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  • provisions of Section 11 (1) of the Madras Shops and Establishments Act.
  • Section 11 (1) of the Madras Shops and Establishments Act
  • Madras Shops and Establishments Act, XXXVI of 1947,
  • sub-section for total closure. 3. Section 11 (1)
  • section 4 (1) (c) and (f). Section 6
  • provisions of Section 11 (1)
  • Section 4, but Section 45 (1)
  • Uttar Pradesh Act
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Citation Codes
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citation codes
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  • provisions of Section 11 (1) of the Madras Shops and Establishments Act.
  • Section 11 (1) of the Madras Shops and Establishments Act
  • Madras Shops and Establishments Act, XXXVI of 1947,
  • sub-section for total closure. 3. Section 11 (1)
  • section 4 (1) (c) and (f). Section 6
  • provisions of Section 11 (1)
  • Section 4, but Section 45 (1)
  • Uttar Pradesh Act
Smart Summary

Factual and Procedural Background

The writ petition was filed by the Manager of a Hindu family firm called "Brothers Shops and Branch" carrying on retail trade in Rajam, Srikakulam District. The family comprises seven brothers; six remain undivided and personally attend to the business. The firm operates a main shop and two branches. In the main shop and one branch the six undivided brothers carry on retail business in a variety of goods including medicines; the separated eldest brother attends to the footwear branch.

After the Madras Shops and Establishments Act, XXXVI of 1947, came into force, the brothers declared weekly holidays (Sundays for the main shop and the footwear branch; Saturdays for the other branch). On July 26, 1958, the Assistant Labour Inspector (impleaded as respondent) visited the main shop and issued directions for its closure on the weekly holiday. The petitioner protested that no persons were employed in the shop except the owners, and that sales on the day in question were mainly of medicines; the petitioner stated they had held a drug licence for two shops since 1951 (except the footwear shop).

Despite protests, the Labour Inspector recorded that the shop was not to be kept open on the weekly holiday and instructed the Village Munsiff to watch observance and report breaches of Section 11(1) of the Act. The Village Munsiff apprised the brothers and requested closure; a notice was served on the petitioner for having sold articles to two persons on Sunday, August 24, 1958, allegedly in contravention of Section 11(1).

The writ petition challenged the constitutionality of Section 11(1) of the Madras Shops and Establishments Act and sought relief against the notice. The court ultimately dismissed the writ petition with costs (Advocate's fee fixed at Rs. 100).

Legal Issues Presented

  1. Whether Section 11(1) of the Madras Shops and Establishments Act infringes the brothers' fundamental right to carry on business under Article 19(1)(g) by imposing unreasonable restrictions.
  2. Whether the Act, intended to regulate working conditions of employees in shops, exceeds its scope by providing for total closure of shops (i.e., whether Section 11(1) travels beyond the object of the statute).
  3. Whether Section 11(1) can apply to shops without employees in view of Section 4, and whether Section 45(1) (as pleaded) renders Section 45 ultra vires to the extent it covers owners of such shops.
  4. Whether Notification No. 97 in G.O. 226 (dated December 22, 1953) exempting shops run solely by owners and family members precludes application of Section 11(1) (and whether the notification, if cancelled, affects the challenge).
  5. Whether partial dealers in medicines (shops partly selling medicines) should be exempted under government notification covering shops that deal mainly in medicines, and whether excluding such partially selling shops violates Article 14 by unreasonable classification.

