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1991 Supreme(SC) 71

SUPREME COURT OF INDIA
 
BEFORE S. RANGANATHAN, KULDIP SINGH AND N.M. KASLIWAL, JJ.
B. VISWANATHIAH AND COMPANY AND OTHERS
Versus
STATE OF KARNATAKA AND OTHERS.
Civil Appeal Nos. 2959-60 of 1980{From the Judgment and Order dated September 9,1980 of the Karnataka High Court in W.P. Nos. 20298 and 1031 of 1979} with W.P. Nos. 5548-50 of 1980,
Decided on 11-2-1991
Advocates appeared
Soli J. Sorabjee and Rajinder Sachar, Senior Advocates (H. Raghavendra Rao, Vineet Kumar, Advocates, with them) for the Appellants/Petitioners;
M. Veerappa, K.H. Nobin Singh and P.R. Ramasesh, Advocates, for the Respondents.

Advocates:
H.R.Rao, M.VIRAPPA, NOBIN SINGH, P.R.RAMASESHESH.S.PARIHARHAR, RAJINDER SACHAR, SOLI J.SORABJI, VINIT KUMAR

Headnote:

Mysore Silkworm Seed and Cocoon (Regulation of Production, Supply and Distribution) Act, 1959 - Sections 3, 4, 5, 6, 7 and 8 - Central Silk Boards Act - Section 2 - Constitution of India, 1950 - Articles 301 to 304 - Declaration as to expediency of Union control - Functions of the Board - Contention is that certain amendments effected to impugned Act by Karnataka Act 33 of 1979 have to be struck down as the State legislature was not competent to enact same – Thus contention now addressed is different from those which were considered by this Court on earlier occasions - Second aspect which we wish to clarify at outset is that, though several grounds were raised before High Court as well as in writ petitions, argument before us was limited to a single contention. This was that the impugned provisions lack legislative competence after enactment, by Parliament, of Act, 1948) which contains a declaration contemplated under Entry 52 of List I in Seventh Schedule to Constitution - Held, A perusal of Central Act makes it clear that pith and substance of the legislation is the constitution of a silk Board for research into scientific technological and economic aspects of industry - There is, therefore, no infirmity in the legislation under consideration - As rightly pointed out by High Court this is third aspect of industry which falls outside purview of control postulated under Entry 52 - In other words, though production and manufacture of raw silk cannot be legislated upon by State legislature in view of provisions of Central Act and declaration in Section 2 thereof, that declaration and Entry 52 do not in any way limit powers of State legislature to legislate in respect of goods produced by silk industry - To interpret Entry 52 otherwise would render Entry 33 in List III of Seventh Schedule to Constitution otiose and meaningless - In this view of matter limitation contained in Entry 52 does not affect validity of present legislation - This is an aspect which was not touched upon and which did not arise in Indian Tobacco case1 - There both Central Act and State Act purported to legislate in regard to the industry, namely, in regard to production and manufacture of tobacco - Appeals and Writ petitions dismissed

JUDGMENT

RANGANATHAN, J.— The two appeals and the three writ petitions challenge the validity of the provisions of the Mysore Silkworm Seed and Cocoon (Regulation of Production, Supply and Distribution) Act, 1959 (Act 5 of 1960), hereinafter referred to as the impugned Act. The challenge was repelled by the Karnataka High Court by its common judgment dated September 9, 1980 in two writ petitions, which is the subject matter of appeals. It is perhaps in view of this judgment that Writ Petition Nos. 5548-5550 of 1980 have been filed directly in this Court raising a similar contention.

2. At the outset, it is necessary to clarify two important points. The first is that the validity of the Act abovementioned and certain notifications issued there under were challenged in Civil Appeal Nos. 450 and 451 of 1966 and 542 of 1964. These civil appeals were disposed of by a judgment of this Court dated January 6, 1967 in State of Mysore v. K.C. Hanumiah{(1975) 2 SCC 131}. By the said judgment this Court repelled the contentions then put forward. The validity of certain provisions of the impugned Act had then been challenged on the footing that the said provisions as well as the rules made and the notifications issued there under imposed unreasonable restrictions on the fundamental right of the petitioners to carry on trade or business under Articles 19(l)(g) of the Constitution. Again, the Mysore High Court in Mohammed Hussain v. State of Mysore (W.P. No. 45 of 1971) and this Court in Syed Ahmed Aga v. State of Mysore{(1975) 2 SCC 131} were called upon to consider contentions as to the validity of certain amendments effected by Mysore Act 29 of 1969 to the impugned Act, in the light of the provisions of Articles 301 to 304 of the Constitution of India. The contentions were repelled with the result that the statutory regulations providing for protection to rearers by the establishment of regulated cocoon markets and forbidding the sale or purchase of silkworm cocoons except in such markets were held to be valid. The present challenge, however, is on different grounds. The contention now is that certain amendments effected to the impugned Act by Karnataka Act 33 of 1979 have to be struck down as the State legislature was not competent to enact the same. Thus, the contention now addressed is different from those which were considered by this Court on the earlier occasions. The second aspect which we wish to clarify at the outset is that, though several grounds were raised before the High Court as well as in the writ petitions, the argument before us was limited to a single contention. This was that the impugned provisions lack legislative competence after the enactment, by Parliament, of the Central Silk Boards Act (Act 61 of 1948), (hereinafter referred to as the Central Act) which contains a declaration contemplated under Entry 52 of List I in the Seventh Schedule to the Constitution of India. We shall be addressing ourselves only to this argument.

3. Mysore Act 5 of 1960 was passed since it was considered expedient to consolidate the laws providing for the regulation of the production, supply and distribution of silkworm seed and cocoon in the State of Mysore. This Act contained several restrictions in regard to the production, supply and distribution of silkworm seed and cocoon. Basically, Sections 3, 4, 5, 6, 7 and 8 of the Act required a person to obtain a licence for production, sale and distribution of silkworm seed, for rearing silkworms from silkworm seed, for possession of silkworm seed, for disposal of silkworm cocoons for reeling or for reproduction, for sale or purchase of silkworm cocoons for reeling, and for carrying on the business of reeling silkworm cocoons. Section 10 enabled the government to specify the manner of marketing the above goods, the places at which cocoon markets, cocoon market yards and cocoon stores could be located, specify the sericultural areas to be served by each cocoon market, assign zones and markets i
































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