocates of M/s. J. B. Dadachanji and Co. Advocates with him), for Petitioners. In W. P. No. 186 of 1972; M/s. M. K. Nambyar and K. K. Venugopal, Sr. Advocates (M/s. J. B. Dadachanji, Ravinder Narain and O. C. Mathurr, Advocates of M/s. J. B. Dadachanji & Co., Advocates with them), for Petitioners. In W. P. No. 264 of 1972; Mr. F. S. Nariman, Addl. Solicitor General of India (M/s. G. Das and B. D. Sharma, Advocates with him) for Respondents. In all the Petns.; M/s. J. B. Dadachanji, O. C. Mathur and Ravinder Narain, Advocates of M/s. J. B. Dadachanji and Co. Advocates (for Nos. 1 and 2) and Mr. O. P. Khaitan, Advocate (for No. 3), for Interveners.

Headnote:SHAREHOLDERS ENTITLED TO PROTECTION UNDER ARTICLE 19 - POLICY MEASURES OF GOVT.—SUPREME COURT CANNOT ADJUDICATE UNLESS MALAFIDE IS ALLEGED

       -held, fundamental right of shareholders as citizens are not lost for forming a company. Rights of shareholders are projected and manifested by newspaper owned and controlled by shareholders through the medium of corporation. The fact that companies are the petitioners is not a bar of Supreme Court giving relief to shareholders, editor, pointers who have asked for protection of their fundamental rights against law and State action affecting this right.

       

Judgement Key Points

Key Points: - The Court held that the Newsprint Policy for 1972-73 violates Articles 19(1)(a) and 14 and is struck down. (!) (!) (!) - The judgment articulates the direct operation/impact test: focus on whether the action takes away or abridges the fundamental right of speech, not merely its object or subject matter. (!) (!) (!) - It criticizes the 10-page ceiling, reductions in circulation, and prohibitions on starting new newspapers within common ownership units as irrational, discriminatory, or unconstitutional. (!) (!) (!) - It discusses that regulation of a scarce commodity can be justified only if reasonably related to government objectives and not to abridge free speech. (!) (!) - The decision references Bank Nationalisation and Sakal/Express line of cases to support the locus standi of shareholders/editors and the direct effect approach. (!) (!) (!) - The majority notes that the policy is not grounded in a valid law authorizing such post-quota restrictions and is struck down for lack of lawful basis. (!) (!) (!) - The judgment emphasizes the positive obligation to educate and inform the public and to avoid monopolistic or discriminatory distribution of newsprint. (!) (!)

What is the legality of the Newsprint Policy (1972-73) and its provisions under Articles 19(1)(a) and 14?

What is the proper test to determine whether a government regulation of a scarce resource infringes the freedom of speech and expression?

What are the constitutional limits on government control of newsprint distribution and interchangeability between newspapers within common ownership units?


Judgment

RAY, J. :- (on behalf of S. M. Sikri, C.J.I, P. Jaganmohan Reddy, J. and himself) : These petitions challenge the Import Policy for Newsprint for the year April 1972 to March 1973. The Newsprint Policy is impeached as an infringement of fundamental rights to freedom of speech and expression in Article 19 (1) (a) and right to equality in Article 14 of the Constitution. Some provisions of the Newsprint Control Order 1962 are challenged as violative of Article 19 (1) (a) and Article 14 of the Constitution.

2. The import of newsprint is dealt with by Import Control Order, 1955 (referred to as the 1955 Import Order). The 1955 Import Order is made in exercise of powers conferred by Sections 3 and 4A of the Imports and Exports Control Act, 1947 (referred to as the 1947 Act). Section 3 of the 1947 Act speaks of powers of the Central Government to prohibit, restrict or otherwise control imports and exports. Section 4A of the 1947 Act contemplates issue or renewal of licences under the 1947 Act for imports and exports. Item 44 in Part V of Schedule I of the 1955 Import Order relates to newsprint. Newsprint is described as white printing 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 imports 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).

3. The Newsprint Control Order 1962 (referred to as the 1962 Newsprint Order) is made in exercise of powers conferred by Section 3 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 S. 2 (a) (vii) of the 1955 Act to be an essential commodity.

4. The 1962 Newsprint Order in clause 3 mentions restrictions on acquisition, sale and consumption of newsprint. Sub-clause 3 of clause 3 of the 1962 Newsprint Order states that 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. Sub-clause 3A of clause 3 of the 1962 Newsprint Order states that 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. Sub-clause 5 of clause 3 of the 1962 Newsprint Order states that in issuing an authorisation under this clause, the Controller shall have regard to the principles laid down in the Import Codntrol Policy with respect to newsprint announced by the Central Government from time to time. Sub-clauses 3 and 3A of clause 3 of the 1962 Newsprint Order are challenged in these petitions on the ground that these clauses affect the volume of circulation, the size and growth of a newspaper and thereby directly infringe Article 19 (1) (a) of the Constitution. The restrictions mentioned in these sub-clauses of clause 3 of the 1962 Newsprint Order are also said to be not reasonable restrictions within the ambit of Article 19 (2) of the Constitution.

5. Sub-clauses 3 and 3A of cl. 3 of the 1962 Newsprint Order are further impeached on the ground that they offend Article 14 of the Constitution. Sub-clause 3A is said to confer unfettered and unregulated power and uncontrolled discretion to the Controller in the matter of granting of authorisation. It is said that there are no





















































































































































































































































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top