ITC Lts vs Agricultural Produce Market Committee

7/24/2019 ITC Lts vs Agricultural Produce Market Committee

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IN THE SUPREME COURT OF INDIA

Decided On: 24.01.2002

Appellants: I.T.C. LimitedVs.

Respondent: The Agricultural Produce Market Committee and Ors.

Hon'ble Judges/CoramS.P. Bharucha, C.J., G.B. Patnaik, Y.K. Sabharwa, !u"a Pa and Bri#e$h Ku"ar, JJ.

Counsels%&r '((earin) (artie$: !.*. +riedi, 'dditi&na S&icit&r Genera, Shanti Bhu$han, S.Gane$h, Sh&bha Dik$hit, -. *a)e$wara !a&, G.-. San)hi, S. K. Ga"bhir, '.K. Gan)ui, '..Sin)hi, S.B. San/a, !ake$h Dwiedi, P.P. ah&tra and .'. B&bde, Sr. 'd$., *ia Dutta, 'd.Gen., &r '$$a", Beeran, 'dditi&na '.G. &r Keraa, Paa Shi$h&dia, San#a/ !. Pathak, Budd/ '.

!an)anadhan, Pradee( i$ra, ndu i$ra, !.P. Gu(ta, !a$h"i Jain, Shu$hendra Chauhan, S. K.')nih&tri,'ni K. Pande/, Sake$h Ku"ar, ibha Datta akhi#a, !&hit K. Sin)h, 3.K. Puri, 'wani$hSinha, S. K. Puri, !a#e$h Sria$taa, ##awa Baner#ee, 'nindita Gu(ta,ika$ Sin)h, Yunu$aik, Suni !&/, '. Subba !a&, S.B. (adh/a/, G. "a(ath/, Kri$hna"urthi Swa"i, P.K.Ban$a, !a#an *arain, '$h&k athu, Kri$hna Sar"a,'$ha G. *air, .K. Sidharthan, ahabirSin)h, S.P. Sin)h Chauhan, Saket Sin)h, *iran#ana Sin)h, B.B. Sin)h, ndu Shar"a, !achnaSria$taa, an Pra$ad,Pra"&d Swaru(, Praeen Swaru(, Pareena Swaru(, -.K. Pande/, S..De$h(ande, 'nuradha !a$t&)i, Pra"it Sa5ena, ani$h Sin)hi, !a"e$h Sin)h, Bina Gu(ta,Di/a!&/, iek Ga"bhir, B.G. Sridharan, G.C. Chandra$hekhar, P.P. Sin)h, San#a/ !. 3e)de, Sat/aitra, Praka$h Shria$taa, '. ariar(utha", 'runa athur, 'nura) D. athur, +. !a#a, 3e"antShar"a, S.*. +erd&, *&bin Sin)h, '. Subha$hini, !a"e$h Babu .!., 'ni Shria$taa, +..!atna", K. Subba !a&and S. K. Dwiedi, 'd$

Sub!e"# Cons#$#u#$on

Sub!e"# O#%er Ta&es

Ca#"% ords

Men#$oned IN

A"#s/Rules/Orders+&bacc& B&ard 'ct, 1678 9 Secti&n 2, +&bacc& B&ard 'ct, 1678 9 Secti&n ;1;1;> ? Orienta Ga$ C&"(an/ 'ct, 16>0 ?/$&re Sikw&r" Seed and C&c&&n ;!e)uati&n &Pr&ducti&n, Su((/ and Di$tributi&n< 'ct, 1686 ? Centra Pr&ince$ and Berar Sae$ & &t&r S(irit


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@ -ubricant$ +a5ati&n 'ct, 16= Centra Sik B&ard$ 'ct, 164= 9 Secti&n 2 ahara$htra Debt !eie'ct, 167> ? G&d ;C&ntr&< 'ct, 16>= ? Bihar arket$ 'ct, 16>0 9 Secti&n >,Bihar arket$ 'ct, 16>0 9Secti&n 7, Bihar arket$ 'ct, 16>0 9 Secti&n =, Bihar arket$ 'ct, 16>0 9 Secti&n 6, Bihar arket$'ct, 16>0 9 Secti&n 10, Bihar arket$ 'ct, 16>0 9 Secti&n 11, Bihar arket$ 'ct, 16>0 9 Secti&n12, Bihar arket$ 'ct, 16>0 9 Secti&n 1, Bihar arket$ 'ct, 16>0 9 Secti&n 14, Bihar arket$ 'ct,

16>0 9 Secti&n 18, Bihar arket$ 'ct, 16>0 9 Secti&n 18;10 9 Secti&n 17, Bihar arket$ 'ct, 16>0 9 Secti&n 27, Bihar arket$'ct, 16>0 9 Secti&n 27 +ea 'ct, 168 ? +&bacc& B&ard !ue$, 167> 9 !ue 2 +&bacc& B&ard;'ucti&n< !ue$, 16=4 ? +&bacc& Bard ;'ucti&n< !e)uati&n, 16=4 ? Karnataka ')ricutura Pr&ducearketin) ;!e)uati&n< ;'"end"ent< 'ct, 16=0 ? Paria"ent in ine$ and inera$ ;!e)uati&n andDee&("ent< 'ct, 1687 ? ttar Prade$h Su)arcane ;!e)uati&n & Su((/ and Purcha$e< 'ct,168 ? Su)arcane ndu$tr/ ;Pr&tecti&n< 'ct, 162 ? Su)arcane 'ct, 164 ? ttar Prade$h Su)ar%act&rie$ C&ntr& 'ct, 16= ? G&ern"ent & ndia 'ct, 168 9 Secti&n 100, G&ern"ent & ndia'ct, 168 9 Secti&n 102 A$$entia Su((ie$ ;+e"(&rar/ P&wer$< 'ct, 164> ? ndia ;CentraG&ern"ent and -e)i$ature< 'ct, 164> 9 Secti&n , ndia ;Centra G&ern"ent and -e)i$ature8 ? ndu$tria Di$(ute$ 'ct ? Centra Sik B&ard ;'"end"ent< 'ct, 168= ? C&ee 'ct,

1642 ? !ubber 'ct, 1647 ? C&ir ndu$tr/ 'ct, 168 ?C&c&nut Dee&("ent B&ard 'ct, 1676 ? CentraA5ci$e 'ct, 1644 9 Secti&n 4, Centra A5ci$e 'ct, 1644 9 Secti&n 8, Centra A5ci$e 'ct, 1644 9Secti&n >, Centra A5ci$e 'ct, 1644 9 Secti&n =, Centra A5ci$e 'ct, 1644 9 Secti&n 6, CentraA5ci$e 'ct, 1644 9 Secti&n 10 Centra A5ci$e !ue$ 9 !ue 140 t& 14=, Centra A5ci$e !ue$ 9 !ue$180, Centra A5ci$e !ue$ 9 !ue$ 171, Centra A5ci$e !ue$ 9 !ue$ 172, Centra A5ci$e !ue$ 9!ue$ 17, Centra A5ci$e !ue$ 9 !ue$ 174, Centra A5ci$e !ue$ 9 !ue$ 178, Centra A5ci$e!ue$ 9 !ue$ 17>, Centra A5ci$e !ue$ 9 !ue$ 177, Centra A5ci$e !ue$ 9 !ue$ 17=, CentraA5ci$e !ue$ 9 !ue$ 176,Centra A5ci$e !ue$ 9 !ue$ 1=0, Centra A5ci$e !ue$ 9 !ue$1=1, Centra A5ci$e !ue$ 9 !ue$ 218, Centra A5ci$e !ue$ 9 !ue$ 22> Kannan Dean 3i$;!e$u"(ti&n & -and$< 'ct, 1671 ? ttar Prade$h Sheera *i/antran 'dhini/a", 16>4 ? &a$$e$;C&ntr&< Order, 16>1 ? ttar Prade$h Kri$hi t(adan andi 'dhini/a", 16>4 ? +a"i *adu!e)uati&n 'ct, 1686 ? +a"i *adu ')ricutura Pr&duce arket$ 'ct, 1686 ? adh/a Prade$h Kri$hit(adan andi 'dhini/a", 1672? %&rward C&ntract !e)uati&n 'ct, 1682 ? !e$u"(ti&n & -and$

'ct, 1671 ? ttar Prade$h Su)arcane ;Purcha$e +a5< 'ct, 16>1 9 Secti&n Bihar Su)arcane!e)uati&n & Su((/ and Purcha$e 'ct, 16=1 ? ndian nde(endence 'ct ? ndian Pena C&de;PC< ? C&rru(ti&n 'ct ? Cri"ina -aw ;'"end"ent< 'ct ? arket C&""ittee 'ct

Cases Re(erred

.P.. Sundara"ier @ c&. . State & 'ndhra Prade$h '*SC0181168= ? Cacutta Ga$

C&"(an/ ;Pr&(.< -td. . State & e$t Ben)a '*SC02=16>1 ?S.!. B&""ai and Or$. .

ni&n & ndia and Or$. '*SC04441664 ? '.S. Kri$hna . State &

adra$ '*SC008168> ? Chaturbhai . Pate . ni&n & ndia and

Or$. '*SC00121686 ? State & !a#a$than . G. Chawa '*SC0141168= ? $hwari

Khetan Su)ar i$ ;P< -td. . State & .P.'*SC00>616=0 ? 3&ech$t Phar"aceutica$ -td.

. State & Bihar '*SC06216= ? Dee( Chand . State & ttar

Prade$h '*SC0021686 ?Be$und Su)ar C&"(an/ . State & Bihar '*SC04871666

? 3arakchand !atanchand Banthia and Or$. . ni&n & ndia '*SC00=16>6 ? +ika

!a"#i and Or$. . State & .P. and Or$. '*SC000=168> ? +C -td. and Or$. . State &

Karnataka 16=8 Su(( . SCC 47>, '*SC000716=8 : 16=8 Su((. 1 S.C.!. 148? G&ern&r9

Genera in C&unci . Pr&ince & adra$ '*P!000>1648 ? State & B&"ba/ . %.*.Ba$ara '! 1681 SC =1=? 'cc&untant @ Secretaria Serice$ Pt. -td. . ni&n &

ndia '*SC000816== ? %atehchand . State & ahara$htra '*SC00411677

? Cacutta Ga$ C&"(an/ ;Pr&(rietar/< -td. . State & e$t Ben)a '*SC00>16>2

? Kannan Dean 3i$ Pr&duce . State & Keraa '*SC0841672 ? B. i$wanathiah and

C&"(an/ and Or$. . State & Karnataka '*SC0>021661 ? State & '.P. . c D&we @

C&. '*SC0427166> ? Gan)a Su)ar C&r(&rati&n -td. . State & ttar Prade$h and

Or$. '*SC0671676 ? '"rit$ar unici(ait/ . State & Pun#ab '*SC008016>6

? aer/ Jute i$ C&. -td. . !a/"&n @ C&. ;ndia< Priate -td. '*SC000416>2 ? .

Karunanidhi . ni&n & ndia '*SC01861676 ? 3in)ir !a"(ur C&a C&. -td. . State &


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Ori$$a'*SC00716>0 ? Bai#nath Kedia . State & Bihar '*SC08216>6 ? BharatC&&kin) C&a -td. . State & Bihar 1660 4 SCC 887? State & Ori$$a . .'. +u&ck @

C&. '*SC002116> ? Subra"an/an Chettiar . uthu$wa"/ G&undan 1640 %C!

1==? State Bank & ndia . Ya$an)i enkate$wara !a&'*SC00271666 ? S"ith .'wri)ht 21 S >46? Shrira" ndu$tria Anter(ri$e$ -td. . +he ni&n & ndia and

Or$. '*P0041166> ? !a" Chander Kaia$h Ku"ar . State & .P.? State & e$t Ben)a

. ni&n & ndia '*SC00=>16>2 ? e$tern C&a %ied$ ca$e '*SC024416=2

? KSAB . nda'*SC0111678 ? ndia Ce"ent . State & +a"i *adu '*SC022>16=6

? nited Pr&ince$ . 'tia Be)u" and Or$. 1640;2< %C! 110? %ir$t 'dditi&na nc&"e9ta5 Oicer,

/$&re . 3.*.S. /en)ar '*SC020016>1 ? *ainchandra aata . C&""i$$i&ner &

nc&"e +a5, B&"ba/ Cit/ '*SC00701684 ? Eaerbhai '"aida$ . State &

B&"ba/ '*SC00401684 ? !.S. !ekchand &h&ta '*SC0>741667 ? !ai

!a"kri$hna and Or$. . State & Bihar'*SC00116> ? S/nthetic$ and Che"ica$ -td. and

Or$. . State & .P. and Or$. '*SC086816=6 ? A5(re$$ 3&te$ Priate -td. . State &

Gu#arat and 'nr. '*SC017616=6 ? Ori$$a Ce"ent -td. . State & Ori$$a and

Or$. '*SC0=11661 ? ndian 'u"iniu" C&"(an/ -td. and 'nr. . Karnataka Aectricit/

B&ard and Or$. '*SC04241662 ? ndian 'u"iniu" C&"(an/ and Or$. . State & Keraaand Or$. '*SC070166>

