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

1957 Supreme(Bom) 94

HIGH COURT OF BOMBAY
M. C. CHAGLA, S. T. DESAI, JJ.
C. R. H. Readymoney Ltd., Bombay
Versus
State of Bombay
Appeal No. 14 of 1956 and Misc. Appln. No. 94 of 1955
Decided On : 19-06-1957

Advocates:
N. A. Palkhivala, with Bhagwati and Sorabji, for Appellants; Seervai, with Advocate-General, and Kantawala, for Respondents.

The restrictions imposed by the rules under the Bombay Prohibition Act (25 of 1949) on the sale and consumption of medicinal preparations containing alcohol were reasonable and did not violate the fundamental rights of the petitioners under Arts. 19(1)(g) and 19(1)(f) of the Constitution.

Headnote:

PROHIBITION - BOMBAY PROHIBITION ACT (25 OF 1949) - AMENDMENT ACT (25 OF 1952) - RULES UNDER THE ACT - VALIDITY - FUNDAMENTAL RIGHTS - REASONABLENESS OF RESTRICTIONS - CONSTRUCTION OF S. 24A - MEANING OF "FIT FOR USE AS INTOXICATING LIQUOR" - TESTS TO BE APPLIED - DISCRIMINATION - ART. 14 OF THE CONSTITUTION.

Fact of the Case:

The petitioners, a private limited company carrying on the business of importers, merchants and dealers in medicinal preparations containing alcohol including Halls Wine throughout India, and the managing director and one of the major shareholders of the first petitioner company, challenged the validity of certain legislation passed by the State Government on the ground that their fundamental rights under Arts. 19(1)(g) and 19(1)(f) of the Constitution had been affected.

Finding of the Court:

The Court held that the impugned legislation was valid and that the restrictions imposed by the rules were reasonable. It also held that the construction placed upon the expression "fit for use as intoxicating liquor" in S. 24A by the learned trial Judge was correct and that the tests to be applied in determining whether a particular medicinal preparation was fit for use as intoxicating liquor were practically identical with the tests that would be applied under the Valsteed Act, viz., whether the preparation was fit for use as beverage purposes.

Issues: 1. Whether the impugned legislation was valid and constitutional? 2. Whether the restrictions imposed by the rules were reasonable? 3. Whether the construction placed upon the expression "fit for use as intoxicating liquor" in S. 24A by the learned trial Judge was correct? 4. Whether the tests to be applied in determining whether a particular medicinal preparation was fit for use as intoxicating liquor were practically identical with the tests that would be applied under the Valsteed Act, viz., whether the preparation was fit for use as beverage purposes?

Ratio Decidendi: 1. The impugned legislation was valid and constitutional as it was passed by a competent Legislature and did not violate any of the provisions of Part III of the Constitution. 2. The restrictions imposed by the rules were reasonable as they were necessary to prevent the misuse of medicinal preparations containing alcohol as intoxicating liquors. 3. The construction placed upon the expression "fit for use as intoxicating liquor" in S. 24A by the learned trial Judge was correct as it was in accordance with the intention of the Legislature. 4. The tests to be applied in determining whether a particular medicinal preparation was fit for use as intoxicating liquor were practically identical with the tests that would be applied under the Valsteed Act, viz., whether the preparation was fit for use as beverage purposes.

Final Decision: The appeal was dismissed with costs.

Judgement

M.C. CHAGLA, C.J. :- The first petitioners are a private limited company carrying on the business of importers, merchants and dealers in medicinal preparations containing alcohol including Halls Wine throughout India, and the second petitioner is the Managing Director and one of the major shareholders of the first petitioner company. It appears that in the beginning of January, 1952 the first petitioners were appointed sole agents for India for Halls Wine which is manufactured by Stephen Smith and Co. of United Kingdom. The second petitioner buys, possesses and consumes Halls Wine for the purpose of his health and according to him this Wine is productive of the beneficial effects of invigoration, strength and energy. The petition from which this appeal arises has been filed on the ground that the fundamental rights of the first petitioner company under Art. 19 (1) (g) and the fundamental rights of the second petitioner under Art. 19 (1) (f) in respect of Halls Wine have been affected by certain legislation passed by the State Government. It is urged by the first petitioner company that their right to carry on business and to sell Halls Wine has been interfered with and it is alleged by the second petitioner that his right to buy, possess and consume Halls Wine has also been interfered with by the impugned legislation.

2. In order to understand the contentions of the parties it is necessary to go back to the legislative history in connection with the Prohibition law in our State. The policy of Prohibition was enforced in this State by Act, 25 of 1949 which came into force on the 16th June, 1949. That Act was challenged before this Court and this Court gave a judgment coming to the conclusion that certain portions of that Act were invalid. The Full Bench held that the State Legislature was not competent to legislate with regard to medicinal and toilet preparations and it also held that to the extent that all medicinal and toilet preparations came within the ambit of the Prohibition law, that part of the law constituted an unreasonable restriction upon the fundamental rights of the citizens. In coming to this conclusion it is important to bear in mind that we put particular emphasis on the fact that the legitimate use of medicinal preparations was prohibited merely because those medicinal preparations might be converted by an addict to an illegitimate use. We gave an illustration in that judgment of eau-de-cologne which is a toilet article and we pointed out that merely because a person might choose to drink eau-de-cologne as liquor because he could not satisfy his thirst otherwise, there was no justification for preventing a large body of citizens from making a legitimate use of that toilet article. There was an appeal from our decision and the matter was decided by the Supreme Court and the judgment is reported in State of Bombay v. F. N. Balsara, 53 Bom LR 982: (AIR 1951 SC 318) (A). The Supreme Court did not agree with us that the Legislature had no competence to legislate with regard to medicinal and toilet preparations, but with respect it agreed with us in the view that we had taken with regard to the violation of fundamental rights, and at page 997 (of Bom LR) : (at p. 328 of AIR) the Supreme Court cited with approval a passage from the judgment of the Full Bench :

"Therefore, we hold that to the extent to which the Prohibition Act prevents the possession, use and consumption of non-beverages and medicines and toilet preparations containing alcohol for legitimate purposes the provisions are void as offending against Art. 19 (1) (f) of the Constitution even if they may be within the legislative competence of the Provincial Legislature."

Having agreed with the Full Bench, the Supreme Court declared certain provisions of the Act as invalid and those with which we are concerned are clause (c) of S. 12, so far as it affects the selling or buying of such medicinal and toilet preparations containing alcohol; clause (d) of





























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

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 Back to top