SUPREME COURT OF INDIA
A.N. RAY, C.J.I., M.H. BEG, P.N. BHAGWATI, V.R. KRISHNA IYER AND S. MURTAZA FAZAL ALI, JJ.
M/s. Fatehchand Himmatlal and others etc., Appellants
Versus
State of Maharashtra, Respondent.
Mahadeo and others etc., Appellants
Versus
State of Maharashtra, Respondent.
Roopchand Fatehchand Binaykiya etc., Petitioners
Versus
State of Maharashtra etc.,
(1) Civil Respondents.
Appeals Nos. 632 to 646 of 1976:
AND
(2) Civil Appeals Nos. 655 and 1286 of 1976:
AND
(3) W. Ps. Nos. 98, 102-107, 110,113 and 115-120 of 1976:
Civil Appeals Nos. 632 to 646 and 655 and 1286 of 1976 and Writ Petns. Nos. 98, 102-107,. 110-113 and 115-120 of 1976, D/-.
Advocates Appeared
Mr. B. Sen, Sr. Adv. (in C. A. No. 632) Mr. Y. S. Chitale, Sr. Adv. (in C. A. No. 633), Mr. Sachin Chowdhary, Sr. Adv. (in C. A. No. 634), Mr. F. S. Nariman Sr. Adv. and Mr. R. N. Bannerjee, Adv. (in C.A. No. 637). Mr. H.P. Shah, Adv. (in C. As. Nos 632-638), Mr. A. J. Rana (in C. A. No. 635), (Mr. P. H. Parekh and Miss Manju Jetley, Advs. with them), for Appellants in C. As. Nos. 632-637 of 1976; M/s. Vallabhdas Mohta, Sardar Bahadur Saharya and Vishnu Bahadur Saharya, Advs. , for Appellants in C. As. Nos. 638-644 and 655 of 1976; Mr. J. L. Nain, Sr. Advocate, (M/s. A. J. Rana, Janendra Lal, B. R. Agarwala and M/s. Gagrat & Co., Advs. with him), for Appellants in C. As. Nos. 645 and 646 except for Appellant No. 52 in C. A. No. 646 of 1976 ; Mr. F. S. Nariman, Sr. Adv., (M/s. R. N. Banjerjee, J. B. Dadachanji and K. J. John, Advs. with him), for Appellant No. 52 in 646 of 1976; M/s. Madhukar Soochak, K. Rajendra Chowdhary, K. A. Shah and Mrs. Veena Devi Khanna, Advs., for Appellant in C. A. No. 1286 of 1976: M/s. S. K. Dholakia, B. J. Kankaria and R. C. Bhatia, Advs., for Petitioners in all the Writ Petns; Mr. Nirn De, Attorney Genl (only in C As. Nos. 632, 638 and W. P. No. 98 of 1976). Mr. I. W. Adik, Adv. Genl. of Maharashtra, (Mr. M. N. shroff, Adv. with them), for Respodents in the Appeals and Writ Petitions; Mr. M .P. Chandrakantraj Urs and Mr. N. Nettar, Advs., for the Intervener in C. A. No. 632 of 1976 (State of Karnataka); Mr. K. Parasaran, Adv. Genl., Tamil Nadu, (M/s. A. V. Rangam, V. Sathiadey and Miss A. Subhashini, Advs. with him), for Intervener in C. A. No. 632 of 1976 (State of Tamil Nadu); Mr. K. Rajendra Choudhary, Adv., for the Interveners/Applicants 1. A. Ratnasabhapati, 2. Jayalakshimi & Co., M/s. Jeshtmal, K. R. Chowdhary, Mrs. Veena Devi Khanna, Advs., for the Intervener/Applicant Sh. N. Dhanraj, Mr. B.A. Desai, Mr. S. C Agarwala and V. J. Francis Advs., for Respondents 4 & 5 in C. A. No. 1286 of 1976.
