29 August 2011
Supreme Court
Download

MD.MURTAZA Vs STATE OF ASSAM .

Bench: MARKANDEY KATJU,CHANDRAMAULI KR. PRASAD, , ,
Case number: C.A. No.-007517-007517 / 2011
Diary number: 13927 / 2009
Advocates: RAJIV MEHTA Vs CORPORATE LAW GROUP


1

REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLAE JURISDICTION

CIVIL APPEAL NO.7517__2011 [Arising out of SLP(Civil) Nos. 15141 of 2009]

Md. Murtaza and others ..      Appellants  

-vs-

State of  Assam and others .. Respondents

WITH

CIVIL APPEAL NO. 7518_2011 [Arising out of SLP(Civil) Nos. 27497 of 2009]

Shaukat Ali and others .. Appellants  

-vs-

State of  Assam and others .. Respondents

O R D E R

1. Leave granted.

2. These appeals  have been filed against  the  impugned judgment and  

order dated 28.4.2008 passed by the Gauhati  High Court in Writ Petition  

(Civil) No. 8081 of 2005.

1

2

3. The appellants  are wholesale  vegetable and fruit  vendors and were  

engaged in selling vegetables and fruits at Machkhowa market, Gauhati in  

the State of Assam since 1995.  However, they had to vacate their respective  

possession of the premises in pursuance to the orders of the Gauhati High  

Court.   Machkhowa market  is situated close to the railway station and is  

inside the city and the land thereon has been allotted to the Department of  

Handloom  and  Textiles,  Government  of  Assam  for  the  purpose  of  

construction of an administrative building.  For this purpose it was proposed  

to remove the appellants and other wholesale vendors from the Machkhowa  

market, and instead a new market has been constructed at Ganeshguri.  It  

was submitted by the appellants and others that there is not enough space in  

the Ganeshguri municipal market for the appellants and others.  We are not  

referring to the various orders issued by the Gauhati High Court from time to  

time.

4. In one of the counter affidavits filed before us it has been stated that  

all parts of the city of Gauhati, including Machkhowa is very congested and  

hence the  appellants  and other  wholesellers  should not  be allowed to  do  

business of  wholesale  fruits and vegetables inside the city limits as a large  

number of heavy and medium goods vehicles have to enter the city to go to  

2

3

that wholesale market and consequently the area becomes very congested  

causing serious traffic problems and also hazard of health and hygiene and  

pollution.   It is stated that the government of Assam has initiated steps to  

develop  the  fruits  and  vegetables  wholesale  market  at  the  outskirts  of  

Gauhati at Garchuk near the bypass on an area of 8 bighas of land and the  

foundation stone of the project market was laid by the Chief Minister on  

25.2.2011.  It has been further submitted that development work is taking  

place at a high speed at Garchuk.

5. We  are  of  the  opinion  that  the  wholesale  market  of  fruits  and  

vegetables for supplying of these goods to Gauhati and elsewhere should be  

at the outskirts or outside the city limits of Gauhati to avoid problems of  

traffic congestion, health and hygiene, pollution etc.      

6. Citizens ordinarily do not  go to wholesale  markets,  but  they go to  

retail markets.  Hence if the wholesale market is not situated within the city  

limits it will not cause any inconvenience to the public in general.  On the  

other hand, if  such wholesale market is situated within the city limits, there  

will  be  everyday  hazards  of  traffic  congestion  because  of  hundreds  of  

vehicles entering the city carrying goods for the wholesale markets resulting  

in traffic congestion, air and noise pollution etc., apart from posing health  

3

4

and hygiene problems.  A large number of these goods will be dumped on  

the roads causing huge collection of waste and garbage.  The rotting goods  

may spread diseases.  They may also attract stray animals.  

7. Ordinarily everywhere in the world wholesale markets are situated at  

the outskirts or outside the city limits.  No doubt, the shifting of the shops of  

the wholesellers will cause some hardships to some individuals, but it is well  

settled  that  public  interest  prevails  over  the  private  interests.   Thus,  in  

Friends Colony Development Committee vs. State of Orissa AIR 2005 SC 1  

(vide para 22) this Court observed :

“The  private  interest  stands  subordinated  to  the  public  good”.   

8. Similarly, in  Sales Tax Officer vs.  Shree Durga Oil Mills, (1998) 1  

SCC 572 (vide para 21) this Court observed:

“Public  interest  must  override  any  consideration  of  private loss or gain”.  

9. It is true that right to do business is a fundamental right guaranteed  

under  Article  19(1)(g)  of  the  Constitution,  but  this  right  is  subject  to  

reasonable restrictions under Article 19(6).

4

5

10. It may be mentioned that to test the reasonability of a restriction we  

have to see the subject matter,  extent of restriction, the mischief which it  

seeks  to  check,  etc.  The  reasonableness  of  the  restriction  has  to  be  

determined in an objective manner and has to be seen from the point of view  

of the interest of the general public and not merely from the point of view of  

the persons upon whom the restrictions are imposed vide  Hanif Quareshi  v.  

State  of  Bihar,  AIR 1958  SC  731.  Moreover,  the  impugned  action  of  the  

authorities cannot be said to be unreasonable merely because in a given case,  

they may operate harshly, vide State of Gujarat v. Shantilal, AIR 1969 SC 634  

(vide Para 52). As observed by the Supreme Court in  Laxmi Khandsari v.  