O)erruled / Re)ersed

.+.C. -td. and Or$. $. State & Karnataka and Or$. '*SC000716=8

Au#%or$#$es Re(erredSh&rter O5&rd An)i$h Dicti&nar/

C$#$ng Re(eren"e

'ir"ed

1

Di$cu$$ed20

Di$tin)ui$hed1

enti&ned

24

Case No#eCons#$#u#$on * Sale and +ur"%ase o( #oba""o ,$#%$n #%e mar-e# area * .e) o( mar-e# (eeunder S#a#e .eg$sla#$on b mar-e# "omm$##ees * Agr$"ul#ural Produ"e Mar-e# A"# (ramedunder En#r 01 o( .$s# II o( #%e Cons#$#u#$on * 2al$d$# * Com+e#en"e o( S#a#es * Toba""o3oard A"#4 5678 ena"#ed b #%e Un$on 9o)ernmen# under En#r 80 o( .$s# I * Cons#$#u#$onal2al$d$# * ITC's "ase re+or#ed $n 5618 Su++: ;5< SCC =7> s#r$-$ng do,n ?arna#a-a A"# o( 56>>no# "orre"#l de"$ded * S#a#e .eg$sla#ures are "om+e#en# #o ena"# leg$sla#$on +ro)$d$ng (or#%e le) and "olle"#$on o( mar-e# (ee on sale o( #oba""o $n #%e mar-e# area* Conse@uen#l#%e Mar-e# A"#s ena"#ed b #%e S#a#es are )al$d * S#a#e leg$sla#$ons and #%e Toba""o 3oardA"#4 5678 #o #%e een# #%e rela#e #o #%e sale o( #oba""o $n mar-e# areas4 "anno# "o*e&$s# and


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#%e (ormer +re)a$ls o)er #%e la##er* Ar#$"le 08= and => o( #%e Cons#$#u#$on: BMa!or$# 2$e, +erSab%ar,al4 Ruma Pal and 3r$!es% ?umar4 JJ:M$nor$# 2$e, +er 9: 3: Pa##na$-4 J:Cons#$#u#$on * Sale and +ur"%ase o( #oba""o ,$#%$n #%e mar-e# area * Toba""o 3oard A"#ena"#ed under En#r 80 o( .$s# I $s "ons#$#u#$onall )al$d and all #%e +ro)$s$ons #%ere$n

$n"lud$ng #%e +ro)$s$ons rela#$ng #o gro,$ng4 sale and +ur"%ase o( #oba""o are ,$#%$n #%eleg$sla#$)e "om+e#en"e o( #%e Parl$amen# * ord '$ndus#r' $n En#r 80 o( .$s# I "anno# beg$)en a res#r$"#ed mean$ng4 +ar#$"ularl ,%en a "ons+e"#us o( all #%e de"$s$ons $n#er+re#$ngen#r $n an o( #%e l$s#s o( #%e Cons#$#u#$on $n"lud$ng #%e m$nor$# o( Mu-%er!ee4 J: $n ITC"ase $s #o #%e e((e"# #%a# #%e en#r$es $n #%e l$s#s s%ould be g$)en l$beral and generous"ons#ru"#$on:Cons#$#u#$on * ords and P%rases * Indus#r * Mean$ng o( * ord '$ndus#r' under En#r 80 o(.$s# I and En#r 07 o( .$s# II o( #%e Se)en#% S"%edule o( #%e Cons#$#u#$on s%ould be g$)en onla res#r$"#ed mean$ng so as #o e&"lude mar-e#s and (a$rs: BMa!or$# 2$e, +er Sab%ar,al4Ruma Pal and 3r$!es% ?umar4 JJ:

JUD9MENT

Ruma Pal4 J:

1. re)ret "/ inabiit/ t& c&ncur with the c&ncu$i&n reached b/ "/ earned Br&ther, Pattanaik J,that becau$e & the enact"ent & the +&bacc& B&ard 'ct, 1678 b/ Paria"ent, the State 'ct iF., theBihar ')ricutura Pr&duce arket$ 'ct, 16>0 in $& ar a$ it reate$ t& e/ & ee &n the $ae and(urcha$e & t&bacc&, i$ inaid.

2. +hat the e)i$atie (&wer & Paria"ent in certain area$ i$ (ara "&unt under the C&n$tituti&n i$n&t in di$(ute. hat i$ in di$(ute i$ the i"it$ & th&$e area$ a$ #udicia/ deined. Br&ad/ $(eakin)Paria"entar/ (ara"&untc/ i$ (r&ided &r under 'rtice$ 24> and 284 & the C&n$tituti&n. +he ir$tthree cau$e$ & 'rtice24> & the C&n$tituti&n reate t& the de"arcati&n & e)i$atie (&wer$between the Paria"ent and the State -e)i$ature$. nder Cau$e ;1


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the ire$ & the aw een a$ re)ard$ the area & encr&ach"ent. +hi$ (rinci(e c&""&n/ kn&wn a$the d&ctrine & (ath and $ub$tance, d&e$ n&t a"&unt t& an e5ten$i&n & the e)i$atie ied$.+here&re, $uch incidenta encr&ach"ent in either eent d&e$ n&t de(rie the State -e)i$ature inthe ir$t ca$e &r Paria"ent in the $ec&nd, & their e5cu$ie (&wer$ under the entr/ $& encr&achedu(&n. n the eent the incidenta encr&ach"ent c&nict$ with e)i$ati&n actua/ enacted b/ the

d&"inant (&wer, the d&"inant e)i$ati&n wi (reai.

4. +& return t& the $ub#ect & Paria"entar/ $u(re"ac/. +he $ec&nd acet & the $u(re"ac/ &Paria"ent i$ t& be &und in 'rtice 284;1< which (r&ide$:

'rtice 284: In"ons$s#en" be#,een la,s made b Parl$amen# and la,s made b #%e.eg$sla#ures o( S#a#es 9 ;1< an/ (r&i$i&n & a aw "ade b/ the -e)i$ature & a State i$re(u)nant t& an/ (r&i$i&n & a aw "ade b/ Paria"ent which Paria"ent i$ c&"(etent t&enact, &r t& an/ (r&i$i&n & an e5i$tin) aw with re$(ect t& &ne & the "atter$ enu"erated inthe C&ncurrent -i$t, then, $ub#ect t& the (r&i$i&n$ & Cau$e ;2=;SC< Dee+ C%and ): T%e S#a#e o(

U##ar Prades% MANU/SC/0/5686 AIR5686SC>=1 . +he c&ntr&er$/, in thi$ ca$e, i$ t& bere$&ed kee(in) the$e br&ad (rinci(e$ in "ind.

>. +he i""ediate ue$ti&n be&re u$ i$ whether the +&bacc& B&ard 'ct, 1678 debar$ the State$r&" e/in) "arket ee in re$(ect & t&bacc&. n the $eera "atter$ ar)ued and heard, the "ain(r&ta)&ni$t$ were the t&bacc& trader$ and deaer$ &n the &ne hand wh& ar)ue that the State$

cann&t e/ "arket ee &n t&bacc&, and the "arket C&""ittee$ &n the &ther wh& c&ntend t& thec&ntrar/. +he ni&n & ndia and the +&bacc& B&ard hae $u((&rted the &r"er whie the StateG&ern"ent$ the atter. +he detai$ & the $eera "atter$ which were heard b/ u$ hae been n&tedin the &(ini&n & Pattanaik, J. ' )aa5/ & c&un$e hae "ade $ub"i$$i&n$ in $u((&rt & the&((&$in) ca"($. %&r the (ur(&$e & c&nenience and c&herence, the dier$e ar)u"ent$ haebeen cubbed t&)ether and th&$e c&ntendin) a)ain$t the State$ c&"(etence are reerred t&c&"(endi&u$/ a$ the a((eant$ and their &((&nent$ a$ the re$(&ndent$. One urther cariicati&ni$ nece$$ar/. '$ the &rder reerrin) the i$$ue t& thi$ C&urt wa$ (a$$ed in an a((ea reatin) t& theBihar ')ricutura arket$ 'ct, 16>0, ath&u)h $eera &ther $tate$ hae enacted $ub$tantia/$i"iar $tatute$, wi treat the Bihar Statute a$ re(re$entatie and reer t& the (r&i$i&n$ & that 'ct&r decidin) the i$$ue$.

7. +he Bihar ')ricutura Pr&duce arket$ 'ct, 16>0 ;reerred t& hereater a$ the arket$ 'ct< wa$enacted b/ the State & Bihar and i$ &$ten$ib/ reerabe t& Antr/ 2= & -i$t which )ie$ the Statee)i$ature the e5cu$ie (&wer t& e)i$ate &n Harket$ and %air$H read with Antr/ >> & -i$t acc&rdin) t& which the State -e)i$ature "a/ a$& e/ ee$ in re$(ect & an/ "atter in -i$t e5ce(tC&urt ee$. it i$ true that in 3elsund Sugar Com+an. S#a#e o( 3$%arthe C&urt (r&ceeded &nthe ba$i$ that the arket$ 'ct had been enacted b/ the Bihar -e)i$ature n&t &n/ under thee)i$atie (&wer e$ted in it b/ Antr/ 2= but a$& under Antrie$ 2> and 27 & -i$t & the SeenthSchedue & the C&n$tituti&n but in that ca$e, there d&e$ n&t a((ear t& hae been an/ c&ntr&er$/rai$ed &n thi$ (&int. Antrie$ 2> and 27 & -i$t read a$ under:

2>. +rade and c&""erce within the State $ub#ect t& the (r&i$i&n$ & Antr/ &-i$t .

27. Pr&ducti&n, $u((/ and di$tributi&n & )&&d$ $ub#ect t& the (r&i$i&n$ & Antr/


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& -i$t .H

=. t ha$ a$& been ar)ued b/ the re$(&ndent$ that the State 'ct i$ a$& reerabe t& Antr/ 14 & -i$t which de$cribe$ the (er"i$$ibe $ub#ect "atter & e)i$ati&n b/ State$ a$:

14: ')ricuture, incudin) a)ricutura educati&n and re$earch, (r&tecti&n a)ain$t (e$t and(reenti&n & (ant di$ea$e$.

6. A5ce(t &r Antrie$ 2> and 27 & -i$t , each & the &ther entrie$ c&"e$ within the e5cu$iee)i$atie d&"ain & the State$.

10. +he +&bacc& B&ard 'ct, 1678, &n the &ther hand, i$ cai"ed b/ the a((eant$ t& be reatabe$&e/ t& Antr/ 82 & -i$t which enabe$ Paria"ent t& e)i$ate &n Hindu$trie$, the c&ntr& & whichb/ the ni&n i$ decared b/ Paria"ent b/ aw t& be e5(edient in the (ubic intere$tH. 'cc&rdin) t&the a((eant$, the arket$ 'ct $eek$ t& re)uate, inter9aia, the $ae & ari&u$ kind$ & a)ricutura(r&duce incudin) t&bacc&. +he/ c&ntend that the (r&i$i&n$ & the arket$ 'ct c&ud n&t bea((ied t& t&bacc& becau$e the +&bacc& 'ct wa$ enacted b/ Paria"ent under Antr/ 82 & -i$t t&c&ntr& and re)uate eer/thin) reatin) t& the t&bacc& indu$tr/ r&" the )r&wth & t&bacc& t& it$(r&ce$$in), $t&rin), $ae, "anuacture, e5(&rt and i"(&rt.

11. t had been initia/ ar)ued b/ the a((eant$ that &nce a decarati&n i$ "ade in ter"$ & Antr/82 & the ni&n -i$t, the indu$tr/ in re$(ect & which the decarati&n i$ "ade and the entire (r&ce$$reatin) theret& bec&"e$ (art & the e)i$atie head it$e and within the e5cu$ie d&"ain & theParia"ent, and the State e)i$ature bec&"e$ inc&"(etent t& enact an/ (r&i$i&n with re)ard t&that indu$tr/. +he $ub"i$$i&n wa$ $&"ewhat watered d&wn in the re(/. t wa$ c&nceded that thear)u"ent wa$ an e5tre"e &ne and that the true (rinci(e wa$ that &ne ha$ t& e5a"ine the actuae5tent & c&era)e b/ the Centra enact"ent. +he ne5t $ub"i$$i&n wa$ that the w&rd indu$tr/ inAntr/ 82 & -i$t wi hae t& be )ien a wide "eanin). Pa$$a)e$ r&" the Anc/c&(aediaBritannica were reerred t&, t& c&ntend that an indu$tr/ c&ud be (ri"ar/, $ec&ndar/ &r tertiar/.