LARGE AND LIBERAL MEANING IS TO BE GIVEN TO LEGISLATIVE HEADS COVERING ALSO INCIDENTAL AND COGNATE MATTERS
Constitution Of India,1950 - Article 301 - Constitution Act, 1935 – Section, 297 - Claim right to be heard and exercised - Streamline forensic business - State Legislature to enact Debt Act- A plurality of submissions by a procession of lawyers has followed although principal points have been comprehensively covered To encore is not to augment and yet some counsel who had not much to supplement claimed right to be heard and exercised it ad libitum essaying what had already been forcefully urged and forgetting that a fine fresh presentation of a case is apt be stalled by a second version of it and by a third repetition- While in constitutional issues of great moment this Court is reluctant to ration oral submissions it is important by comity of Bench and Bar to conserve judicial time in name of public justice so that internal allocation avoiding overlapping may be organized among many counsel who may appear in several appeals substantially dealing with same points- A happy husbandry of advocacy is helpful for judge and lawyer alike and to streamline forensic business is joint responsibility of both limbs of institution of justice –Held, Poignant purpose of ending exploitative rural-urban lending to weaker members of society is validating virtue of this legislation viewed from constitutional angle- But at some stage mentioned Attorney General also concurred mere farewell to existing debts is prone to prove a teasing illusion or promise of unreality unless Administration fills credit gap by an easy accessible and need-based network of humane credit agencies coupled with employment opportunities for small man experience of past has not inspired adequate confidence- Authoritative official pronouncement however owns that Arrangements so far made to give credit and inputs (for rural credit) have had only limited impact- problem is a vast one and seems to be growing in size- Rural banks credit societies farmers service societies -all these have to be strengthened and their activities expanded To give purposeful direction to this task and to ensure that interests of agriculturists and farmers especially small farmer are looked after there is need for an Apex Agricultural Development Bank in India Court uphold is an added responsibility on State- It shall be vigorously enforced with sympathy for victim class lest progressive measure prove a paper tiger- cadres charged with enforcement must have right orientation correct grasp and social activism if this law is not to leave a yawning implementation gap- Heroics in court and hortation in House must be followed by effective enforcement in field- Court state this not because State is not in great earnest but because many a welfare legislation in country reportedly remains a cloistered virtue in effect- finest hour of rule of law is when law disciplines life and matches promise with performance- On this note of hopeful valediction we wind up - Appeal dismissed
Judgment
KRISHNA IYER, J. - The distance between societal realities and constitutional dilettantism often makes for the dilemma of statutory validity and arguments addressed in the present batch of certificated appeals and writ petitions evidence this forensic quandary. Likewise, the proximity between rural-cum-slum economics and social relief legislation makes for veering away from verbal obsessions in legal construction. A constitution is the documentation of the founding faiths of a nation and the fundamental directions for their fulfilment. So much so, an organic, not pedantic, approach to interpretation, must guide the judicial process. The healing art of harmonious construction, not the tempting game of hair-splitting, promotes the rhythm of the rule of law. These prologuic observations made, we proceed to deal with the common subject-matter of the appeals and the writ petitions.
2. A bunch of counsel, led by Shri Nariman and seconded by Shri B. Sen, have lashed out against the vires of the Maharashtra Debt Relief Act, 1976 (for short, the Debt Act). The former has focused on the fatal flaw in the Act based on Article 301 of the Constitution and the latter has concentrated his fire on the incompetency of the State Legislature to enact the Debt Act. A plurality of submissions by a procession of lawyers has followed, although the principal points have been comprehensively covered by Shri Nariman and Shri B. Sen. To encore is not to augment, and yet, some counsel, who had not much to supplement, claimed the right to be heard and exercised it ad libitum, essaying what had already been forcefully urged and forgetting that a fine, fresh presentation of a case is apt to be staled by a second version of it and pejorated by a third repetition. While in constitutional issues of great moment this Court is reluctant to ration oral submissions it is important, by comity of the Bench and the Bar, to conserve judicial time in the name of public justice so that internal allocation, avoiding overlapping may be organised among many counsel who may appear in several appeals, substantially dealing with the same points. A happy husbandry of advocacy is helpful for judge and lawyer alike and to streamline forensic business is the joint responsibility of both the limbs of the institution of justice.
3. Back to the beginning. Article 301 of the Constitution mandates:
"301. Freedom of trade, commerce and intercourse.-
Subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free.
We may also read the cognate provision viz., Art. 304 (b):
304 (b). Restrictions on trade, commerce and intercourse among States.-
Notwithstanding anything in Article 301 or Article 303, the Legislature of a State may by law-
x x x x
(b) impose such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest:
Provided that no Bill or amendment for the purposes of Cl. (b) shall be introduced or moved in the Legislature of a State without the previous sanction of the President.
4. The unmincing submission of Shri Nariman is that money-lending is very much a trade, that the Debt Act deals drastically with money-lenders in defiance of Art. 301, and, since the manacles on money-lenders and money-lending are unreasonably harsh and callously indiscriminate, the freedom which belongs constitutionally to professional money-lenders is breached by the statutory liquidation of their loans. Nor can the invalidatory consequence of this violation be obviated by Art. 304 (b). This latter provision salvages statutes which contravene freedom of trade, commerce and intercourse only if they possess the virtues of reasonableness and public interest. The injustice of wiping out the debts of marginal farmers, rural artisans, rural labourers and workers as provided in the scheme of the Act was anathematised by Shri Nariman as an unwarrantedly unreasonable annihil
referred to : Atiabari Tea Co. v. Stale of Assam
followed : R.M.D. Chamarbaugalla v.. Union of India
distinguished : JyotiPtrshad v. Administator for the Union Territory of Delhi
The Automobile Transport v. State af Rajasthan
Ami Faresh Chandra Chatterjee v. State of Assam
District Collector of Hyderabad v. M/s.Ibrahim
relied on : Harakchand Ratanchand Banthia v. Union of India
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