K.N.WANCHOO, K.SUBBA RAO, V.RAMASWAMI, V.BHARGAVA, S.M.SIKRI, J.M.SHELAT, J.C.SHAH, C.A.VAIDIALINGAM, R.S.BACHAWAT
Superintendent And Remembrancer Of Legal Affairs, W. B. – Appellant
Versus
Corporation Of Calcutta – Respondent
What is the rule governing whether the Government of a State is bound by statutes under Indian law? What is the Court’s conclusion about applying the Privy Council/Bombay Presidency Crown prerogative rule to post-Constitution India? What are the implications for enforcement when a State engages in trading activities under municipal licensing statutes?
Key Points: - The decision rejects the blanket application of the English rule that the Crown is not bound by statutes unless expressly named or impliedly bound. (!) - The Court holds that the rule of Crown exemption from statutes is not law in force after the Constitution and should not be followed for interpreting Indian statutes. (!) - The case held that the State of West Bengal was bound by Section 218(1) of the Calcutta Municipal Act and liable to a license fee for carrying on a market trade. (!) - The reasoning discusses prior decisions (Director of Rationing and Distribution v. Calcutta) and clarifies the status of common law/canons of construction as non-binding as a general rule post-Constitution. (!) (!) - The judgment emphasizes equal application of statutory provisions to the State and citizens unless express exemption or necessary implication is evident. (!) - It notes that where fines are paid into municipal funds, it supports applicability to the State under licensing provisions, with caveats on imprisonment for default. (!) (!) - It acknowledges that certain exemptions existed in Calcutta Municipal Act provisions, but generally held Sections 218(1) and 541(1) apply to the State. (!) - The appeal was dismissed, affirming the State’s liability under the Act for licensing and fines. (!) (!) - The judgment discusses the historical shift from Crown prerogative to a modern constitutional framework, with emphasis on equality before the law. (!) (!) - It highlights that the State may engage in trading activities under Article 298, but construction of statutes should be uniform. (!)
Judgment
SUBBA RAO, C. J. (For himself and for Wanchoo, Sikri, Ramaswami, Shelat, Bhargava and Vaidialingam. JJ.) : This Full Bench of 9 Judges has been constituted to consider the correctness of the decision of this Court in Director of Rationing and Distribution v. Corporation of Calcutta, 1961-1 SCR 158.
2. The relevant facts are simple and are not in dispute. The State of West Bengal was carrying on the trade of a daily market at 1, Orphanganj Road, Calcutta, without obtaining a licence as required under S. 218 of the Calcutta Municipal Act, 1951 (West Bengal Act 33 of 1951) (hereinafter called the Act. The Corporation of Calcutta filed a complaint against the State of West Bengal in the Court of the Presidency and Municipal Magistrate, Calcutta under S. 541 of the Act for contravening the provisions of S. 218 thereof. Under S. 218 of the Act, every person who exercises or carries on in Calcutta any trade, shall take out a licence and shall pay for the same such fee as is mentioned in that behalf in Schedule IV to the Act. Admittedly for the year 1960-61, the Government of West Bengal did not take out a licence under the said section but carried on the said trade. The main conten
Referred : Builders Supply Corporation v. Union of India
V. S. Rice and Oil Mills v. State of Andhra Pradesh
State of West Bengal v. Union of India
State of Rajasthan v. Vidyawati
State of Bihar v. Sonabati Kuniari
Overruled : Director of Rationing and Distibution v. Corporation of Calcutta
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