Pri"ar/ indu$trie$ w&ud incude a)ricuture, &re$tr/, i$hin), "inin) and the e5tracti&n & "inera$etc. ' $ec&ndar/ indu$tr/ w&ud be a "anuacturin) indu$tr/ where raw "ateria$ $u((ied b/(ri"ar/ indu$trie$ are (r&ce$$ed t& "anuacture c&n$u"er and n&n9c&n$u"er )&&d$. ' tertiar/indu$tr/ w&ud be &ne where $erice$ were rendered $uch a$ bankin), in$urance, tran$(&rtati&n,in&r"ati&n etc. +hi$ wa$ c&ntra$ted with the "eanin) & the w&rd a$ deined in the ndu$trie$,Dee&("ent and !e)uati&n 'ct, 1681 which &n/ dea$ with "anuacturin) indu$trie$. 'cc&rdin)t& the a((eant$, thi$ C&urt in Hara-"%and Ra#an"%and 3an#%$a and Ors: ): Un$on o( Ind$a

MANU/SC/1/56>6 B5675SCR=76 n&t &n/ acce(ted the wide deiniti&n & indu$trie$ buta$& $(eciica/ hed that the w&rd indu$tr/ in Antr/ 82 w&ud a$& c&"(ri$e (r&ducti&n, $u((/and di$tributi&n & )&&d$ reerred t& in Antr/ 27 & -i$t . t wa$, there&re, c&ntended that the(r&i$i&n$ & the +&bacc& 'ct were cear/ within the e5cu$ie c&"(etence & Paria"ent andwithin the ied c&ered in Antr/ 82 & -i$t . '$ a c&r&ar/ t& thi$ ar)u"ent, it wa$ c&ntended thatParia"ent c&ud a$& e)i$ate with re)ard t& the raw "ateria$ $u((ied t& a decared indu$tr/ in

kee(in) with the (rinci(e & (ith and $ub$tance. +he ne5t $ub"i$$i&n wa$ that een i the StateG&ern"ent retained the c&"(etence t& e)i$ate &n t&bacc&, it c&ud n&t enact an/ $tatut&r/(r&i$i&n$ which w&ud be re(u)nant t& the Centra 'ct. +he (r&i$i&n$ & the +&bacc& 'ct and thearket$ 'ct were reerred t& in $&"e detai t& c&ntend that the/ c&ud n&t (&$$ib/ c&9e5i$t andthere&re the Centra 'ct w&ud hae t& (reai. t wa$ $ub"itted that in the circu"$tance$ the(r&i$i&n$ & the arket$ 'ct with re$(ect t& t&bacc& were re(u)nant t& the (r&i$i&n$ & the+&bacc& 'ct an that b/ irtue & the (r&i$i&n$ & 'rtice 284;1< & the C&n$tituti&n, the aw "ade b/Paria"ent wa$ t& (reai and the aw "ade b/ the -e)i$ature$ & the State t& the e5tent & there(u)nanc/ with the Centra 'ct, i$ &id.

12. +he re$(&ndent$ &n the &ther hand c&ntended that the +&bacc& 'ct did n&t and c&ud n&t&ccu(/ the entire e)i$atie ied reatin) t& t&bacc&. 'cc&rdin) t& the", de$(ite the decarati&n inSecti&n 2 & the +&bacc& 'ct under Antr/ 82 & -i$t , the w&rd indu$tr/ in the c&nte5t & the

+&bacc& 'ct c&ud n&t incude an/thin) "&re than (r&ce$$in) and "anuacturin) & t&bacc&.!eiance wa$ (aced (ri"ari/ &n the deci$i&n & the C&n$tituti&n Bench in T$-a Ram!$ and Ors:


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):S#a#e o( U:P: and Ors: MANU/SC/1/568> B568>5SCR6 :

1. t wa$ urther $ub"itted &n beha & the re$(&ndent$ that the ue$ti&n & re(u)nanc/ betweenthe arket$ 'ct and the +&bacc& 'ct w&ud n&t ari$e $ince Paria"ent wa$ n&t c&"(etent t& enact(r&i$i&n$ in re$(ect & a e)i$atie ied $(eciica/ (r&ided &r in -i$t . t wa$ $ub"itted that thee)i$atie ied under Antr/ 82 & -i$t wa$ deried r&" Antr/ 24 & -i$t and Antr/ 24 did n&tc&er the e)i$atie ied$ &therwi$e $(ecia/ (r&ided &r in -i$t . t wa$ $tated that Antr/ 2=c&ud n&t be rendered redundant b/ the Centra G&ern"ent$ e)i$ati&n &n c&""&ditie$ $&d at"arket$ and air$ b/ i$$uin) a decarati&n under Antr/ 82 & -i$t . t wa$ a$& $ub"itted that there"a/ be (r&i$i&n$ in the +&bacc& 'ct which "a/ incidenta/ trench &n the State$ c&"(etence anda$ &n) a$ State$ hae n&t e)i$ated &n that t&(ic, the +&bacc& 'ct "a/ (reai. t wa$ $ub"ittedthat een i the arket$ 'ct were enacted under Antrie$ 2> and 27 & -i$t neerthee$$ thi$ w&udn&t "ake the arket 'ct inaid a$ ar a$ t&bacc& wa$ c&ncerned. t wa$ urther $ub"itted thatath&u)h Antrie$ 2> and 27 in the State -i$t were $ub#ect t& the (r&i$i&n$ & Antr/ & theC&ncurrent -i$t, there wa$ n& (r&i$i&n in Antr/ & the c&ncurrent -i$t which c&ered t&bacc&. twa$ $ub"itted that the i$$ue & re(u)nanc/ did n&t ari$e becau$e 'rtice 284;1< &n/ reate$ t&re(u)nanc/ in actua e)i$ati&n$ in re$(ect & entrie$ in the C&ncurrent -i$t. 'cc&rdin) t& there$(&ndent$, a$$u"in) that Paria"ent wa$ c&"(etent t& e)i$ate in re$(ect & t&bacc&, there wa$in act n& re(u)nanc/ between the arket$ 'ct and the +&bacc& 'ct a$ the +&bacc& 'ct did n&tc&er (&$t aucti&n $ae$. n an/ eent, there c&ud be n& c&nict between the arket$ 'ct and theCentra 'ct in Bihar Particuar/ hain) re)ard t& the act that Secti&n 1 1' and 14' & the+&bacc& 'ct had n&t been "ade &(eratie in Bihar. !eiance ha$ been (aced u(&n the ab$ence &a n&n9&b$tante cau$e in the +&bacc& 'ct and the (re$ence & Secti&n 1 in that 'ct which,acc&rdin) t& the re$(&ndent$, "ake$ it cear that the +&bacc& 'ct wa$ t& be read a$ bein) inadditi&n t& and n&t in der&)ati&n & an/ &ther aw. +here&re acc&rdin) t& the re$(&ndent$, een it&bacc& were $&e/ within the e5cu$ie ied & e)i$ati&n b/ Paria"ent, the State -e)i$aturec&ud rec&er ee$ &r $erice$ rendered in re$(ect & "arket$ where t&bacc& "a/ be $&d.

14. +& bein) with, d& n&t think that thi$ Bench $h&ud at a )& int& the ue$ti&n & the aidit/ &the +&bacc& B&ard 'ct, 1678 ;reerred t& brie/ hereater a$ the +&bacc& 'ct< een th&u)ht he

i$$ue wa$ ar)ued at $&"e en)th b/ the "ain (r&ta)&ni$t$ be&re u$. +he di$(ute which &ri)ina/)ae ri$e t& thi$ $et & a((ea$ i$ i"ited t& the ue$ti&n whether the arket C&""ittee$ hae theauth&rit/ t& e/ "arket ee under the arket$ 'ct &n the $ae & t&bacc& and whether the(r&i$i&n$ in the arket$ 'ct )rantin) arket C&""ittee$ $uch ri)ht are re(u)nant t& the(r&i$i&n$ & the +&bacc& 'ct and are there&re, unc&n$tituti&na. hat ha$ been (aced be&re thi$Bench &r it$ c&n$iderati&n i$ the c&rrectne$$ & the earier deci$i&n in ITC .#d and Ors: ): S#a#e o(

?arna#a-a MANU/SC/7/5618 : +he ue$ti&n rai$ed in that ca$e wa$ whether the (r&i$i&n &the Karnataka ')ricutura Pr&duce arketin) ;!e)uati&n< 'ct, 16>> reatin) t& the e/ & "arketee &n t&bacc& were re(u)nant t& the +&bacc& 'ct. +he "a#&rit/ hed that it wa$. +he "in&rit/ iewwa$ that b&th 'ct$ c&ud c&9e5i$t. But the aidit/ & the +&bacc& 'ct it$e wa$ neer in di$(ute.

18. *& d&ubt, the State$ hae been )ien n&tice but the &cu$ & the ar)u"ent$ ha$ been &n thee/ & ee$ &n the "arketin) & t&bacc&. '$ the +&bacc& 'ct c&er$ a "uch ar)er ied, a

(r&n&unce"ent &n the aidit/ & a the (r&i$i&n$ deain) with a ariet/ & actiitie$ under the 'ctw&ud n&t be a((r&(riate a$ it w&ud (erha($ (re9e"(t a deci$i&n &n a$(ect$ &ther than the"arketin) & t&bacc& with&ut hearin) th&$e wh& "i)ht be intere$ted in the &utc&"e & a deci$i&n&n th&$e (r&i$i&n$.

1>. +he $tartin) (&int in an/ c&ntr&er$/ deain) with a((arent/ c&nictin) e)i$atie #uri$dicti&n$i$ t& $ee whether the c&nict can be air/ rec&ncied b/ readin) the entrie$ t& which the e)i$ati&n$are reerabe, t&)ether and Hb/ inter(retin) and, where nece$$ar/, "&di/in) the an)ua)e & the&ne b/ that & the &therH. t i$ &n/ when $uch re$&uti&n i$ n&t (&$$ibe that the C&urt$ $h&ud becaed u(&n t& decide the ue$ti&n & e)i$atie c&"(etence. +hi$ (rinci(e ha$ been $tre$$ed in anu"ber & ca$e$ b/ the Pri/ C&unci, the %edera C&urt and "&re recent/ b/ thi$ C&urt. ISee? T%eCen#ral Pro)$n"es and 3erar Sales o( Mo#or S+$r$# .ubr$"an#s Ta&a#$on A"#4561, '9o)ernor*9eneral $n Coun"$l ): Pro)$n"e o( Madras' S#a#e o( 3omba . F:N: 3alsara

AIR 5685 SC 1514 1004 A""oun#an# Se"re#ar$al Ser)$"es P)#: l#d: . '*SC000816==

: Un$on o( Ind$a AIR5611SC571 Fa#e"%and ): MANU/SC/=5/5677 S#a#e o( Ma%aras%#ra


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B56770SCR101 Cal"u##a 9as Com+an ;Pro+r$e#ar< .#d. '*SC00>16>2 : S#a#e o(es# 3engal AIR56>0SC5== .

17. Si"iar/, when there i$ an a((arent c&nict between tw& $tatute$ enacted in aid e5erci$e &e)i$atie (&wer$ under the C&ncurrent -i$t, rec&nciiati&n "u$t be atte"(ted. On/ when thedierence$ are irrec&nciabe $h&ud the C&urt$ re$&rt t& $trikin) d&wn a (iece & e)i$ati&n.

ISee: T%e ?unnan De)an H$lls Produ"e ): MANU/SC/8=/5670 T%e S#a#e o( ?erala

B5675SCR8> M/s: Hoe"%s# P%arma"eu#$"als .#d: ): MANU/SC/60/561 S#a#e o( 3$%arB561858=ITR>=;SC< .

1=. n "/ iew, i there&re, the i$$ue rai$ed in thi$ ca$e can be re$&ed b/ i"itin) &urc&n$iderati&n t& the ue$ti&n & c&nict, i an/, between the tw& entrie$ in the $eenth $chedue &the C&n$tituti&n t& which the +&bacc& 'ct and the arket 'ct are re$(ectie/ reatabe andbetween the (r&i$i&n$ & the tw& $tatute$ which hae a bearin) &n the "arketin) & t&bacc&, it i$unnece$$ar/ t& $tra/ int& th&$e area$ which "a/ n&t be nece$$ar/ &r the di$(&$a & the$ea((ea$. +he di$cu$$i&n in thi$ &(ini&n i$ there&re i"ited t& the $c&(e & the tw& entrie$ and theae)ed/ c&nictin) (r&i$i&n$ & the tw& 'ct$ with which we are c&ncerned.

16. +he c&ntr&er$/ in thi$ ca$e t& a ar)e e5tent turn$ &n the "eanin) & the w&rd$ Hindu$tr/H a$u$ed in the three e)i$atie i$t$. *&w the (&wer t& e)i$ate in re$(ect & a indu$trie$ ha$ been)ien under Antr/ 24 & -i$t t& the State -e)i$ature$ $ub#ect t& Antrie$ 7 and 82 & -i$t . Antrie$7 and 82 & -i$t a&w Paria"ent t& e)i$ate in re$(ect & (articuar indu$trie$ 9 na"e/ $uchindu$trie$ which are decared b/ Paria"ent b/ aw t& be nece$$ar/ &r the deence &r &r the(r&$ecuti&n & war ;Antr/ 7< and indu$trie$ the c&ntr& & which b/ the ni&n i$ decared b/Paria"ent b/ aw t& be e5(edient in the (ubic intere$t ;Antr/ 82


9/69

22. +hu$ in Cal"u##a 9asit wa$ hed that the w&rd indu$tr/ in entr/ 24 & -i$t and 7 and 82 &-i$t did n&t incude )a$ and )a$ w&rk$ which wa$ in ter"$ (r&ided &r in Antr/ 28. +he ar)u"entin that ca$e wa$ that the State wa$ inc&"(etent t& enact the Orienta Ga$ C&"(an/ 'ct, 16>0.under Antr/ 28 & -i$t becau$e Paria"ent had (a$$ed the ndu$trie$ ;Dee&("ent @!e)uati&n< 'ct, 1681 b/ irtue & Antr/ 82 & -i$t . +he Centra 'ct in that ca$e had under

Secti&n2 decared that it wa$ e5(edient in the (ubic intere$t that the ni&n $h&ud take under it$c&ntr& inter9aia indu$trie$ & Hue )a$ ;c&a )a$, natura )a$ and the ike01 & 164=< which c&ntained adecarati&n a$ c&nte"(ated under Antr/ 82 & -i$t . +he C&urt hed, &&win) +ika !a"#i, that theHc&ntr& & the indu$tr/ e$ted in Paria"ent wa$ &n/ re$tricted t&t he a$(ect & (r&ducti&n and"anuacture & $ik /arn &r $ik. t did n&t &bi&u$/ take in the earier $ta)e$ & the indu$tr/, na"e/,the $u((/ & raw "ateria$H.

t wa$ a$& hed:

Hth&u)h the (r&ducti&n and "anuacture & raw $ik cann&t be e)i$ated u(&n b/ the State

e)i$ature in iew & the (r&i$i&n$ & the Centra 'ct and the decarati&n inSecti&n 2 there&, that decarati&n and Antr/ 82 d&e$ n&t in an/ wa/ i"it the (&wer$ & theState e)i$ature t& e)i$ate in re$(ect & the )&&d$ (r&duced b/ the $ik indu$tr/. +&inter(ret Antr/ 82 &therwi$e w&ud render Antr/ in -i$t & the Seenth Schedue t& theC&n$tituti&n &ti&$e9and "eanin)e$$H.

