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2023 Supreme(P&H) 2095

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. SANDHAWALIA, HARPREET KAUR JEEWAN, JJ.
IMT Industrial Association & Anr. – Petitioners
Versus
State of Haryana & Anr. – Respondents
CWP NOS. 26573, 24967, 25037, 25539 AND 25988 of 2
Decided On : 17-11-2023

Advocates Appeared:
Mr. Anupam Gupta, Senior Advocate, with Mr. Bhavnik Mehta, Mr. Gautam Pathania and Mr. Sukhpal Singh and Mr. Tushar Sharma, Advocates; For the Petitioners (in CWP-26573-2021 and CWP-1698-2022).
Mr. Akshay Bhan, Senior Advocate, with Mr. Amandeep Singh Talwar, Mr. Hiresh Choudhary, Ms. Surbhi Sharma, Mr. Ivan Khosa, Mr. Shivam Grover and Mr. Harsh Vasu Gupta, Advocates; For the Petitioner (in CWP-24967-2021).
Mr. Siddharth Dias and Mr. Gursher Bhandel, Advocates; For the Petitioner (in CWP-584-2022).
None; For the Petitioner (in CWPs-25037, 25539 and 25988 of 2021 and 1404, 3860 of 2022).
Mr. Puneet Bali, Senior Advocate, with Mr. Jagbir Malik, Addl. A.G., Haryana, Mr. Shivam Sharma, and Mr. Uday Agnihotri, Advocates, for the Respondent-State.
Mr. Satya Pal Jain, Additional Solicitor General of India, with Mr. Dheeraj Jain, and Ms. Gurmeet Kaur Gill, Senior Panel Counsel, for the U

The Haryana State Employment of Local Candidates Act, 2020 is unconstitutional for imposing domicile-based employment restrictions, violating Articles 14 and 19 of the Constitution, and lacking legislative competence.

Headnote:(A) Constitution of India - Articles 14, 19(1)(d), 19(1)(e), and 19(1)(g) - Haryana State Employment of Local Candidates Act, 2020 - The Act was challenged as unconstitutional for imposing 75% reservation in private employment based on domicile, infringing fundamental rights and lacking legislative competence. The court held the Act ultra vires the Constitution, emphasizing that any law discriminating based on domicile violates the principles of equality and freedom of movement. (Paras 1-76)

(B) Legislative Competence - The State cannot legislate to restrict private employers from hiring based on domicile, as it contradicts the Constitution's guarantee of equality and freedom of movement. The Act was deemed a violation of fundamental rights and unconstitutional. (Paras 1-76)

(C) Judicial Review - The court reiterated its role in protecting constitutional rights against legislative encroachments that undermine the unity and integrity of the nation. (Paras 1-76)

JUDGMENT

Mr. G.S.Sandhawalia, J.

The present judgment shall dispose of 9 cases i.e. CWP Nos. 26573, 24967, 25037, 25539 and 25988 of 2021 and CWP Nos.584, 1404, 3860 and 1698 of 2022. Facts have been taken from CWP-26573-2021, IMT Industrial Association and another v. State of Haryana and another, CWP No. 24967 of 2022, Faridabad Industries Association v. State of Haryana and another and CWP-1698-2022, Akhilesh Leekha v. State of Haryana and another since purely a legal question is involved in this batch of cases regarding the virus of The Haryana State Employment of Local Candidates Act, 2020 (in short 'the 2020 Act') and whether the same is unconstitutional and violative of Part-III of the Constitution of India.

2. The petitioners' Association is stated to be duly registered under the provisions of Haryana Registration & Regulation of Societies Act, 2012 comprising of allottees of industrial plots/sites at Industrial Model Township, Tehsil Manesar, District Gurugram who are carrying on their industrial and business activities in the State of Haryana. The resolutions in favour of the authorized representatives have been duly appended.

3. The petitioners lay challenge to 'the 2020 Act' on account of the fact that it provides reservation in private employment and creates an unprecedented intrusion by the State Government into the fundamental rights of the private employers to carry on their business and trade as provided under Article 19 of Constitution of India. The restrictions thus placed upon the rights of the petitioners are alleged not to be reasonable and are manifestly arbitrary, capricious, excessive and uncalled for and the same being violative of the principles of natural justice, equality, liberty and fraternity laid down in the Preamble of the Constitution of India and is subject to challenge. Similarly, infringement of Article 14 of the Constitution of India is also alleged in as much as all citizens of the country would have a right to equal employment, to reside and to settle in the State of Haryana and the Act, thus, represents a serious assault on the unity and integrity of the country and the idea of a common Indian identity. It has been averred that a fundamental wedge is sought to be created between persons domiciled in different States by the Statue in question which is contrary to the concept of common citizenship provided in the Constitution of India. The entire aim and objectives of the Act was alleged to be incorrect, misconceived, fanciful and granting overly broad discretion to the authorized officers appointed thereunder apart from the averments that the Haryana State lacked the legislative competence to pass the same and it being in the domain of the central legislative and, thus, fell foul of Article 246 of the Constitution of India.

Pleadings of State of Haryana

4. The stand of the State in its reply was that the members of the petitioner-Association had been allotted industrial plots at sub-sidized rates for carrying out their business and trade and, therefore, there was a pre-condition in the allotment that 75% of the employment was to be given to the persons having domicile of Haryana where the posts are not of technical nature. The policies of the years 2005 and 2011 of the HSIIDC provided such pre-condition which were appended along with the respective regular letter of allotments and, therefore, it was stated that there was suppression of material facts and concealment in the writ petition. The right of the petitioners to invoke the jurisdiction under Article 226 or 32 of the Constitutional Courts as such was objected to and that the Association could not claim any right under Article 19(1)(g). The Statute was justified on the ground that it made a reasonable classification on the basis of domicile, which was permissible and not violative of Article 14 on the ground of geographical limits. The objects and reasons of the Legislation were highlighted and the industrial power houses were accused

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