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Matrumal Sharma v. Chief Inspector Of Shops And Commercial Establishment

Allahabad High Court
Mar 25, 1952
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Structured Summary of the Court's Opinion

Factual and Procedural Background

This is a petition under Article 228 of the Constitution seeking transfer of a pending criminal case from the Court of the City Magistrate to the High Court. The first petitioner is Matrumal Sharma, proprietor of Sharma Restaurant in Aminabad, Lucknow, and the second petitioner is Niranjan Lal Sharma, the restaurant's manager. Both petitioners were originally prosecuted under Section 27 of the U.P. Shops and Commercial Establishments Act for failure to maintain a register of attendance of employees as required by Rule 13 framed under Section 31 of the Act.

The criminal case was fixed for hearing in the Court of the City Magistrate on 23 July 1951. On that date the petitioners sought withdrawal of the case to the High Court under Article 228, which permits the High Court to withdraw a case from a subordinate court if it involves a substantial question of law as to the interpretation of the Constitution that is necessary for disposal of the case.

The petitioners' principal defences in the criminal trial (as presented in the petition) were: (1) that the Act did not apply to them by reason of Section 4 (which exempts certain persons, including those whose work is inherently intermittent), and (2) that the Act infringed fundamental rights guaranteed by Articles 14 and 19(1) of the Constitution.

Legal Issues Presented

  1. Whether the case pending in the Court of the City Magistrate involves a substantial question of law as to the interpretation of the Constitution, the determination of which is necessary for disposal of the case under Article 228.
  2. Whether the U.P. Shops and Commercial Establishments Act (insofar as it applies to the petitioners) infringes Article 14 (equality before the law / equal protection) of the Constitution.
  3. Whether the Act infringes the right guaranteed by Article 19(1)(g) (freedom to practise any profession, or to carry on any occupation, trade or business) of the Constitution, subject to Article 19(6).

Arguments of the Parties

Petitioners' (Defence) Arguments

  • The petitioners contended that they were not governed by the Act because Section 4 exempts persons whose work is "inherently intermittent" (e.g., a traveller or canvasser), and it was urged that the nature of work in the petitioners' restaurant fell within that exemption.
  • The petitioners contended that the Act infringed their fundamental rights under Article 14 (equality before the law / equal protection) and Article 19(1) (freedom to practise a profession / carry on an occupation, trade or business).

The opinion does not contain a detailed account of the prosecution's counter-arguments beyond the factual statement that the prosecution's case was that the petitioners were governed by the Act and liable under Section 27 for contravening Rule 13.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Charanjit Lal Chowdhury v. The Union of India (Supreme Court) Interpretation of Article 14: permissible classification, requirement that classification rest on a real and substantial distinction having a reasonable relation to the legislative object. The Court relied on the interpretation in this decision to explain that equality does not require identical application of laws to all persons; classifications are permissible so long as they are not arbitrary and have a just and reasonable relation to the statute's object. Applying those principles, the Court held the inequalities complained of did not fall within Article 14's prohibitions.
Yick Wo v. Hopkins (118 U.S. 356; cited) Support for the proposition that "equal protection" means protection of equal laws — the principle that laws should apply alike to all in the same situation. Quoted in the Charanjit Lal Chowdhury passage cited by the Court to illustrate the nature of the equal protection guarantee; used to underpin the Court's acceptance of classification principles under Article 14.
Southern Railway Co. v. Greene (216 U.S. 412; cited) Supports the view that equal protection requires non-arbitrary classification and that classifications must rest on real and substantial distinctions. Quoted in the Charanjit Lal Chowdhury material and relied upon by the Court to support the conclusion that permissible legislative classification must have a reasonable relation to the object of legislation.
Gulf, C. & S.F.R. Co. v. Ellis (163 U.S. 150; cited) Illustrates that it is bad law if legislation arbitrarily singles out an individual or class for penalties when others guilty of similar delinquency are not punished. Referred to in the quoted material from Charanjit Lal Chowdhury to exemplify the improper arbitrary selection of classes; the Court used the broader principle to frame its Article 14 analysis.

Court's Reasoning and Analysis

The Court first identified the threshold question under Article 228: whether the pending criminal case involves a substantial question of law as to the interpretation of the Constitution necessary for disposal of the case. The Court noted that if the petitioners' preliminary defence that the Act does not apply to them (under Section 4) were to succeed, no constitutional decision would be necessary; nonetheless the Court elected to decide the constitutional points on their merits to resolve the controversy.