24. +hi$ (r&ce$$ & deinin) indu$tr/ in Antr/ 24 & -i$t and c&n$euent/ Antr/ 82 & -i$t , b/ei"inatin) r&" it$ $c&(e the ied$ $(eciica/ (r&ided &r in -i$t &r -i$t ha$ been c&n$i$tent/

&&wed. %&r e5a"(e in S#a#e o( A:P: ): MANU/SC/=07/566> M"Do,ell and CoB566>SCR705 it wa$ $aid:

HParia"ent cann&t take &er the c&ntr& & indu$trie$ en)a)ed in the (r&ducti&n and"anuacture & int&5icatin) iu&r$ b/ "akin) a decarati&n under Antr/ 82 & -i$t , $ince the$aid Antr/ )&ern$ &n/ Antr/ 24 in -i$t but n&t Antr/ = in -i$t .H

28. n ?anan De)an H$ll Produ"e ): MANU/SC/8=/5670 S#a#e o( ?erala B5675SCR8> itwa$ hed that a decarati&n under Antr/ 82 & the ni&n -i$t in re$(ect & the tea indu$tr/ did n&tdebar the State$ r&" e)i$atin) t& acuire and under tea cutiati&n under Antr/ 1= & -i$t andAntr/ 42 & -i$t .

2>. ' C&n$tituti&n Bench in 9anga Sugar Cor+ora#$on .#d: ): MANU/SC/67/5676 S#a#e o(U##ar Prades% and Ors: B5615SCR7>6 u(hed the (&wer & State$ t& i"(&$e (urcha$e ta5 &n$u)arcane under te" 84 in the State -i$t de$(ite centra e)i$ati&n under Antr/ 82 & -i$t inre$(ect & the $u)ar indu$tr/.

27. 'n&ther C&n$tituti&n Bench in Fa#e"% C%and ): MANU/SC/=5/5677 S#a#e o(


10/69

Ma%aras%#ra B56770SCR101 had t& decide the c&n$tituti&na tu)9&9war between theahara$htra Debt !eie 'ct, 167> &n the &ne hand and the G&d C&ntr& 'ct &n the &ther. it wa$c&ntended that the Debt 'ct wa$ &id in$&ar a$ it deat with H)&d &an$H becau$e Paria"ent had&ccu(ied the ied under Antr/ 82 & -i$t . t wa$ a$& ur)ed that there wa$ inc&n$i$tenc/ betweenthe Debt 'ct and the G&d C&ntr& '. ;$ic< Debt 'ct c&ud n&t be )ien eect t& the e5tent & $uch

;$ic, the t/(e & buidin)$ &r )&d $hi($ and the kind &recei(t$ &r (urcha$e &r $ae & (reci&u$ "eta. +& "uti(/ in$tance$ i$ ea$/, but the c&re &the "atter i$ that where under it$ (&wer Paria"ent ha$ "ade a aw which &erride$ an entr/in the State -i$t, that area i$ ab$tracted r&" the State -i$t. *&thin) "&re.H

2=. t i$ unnece$$ar/ t& "uti(/ in$tance$ & the nu"er&u$ deci$i&n$ which hae &&wed the &)ic& +ika !a"#i and acce(ted it$ c&ncu$i&n that &r the (ur(&$e$ & Antr/ 24 & -i$t andc&n$euent/ Antr/ 82 & -i$t , indu$tr/ "ean$ H"anuacture &r (r&ducti&nH and n&thin) "&re. t i$$uicient t& n&te thatT$-a Ram!$'sdeiniti&n & indu$tr/ ha$ been air"ed and a((ied recent/ b/ aC&n$tituti&n Bench in 3elsund Sugar Com+an ): S#a#e o( 3$%ar;$u(ra< and i$ $ti )&&daw. Hara- C%and 3an#%$a'sca$e d&e$ n&t $trike a di$c&rdant n&te.

26. Hara-"%and Ra#an"%and 3an#%$a and Ors: ): MANU/SC/1/56>6 Un$on o( Ind$aB5675SCR=76 4 ha$ been cited b/ the a((eant$ in $u((&rt & the (r&(&$iti&n that the ne)atiete$t aid d&wn in T$-a Ram!$and dee&(ed in Cal"u##a 9asd&e$ n&t a((/ t& deine the $c&(e &Antr/ 82 & -i$t i$99i$ Antr/ 27 & -i$t . +he $ub"i$$i&n i$ unacce(tabe. n 3an#%$a's "asethe

c&n$tituti&na aidit/ & the G&d ;C&ntr&< 'ct, 16>= enacted b/ Paria"ent wa$ ue$ti&ned. G&dhad been decared t& be a c&ntr&ed indu$tr/ under Antr/ 82 & -i$t b/ the ndu$trie$;Dee&("ent @ !e)uati&n< 'ct, 1681. One & the chaen)e$ rai$ed wa$ that the actiit/ $&u)ht t&be c&ntr&ed b/ the G&d 'ct, wa$ n&t an indu$tr/ and did n&t c&"e within the (reiew &Paria"ent under Antr/ 82 & -i$t . +he (a$$a)e (articuar/ reied u(&n b/ the a((eant$ i$u&ted:

H+he ue$ti&n t& be c&n$idered i$ what i$ the "eanin) & the w&rd Hindu$tr/H inAntr/ 82 & -i$t , Antr/ 24 & -i$t and Antr/ & -i$t . hateer "a/ be it$c&nn&tati&n it "u$t bear the $a"e "eanin) in a the$e entrie$ which are $&interc&nnected that c&nictin) &r dierent "eanin)$ )ien t& the" w&ud $na( thec&nnecti&n. n the Sh&rter O5&rd An)i$h Dicti&nar/ the w&rd Hindu$tr/H i$ deined

a$ Ha (articuar branch & (r&ductie ab&ur? a trade &r "anuacture.H 'cc&rdin) t&eb$ter$ +hird *ew nternati&na Dicti&nar/ ;16>1 edn.< the w&rd Hindu$tr/H"ean$ H;a< $/$te"atic ab&ur e$(ecia/ &r the creati&n & aue? ;b< a de(art"ent&r branch & a crat, art, bu$ine$$ &r "anuacture, a dii$i&n & (r&ductie and(r&it "akin) ab&ur e$(ecia/ &ne that e"(&/$ a ar)e (er$&nne and ca(itae$(ecia/ in "anuacturin)? ;c< a )r&u( & (r&ductie &r (r&it "akin) enter(ri$e$&r &r)ani$ati&n$ that hae a $i"iar techn&&)ica $tructure & (r&ducti&n and that(r&duce &r $u((/ technica/ $ub$titutabe )&&d$, $erice$ &r $&urce$ & inc&"e.Ht wa$ $aid that i the w&rd Hindu$trie$H i$ c&n$trued in thi$ wide $en$e, Antr/ 27 &-i$t wi &$e a "eanin) and c&ntent. it i$ n&t (&$$ibe t& acce(t thi$ c&ntenti&n&r, Antr/ 27 i$ a )enera (&wer $h&ud n&t be $& inter(reted a$ t& nui/ a(articuar (&wer c&nerred b/ the $a"e in$tru"ent. n Tika Ramji v. State of Uttar

Pradesh 1956 SCR 393 the e5(re$$i&n Hindu$tr/H a$ deined t& "ean the (r&ce$$& "anuacture &r (r&ducti&n and did n&t incude raw "ateria$ u$ed in the


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indu$tr/ &r the di$tributi&n & the (r&duct$ & the indu$tr/. it wa$ c&ntended that thew&rd Hindu$tr/H wa$ a w&rd & wide i"(&rt and $h&ud be c&n$trued a$ incudin)n&t &n/ the (r&ce$$ & "anuacture &r (r&ducti&n but a$& actiitie$ antecedenttheret& $uch a$ acui$iti&n & raw "ateria$ and $ub$euent theret& $uch a$

di$(&$a & the ini$hed (r&duct$ & that indu$tr/. But thi$ c&ntenti&n wa$ n&tacce(ted. t wa$ c&ntended b/ r. Da(htar/ that i the (r&ce$$ & (r&ducti&n wa$t& c&n$titute Hindu$tr/H a (r&ce$$ & "achiner/ &r "echanica c&ntriance wa$e$$entia. But we $ee n& rea$&n wh/ $uch a i"itati&n $h&ud be i"(&$ed &n the"eanin) & the w&rd Hindu$tr/H in the e)i$atie i$t$. Si"iar/ it wa$ ar)ued b/ r.Paakhiaa that the "anuacture & )&d &rna"ent$ wa$ n&t an indu$tr/ becau$e itreuired a((icati&n & indiidua art and crat$"an$hi( and ae$thetic $ki. But"ere u$e & $ki &r art i$ n&t a deci$ie act&r and wi n&t take the "anuacture &)&d &rna"ent$ &ut & the a"bit & the reeant e)i$atie entrie$. t i$ we $ettedthat the entrie$ in the three i$t$ are &n/ e)i$atie head$ &r ied$ & e)i$ati&nand the/ de"arcate the area &er which the a((r&(riate e)i$ature can &(erate.+he e)i$atie entrie$ "u$t be )ien a ar)e and ibera inter(retati&n, the rea$&n

bein) that the a&cati&n & $ub#ect$ t& the i$t$ i$ n&t b/ wa/ & $cientiic &r &)icadeiniti&n but i$ a "ere enu"erati&n & br&ad and c&"(rehen$ie cate)&rie$. t i$n&t, h&weer, nece$$ar/ &r the (ur(&$e & thi$ ca$e t& atte"(t t& deine thee5(re$$i&n Hindu$tr/H (reci$e/ &r t& $tate e5hau$tie/ a it$ dierent a$(ect$. Butwe are $ati$ied in the (re$ent ca$e that the "anuacture & )&d &rna"ent$ b/)&d$"ith$ in ndia i$ a H(r&ce$$ & $/$te"atic (r&ducti&nH &r trade &r"anuacture and $& a$ within the c&nn&tati&n & the w&rd Hindu$tr/H in thea((r&(riate e)i$atie entrie$. t &&w$, there&re that in enactin) the i"(u)ned'ct Paria"ent wa$ aid/ e5erci$in) it$ e)i$atie (&wer in re$(ect & "atter$c&ered b/ Antr/ 82 & -i$t and Antr/ & -i$t .H

;A"(ha$i$ "ine> & -i$t which hae been e5(re$$/ "arked &ut a$ ied$ within the

State$ e5cu$ie e)i$atie (&wer$. '$ n&ted earier Antr/ 2= dea$ with "arket$ and air$ andAntr/ >> with the ri)ht t& e/ ee$ in re$(ect &, in the (re$ent c&nte5t, "arket$ and air$. Antr/ 82& -i$t d&e$ n&t &erride Antr/ 2= in -i$t n& ha$ Antr/ 2= in -i$t been "ade $ub#ect t& Antr/ 82unike Antr/ 24 & -i$t . +hi$ C&urt in 3elsund Sugar;$u(ra< ha$ a$& acce(ted the ar)u"ent thatAntr/ 2= & -i$t &(erated in it$ &wn and cann&t be aected b/ an/ e)i$ati&n (ertainin) t&indu$tr/ a$ &und in Antr/ 82 & -i$t .

7. indu$tr/ d&e$ n&t incude "arket$ and air$ it i$ i"(&rtant t& deine what "arket$ and air$c&nn&te. arket "a/ $trict/ be deined a$ Hthe "eetin) &r c&n)re)atin) t&)ether & (e&(e &r the(urcha$e and $ae & (r&i$i&n$ &r ie$t&ck, (ubic/ e5(&$ed, at a i5ed ti"e and (aceH. ' airha$ been #udicia/ deined a$ "eanin) a (eri&dica c&nc&ur$e & bu/er$ and $eer$ in a (ace)enera/ &r $ae and (urcha$e ..... at ti"e$ &r &n &cca$i&n &rdained b/ cu$t&". +he di$tincti&nbetween "arket$ and air$ a((ear$ t& ie in the (eri&dicit/ iF. whie a "arket "a/ be a re)uar &r

(er"anent (ace & bu$ine$$, a air i$ an inter"ittent &ne. 't c&""&n aw, air$ and "arket$ werea$& ranchi$e$ &r ri)ht$ t& h&d a c&nc&ur$e & bu/er$ and $eer$ t& di$(&$e & the c&""&ditie$ in


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re$(ect & which the ranchi$e i$ )ien. +hi$ incuded the ri)ht t& e/ a t& &r $u" (a/abe b/ thebu/er u(&n $ae$ & artice$ in a "arket. +he $en$e in which the w&rd$ ha$ been u$ed in Antr/ 2=a((ear$ t& c&er n&t &n/ $uch ri)ht but the "arket (ace it$e incudin) the c&nc&ur$e & bu/er$and $eer$ and the re)uati&n & a the$e.