State of UP., AIR 1981 SC 873;  Divert v.  State of Gujarat, AIR 1986 SC  

1323; State of Madras v. Row, 1952 SCR 597;  Peerless v. Reserve Bank, AIR  

1992 SC 1033; and Harakchand v. Union of India, AIR 1970 SC 1453 etc.,  

the nature of the right alleged to have been infringed, the underlying purpose  

of the restriction imposed and the extent and urgency of the evil sought to be  

remedied thereby, disproportion of the imposition, prevailing conditions at  

the time etc.,  are the relevant  considerations for determining whether the  

restriction is reasonable.

11. Further, as held in Jyoti Pershad v. Union Territory of Delhi, AIR 1961 SC  

1602, the standard of reasonableness must also vary from age to age and be  

5

6
7

role and it should only interfere with the same when it is clearly illegal. That  

clearly  is  not  the  case  here.  The  impugned action  is  a  salutary  step  for  

undoing a mischief, which was crying out for redress for a long time, and it  

is not illegal.

14. As observed by the Supreme Court in  Mohd. Hanif  Qureshi  v.  State of  

Bihar,  AIR 1958  SC  731,  the  Court  must  presume,  that  the  legislature  

understands  and  correctly  appreciates  the  need  of  its  own  people.  The  

legislature  is  free  to  recognize  degrees  of  harm,  and  may  confine  its  

restrictions to those where the need is deemed to be the clearest.  In our  

opinion,  the  same principle  would apply  to  executive  action  also,  unless  

there is clear violation of a statute or a constitutional provision.  

15. In  our  opinion,  the  State  should  not  be hampered  by the  Court  in  

dealing  with  evils  at  their  point  of  pressure.  All  legislation,  including  

delegated  legislation  (such as  the  kind  we are  examining)  and executive  

action is essentially ad hoc. Since, social problems nowadays are extremely  

complicated,  this  inevitably  entails  special  treatment  for  distinct  social  

phenomena. If legislation or executive action is to deal with realities it must  

address itself to variations in society. The State must, therefore, be left with  

wide latitude in devising ways and means of social control and Regulation,  

7

8

and the Court should not, unless compelled by the law, encroach into this  

field.

16. As  Justice  Frankfurter  of  the  U.S.  Supreme  Court  observed  in  

American Federation of Labour v.  American Sash and Door Co., 335 US  

538 (1949) :-

"Even where the social  undesirability of a law may be  convincingly urged,  invalidation of the law by a Court  debilitates  popular  Democratic Government.  Most  laws  dealing with social and economic problems are matters of  trial  and  error.  That  which  before  trial  appears  to  be  demonstrably  bad  may  belie  prophecy  in  actual  operation. But, even if a law is found wanting on trial, it  is  better  that  its  defects  should  be  demonstrated  and  removed by the legislature than that the law should be  aborted  by  judicial  fiat.  Such,  an  assertion  of  judicial  power  defeats  responsibility  from those on whom in a  democratic society it ultimately rests. Hence, rather than  exercise  judicial  review Courts  should ordinarily  allow  legislatures  to  correct  their  own  mistakes  wherever  possible."

In our opinion the same principle would apply to executive action too.

17. Similarly,  in  his  dissenting  judgment  in  New  State  Ice  Co.  v.  

Liebemann, 285 U.S. 262 (1932), Mr. Justice Brandeis, the celebrated Judge  

of the U.S. Supreme Court observed that the government must be left free to  

engage  in  social  experiments.  Progress  in  the  Social  Sciences,  as  in  the  

8

9

Physical Sciences, depends on "a process of trial and error" and Courts must  

not interfere with necessary experiments.

18. Justice Brandeis also observed :-

"To stay experimentation in things social and economic  is  a  grave  responsibility.  Denial  of  the  right  to  experiment may be fraught with serious consequences to  the Nation."

19. On the facts of the case, we are of the opinion that the appellants and  

other wholesale traders should shift to the wholesale markets at the outskirts  

or outside the city limits of Gauhati.

20. If the markets are not constructed yet, they will be constructed by the  

government, the municipalities and other authorities in consultation with the  

representatives  of  the  wholesale  traders  of  Gauhati  and  allotments  made  

within a period of one year from today.  For this purpose a Committee shall  

be set up under the Chairmanship of the concerned Secretary of Government  

of  Assam  and  having  members  from  the  representatives  of  the  Gauhati  

municipality  and  other  authorities,  and  also  representatives  of  the  

associations of wholesellers of fruits and vegetables and grains etc., as well  

as  representatives  from  the  electricity  department,  water  department,  

telephone department, police etc.  This Committee shall form a rational plan  

9

10

for allotment of the existing wholesale markets inside the Gauhati city to the  

new wholesale market (which will be constructed, if has not already been  

constructed).  

21. All  wholesellers  inside  Gauhati  city  shall  be  allowed  to  apply  for  

allotment for adequate land for the wholesale market at the outskirts of or  

beyond Gauhati city.  If such applications are made the same will be decided  

in a fair and non-arbitrary manner without any pick and choose.  The entire  

exercise  including  allotments  must  be  completed  within  one  year  from  

today.        

22. With the observations made above, the appeals stand disposed of.  No  

costs.

………………………………J. (Markandey Katju)

………………………………J. (Chandramauli Kr. Prasad)

New Delhi; August, 29, 2011  

10