Analysis under Article 14:

  • The Court set out Article 14's guarantee of equality before the law and equal protection within India, and reproduced the exemptions listed in Section 4 of the impugned Act (clauses (a)–(e)).
  • The petitioners argued that the Act denied equality among halwais and restaurant keepers by imposing formalities, restrictions and penalties on some while exempting others (for example, those who employ only family members).
  • The Court relied upon the Supreme Court's treatment of Article 14 in Charanjit Lal Chowdhury, including quoted principles (and supporting U.S. authority) that equality does not require identical treatment of all persons, but that legislative classifications must be non-arbitrary and rest upon some real and substantial distinction reasonably related to the legislative object.
  • Applying those principles, the Court concluded that the inequalities complained of did not fall within the constitutional prohibitions of Article 14 — i.e., the challenged classification in the Act was not shown to be constitutionally objectionable on the material before the Court.

Analysis under Article 19(1)(g):

  • The petitioners contended that the Act infringed their freedom to practise a profession or carry on an occupation, trade or business because it (1) regulated hours of work and overtime, (2) regulated the number of holidays and sick leave, and (3) required keeping registers of attendance, fines and overtime.
  • The Court noted sub-article (6) of Article 19, which preserves the operation of existing laws to the extent they impose reasonable restrictions in the interest of the general public and to the extent they prescribe professional or technical qualifications.
  • The Court observed that the freedom guaranteed by Article 19(1)(g) does not include the freedom to conduct a trade or profession in ways prejudicial to the public interest; the State may validly regulate or prohibit certain businesses or conditions of employment for public welfare.
  • Given the Act's stated object (as reflected in its preamble) to provide for holidays and to regulate conditions and hours of employment in shops and commercial establishments, the Court found that regulation of working hours, holidays, sick leave and the keeping of attendance and related records does not prima facie deny the freedom to practise a profession. The underlying purpose, the Court said, is to prevent "sweating of labour" by employers who may otherwise exploit employees.

Conclusion of analysis:

  • On the combined Article 14 and Article 19(1)(g) analysis, the Court held there was no substantial question of law as to constitutional interpretation involved in the criminal case sufficient to warrant withdrawal under Article 228.

Holding and Implications

Holding: The application to withdraw the case under Article 228 was dismissed. The Court held that there was no substantial question of law as to the interpretation of the Constitution necessitating withdrawal of the criminal case from the subordinate court.

Direct consequences for the parties: The application was dismissed with costs fixed at Rs. 160. The interim order of stay dated 24 July 1951 was vacated. The criminal proceedings in the Court of the City Magistrate were therefore not withdrawn to the High Court.

Broader implications: The opinion contains a constitutional analysis applying established principles on Article 14 classification and the scope of Article 19(1)(g) in light of Article 19(6). The Court did not announce any novel constitutional doctrine; it applied existing authorities and principles to conclude that the statutory regulation complained of did not prima facie violate the cited fundamental rights. The opinion, as presented, does not state that a new precedent was being laid down beyond its application of prior case law.

This summary is confined to and derived exclusively from the content of the provided opinion. No information beyond that opinion has been added.

Show all summary ...

By the Court— This is a petition under Article 228 of the Constitution praying for transfer of a pending criminal case against the petitioner from the Court of the City Magistrate to this Court.

2. The first petitioner, Matrumal Sharma is the proprietor of Sharma Restaurant in Aminabad, Lucknow. Niranjan Lal Sharma, the second petitioner is its manager. Both of them are being originally prosecuted under Section 27, U.P Shops and Commercial Establishments Act, for failure to maintain a register of attendance of employees as required by Rule 13 framed under Section 31 of the Act. Section 26 provides:

“Subject to any general or special order of the State Government, as employer shall maintain such registers and records and display such notices as may be prescribed.”

3. Under Section 31, the State Government is empowered to make rules to carry out the purposes of the Act. It expressly confers rule making powers with respect to the maintenance by the employer of registers and records and to regulate “matters which are to be or may be prescribed.”