=. +he w&rd Harket$H ha$ a$& &und (ace in Antr/ 4= & -i$t 1 which read$ HSt&ck A5chan)e$and uture "arket$H. ' C&n$tituti&n Bench & thi$ C&urt in aer/ Jute i$ C&. -td. 9. !a/"&n @

C&. ;ndia< Priate -td. '*SC000416>2 : I16>SC!206 : I16>SC!206 re#ected the$ub"i$$i&n that the w&rd H"arket$H "u$t be re$tricted t& H a (ace $et a(art &r the "eetin) & the)enera (ubic & bu/er$ and $eer$, ree/ &(en t& na/ $uch t& a$$e"be t&)ether, where an/$eer an/ e5(&$e hi$ )&&d$ &r $ae and an/ bu/er "a/ (urcha$eH.

t wa$ hed that:

Harket n& d&ubt &rdinari/ "ean$ a (ace where bu$ine$$ i$ bein) tran$acted. +hat wa$(r&bab/ a that it "eant at a ti"e when trade wa$ n&t dee&(ed and when tran$acti&n$t&&k (ace at $(eciied (ace$. But with the dee&("ent & c&""erce bar)ain$ ca"e t& be

c&ncuded "&re &ten that n&t thr&u)h c&rre$(&ndence and the c&nn&tati&n & the w&rk"arket underwent a c&rre$(&ndin) e5(an$i&n. n "&dern (arance the w&rk "arket ha$c&"e t& "ean bu$ine$$ a$ we a$ the (ace where bu$ine$$ i$ carried &n.H

6. +he ue$ti&n then i$ d&e$ the arket$ 'ct a within thi$ deiniti&n & the w&rd "arket$L +hee$tabi$h"ent & re)uated "arket$ had &n) been rec&)niFed a$ an i"(eratie reuire"ent & an/&rdered (an & a)ricutura dee&("ent in thi$ c&untr/. +he &b#ect$ and rea$&n$ &r enactin) theBihar arket$ 'ct, 16>0 ha$ been $tated a$: (r&(er/ &r)ani$in) "arket$ & a)ricutura and aiedc&""&ditie$ t& en$ure that the a)ricuturi$t )et$ a air $hare & the (rice (aid b/ the c&n$u"er &rhi$ (r&duce b/ atte"(tin) t& d& awa/ &r ri)id/ c&ntr&in) the "idde "an. hat wa$ &ri)ina/ a$&urce & (riate (r&it in c&""&n aw, ha$ b/ irtue & the arket$ 'ct bec&"e a "atter &"unici(a c&ncern na"e/, $ettin) u( & re)uated "arket$ &r the "arketin) & a)ricutura (r&duce.

40. +he (r&i$i&n$ & the arket$ 'ct are brie/ n&ted. +he arket$ 'ct (r&ide$ &r he i$$uance &a n&tiicati&n under Secti&n b/ the State G&ern"ent decarin) it$ intenti&n & re)uatin) the(urcha$e, $ae, $t&ra)e, (r&ce$$in) & $(eciied (r&duce in that area. H')ricutura (r&duceH ha$been deined in Secti&n 2;>< a$:

H a (r&duce whether (r&ce$$ed &r n&n9(r&ce$$ed, "anuactured &r n&t, & ')ricuture,3&rticuture, Pantati&n, 'ni"a 3u$bandr/, %&re$t, Sericuture, Pi$cicuture, and incude$ie $t&ck$ &r (&utr/ a$ $(eciied in the Schedue.H

41. +&bacc& ha$ been "enti&ned at te" M in the Schedue. nder Secti&n 4 the StateG&ern"ent decare$ the area $(eciied a$ a "arket area &r the (ur(&$e & the arket$ 'ct. %r&"

the date & the decarati&n, under Secti&n 4 n& (er$&n &r auth&rit/ can e$tabi$h &r c&ntinue &r bea&wed t& $et u( an/ (ace &r the (urcha$e $ae $t&re$ &r (r&ce$$in) & an/ n&tiied a)ricutura(r&duce e5ce(t in acc&rdance with the (r&i$i&n$ & the arket$ 'ct. nder Secti&n 8 the StateG&ern"ent "a/ decare b/ n&tiicati&n an/ buidin) &r &cait/ in an/ "arket area t& be the(rinci(a "arket /ard. Secti&n$ > t& 18 and 17 t& 279' dea with the $ettin) u( & arketC&""ittee$, their c&n$tituti&n and uncti&n$. +he$e arket C&""ittee$ are $ub#ect t& the$u(erintendence and c&ntr& & the Bihar, ')ricutura arketin) B&ard $et u( under Secti&n ' &the arket$ 'ct.

42. Secti&n 18 (r&hibit$ n&tiied a)ricutura (r&duce r&" bein) b&u)ht &r $&d b/ an/ (er$&n atan/ (ace in the "arket area &ther than the reeant (rinci(a "arket /ard &r $ub9"arket /ard &r/ard$ e$tabi$hed therein une$$ it i$ &r retai $ae, (er$&na c&n$u"(ti&n &r e5e"(ted b/ thearketin) B&ard under Secti&n18;1< &r ;2


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(r&ce$$in), $t&ra)e &r (r&ce$$in) & a)ricutura (r&duce t& &(erate in the "arket area and a$& t&c&ntr& and re)uate the ad"i$$i&n & (er$&n$ int& the "arket /ard &r the $ub9"arket /ard$ and t&(r&$ecute (er$&n$ tradin) with&ut a aid icence. Secti&n 27 e"(&wer$ the arket C&""ittee t&e/ and c&ect "arket ee r&" the bu/er &n the a)ricutura (r&duce b&u)ht &r $&d in the "arketarea at $(eciied rate$. +he re"ainin) $ecti&n$ & the arket$ 'ct &"itted r&" c&n$iderati&n a$

the/ are n&t at a reeant. e are rea/ c&ncerned with Secti&n 18 and "&re (articuar/Secti&n$ 27. +he $ettin) u( & "arket$ area$, "arket$ /ard$ and re)uatin) u$e & the aciitie$within $uch area &r /ard$ b/ e/ & "arket ee i$ a "atter & &ca intere$t and w&ud be c&ered b/Antr/ 2= & -i$t and thu$ within the e)i$atie c&"(etence & the State. an/ (&rti&n & the"arket area &r the "arket /ard$ i$ u$ed & the $ae &r (urcha$e & t&bacc&, that t&& wi be withinthe State$ c&"(etence. +& h&d t& the c&ntrar/ w&ud be t& i)n&re the e5cu$ie (&wer$ & theState$ t& e)i$ate in re$(ect & arket$ and air$ under Antrie$ 2= and >> & -i$t . +he arket$'ct d&e$ n&t $eek t& re)uate either the H"anuacture &r (r&ducti&nH & t&bacc& ;a$$u"in) thata)ricutura (r&duce can be "anuactured< and thu$ d&e$ n&t i"(in)e u(&n the +&bacc& 'ct in $&ar a$ it i$ at a reatabe t& Antr/ 82 & -i$t . ' the (r&i$i&n$ & the arket$ 'ct, in "/ iew$, arecear/ reatabe t& Antr/ 2= & -i$t i )ien the $c&(e & the entr/ a$ di$cu$$ed earier. +he State inthe circu"$tance$, wa$ n&t inc&"(etent t& incidenta/ a$& e)i$ate with re)ard t& t&bacc& and Hthe $e"antic $wee( & Antr/ 82 did n&t c&"e in the wa/ & the State -e)i$ature "akin) aw$ &n

$ub#ect$ within it$ $(here and n&t direct/ )&in) t& the heart & the indu$tr/ it$eH. n "/ &(ini&nthere&re Secti&n$ 18 and 27 & the arket$ 'ct in (ith and $ub$tance are reatabe t& Antrie$ 2=and >> & -i$t and hae been c&"(etent/ enacted b/ the State. ncidenta/ it i$ n&b&d/$ ca$ethat the ee char)ed under Secti&n 27 d&e$ n&t re(re$ent a uid (r& u& &r the $erice$ renderedand aciitie$ a&rded in the "arket area. t &&w$ that Paria"ent i$ inc&"(etent t& e)i$ate &rthe $ettin) u( &r re)uati&n & "arket$ and air$ within the "eanin) & the (hra$e in entr/ 2= & -i$t, een in re$(ect & t&bacc&. t "a/ & c&ur$e incidenta/ tre$(a$$ int& the State e)i$atie ied,(r&ided ;1< the tre$(a$$ i$ an in$e(arabe a(art & the (r&i$i&n$ aid/ (a$$ed and ;2< the Stateha$ n&t aread/ u/ &ccu(ied it$ ied with c&nictin) $tatut&r/ (r&i$i&n$.

4. -et u$ c&n$ider the $c&(e & the +&bacc& 'ct. +he State"ent & Ob#ect$ and !ea$&n$ & the+&bacc& 'ct $h&w$ that the enact"ent wa$ nece$$ar/ in iew & the act that ndia i$ the thirdar)e$t (r&ducer & t&bacc& in the w&rd, the $i5th ar)e$t a"&n) the t&bacc& e5(&rtin) c&untrie$and the $ec&nd ar)e$t e5(&rter & ir)inia t&bacc&. +he "anie$t intenti&n & Paria"ent wa$ t&take "ea$ure$ t& en$ure that the t&bacc& (articuar/ ir)inia t&bacc& "et the de"and$ & the"arket$ in ndia and abr&ad b&th uaitatie/ and uantitatie/. +he 'ct which e5tend$ t& thewh&e & ndia ha$ h&weer n&t been br&u)ht entire/ int& &rce in a the State$. Cha(ter c&ntain$the i$t three Secti&n$. Secti&n 1, Sub9$ecti&n ;< (r&ide$ &r the 'ct c&"in) int& &re &n $uchdate$ a$ the Centra G&ern"ent "a/, b/ n&tiicati&n in the Oicia GaFette, a((&int? (r&ided thatdierent date$ "a/ be a((&inted &r dierent (r&i$i&n$ &r the 'ct and &r dierent State$ &rdierent (art$ there&. Secti&n 2 c&ntain$ the nece$$ar/ decarati&n in ter"$ & Antr/ 82 -i$t inreati&n t& the t&bacc& indu$tr/.

44. Cha(ter & the 'ct c&n$i$t$ & Secti&n$ 4 t& = and dea$ with the e$tabi$h"ent and uncti&n$& the +&bacc& B&ard. Secti&n = ;1< ca$t$ a dut/ &n the B&ard t& (r&"&te the dee&("ent & the

t&bacc& indu$tr/. Sub9$ecti&n ;2< (re$cribe$ $&"e $(eciic "ea$ure$ which "a/ be taken b/ theB&ard. +h&$e which are & reeance are n&ted:

H=;2< ;a


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;cc< e$tabi$h"ent b/ the B&ard & aucti&n (at&r" with the (rei&u$ a((r&a &the Centra G&ern"ent &r the $ae & ir)inia t&bacc& b/ re)i$tered )r&wer &rcurer$ and uncti&nin) & the B&ard a$ an aucti&neer at aucti&n (at&r"e$tabi$hed b/ &r re)i$tered with it $ub#ect t& $uch c&nditi&n$ a$ "a/ be $(eciied

b/ the Centra G&ern"ent.

.....

;e< re)uatin) in &ther re$(ect$ ir)inia t&bacc& "arketin) in ndia and e5(&rt &ir)inia t&bacc& hain) due re)ard t& the intere$t$ & )r&wer$, "anuacturer$ anddeaer$ and the nati&n?

;)< (urcha$in) ir)inia t&bacc& r&" )r&wer$ when the $a"e i$ c&n$iderednece$$ar/ &r e5(edient &r (r&tectin) the intere$t$ & the )r&wer$ and di$(&$a &the $a"e in ndian &r abr&ad a$ and when c&n$idered a((r&(riate?

.....

48. Secti&n$ 10 t& 18 are in Cha(ter which dea$ with !e)uati&n & Pr&ducti&n and Di$(&$a &+&bacc&, &r re)i$trati&nicen$in) n&t &n/ & the )r&wer$ incudin) nur$er/ )r&wer$ ;Secti&n 10 109'< but a$& curer$ ;Secti&n 11


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46. +he &b#ect & the t&bacc& 'ct i$ t& kee( a c&ntr& &n the uait/ and uantit/ & t&bacc& )r&wnin the c&untr/ with an e/e &n the internati&na "arket$. +he &cati&n & d&"e$tic "arket$ &r $ae &t&bacc& can hard/ be de$cribed a$ a nece$$ar/ c&nc&"itant t& the achiee"ent & thi$ &b#ect.'$$u"in) it i$, air/ read, it i$ (&$$ibe t& rec&ncie the ae)ed/ c&nictin) (r&i$i&n$ & the tw&$tatute$ b/ a rea$&nabe and (ractica c&n$tructi&n & their (r&i$i&n$. +he u$e & the w&rd

H"arket$H and "arketin) in the t&bacc& 'ct, incudin) Secti&n = d&e$ n&t "ean a "arket in the$en$e the w&rd ha$ been u$ed in the arket$ 'ct. t i$ &bi&u$ r&" (hra$e$ $uch a$ the ir)iniat&bacc& "arket, dee&("ent & new "arket$ &ut$ide ndia etc. that the w&rd ha$ been u$ed inthe $en$e & $ae a$ c&ntr&ed b/ $u((/ and de"and? e$(ecia/ a de"and &r a c&""&dit/ &r$ericeH 9 in thi$ ca$e t&bacc&. +he +&bacc& 'ct i$ n&t c&ncerned $& "uch with the where but withthe h&w, the t&bacc& i$ di$(&$ed &. Aen when the +&bacc& 'ct $(eak$ & $ettin) u( & aucti&n(at&r"$ it d&e$ n&t indeed it c&ud n&t $a/ where the aucti&n (at&r"$ are t& be $et u(.