Arguments of the Parties

Petitioner's Arguments

  • The compulsory closure requirement in Section 11(1) contravenes the fundamental right under Article 19(1)(g) to carry on business and imposes restrictions that are not reasonable.
  • The Act was designed to regulate conditions of work for shops that have employees; providing total closure applies beyond the Act's scope to shops without employees.
  • Section 11(1) should have no application to shops without employees because of Section 4; alternatively, Section 45(1) (as pleaded) covers owners and is ultra vires.
  • There existed a government Notification (No. 97 in G.O. 226, Development dated December 22, 1953) exempting shops where owner and family alone participate; that Notification ought to shield them from Section 11(1).
  • Shops that partially sell medicines should also be exempted if government notification exempts shops that "deal mainly in sale of medicines"; excluding partially selling shops constitutes arbitrary discrimination violative of Article 14.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sadasivam v. State of Madras Held that Section 11(1) was not an arbitrary or excessive restriction and was constitutional. The court noted this decision as one that upholds the constitutionality of Section 11(1); it is cited as supporting the view that compulsory weekly closure can be a valid, non-arbitrary measure.
Abid Ali v. State of Uttar Pradesh (1958) 1 Lab LJ 734 Held that preventing a person who works alone in his shop from earning his livelihood may be an unreasonable restriction; construed the Uttar Pradesh Act as not intended to include shopkeepers who have no employees. The court identified this decision as taking a contrary view to Sadasivam. The judge in the present opinion expressly disagreed with Abid Ali and noted that the Supreme Court's test for Article 19 reasonableness (not applied in Abid Ali) was not referred to in that decision.
Chintaman Rao v. The State of Madhya Pradesh Formulated the test for reasonableness under Article 19: a restriction must have a reasonable relation to the object sought to be achieved and not be in excess of that object. The court applied this test to Section 11(1), using it as a benchmark for assessing whether compulsory closure is reasonably connected to the object's legislation (securing holidays for employees).
State of Madras v. V. C. Row Set out the mode of approach to ascertain reasonableness: consider nature of right, purpose, extent and urgency of evil, disproportion, and prevailing conditions. The court relied on this articulation of the reasonableness inquiry, applying those factors to conclude the compulsory closure provision reasonably relates to the Act's object.
Express Newspaper Ltd. v. Union of India Reasonable restriction must not be arbitrary or excessive; it implies intelligent care and deliberation. The court cited this statement (Bhagwati J.) to support that restrictions must be assessed for arbitrariness and excess; used to reinforce that Section 11(1) is not arbitrary in purpose or scope.
M.H. Quareshi v. State of Bihar Clause (6) of Article 19 protects laws imposing reasonable restrictions in the interest of the general public; courts must determine reasonableness from public interest perspective rather than individual viewpoint. The court cited this authority to emphasize that reasonableness must be evaluated in the interests of the general public (not from the shopkeeper's personal viewpoint) in upholding Section 11(1).
Arunachala Nadar v. State of Madras Summarised law: Article 19(1)(g) confers right to carry on business; Clause (6) allows reasonable restrictions which must have a rational relation to the Legislature's object and must not go in excess. The court quoted this summary to frame the legal standard and applied it in concluding that Section 11(1) is rationally related to the Act's object and not excessive.

Court's Reasoning and Analysis

The court began by extracting and interpreting Section 11 (sub-sections 1–6) and stating the evident legislative intent: the Section's primary object is to provide holidays for persons employed in shops without deduction of wages. The court observed that compulsory closure of shops for one day each week "is...enacted to secure such holiday to their employees."

The petitioner's core contention was that where no employees exist (owners and family only), mandatory closure is arbitrary and interferes with the fundamental right under Article 19(1)(g). The court placed the challenge within the context of the Act's broader aims: the Act was designed to regulate conditions of work in shops and allied establishments, filling gaps left by earlier central legislation (Weekly Holidays Act, 1942), and to implement social standards that had been the focus of international labour discussions.

The court analysed the Act's structure: Section 4 lists exemptions (including managerial persons and certain establishments), Section 5 allows the State Government to apply provisions to exempted classes, and Section 6 authorises the State to grant exemptions. The court noted that the Act's chapters and the preamble indicate the main object is to protect persons working for wages in shops and related establishments.

Addressing precedent, the court acknowledged two conflicting decisions. The court rejected the reasoning in Abid Ali because that decision did not apply the Supreme Court's established test for Article 19 reasonableness. Instead, the court relied on the test articulated in Chintaman Rao and elaborated in State of Madras v. V. C. Row, Express Newspaper Ltd., M.H. Quareshi, and Arunachala Nadar: in short, a restriction under Clause (6) of Article 19 must have a reasonable relation to the legislation's object, must not be excessive, and reasonableness must be judged in the interests of the general public rather than solely from the perspective of those restricted.

Applying these principles, the court held that compulsory closure is an effective and practicable mechanism to enforce holidays for employees and prevents evasion that inspection alone might not stop. The closure rule was described as "an accepted and reasonable method of achieving the object" of securing holidays. The court therefore found Section 11(1) to be reasonably connected to the Act's object and not unconstitutional.

On the other grounds: the court noted the exemption Notification (No. 97 in G.O. 226) exempting shops run by owners and family members had been cancelled and the petitioner did not challenge that cancellation; therefore that ground failed. Concerning exemption for shops dealing "mainly in sale of medicines," the court held that excluding shops that only partially sell medicines was not arbitrary—the distinction was "obvious" and not violative of Article 14.

Holding and Implications

Holding: Writ Petition Dismissed.

