MESSRS. DWARKA PRASAD LAXMI NARAIN versus THE STATE OF UTTAR PRADESH AND TWO OTHERS.

MESSRS. DWARKA PRASAD LAXMI NARAIN versus THE STATE OF UTTAR PRADESH AND TWO OTHERS.

Clause 4(3) of the Uttar Pradesh Coal Control Order, 1953, is void, as it imposes an unreasonable restriction upon the freedom of trade and business guaranteed by Article 19(1)(g) of the Constitution by conferring arbitrary and uncontrolled discretion on licensing authorities. The rest of the Order, including clauses regulating price and the profit margin, does not impose unreasonable restrictions and is upheld.

Parties
Petitioner: Messrs. Dwarka Prasad Laxmi Narain; Respondents: The State of Uttar Pradesh and Two Others
Jurisdiction
India
Judgment Date
11 January 1954
Procedural Posture
Original Petition Under Article 32 of the Constitution / Final Judgment
Outcome
Petition partly allowed
Legal Topics
Reasonableness of Restriction on Trade, Validity of Administrative Discretion, Article 19(1)(g) Constitution of India, Control of Essential Supplies, Licensing and Price Control
Constitutional Law Administrative Law Trade and Commerce Reasonableness of Restriction on Trade Validity of Administrative Discretion Article 19(1)(g) Constitution of India Control of Essential Supplies Licensing and Price Control

Case Brief

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Parties

Messrs. Dwarka Prasad Laxmi Narain

Petitioner

The State of Uttar Pradesh and Two Others

Respondents

Procedural Posture

Original Petition Under Article 32 of the Constitution / Final Judgment

Legal Issues

  1. 1 Whether clause 4(3) of the Uttar Pradesh Coal Control Order, 1953, imposes unreasonable restrictions on the freedom of trade guaranteed under Article 19(1)(g) of the Constitution
  2. 2 Whether the delegation of uncontrolled power to licensing authorities is constitutionally valid
  3. 3 Whether the cancellation of the petitioners' licence was valid

Ratio Decidendi

Clause 4(3) of the Uttar Pradesh Coal Control Order, 1953, is void, as it imposes an unreasonable restriction upon the freedom of trade and business guaranteed by Article 19(1)(g) of the Constitution by conferring arbitrary and uncontrolled discretion on licensing authorities. The rest of the Order, including clauses regulating price and the profit margin, does not impose unreasonable restrictions and is upheld.

Court Disposition

Petition partly allowed

Orders

  • Clause 4(3) of the Uttar Pradesh Coal Control Order, 1953, is declared void as unconstitutional and unenforceable.
  • Writ of mandamus issued preventing enforcement of the cancellation order against the petitioners' licence.