80. Since State are e5cu$ie/ c&"(etent t& decide &n the &cati&n & "arket$, the auth&ritie$under the +&bacc& 'ct w&ud hae t& c&"(/ with the "unici(a aw$ and $et u( the aucti&n(at&r"$ &n/ within the (er"i$$ibe area$. the aciitie$ a&rded under the arket 'ct areutii$ed, the aciitie$ wi hae t& be (aid &r and the auth&ri$e$ a((&inted t& e/ and c&ect ee$&r the (ur(&$e under the arket$ 'ct w&ud be c&"(etent t& d& $&. urther aciitie$ are &eredat the 'ucti&n Pat&r"$ under the +&bacc& 'ct, ee$ "a/ be eie$ under Secti&n 149' & that 'ct.+he ri)ht t& e/ ee$ under the tw& act$ there&re "a/ n&t nece$$ari/ c&nict, the e/ n&t bein) inthe aternatie but additi&na. '$$u"in) thi$ i$ n&t (&$$ibe and there i$ an/ c&nict, the (r&i$i&n$& the arket$ 'ct and n&t the +&bacc& 'ct w&ud (reai.

81. Aen i Secti&n$ 18 and 27 & the arket$ 'ct are n&t reerabe t& Antrie$ 2= and >> & -i$t and are reerabe t& Antrie$ 2> and 27 & -i$t 9 neerthee$$ the$e Secti&n$ & the arket$ 'ct d&n&t tre$(a$$ &n tur re$ered b/ Paria"ent under Antr/ 82 & -i$t L State e)i$ati&n &n the $u((/and di$tributi&n & )&&d$ a$ we a$ trade and c&""erce therein which are reatabe t& Antrie$ 2>and 27, i$ &n/ $ub#ect t& the Centra enact"ent i an/ under Antr/ & the C&ncurrent -i$t andn&t Antr/ 82 & -i$t . %urther"&re, whether &r n&t an/ (&rti&n & the +&bacc& 'ct reater t& anHindu$tr/ within the "eanin) & Antr/ 82 -i$t , &&win) the &)ic & T$-a Ram!$ at ea$t th&$e

(r&i$i&n$ reatin) t& the di$(&$a & t&bacc& are n&t $& reatabe. +he decarati&n under Antr/ 82-i$t d&e$ n&t c&er the$e (r&i$i&n$ and the State$ were ree t& e)i$ate under Antrie$ 2> 27 &-i$t &n t&bacc&. d& n&t (r&(&$e t& decide whether the (r&i$i&n$ & the +&bacc& act deain) withthe $ae & t&bacc& "a/ be $u$tained with reerence t& Antr/ & -i$t . t i$ an unnece$$ar/e5erci$e becau$e the a((eant$ did n&t ar)ue thi$, and a$& becau$e, a$ hae $aid earier, theC&n$tituti&na aidit/ & the (r&i$i&n$ & the +&bacc& 'ct ha$ n&t been reerred t& thi$ Bench &r$crutin/.

82. '$$u"in) that Cha(ter & the +&bacc& 'ct are c&ered b/ Antr/ 82 & -i$t , neerthee$$ theParia"ent did n&t intend t& inaidate na/ (&rti&n & the "arket$ 'ct. t ha$ c&n$ci&u$/ cariied b/$ecti&n 1 that it d&e$ n&t intend t& &ccu(/ the entire ied and ha$ "ade $(ace &r the Statee)i$ati&n and "ade it cear the (r&i$i&n & the Centra 'ct $ha be in additi&n t& and n&t inder&)ati&n & an/ &ther aw. +he Secti&n a$$u"e$ )reater $i)niicance $ince "&$t & the arket$

'ct$ were in (ace when the +&bacc& 'ct wa$ enacted. there are tw& wa/$ in which $uch a $ain)cau$e a$ i$ c&ntained in Secti&n 1 & the +&bacc& 'ct "a/ be under$t&&d. +here i$ the wa/ which

&und a&ur with thi$ C&urt in .Karunanidhi . '*SC01861676 : ni&n & ndia1676Cri-J77 which hed that $uch a $ecti&n cear/ einced the intenti&n & the d&"inante)i$ature eain) Hn& r&&" &r an/ ar)u"ent that the Sate 'ct wa$ in an/ wa/ re(u)nant t& theCentra 'ctH. +here i$ the &ther wa/ & readin) $uch a $ecti&n in the d&"inant e)i$ati&n a$inc&r(&ratin) &r takin) under it$ e)i$atie u"brea the ae)ed/ c&nictin) (r&i$i&n$ & the$ub$erient $tatute. Aither wa/, the e5(re$$ w&rd$ in Secti&n 1 c&u(e$ with the dut/ & C&urt$ t&rec&ncie and u(h&d e)i$ati&n, i (&$$ibe, can &n/ re$ut in u(h&din) the c&n$tituti&na aidit/ &the arket ee i"(&$ed b/ the State.

8. ' urther c&"(ein) circu"$tance t& u(h&d the e/ & "arket ee i$ the act that $eera(r&i$i&n$ & cha(ter & the +&bacc& 'ct (articuar/ th&$e deain) with the $ettin) u( & aucti&n(at&r"$ na"e/ Secti&n$ 1 and 1', and Secti&n 14' reatin) t& the e/ & ee$ &n the $ae &t&bacc& hae n&t been br&u)ht int& &(erati&n in an/ State in ndian e5ce(t &r the State &


17/69

Karnataka. hae aread/ $tated the rea$&n$ wh/ the (r&i$i&n$ reatin) t& $ae & t&bacc& in the+&bacc& 'ct d& n&t c&"e within the deiniti&n & indu$tr/ and are n&t c&ered b/ the decarati&nunder Antr/ 82 & -i$t . But )rantin) &r the $ake & ar)u"ent that the $ae & t&bacc& c&"e$ withinthe deiniti&n & indu$tr/ unti the Centra G&ern"ent ch&&$e$ t& actua/ &ccu(/ the ied b/eectie e)i$ati&n, it w&ud re"ain &(en &r the State -e)i$ature t& c&er that ied under Antr/ 24

& -i$t . t i$ diicut t& ad&(t an inter(retati&n which w&ud debar the State$ r&" the ri)ht t&(r&ide &r the $ae & t&bacc& &n/ within "arket 'rea$ and e/ "arket ee$ ath&u)h Paria"entd&e$ n&t n&w and "a/ neer $eek t& brin) Secti&n$ 1 1' and 14' int& &(erati&n in th&$e State$.+hi$ iew ind$ $u((&rt in the (r&n&unce"ent & a C&n$tituti&n Bench in Is%,ar$ ?%e#an SugarM$lls ;P< .#d: . S#a#e o( U##ar Prades% ;su+ra< when it wa$ c&n$truin) the i"(act & a decarati&nunder Antr/ 82 & -i$t , it wa$ $aid that e)i$ati&n &r a$$u"in) c&ntr& c&ntainin) the decarati&nunder entr/ 82 & -i$t "u$t $(e &ut the i"it & c&ntr& $& a$$u"ed b/ the decarati&n. +here&re,the de)ree and e5tent & c&ntr& that w&ud be acuired b/ Paria"ent (ur$uant t& the decarati&nw&ud nece$$ari/ de(end u(&n the e)i$ati&n enacted $(ein) &ut the de)ree & c&ntr& a$$u"ed.

84. n 3elsund Sugar ;$u(ra;4< ha$ n& "anner &a((icati&n t& the (re$ent di$(ute. t read$:

H;4< Paria"ent ha$ (&wer t& "ake aw$ with re$(ect t& an/ "atter &r an/ (art & theterrit&r/ & ndian n&t incuded in a Staten&twith$tandin) that $uch "atter i$ a "atterenu"erated in the State -i$t.H

86. +he Sub9'rtice &n/ dea$ with the (&wer & Paria"ent t& "ake aw$ in re$(ect & ni&n


18/69

+errit&rie$ een in re$(ect & "atter$ enu"erated in the State -i$t.

>0. +hird 9 t wa$ hed t& be Hwe $etted that where t&w 'ct$, &nce (a$$ed b/ the Paria"ent andthe &ther b/ State -e)i$ature c&ide and there wa$ n& ue$ti&n & har"&niFin) the", then theCentra -e)i$ati&n "u$t (reaiH. hat i$ we $etted i$ that i the Paria"ent and the State

-e)i$ature enact c&nictin) e)i$ati&n in re$(ect & the $a"e $ub#ect "atter under an Antr/ in theC&ncurrent -i$t then &n/ wi the Centra -e)i$ati&n (reai. n &ther ca$e$ it wi be a ue$ti&n &whether the c&nictin) e)i$ati&n i$ reerabe t& an e5cu$ie entr/ under the $tate -i$t &r the ni&n-i$t, ater the deter"inati&n & which, the d&"inant e)i$ati&n wi (reai.

>1. %&urth 9 t wa$ $aid that i the "in&rit/ iew ;e5(re$$ed b/ ukhar#i9J< were acce(ted, it w&udHa"&unt t& r&bbin) the 1678 'ct & it$ entire c&ntent and e$$entia i"(&rt b/ handin) &er the(&wer & e)i$ati&n t& the State G&ern"ent which (er $e ha$ been taken &er b/ the Paria"entunder 'rtice 24> b/ the 1678 'ctH. ukhar#i9J had in act &&wed T$-a Ram!$ and hed c&rrect/that the +&bacc& 'ct and arket$ 'ct &(erated in their re$(ectie ied$ and that there wa$ n&re(u)nanc/ i b&th the 'ct$ were c&n$idered in the i)ht & their re$(ectie true nature andcharacter. T$-a Ram!$ and the &ther C&n$tituti&n Bench deci$i&n &&win) it were n&t een reerred

t& b/ the "a#&rit/.

>2. %ith 9 n deter"inin) the i"(act & Antr/ 82 & -i$t i$ a iF entr/ 2= & -i$t , the "a#&rit/reied &n deci$i&n$ deain) with Antr/ 84 & -i$t , and Antr/ 2 & -i$t . +he $c&(e & the entrie$are dierent and a)ree with the iew e5(re$$ed in the &(ini&n & "/ earned Br&ther Pattanaik, Jthat the deci$i&n$ reied u(&n b/ the "a#&rit/ iF the H$ng$r Ram+ur Coal Co: .#d:

): MANU/SC/7/56> S#a#e o( Or$ssaG B56>50SCR87 4 3a$!na#% ?ed$a

):MANU/SC/80/56>6 S#a#e o( 3$%ar B5670SCR5 3%ara# Coo-$ng Coal .#d: ): S#a#e o(

3$%ar 566 = SCC 887 and S#a#e o( Or$ssa ):MANU/SC/05/56> M:A: Tullo"- Co:B56>==SCR=>5 are ina((&$ite.

> +he ina (re"i$e &n which the "a#&rit/ ba$ed their iew that the State$ c&ud n&t e/ an/"arket ee &n +&bacc&, wa$ that $ince the a$$ent & the Pre$ident wa$ n&t taken, the Karnatakaarket$ 'ct 16=0, wa$ wh&/ inc&"(etent. +he iew (r&ceed$ &n a "i$inter(retati&n &'rtice 284;2>. +he i$$ue in the$e "atter$ i$ ab&ut the aidit/ and a((icabiit/ & Bihar ')ricutura Pr&ducearket$ 'ct, 16>0 and the Karnataka ')ricutura Pr&duce arketin) ;!e)uati&n< 'ct, 16>>, t& thee5tent the$e State e)i$ati&n$ dea with $ae & t&bacc& in "arket area$ with (articuar reerence t&the e/ thereu(&n & "arket ee, ater enact"ent & +&bacc& B&ard 'ct, 16789a (aria"entar/

e)i$ati&n. +he $a"e i$ the i$$ue in re$(ect & $i"iar State e)i$ati&n$ (a$$ed b/ State-e)i$ature$ & ttar Prade$h and adh/a Prade$h. +he$e i$$ue$ were $ub#ect "atter & deci$i&n


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in ITC Ltd. and Ors. v. State of Karnataka and Ors. [1985 Supp. SCC 476].

>7. e are reuired t& deter"ine whether ITCs !ase i$ c&rrect/ decided &r n&t. +hat i$ a deci$i&nrendered b/ a three Jud)e. Bench. +he "a#&rit/ decided in a&ur & ITC. -ater a Bench & tw&Jud)e e5(re$$ed tentatie iew that the deci$i&n in ITCs !ase reuire$ rec&n$iderati&n. +hu$,

the$e "atter$ are be&re thi$ Bench.

>=. +he ar)u"ent$ &n beha & the a((eant$ c&ntendin) that ITC ha$ been c&rrect/ decidedhae been ed b/ r. Shanti Bhu$han &&wed and $u((&rted b/ &ther earned c&un$e a((earin)&r ni&n & ndia and the +&bacc& B&ard. On beha & the State & Bihar and &ther (artie$c&ntendin) the ITC ha$ n&t been c&rrect/ decided, the ar)u"ent$ were ed b/ r !.K. Dwiedi&&wed and $u((&rted b/ &ther earned c&un$e a((earin) &r &ther State$ and arketC&""ittee$.

