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1980 Supreme(SC) 270

SUPREME COURT OF INDIA
Y.V. CHANDRACHUD, CJI., P.N. BHAGWATI, A.C. GUPTA, N.L. UNTWALIA AND P.S. KAILASAM, JJ.*
Minerva Mills Ltd. and others, Petitioners
Versus
 Union of India and others, Respondents.
Writ Petn. Nos. 356-361 of 1977
Decided on 9-5-1980 and 31-7-1980.

Headnote:

Constitution (42nd Amendment) Act, 1976 - Section 35 - Sick Textile Undertakings (Nationalisation) Act, 1974 - Nationalisation Act of 1974 - Section 3 (2) - Industries (Development and Regulation) Act, 1951 - Section 15 and 18A - Industries (Development and Regulation) Act, 1951 - Section 18A - Limited company - Share-holders - Unsecured creditors - Petitioner No. 1 which is a limited company owned a textile undertaking called Minerva Mills situated in State - Undertaking was nationalised and taken over by Central Government under provisions of Sick Textile Undertakings (Nationalisation) Act, 1974, Petitioners 2 to 6 are share-holders of Petitioner No. 1, some of whom are also unsecured creditors and some secured creditor - Central Government appointed a Committee under Section 15 of Industries (Development and Regulation) Act, 1951 to make a full and complete investigation of affairs of Minerva Mills Ltd., as it was of opinion that there had been or was likely to be substantial fall in volume of production - Said Committee submitted its report to Central Government on basis of which Central Government passed an order dated – Held, concept of social and economic justice may not be very easy of definition but its broad contours are to be found in some of provisions of Fundamental Rights and in Directive Principles and whenever a question arises whether a legislation is for giving effect to social and economic justice - Court cannot therefore subscribe to proposition that if amendment in Article 31C were held valid, it would have effect of protecting every possible legislation under sun and that would in effect and substance wipe out Articles 14 and 19 from Constitution - Court would therefore declare Section 35 of Constitution (Forty-second Amendment) Act, 1976 which inserted sub-sections (4) and (5) in article 368 as unconstitutional and void on ground that it damages the basic structure of the Constitution and goes beyond amending power of Parliament - But so far as Sec. 4 of Constitution (Forty-second Amendment) Act, 1976 is concerned, Court hold that, on interpretation placed on amended Article 31C by Court, it does not damage or destroy the basic structure of Constitution and is within amending power of Parliament and Court would therefore declare amended Article 31C to be constitutional and valid - Petitions allowed.

Judgement Key Points

Key Points: - Section 4 of the 42nd Amendment Act (amending Article 31C) held unconstitutional by the majority as damaging the basic structure; declared void. (!) (!) (!) - Section 55 of the 42nd Amendment Act (amending Article 368) held unconstitutional for removing all limitations on amending power, thereby destroying basic structure; declared void. (!) (!) (!) - Article 31C, in its amended form, was upheld as constitutional by the author of this judgment's minority view portion, finding no damage to basic structure and within amending power; however, the majority did not uphold this view. The core issue remains limits on Parliament’s amending power and the basic structure doctrine as established in Kesavananda Bharati. (!) (!) (!)

What is the validity of Section 4 of the Constitution (Forty-second Amendment) Act, 1976 amending Article 31C?

What is the validity of Section 55 of the Constitution (Forty-second Amendment) Act, 1976 amending Article 368?

What is the extent of the amending power of Parliament under Article 368 and the concept of the basic structure of the Constitution?


JUDGMENT

ORDER dated 9th May, 1980 (Y. V. Chandrachud, CJI. and Gupta, Untwalia and Kailasam, JJ.) :— Sec. 4 of the Constitution (Forty-second Amendment) Act, 1976, which came into force with effect from January 3, 1977 amended Article 31C of the Constitution by substituting the words and figures "all or any of the principles laid down in Part IV" for the words and figures "the principles specified in Clause (b) or Clause (c) of Art. 39". Article 31C, as amended reads thus :

"31C, Notwithstanding anything contained in Article 13, no law giving effect to the policy of the State towards securing all or any of the principles laid down in Part IV shall be deemed to be void on the ground that it is inconsistent with or takes away or abridges any of the rights conferred by Article 14, Art. 19 or Article 31, and no law containing a declaration that it is for giving effect to such policy shall be called in question in any court on the ground that it does not give effect to such policy :

Provided that where such law is made by the Legislature of a State, the provisions of this article shall not apply thereto unless such law, having been reserved for the consideration of the President, has received his assent."

Section 4 of the Constitution 42nd Amendment Act is beyond the amending power of the Parliament and is void since it damages the basic or essential features of the Constitution and destroys its basic structure by a total exclusion of challenge to any law on the ground that it is inconsistent with, or takes away or abridges any of the rights conferred by Art. 14 or Art. 19 of the Constitution, if the law is for giving effect to the policy of the State towards securing all or any of the principles laid down in Part IV of the Constitution.

(2) Section 55 of the Constitution (Forty-second Amendment) Act, 1976, which came into force with effect from January 3, 1977 inserted sub-sections (4) and (5) in Article 368 which read thus :

"(4) No amendment of this Constitution (including the provisions of Part III) made for purporting to have been made under this article (whether before or after the commencement of Section 55 of the Constitution (Forty-second Amendment) Act, 1976) shall be called in question in any court on any ground.

(5) For the removal of doubts, it is hereby declared that there shall be no limitation whatever on the constituent power of Parliament to amend by way of addition, variation or repeal the provisions of this Constitution under this article".

Section 55 of the Constitution 42nd Amendment Act is beyond the amending power of the Parliament and is void since it removed all limitations on the power of the Parliament to amend the Constitution and confers power upon it to amend the Constitution so as to damage or destroy its basic or essential features or its basic structure.

2-4. Fuller reasons for the decisions will follow later whereupon, the Writ Petitions will be set down for hearing for consideration of the other points involved therein.*(In this case, the Judges of the SC differ in their views. The Majority view is taken by Chandrchud C. J. and Gupta, Untwalia and Kailasam, JJ. and the minority, by Bhagwati J. The Judgments however are printed in the order in which they are given in the certified copy - Ed.)

BHAGWATI, J. :- 5. The question which arises for determination in these writ petitions is as to whether Section 4 of the Constitution (42nd Amendment) Act of 1976 amending Article 31C of the Constitution is constitutionally valid. I cannot persuade myself to pass an order pronouncing upon this question without a reasoned judgment, since the question is one of grave and momentous consequence involving, as it does, the validity of a constitutional amendment. I would, therefore, prefer to pass a final order in this case when I deliver my reasoned judgment on the reopening of the court after the summer vacation.

CHANDRACHUD, C. J. dated 31st July, 1980 (For himself and Gupta. Untwalia and Kailasam, JJ.) :- 6. In Kesavanan



















































































































































































































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