Implications:

  • The court upheld the constitutionality of Section 11(1) of the Madras Shops and Establishments Act, finding it reasonably related to the legislative object of securing weekly holidays for employees and preventing evasion of that protection.
  • The petitioner's subsidiary contentions failed: the exemption Notification relied upon had been cancelled (not contested), and the claimed discriminatory classification regarding shops partially selling medicines was held not arbitrary.
  • The direct effect is that the notice served for alleged contravention of Section 11(1) stands and the writ petition was dismissed with costs; Advocate's fee fixed at Rs. 100.
  • The opinion does not purport to lay down a novel precedent beyond applying established tests for reasonableness under Article 19(1)(g); the court applied existing Supreme Court authorities to the facts and reached a conclusion consistent with upholding Section 11(1).

This summary is strictly limited to the materials and statements contained in the provided opinion. No external facts or inferences beyond the opinion's text have been introduced.

    Grandhi Mangaraju v. Assistant Labour Inspector

    ORDER Mohd. Ahmed Ansari, J.

    1. This Writ Petition is by the Manager of a Hindu family firm known as Brothers Shops and Branch, which does business in Rajam, Srikakulam District. The family consists of seven brothers, who claim to he personally attending to their business, and six out of the brothers are still un-divided. They have a main shop which has two branches. In thy main shop as well as in one of its branches the six undivided brothers carry on retail business in a variety of goods including medicines. In the other branch the brother, who is the eldest and has separated, attends to the business in the footwear.

    Their case in the writ petition is that they do not employ any other person either in the main shop or in its branches, and that as soon as the Madras Shops and Establishments Act, XXXVI of 1947, came into force they declared Sundays as weekly holidays in respect of the main shop and the foot-wear branch shop, Saturdays being such holidays in respect of the other branch shops. It appears that the Assistant Labour Inspector of Srikakulam who has been impleaded as the respondent to the writ petition, had visited the main shop on July 26, 1958 and issued directions for its closure on the weekly holiday, The petitioner claims to have then protested on the grounds that there were no persons employed in the shop except the owners.

    It is further averred that they had pointed that the sale on that day was mainly of medicines; they having since 1951 obtained a drug licence for the two shops, excepting the footwear shop. Notwithstanding such protests the 1st respondent appears to have made a note in the visiting book that the shop was not to be kept opened on the weekly holiday. It is further alleged that the Labour Inspector had issued instructions to the Village Munsiff to watch the observance of the weekly holiday and to report breaches of the provisions of Section 11 (1) of the Madras Shops and Establishments Act.

    The Village Munsiff had apprised the brothers of the instructions by the Labour Inspector, requested them to close the main shop on holidays and stated he. would otherwise make a report. A notice has also been served on the petitioner for having sold certain articles to two persons on Sunday, August 24, 1958, in contravention of Section 11 (1) of the Act. The writ petition challenges the constitutionality of Section 11 (1) of the Madras Shops and Establishments Act on the ground that:--

    1. It contravenes the brothers' fundamental right to carry on business, which is given to them by Article 19 (1) (g), and it imposes restrictions which are not reasonable.

    2. The Act, having been designed to regulate the conditions of work in shops, which have employees, travels beyond the scope and object of the statute by providing in the sub-section for total closure.

    3. Section 11 (1) can have no application to shops without employees because of Section 4, but Section 45 (1) is wide enough to cover owners of such shops and to that extent Section 45 is ultra vires.

    There are two other grounds for quashing the notice. These are that:--

    4. There is a Notification No. 97 in G. O. 226, Development dated December, 22, 1953, which exempts all shops from the provisions of the Act, wherein the owner and his family members alone participate in the business, and

    5. There is exemption by the Government Notification for the shops that deal mainly in sale of medicines and as the main shop partly sells medicines, it should also be exempted, there being no reason why such a shop should be closed and the differentiation made in favour of shops wholly selling medicines being void under Article 14 due to the discrimination without rational classification.

    2. At this stage the impugned provisions can be usefully extracted, which read as follows:--

    "11 (1) Every shop shall remain entirely closed on one day of the week, which day shall be specified by the shopkeeper in a notice permanently exhibited in a conspicuous place in the shop; and the day so specified snail not be altered by the shopkeeper more often than once in three months.

    (2) Every person employed in a shop shall be allowed in each week a holiday of one whole day:

    Provided that nothing in this Sub-section shall apply to any person whose total period of employment in the week, including any days spent on authorised leave, is less than six days, or entitle a person who has been allowed a whole holiday on the day on which the shop has remained close in pursuance of Sub-section (f), to an additional holiday.