>6. +he an$wer t& the ue$ti&n99hether ITC i$ c&rrect/ decided &r n&t de(end$ u(&n the $c&(e& Antr/ 82 in ni&n -i$t & the Seenth Schedue & the C&n$tituti&n & ndia with (articuarreerence t& the "eanin) & the e5(re$$i&n ndu$trie$ in the $aid entr/ a$ a$& in Antr/ 24 & the

State -i$t & the Seenth Schedue & the C&n$tituti&n.

70 n ITCs !ase the "a#&rit/ hed that the (r&i$i&n$ & the Karnataka ')ricutura Pr&ducearketin) ;!e)uati&n< 'ct, 16>> are re(u)nant t& the (aria"entar/ e)i$ati&n, the +&bacc& B&ard'ct, 1678 and, there&re, t&bacc& i$ iabe t& be re"&ed r&" the Schedue & that enact"ent.A5(re$$in) the "in&rit/ iew, Sab/a$achi ukhar#i, J hed that the State e)i$ati&n and the+&bacc& B&ard 'ct, 1678 can c&9e5i$t.

71. +he ir$t ue$ti&n t& be deter"ined i$ can State e)i$ati&n and +&bacc& B&ard 'ct c&9e5i$t inre$(ect & $ae & +&bacc& in the "arket area$ within the ra"ew&rk & ')ricutura Pr&ducearketin) 'ct$ 9 the State e)i$ati&n$ under c&n$iderati&nL &ur an$wer t& thi$ ue$ti&n i$ that thetw& e)i$ati&n$ can c&9e5i$t, in that eent it "a/ n&t be nece$$ar/ t& )& int& the a$(ect &e)i$atie c&"(etence. , h&weer, &ur an$wer i$ that the State e)i$ati&n$ and the (aria"entar/e)i$ati&n are inca(abe & rec&nciiati&n and the tw& cann&t c&9e5i$t, in that ca$e, the ne5tue$ti&n that w&ud reuire deter"inati&n wi be ab&ut the aidit/ & the State e)i$ati&n$.

72. n the (r&(&$ed #ud)"ent, 3&nbe r. Ju$tice Pattanaik ha$ c&"e t& the c&ncu$i&n that the')ricutura Pr&duce arket$ 'ct and the +&bacc& B&ard 'ct are in direct c&i$i&n with each &therand cann&t be a&wed t& be &(erated $i"utane&u$/.

7. +he State e)i$ati&n$ and (aria"entar/ e)i$ati&n$ cann&t c&9e5i$t i$ a((arent r&" ari&u$(r&i$i&n$ & the tw& e)i$ati&n$. +& iu$trate in thi$ re)ard, reerence "a/ be "ade &n &ne handt& Secti&n 4;2< & Bihar 'ct and $i"iar (r&i$i&n in &ther State e)i$ati&n$ and &n the &ther t& the(r&i$i&n$ & Secti&n 1& the +&bacc& B&ard 'ct in State$ wherein thi$ $ecti&n ha$ been en&rcedand a$& t& Secti&n =;2


20/69

State -e)i$ature (er $e t& e)i$ate in re$(ect & $ae & t&bacc& in "arket area$ and e/ & "arketee, in iew & 'rtice 24>;< read with Antrie$ 14, 2= and >> & the State -i$t, i$ n&t in di$(ute. +hedi$(ute ha$, h&weer, ari$en a$ acc&rdin) t& +C, &n decarati&n a$ c&nte"(ated b/ Antr/ 82 &the ni&n -i$t hain) been "ade b/ the Paria"ent in Secti&n 2 & the +&bacc& B&ard 'ct, 1678,and a$ a re$ut & ari&u$ (r&i$i&n$ in that 'ct, the ied & $ae & t&bacc& which i$ $aid t& be

inte)ra (art & t&bacc& indu$tr/ ha$ been tran$erred r&" Antr/ 24 & the State -i$t t& Antr/ 82 &the ni&n -i$t 99 Antr/ 24 bein) $ub#ect t& the (r&i$i&n$ & Antrie$ 7 and 82 & the ni&n -i$t. +hec&ntenti&n i$ that in thi$ iew, the State -e)i$ature i$ de(ried & c&"(etence t& e)i$ate in theied & $ae & t&bacc& in "arket area and e/ "arket ee. nder the$e circu"$tance$, thec&"(etence & the State -e)i$ature t& e)i$ate in re)ard t& $ae & t&bacc& w&ud de(end u(&nthe an$wer t& the ue$ti&n whether under Antr/ 82 & the ni&n -i$t, the Paria"ent i$ c&"(etent &rn&t t& e)i$ate in re$(ect & $ae & raw t&bacc&. the an$wer t& the ue$ti&n i$ that the Paria"enti$ c&"(etent, in that eentua/, the State e)i$ati&n wi hae t& be inaidated &r want &e)i$atie c&"(etence. +he an$wer t& the ue$ti&n w&ud, h&weer, de(end u(&n the $c&(e & thee5(re$$i&n ndu$trie$ a$ de(&/ed in Antr/ 82 & the ni&n -i$t and Antr/ 24 & the State -i$t. weind that the e5(re$$i&n ndu$trie$ i$ wide en&u)h t& incude the raw "ateria & the indu$tr/ andthe Paria"ent i$, thu$ c&"(etent t& enact aw under Antr/ 82 & the ni&n -i$t, in re$(ect & raw"ateria, the Paria"ent hain) $u(re"ac/ a$ (r&ided in 'rtice 24>;1;1< & the C&n$tituti&n but i$ whether Paria"ent ha$ c&"(etence at a t& e)i$ate inre$(ect & raw t&bacc& &r it a$ within the c&"(etence & State. we h&d that whie e)i$atin) inthe ied & indu$tr/ a$ (r&ided in Antr/ 82 & the ni&n -i$t, the Paria"ent i$ n&t c&"(etent t&e)i$ate in re$(ect & the ied anteri&r t& indu$tr/, i.e. it$ raw "ateria and can e)i$ate &n/ inre$(ect & the (r&ce$$ & "anuacture &r (r&ducti&n, in that eentuait/, the State e)i$ati&n wihae t& be hed t& be c&n$tituti&na, intra ire$ and a((icabe.

78. n the (r&(&$ed #ud)"ent, Ju$tice Pattanaik ha$ hed that the w&rd indu$tr/ in Antr/ 82 & theni&n -i$t cann&t be )ien re$tricted "eanin) $& a$ t& e5cude r&" it$ (uriew the $ub#ect &e)i$ati&n c&"in) within Antr/ 27 &r Antr/ 14 & -i$t and thu$, the (aria"entar/ e)i$ati&n,na"e/, the +&bacc& B&ard 'ct, 1678 i$ c&n$tituti&na/ aid and c&n$euent/, the Statee)i$ati&n$ entitin) the arket C&""ittee t& e/ ee &r $ae and (urcha$e & raw t&bacc& withinthe "arket area wi n&t be &(eratie $& ar a$ the (r&duce & t&bacc& i$ c&ncerned and that the"a#&rit/ #ud)"ent in the ITCs !ase i$ c&rrect/ decided. e5(re$$ "/ re$(ectu di$$ent with theiew e5(re$$ed b/ Ju$tice Pattanaik &n thi$ a$(ect and thu$ thi$ $e(arate #ud)"ent.

7>. +he Paria"ent and '$$e"bie$ draw (&wer t& e)i$ate r&" the (r&i$i&n$ & the C&n$tituti&n& ndia. e are c&ncerned here with 'rtice 24>. 'rtice24>;1< & the C&n$tituti&n (r&ide$ thatn&twith$tandin) an/thin) in Cau$e$ ;2< and ;;< (r&ide$ that $ub#ect t& Cau$e$ ;1< and ;2


21/69

=0 n e5erci$e & (&wer under 'rtice 24>;> dea$ with the $ub#ect & "arket in Antr/ 2= read with Antr/ >> & -i$t andthat it had t& be b&rne in "ind that Antr/ 2= i$ n&t $ub#ect t& withdrawa t& -i$t b/ Paria"ent. +heState 'ct i$ n&t &n a $ub#ect in -i$t n&r i$ the Centra 'ct a aw reatin) t& an/ $ub#ect in -i$t . twa$ c&ncuded that, there&re, there cann&t be an/ ue$ti&n & re(u)nanc/. +he nature andcharacter & the 'ct$, na"e/, Karnataka ')ricutura Pr&duce arketin) ;!e)uati&n< 'ct, 16>> andthe Centra 'ct wa$ n&ticed and it wa$ hed that it i$ u/ "anie$t that b&th the 'ct$ can &(erate in

their re$(ectie ied$. %urther in the "in&rit/ &(ini&n it wa$ &b$ered that whie )iin) due wei)ht t&center$ $u(re"ac/ in the "atter & e)i$ati&n, the State$ e)iti"ate $(here & e)i$ati&n $h&udn&t be unnece$$ari/ whitted d&wn becau$e that w&ud be unwarranted b/ the $(irit and ba$ic


22/69

(ur(&$e & the c&n$tituti&na dii$i&n & (&wer$9n&t "ere/ a&cati&n & (&wer b/ the C&n$tituti&nbut ina$i&n b/ (aria"entar/ e)i$ati&n$. hie it i$ true that in the $(here$ er/ careu/deineated the Paria"ent ha$ $u(re"ac/ &er State -e)i$ature$, $u(re"ac/ in the $en$e that inth&$e ied$, (aria"entar/ e)i$ati&n w&ud h&d the ied and n&t the State e)i$ati&n 9but t&denude the State -e)i$ature & it$ (&wer t& e)i$ate where the e)i$ati&n in ue$ti&n in (ith and

$ub$tance i.e. in it$ true nature and character, be&n)$ t& the State ied, &ne $h&ud be char/ t&denude the State & it$ (&wer$ t& e)i$ate and "&biiFe re$&urce$ 9 becau$e that w&ud bede$tructie & the $(irit and (ur(&$e & ndia bein) a ni&n & State$. State$ "u$t hae (&wer t&rai$e and "&biiFe re$&urce$ in their e5cu$ie ied$. +he arketin) 'ct i$ e$$entia/ an 'ct t&re)uate the "arketin) & a)ricutura (r&duce. Ju$tice ukhar#i $aid that Hit "u$t, there&re, be hedthat the State 'ct $h&ud (reai. One $h&ud a&id c&rr&din) the State$ a"bit & (&wer$ &e)i$ati&n which wi uti"ate/ ead t& er&$i&n & ndia bein) a ni&n & State.H.

=7. +he "a#&rit/ &(ini&n wa$ e5(re$$ed b/ Ju$tice S. urtaFa %aFa 'i with wh&" Ju$tice '.aradara#an c&ncurred. n the "a#&rit/ &(ini&n ater n&ticin) the crucia (&int &r deter"inati&n i.e.whether the Karnataka State had an/ #uri$dicti&n t& encr&ach u(&n the i"it$ & Antr/ 82 & theni&n -i$t, re/in) inter ai u(&n the deci$i&n$ in the ca$e$ & Tu%%o!&3 +a",nat& Kad"o , it wa$c&ncuded that &nce the center take$ &er an indu$tr/ under Antr/ 82 & -i$t & the SeenthSchedue and (a$$e$ an 'ct t& re)uate the e)i$ati&n, the State -e)i$ature cea$e$ t& hae an/#uri$dicti&n t& e)i$ate in that ied and i it d&e$ $&, that e)i$ati&n w&ud be utra ire$ the (&wer$& the State -e)i$ature. t wa$ urther &b$ered that acce(tance & the "in&rit/ &(ini&n w&ud r&bthe Centra 'ct & it$ entire c&ntent and e$$entia i"(&rt b/ handin) &er he (&wer & e)i$ati&n t&the State G&ern"ent whichper se had been taken &er b/ the Paria"ent under 'rtice 24> b/enactin) the +&bacc& B&ard 'ct, 1678. n the "a#&rit/ &(ini&n reiance wa$ (aced &n the &&win)(a$$a)e & +a",nat& Kad"os !ase a$ e5tracted at (a)e 174 a$ under.

Ht i$ &(en t& Paria"ent t& decare that it i$ e5(edient in the (ubic intere$t that the c&ntr&$h&ud re$t in Centra G&ern"ent. +& what e5tent $uch a decarati&n can )& i$ &rParia"ent t& deter"ine and thi$ "u$t be c&""en$urate with (ubic intere$t. Once thi$decarati&n i$ "ade and the e5tent aid d&wn, the $ub#ect & e)i$ati&n t& the e5tent aid

d&wn bec&"e$ an e5cu$ie $ub#ect &r e)i$ati&n b/ Paria"ent. 'n/ e)i$ati&n b/ theState ater $uch decarati&n and trenchin) u(&n the ied di$c&$ed in the decarati&n "u$tnece$$ar/ be unc&n$tituti&na becau$e that ied i$ ab$tracted r&" the e)i$atiec&"(etence & the State -e)i$ature. +hi$ (r&(&$iti&n i$ a$& $e9eident that n& atte"(twa$ ri)ht/ "ade t& c&ntradict it.H

==. +he "a#&rit/ &(ini&n ha$ n&t n&ticed the C&n$tituti&n Bench$ deci$i&n in the ca$e & C&. T"ka

*a," and Ors. et!. v. #$-/SC/0008/1956 2 T&e State of ttar rades& and Ors.[1956]1SC*9 and Ors. deci$i&n$ &n the $c&(e & Antr/ 82 but re/in) u(&n #.$. Tu%%o!& and+a",nat& Ked"o hed that when decarati&n under Antr/ 82 & -i$t in re$(ect & (ubic intere$t i$"ade and the e5tent aid d&wn the $ub#ect & e)i$ati&n t& the e5tent aid d&wn bec&"e$ ane5cu$ie $ub#ect & e)i$ati&n b/ the Paria"ent and an/ e)i$ati&n b/ the State ater $uch

decarati&n trenchin) u(&n the ied di$c&$ed in the decarati&n "u$t nece$$ari/ beunc&n$tituti&na becau$e that ied i$ ab$tracted r&" the e)i$atie c&"(etence & the State-e)i$ature. +hu$ it wa$ hed that the G&ern"ent & Karnataka had n& #uri$dicti&n t& e/ and"arket ee &n t&bacc& becau$e the State 'ct t& that e5tent c&ide$ with the Centra 'ct & 1678.