4. Rule 13 enjoins that every employer must maintain a register of attendance and wages in form E and another register of holidays in form F. According to the prosecution case the applicants are governed by the U.P Shops and Commercial Establishments Act and they are liable to punishment under Section 27 for infringing the aforementioned rule. Sec. 27 makes the contravention by an employer of any provision of the Act or any rule or order made thereunder punishable with fine which may extend to fifty Rupees for the first offence and to five hundred rupees for every subsequent offence after the first conviction.

5. The defence was based principally on two grounds:

(1) That the applicants were not governed by the Act in view of Section 4 which provides that it shall not apply to persons whose work is inherently intermitent such as a traveller or canvasser, it being urged that such was the nature of the work in the applicants' restaurant, and

(2) That the Act infringes the fundamental rights guaranteed under Articles 14 and 19(1) of the Constitution.

6. The criminal case was fixed for hearing in the Court of the City Magistrate for the 23rd July, 1951. On that date the petitioner approached this Court for withdrawal of the case to the High Court under Rule 228 of the Constitution which lays down that:

“If the High Court is satisfied that a case pending in a court subordinate to it involves a substantial question of law as to the Interpretation of this Constitution the determination of which is necessary for the disposal of the case, it shall withdraw the case and may—

(a) either dispose of the case itself, or

“(b) determine the said question of law and return the case to the court from which the case has been so withdrawn together with a copy of its judgment on such question, and the said court shall on receipt thereof proceed to dispose of the case in conformity with such judgment.”

7. The sole question which has been argued and which calls for determination is whether the case against the petitioners involves any substantial question as to the interpretation of the Constitution, the determination of which is necessary for he disposal of the case. It has to be noticed in the first place that if the defence that the Act does not apply to the petitioner succeeds, no decision regarding the Constitutionality of the Act would arise. In order, however, to put an end to the controversy raised on behalf of the petitioners, we think it would be proper to dispose of the application on merits rather than to reject it on the ground that the decision of the constitutional point is not essential at this stage. We will proceed, therefore, to consider as to whether there is a substantial question of interpretation of the Constitution, in other words, whether the Act infringes the fundamental rights conferred by Articles 14 and 19(1)(g) of the Constitution on every citizen of the Indian Union.

8. Article 14 guarantees to every person equality before the law or the equal protection of the law within the territory of India. Section 4 of the impugned Act provides that nothing in it shall apply to

“(a) persons occupying positions of a confidential, managerial or supervisory character:

“Provided that the number of employee so exempted in any shop or commercial establishments shall not exceed ten per cent of the total number of persons employed in such shop or commercial establishment:

“Provided also that in any shop or commercial establishment which employs five persons or less no employee shall be exempt from the provisions of this Act:

(b) persons whose work is inherently intermittent, such as a traveller or canvasser;

(c) offices of Government or of local authorities;

(d) establishments for the treatment or the case of the sick, infirm, destitute or mentally unfit;

(e) members of the family of any employer.

9. The petitioners maintain that the Act denies equality amongst halwais and restaurant keepers to which class they belong inasmuch as it prescribes the observance of certain formalities by a class of halwais and restaurant keepers and subjects them to restrictions and penalties while exempting from its operation classes of persons mentioned in Clauses (a) to (e) and in particular the halwais and restaurant keepers who carry on their trade with the aid of members of their own family without employing outside labour.

10. The equality referred to in Article 14 has recently been the subject-matter of consideration of their Lordships of the Supreme Court in Charanjit Lal Chowdhiiry v. The Union of India.1 The interpretation placed by Mukherjea, J. with which the Chief Justice of India agreed may be reproduced with advantage;

“It must be admitted that the guarantee against the denial of equal protection of laws does not mean that identically the same rules of law should be made applicable to all persons within the territory of India in spite of differences of circumstances and conditions. As has been said by the Supreme Court of America ‘equal’ protection of laws is a ‘pledge of the protection of equal laws’ (see Yick Wo v. Hopkins 118 U.S at 369.), and this means ‘subjection to equal laws applying’ alike to all in the same situation. (Vide Southern Railway Co. v. Greene 216 U.S 412.). In other words, there should be no discrimination between one person and another if as regards the subject-matter of the legislation their position is the argument of Mr. Chari that a legislation relating to one individual or one family or one body corporate would per se violate the guarantee of the equal protection rule. There can certainly be a law applying to one person or to one group of persons and it cannot be held to be unconstitutional if it is not discriminatory in its character. (See Willis Constitutional Law, p. 580). It would be bad law if it arbitrarily selects one individual or a class of individuals, one corporation or a class of corporations and visits a penalty upon them, which is not imposed upon others guilty of like delinquency. (See Gulf C. & S.F.R Co. v. Ellis 163 U.S 150 at 159.). The legislature undoubtedly has a wide field of choice in determining and classifying the subject of its laws, and if the law deals alike with all of a certain class is normally not obnoxious to the charge of denial of equal protection; but the classification should never be arbitrary. It must always rest upon some real and substantial distinction bearing a reasonable and just relation to the things in respect to which the classification is made; and classification made without any substantial basis should be regarded as invalid. (See Southern Railway Co. v. Greene.5