    (3) (a) The Provincial Government may, by Notification, require in respect of shops or any specified class of shops, that they shall, in addition to the day provided for by Sub-section (1), be closed at such hour in the afternoon of one week-day in every week at such hour as may be fixed by the Provincial Government.

    (b) Every person employed in any shop to which a notification under Clause (a) applies, shall be allowed in each week an additional holiday of one half-day commencing at the hour in the after, noon fixed for the closing of the shop under Clause

    (a).

    (4) The Provincial Government may, for the purpose of Sub-section (3), fix different hours for different shops or different classes of shops or for different areas or for different times of the year.

    (5) The weekly day on which a shop is closed in pursuance of a requirement under Sub-section (3) shall be specified by the shopkeeper in a notice permanently exhibited in a conspicuous place in the shop, and shall not be altered by the shop-keeper more often than once in three months.

    (6) No deduction shall be made from the wages of any person employed in a shop on account of any day or part of a day on which if has remained closed or a holiday has been allowed in accordance with this section; and if such person is employed on the basis that he would not ordinarily receive wages for such day or part of a day, he shall none the less be paid for such day or part of a day the wages he would have drawn, had the shoo not remained closed, or had the holiday not been

    " allowed, on that day or part of a day."

    The intent of the Section is clear which is to provide holidays for those employed in shops without deductions in their wages. The compulsory closure of the shops for a day in each week is, therefore, enacted to secure such holiday to their employees, and the complaint by the writ petitioner is that such a closure where no employee exists is arbitrary, thereby amounting to interference with the brothers' fundamental right to carry on their trade. The Act was passed at the time when the International Labour Organisation was to meet at Delhi and it was expected to take up the question of social standard and security in the Asiatic regions.

    It is equally well-known that the aforesaid Organisation through a series of conferences all over the world had notified certain standards, which were put forward before countries and after their acceptance by the countries there are checks to ascertain how far the recommendations have been implemented. That apart, the statement of object and reasons of the Act also states that there was no enactment within the Madras State regulating the conditions of work of employees in shops, commercial undertakings, restaurants, etc. The Weekly Holidays Act, 1942, which was the Central Act, was found limited in scope, as it contained no provisions for regulating hours of work, payment of wages, health and safety of these employees.

    The preamble of the Act also states that it was intended to provide some regulation of conditions of work in the shops, commercial undertakings, restaurants, theatres, and other establishments and in certain other matters. Therefore the legislation was intended to safeguard certain classes of employees who work for wages in the aforesaid establishments. The provisions of the Act further show that no benefits are conferred by them on the near relations of the employer, who are dependent upon him. Section 4 enumerates the persons and establishments to whom this act would not apply Thus, persons in a position of management, persons whose work involves trading, or who are employed in establishments under the Government in Mines and Oil Fields, in bazars and in places where fairs and festivals are temporarily held for a period not exceeding fifteen days are exempted. Section 5 authorises the State Government to apply the provisions of the Act to any class of persons exempted by section 4 (1) (c) and (f). Section 6 further authorises the State Government to grant exemptions.

    The second Chapter of the Act deals with shops, the third with the establishments other than shops, the fourth contains provisions relating to employment of children and young persons, the fifth covers regulations concerning health and safety, the sixth deals with holidays and wages, so does the seventh, and the ninth provides for penalties. It is obvious having regard both to the surrounding circumstances and the contents of the Preamble as well as the statement of object, that the main object of the Act is to preserve and protect persons working for wages in shops in clerical departments of factories and industrial undertakings, commercial establishments etc. The complaint of the writ petitioner is that the provisions of Section 11 (1) under which the brothers are being prosecuted, are not reasonably connected with, the object of the Act; for it covers such shops also as have no employees. There are two decisions directly on the point and they are conflicting. In Sadasivam v. State of Madras. Section 11 (1) has been found not to contain an arbitrary restriction, not to be of an excessive nature and therefore to be proper and in the interests of the public. In other words, this decision holds the provisions to be constitutional.

    A contrary view has been taken in Abid Ali v. State of Uttar Pradesh, (1958) 1 Lab LJ 734. Therein the learned Judge has held that where a person was to work on every day and his working does not affect anyone else, it cannot be considered a reasonable restriction if he is stopped from earning his livelihood. The learned Judge has further found that the Legislature never intended to include within the Shops and Commercial Establishments of the Uttar Pradesh Act those shopkeepers who have no employees and who work themselves alone, With respect to the learned Judge I beg to differ.