=6. +he deci$i&n in the ca$e$ & +a",nat& Kad"o and Tu%%o!& hae a$& been reied u(&n b/ r.Shanti Bhu$han. !eiance ha$ a$& been (aced b/ earned c&un$e &n +he "n"r*apur Coa%

Co. Ltd. and Ors. v. #$-/SC/007/1960 2 State of Or"ssa and Ors. [1961](SC*57 . t wa$c&ntended b/ r. Shanti Bhu$han that in aw and in (rinci(e there w&ud be n& dierence inre$(ect & a ca$e deain) with the $c&(e & Antr/ 82 & the ni&n -i$t &r a ca$e deain) with the$c&(e & Antr/ 84 & that -i$t. +he $ub"i$$i&n & earned c&un$e i$ that &r the (ur(&$e &inter(retati&n b&th the$e entrie$ hae been euated b/ thi$ C&urt and reiance in thi$ re)ard i$

(ace d&n Is&ar" K&etan Suar #"%%s ') Ltd. and Ors. v. #$-/SC/0069/1980 2 State ofttar rades& and Ors. [1980]SC*1 .


23/69

60. On beha & the State G&ern"ent$ and the ')ricutura Pr&duce "arketin) C&""ittee$ $tr&n)reiance ha$ been (aced &n +ika !a"#i$ ca$e. hat i$ the rati& & the$e deci$i&n$, we wi n&we5a"ine.

61. Be&re c&n$iderin) the ar&nted deci$i&n$, it w&ud be a((r&(riate t& "ake it cear that in the$e

"atter$ it ha$ t& be ke(t in iew that thi$ C&urt i$ n&t e5a"inin) a ca$e where the ied & e)i$ati&ni$ &n c&ncurrent i$t t& which 'rtice 24>;2< a((ie$. +hi$ C&urt i$ a$& n&t c&n$iderin) the ca$e &an incidenta trenchin) & ied b/ &ne &r the &ther e)i$ature. +he C&urt i$ c&ncerned with theue$ti&n & e)i$atie c&"(etence. e are e5a"inin) a ca$e where what ha$ been ue$ti&ned i$the e)ait/ & e)i$ati&n i$ re$(ect & a ied &n the State -i$t t& which 'rtice 24>;< a((ie$. +heaidit/ and a((icabiit/ & the State e)i$ati&n$ in re$(ect & a ied & e)i$ati&n &n State -i$t ha$c&"e under a c&ud &n acc&unt & a e)i$ati&n (a$$ed b/ the Paria"ent in re$(ect & ied &e)i$ati&n under Antr/ 82 & the ni&n -i$t, na"e/, the +&bacc& B&ard 'ct, 1678. t i$ &n acc&unt& thi$ e)i$ati&n c&ntainin) decarati&n a$ c&nte"(ated b/ Antr/ 82 & the ni&n -i$t that d&ubt$hae ari$en ab&ut the aidit/ and a((icabiit/ & State e)i$ati&n ab&ut the $ae & a)ricutura(r&duce & t&bacc& in "arket area$ and e/ thereu(&n & "arket ee which a$(ect are &n ied &e)i$ati&n &n the State -i$t ;Antrie$ 14, 27, 2= and >>> and what i$ act can be tran$erred.

62. +a",nat& Kad"o wa$ a ca$e which c&n$idered the aidit/ & the State e)i$ati&n &n the )r&und& bein) be/&nd the State e)i$atie (&wer n iew & the decarati&n b/ the Paria"ent in ine$and inera$ ;!e)uati&n and Dee&("ent< 'ct. 1687 and c&nte"(ated b/ Antr/ 84 & -i$t & theSeenth Schedue t& the C&n$tituti&n. Secti&n 2 & the Centra e)i$ati&n decared that it i$e5(edient in the (ubic intere$t that the ni&n $h&ud take under it$ c&ntr& the !e)uati&n & "ine$and the dee&("ent & "inera$ t& the e5tent (r&ided therein.

6. Antr/ 84 & the ni&n -i$t $(eak$ b&th & re)uati&n & "ine$ and "inera$ dee&("ent and

Antr/ 2 & the State -i$t i$ $ub#ect t& Antr/ 84. t wa$ hed that it wa$ &(en t& the Paria"ent t&decare that it i$ e5(edient in the (ubic intere$t that the c&ntr& $h&ud re$t with the CentraG&ern"ent. +& what e5tent $uch a decarati&n can )& i$ &r the Paria"ent t& deter"ine and thi$"u$t be c&""en$urate with (ubic intere$t. Once thi$ decarati&n i$ "ade and that e5tent aidd&wn the $ub#ect & e)i$ati&n t& the e5tent aid d&wn bec&"e$ an e5cu$ie $ub#ect &r thee)i$ati&n b/ the Paria"ent. 'n/ e)i$ati&n b/ the State ater $uch decarati&n trenchin) u(&n theied di$c&$ed in the decarati&n "u$t nece$$ari/ be unc&n$tituti&na becau$e that ied i$ab$tracted r&" the e)i$atie c&"(etence & the State -e)i$ature. %&r it$ iew the C&n$tituti&nBench &&wed earier C&n$tituti&n Bench deci$i&n$ in the ca$e$ & "n"r and Tu%%o!& . +he$etw& ca$e$ a$& deat with the $c&(e & Antr/ 84 & -i$t iF9a9iF Antr/ 2 & -i$t . +he "a#&rit/&(ini&n in +C a$ aread/ n&ticed, &&wed +a",nat& Kad"o and e5tracted in it$ #ud)"ent the(a$$a)e a$ a&re$aid.

64. ' $i)niicant a$(ect t& take n&te & i$ that T"ka *a,"s !ase ha$ n&t been c&n$ideredin "n"rs !ase . +he rea$&n &r it $ee"$ t& be that &ne $et & ca$e$ c&n$ider the $c&(e & Antr/84 iF9a9iF Antr/ 2 and t& that cate)&r/ be&n) the ca$e$ & "n"r3 Tu%%o!& and +a",nat&Kad"o . +he &ther $et & ca$e$ c&n$ider the $c&(e & Antr/ 82 & ni&n -i$t iF9a9iF Antr/ 24 & theState -i$t and t& that cate)&r/ be&n) the ca$e$ & T"ka *a," and &ther ca$e$ &&win) T"ka*a,".

68. !e/in) u(&n $hwari Khetan$ ca$e r. Shanti Bhu$han c&ntend$ that Antr/ 82 ha$ beeneuated with Antr/ 84 & the ni&n -i$t.

6>. B&th $ide$ hae reied u(&n the ca$e & Is&ar" K&etan . -et u$ e5a"ine that ca$e. n Is&ar"K&etans !ase the c&ntenti&n ur)ed wa$ that the Paria"ent ha$ "ade the ndu$tria ;Dee&("ent

and !e)uati&n< 'ct, 1681 ;&r $h&rt, the D! 'ct< in Antr/ 82 -i$t decarin) c&ntr& & $u)arindu$tr/ and that indu$tr/ )&e$ &ut & Antr/ 24 & -i$t and, there&re, State -e)i$ature i$ denuded& e)i$atie (&wer$ in re$(ect & $u)ar indu$tr/ and i"(u)ned e)i$ati&n wa$ with re$(ect t&


24/69

acui$iti&n & $u)ar undertakin) i$ $u)ar indu$tr/. +he 'tt&rne/ Genera and c&ntended that the(&wer t& acuire (r&(ert/ wa$ deried r&" Antr/ 42 & -i$t . Is&ar" K&etans !ase in&ed thedeter"inati&n &r $c&(e & Antr/ 82 & -i$t and Antr/ 24 & -i$t &n/. +he $c&(e & the$e entrie$with re$(ect t& Antrie$ 2> and 27 & -i$t and Antr/ & -i$t did n&t a &r c&n$iderati&n.%urther in (ara)ra(h$ 7, = and 11 & $hwari Khetan$ ca$e the C&n$tituti&n Bench re(eated/

(&inted &ut that a decarati&n in Antr/ 82 & -i$t denude$ the (&wer & State -e)i$ature t&e)i$ate under Antr/ 24 -i$t &n/. t wa$ n&ticed that the $u)ar wa$ a decared indu$tr/. +heue$ti&n (&$ed wa$ that Hi$ it, h&weer, c&rrect t& $a/ that &nce a decarati&n i$ "ade a$eni$a)ed b/ Antr/ 82 -i$t , that indu$tr/ a$ a wh&e i$ taken &ut & Antr/ 24 & -i$t HL +he an$wer)ien b/ the C&n$tituti&na Bench wa$ that it i$ n&t c&rrect t& $a/ that &nce a decarati&n i$ "ade inre$(ect & an indu$tr/ that indu$tr/ a$ a wh&e i$ taken &ur & Antr/ 24 -i$t . t wa$ $aid that theindu$tr/ a$ a e)i$atie head i$ &und it$e (aced in Antr/ 24 & -i$t . +he State -e)i$ature canbe denied e)i$atie (&wer under Antr/ 24 t& the e5tent Paria"ent "ake$ decarati&n under Antr/82 and b/ $uch decarati&n, Paria"ent acuired (&wer t& e)i$ate &n/ in re$(ect & th&$eindu$trie$ in re$(ect & which decarati&n i$ "ade and t& that e5tent a$ "anie$ted b/ e)i$ati&ninc&r(&ratin) the decarati&n and n&t "&re. +he Bench urther $aid that the e)i$atie (&wer & theState under Antr/ 24 -i$t i$ er&ded &n/ t& the e5tent the c&ntr& i$ a$$u"ed b/ the ni&n(ur$uant t& the decarati&n and the State -e)i$ature which i$ &therwi$e c&"(etent t& dea with

indu$tr/ under Antr/ 24 -i$t can dea with that indu$tr/ in e5erci$e & &ther (&wer$ enabin) it t&e)i$ate under dierent head$ $et &ut in -i$t and -i$t and thi$ (&wer cann&t be denied t& theState. +he e5tent & (aria"entar/ e)i$ati&n wa$ $een &n/ t& deter"ine h&w "uch i$ taken &utr&" Antr/ 24 -i$t and n&t &r the (ur(&$e$ & a/in) d&wn an/ (rinci(e that the Paria"entar/e)i$ati&n ha$ t& be $een t& deter"ine the e5tent & c&ntr& and the denudati&n & the (&wer & theState -e)i$ature t& the e5tent the c&ntr& i$ aid d&wn b/ the Paria"ent. %urther it wa$ hed thatde$(ite the (aria"entar/ e)i$ati&n the State -e)i$ature can dea with indu$tr/ in e5erci$e &&ther (&wer$ in dierent entrie$ in -i$t and -i$t and that (&wer cann&t be denied t& the State nthi$ ca$e the C&urt wa$ e5a"inin) whether the aw & acui$iti&n & $u)ar undertakin) wa$reerabe t& Antr/ 24 -i$t &r Antr/ 42 -i$t . t wa$ c&ncuded that the acui$iti&n & the (r&(ert/wa$ reerabe t& Antr/ 42 -i$t . +he $c&(e & the indu$tr/ did n&t a &r e5a"inati&n in Is&ar"K&etans !ase . +here i$ n& di$cu$$i&n &n the inter(retati&n & e5(re$$i&n indu$tr/ and that(r&bab/ i$ the rea$&n wh/ T"ka *a,"s !ase ha$ n&t been reerred t&. +he reiance &n+a",nat&

Kad"os !ase in Is&ar" K&etans !ase wa$ t& $h&w the denudati&n & State$ (&wer bein) i"itedt& the e5tent & c&ntr&. hie +a",nat& Kad"os !ase deat with Antr/ 2 -i$t , Is&ar" K&etans!ase deat with Antr/ 24 -i$t . +he $ub#ect "atter & the &ther entrie$ wa$ n&t in i$$ue in thi$deci$i&n. +he $tructure in Antr/ 84 & -i$t wa$ n&t euated with that & Antr/ 82 -i$t a$c&ntended b/ r. Shanti Bhu$han. +hi$ deci$i&n d&e$ n&t ad&(t the "ine$ and "inera$ ca$e$ &rthe (ur(&$e$ & c&n$iderin) the $c&(e & Antr/ 82 & -i$t . n &ur iew, the ca$e$ & "ine$ and"inera$ are n&t & "uch a$$i$tance whie e5a"inin) the $c&(e & Antr/ 82 & -i$t .

67. n State of $.. and Ors. v. #$-/SC/04(7/1996 2 #!doe%% : Co. and Ors.[1996]SC*7(1 a$& it wa$ hed that the a"bit and $c&(e & a c&n$tituti&na entr/ cann&t be

ITC Lts vs Agricultural Produce Market Committee

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