MANGALORE GANESH BEEDI WORKS M SARVETHAM KAMATH D C DIWAN MOHIDEEN AND SONS DHANUSHKODI VILAS CIGAR CO PATEL BROS STATE OF MAHARASHTRA UNION OF INDIA DAVINDRA TRADING CO Vs. UNION OF INDIA

JUDGEMENT

(1.) The provisions of the Beedi and Cigar Workers (Conditions of Employment) Act, 1966 referred to as the Act are impeached as unconstitutional in these petitions and appeals.

(2.) Broadly stated, the Act is challenged on these grounds. First, Parliament has no legislative competence to enact this measure. It is a legislation for regulating beedi and cigar industry. Therefore, it falls under Entry 24 in State List II. Second the restrictions imposed by the Act violate freedom of trade and business guaranteed under Article 19(1)(g). The Act imposes unreasonable burdens in cases where a manufacturer or trade mark holder of beedi has no master and servant relationship and no effective control on independent contractors or home workers. The manufacturer or trade mark holder is rendered liable as the principal employer of contract labour. Third, Section 4 of the Act imposes conditions which are arbitrary, excessive, extraneous. Fourth, Section 7(1)(c) regarding entry into industrial premises, Sections 26, 27 regarding annual leave with wages, Section 31 regarding one month's wages in lieu of notice. Section 37 regarding application of Maternity Benefits Act, 1961 and therules for rejection of beedis are unconstitutional. These provisions are unreasonable restrictions on the freedom of trade and business.

(3.) The petitioners and the appellants are of two character. The majority are proprietors of beedi factories and owners of trade mark registered under the Trade Marks Act in relation to beedis. Some are home workers.