11. Patanjali Sastri, J. who differed from the other learned Judges on the merits of the application nevertheless considered it undeniable that equal protection of the laws cannot mean that all laws must be quite general in their character and application. He observed that:

“A legislature empowered to make laws on a wide range of subjects must of necessity have the power of making special laws to attain particular objects and must, for that purpose possess large power of distinguishing and classifying the persons or things to be brought under the operation of such laws provided the basis of such classification has just and reasonable relation to the object which the legislature has in view. While for instance a classifications in a law regulating labour in mines or factories may be based on age or sex it may not be based on the colour of one's skin. It is also true that the class of persons to whom the law is made applicable may be large or small and the degree of harm which has prompted the enactment of a particular law is a matter within the discretion of the law makers. It is not the province of the Court to canvass the legislative judgment in such matters. According to Dicey, equality before the law means the equal subjection of all classes to the ordinary law of the land administered by the ordinary law courts,

12. He says that

“‘the rule of law’ in this sense excludes the idea of any exemption of officials or others from the duty of obedience to the law which governs other citizens or from the jurisdiction of the ordinary tribunals …. (Dicey on the Law of the Constitution, 1948 edn. page 202-203).

13. Section 14 of the Constitution aims against the conferment of spcial privileges at law on account of birth, religion, caste or creed and enjoins equal subjection of all persons and classes of persons to the laws of the land without distinction of race, wealth, social status or political affiliations. Applying the principles enunciated by their Lordships of the Supreme Court, it cannot but be held that the inequalities complained of do not come within the constitutional inhibitions of Article 14.

14. The argument relating to the infringement of the freedom to prectice the profession of their choice or to carry on any occupation, trade or business rests on three features of the Act. It is urged that inasmuch as the Act

(1) regulates the hours of regular and over time work of the employees,

(2) regulates the number of holidays and the extent of sick leave and

(3) necessitates the keeping of registers of attendance, fines and overtime work etc. it infringes the applicants' right to practice their trade as halwais or restaurant keepers. Sub-article (6) of Article 19 lays down that nothing in Article 19(1)(g) shall affect the operation of any existing law in so far as it imposes reasonable restrictions on the exercise of the right of freedom of profession in the interest of the geneal public and in particular nothing in the Sub-clause (g) shall affect the operation of any existing law in so far as it prescribes the professional or technical qualifications necessary for practising any profession or carrying on any occupation, trade or business. The freedom referred to does not mean the freedom to carry on a trade or profession in a way which may be prejudicial to the public interest and it has, for example, been generally recognized that the State may validly prohibit gambling or immoral occupations, the employment of child labour in certain industries, the licensing of certain kinds of business in the interest of the public safety or regulate the conditions for the manufacture of foodstuffs or chamical products etc. The avowed object of the Act as shown by its preamble is to provide for holidays and to regulate and lay down conditions of and the hours of employment in shops and commercial establishments. It is made applicable to all cases falling outside the purview of Section 4 where labour is employed. The regulation of the hours of work of the employees or the prescription of holidays and sick leave or the insistence on the observance of the legislative requirements to keep proper records of attendance, fines or overtime work, does not it would seem prima facie deny the freedom of profession. Its underlying purpose is to prevent what is called ‘sweating of labour’ by persons who by nature of their position as employers have a dominant voice and are apt to use it for their own benefit rather than for the benefit of their own employees.

15. As a result of what has been said above, there is no substantial question of law as to the interpretation of the Constitution involved in the criminal case and recourse, therefore, to Article 228 is unjustified. We dismiss the application with costs which we fix at Rs. 160. The interim order of stay dated 24th July, 1951, is vacated.

16. Application dismissed.