    If the section which the learned Judge was construing did not cover cases of owners working in their shops, the constitutionality of the provisions would hardly arise. That apart, the test laid by the Supreme Court for a provision being contrary to Article 19 of the Constitution was not even referred to in the Allahabad decision. The test was first stated in Chintaman Rao v. The State of Madhya Pradesh, . It has been laid therein that Clause (6) of Article 19 enables the State to make any law to impose in the interests of the general public reasonable restrictions on the exercise of the right conferred by Sub-clause (g) of Clause (1) and in order fo be reasonable a restriction must have a reasonable relation to the object, which the Legislature seeks to achieve and must not be in excess of that object. The mode of approach to ascertain the reasonableness of restrictions hag again been stated in State of Madras v. V. C. Row in these words;--

    It is important in this context to bear in mind that the test of reasonableness, wherever prescribed, should be applied to each individual statute impugned, and no abstract standard, or general pattern of reasonableness can be laid down as applicable to all cases. The nature of the right alleged to have been infringed, the underlying purpose of the restrictions imposed, the extent and urgency of the evil sought to be remedied thereby, the disproportion of the imposition, the prevailing conditions at the time, should all enter into the judicial verdict.

    The aforesaid test has again been reiterated in Express Newspaper Ltd. v. Union of India, where Bhagwati J., has observed that reasonable restriction connotes the limitation imposed on a person in enjoyment of the right, so that it should not be arbitrary or of an excessive nature beyond what is required in the interests of the public and that it implies intelligent care and deliberation. Again in M.H. Quareshi v. State of Bihar, his Lordship the Chief Justice of the Supreme Court observed at page 744 as follows:--

    "Clause (6) of Article 19 protects a law which imposes in the interest of the general public reasonable restrictions on the exercise of the right conferred by Sub-clause (g) of Clause (1) of Article 19. Quite obviously it is left to the Court, in case of dispute, to determine the reasonableness of the restrictions imposed by the law. In determining that question the Court, we conceive, cannot proceed on a general notion of what is reasonable in the abstract or even on a consideration of what is reasonable from the point of view of the person or persons on whom the restrictions are imposed.

    The right conferred by Sub-clause (g) is expressed in general language and ifA there had been no qualifying provisions like Clause (6), the right so conferred would have been an absolute one. To the person who has this right any restriction will be irksome and may well be regarded by him as unreasonable. But the question cannot be decided on that basis. What the Court has to do is to consider whether the restrictions imposed are reasonable in the interests of the general public."

    Finally Subba Rao, J., in Arunachala Nadar v. State of Madras, summarises the taw in these words:--

    "Before we scrutinise the provisions of the Act, the law on the subject may be briefly noticed. Under Article 19 (1) (g) of the Constitution of India all persons have the right to practise any profession, or to carry on any occupation, trade or business. Clause (6) of that Article enables the State to make any law imposing in the interest of general public reasonable restrictions on the exercise of the right conferred by Sub-clause (g) of Clause (1). It has been held that in order to be reasonable, a restriction must have a rational relation to the object which the Legislature seeks to achieve and must not go in excess of that object."

    Therefore in determining the correctness of the complaint in the writ petition we have to ascertain whether the impugned sub-section has a rational relation to the object, which the Legislature seeks to achieve by the legislation. Now it cannot be denied that the compulsory closure of shops effectively enforces the grant of holidays. It affords the only safeguard against the possibility of evading the provisions of the Act, which no amount of inspection can eradicate. Therefore the impugned provision is reasonably connected with the object of the Act. In this connection it is well to remember that the reasonableness must not be from the point of view of the persons on whom the restrictions are imposed, for any restriction on the person whose right is being restricted is bound to be irksome. Nor must it be reasonable in the abstract, for no two persons would agree on it.

    It must be reasonable in the interests of the general public, and the opinion of the Legislature.

    selected by the majority of the community should carry weight. Taking all things into consideration it appears to me that a rule for closing all shops has become an accepted and reasonable method of achieving the object which legislations similar to the one before me seek to attain. Section-11 (1) is therefore legal and the complaint of the provisions being unconstitutional fails.

    3. The other grounds complained need not be dealt with at length, The Notification exempting all shops wherein the owner and his family members participate has been "cancelled and the counter does not challenge its being so cancelled. The Complaint of not including in the Notification exempting shops selling medicines, those shops that partially sell medicines as discriminatory is also without force, for the distinction between the two is obvious and cannot be complained to be arbitrary. In the result this writ petition fails, which is dismissed with costs. Rs. 100 fixed as Advocate's fee.

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    Comments

    Grandhi Mangaraju v. Assistant Labour Inspector
    (Mar 30, 1959)