{"id":166940,"date":"1998-09-03T00:00:00","date_gmt":"1998-09-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/zippers-karamchari-union-vs-union-of-india-ors-on-3-september-1998"},"modified":"2019-03-07T05:09:06","modified_gmt":"2019-03-06T23:39:06","slug":"zippers-karamchari-union-vs-union-of-india-ors-on-3-september-1998","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/zippers-karamchari-union-vs-union-of-india-ors-on-3-september-1998","title":{"rendered":"Zippers Karamchari Union vs Union Of India &amp; Ors on 3 September, 1998"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Zippers Karamchari Union vs Union Of India &amp; Ors on 3 September, 1998<\/div>\n<div class=\"doc_author\">Author: R Babu<\/div>\n<div class=\"doc_bench\">Bench: S. Rajendra Babu<\/div>\n<pre>           PETITIONER:\nZIPPERS KARAMCHARI UNION\n\n\tVs.\n\nRESPONDENT:\nUNION OF INDIA &amp; ORS.\n\nDATE OF JUDGMENT:\t03\/09\/1998\n\nBENCH:\nS. RAJENDRA BABU\n\n\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>Judgement<br \/>\nRajendra Babu J.\n<\/p>\n<p>I agree with  what  has\t been  proposed\t by  learned<br \/>\nBrother\t Kurdukar,  J.\tin the course of his order. However.<br \/>\nconsidering the nature of the arguments addressed before us,<br \/>\nI wish to add a few words of my own.\n<\/p>\n<p>Shri Shanti Bhushan contended that  the\t legislative<br \/>\npolicy\thad been declared by the enactment of the Industrial<br \/>\nDevelopment Regulation Act; that  under\t Section  29-B\t(2B)<br \/>\nthereto\t reservation had been made for small-scale sector of<br \/>\ncertain industries; that reservation was with  reference  to<br \/>\ncertain\t articles  such\t as  &#8216;Zip  fastener&#8217;;  that when the<br \/>\nmanufacture of &#8216;Zip fastener&#8217; was reserved  for\t small-scale<br \/>\nsector,\t there\tcould  not  have  been\tany dilution of such<br \/>\nreservation or amending that notification; that carving\t out<br \/>\nan exception therato would only result in destruction of the<br \/>\nreservation  in\t favour\t of  small-scale industry; that when<br \/>\n&#8216;Zip  fastener&#8217;\t as  an\t article  had  been   reserved\t for<br \/>\nmanufacture  of\t small-scale  industries,  the\tsame article<br \/>\ncould not have been allowed  to\t be  manufactured  by  other<br \/>\nindustries  by\twhatever  process  adopted  &#8211;  integrated or<br \/>\notherwise; that when there has been reservation in favour of<br \/>\nsmall scale sector, the large scale  sector  industries\t are<br \/>\nallowed\t to  take over any part of that activity will hamper<br \/>\nand may ultimately even devour the  small-scale\t industries;<br \/>\nthat when reservation is made to articles by the legislature<br \/>\nthe  Executive\tcould  not have tinkered with the expression<br \/>\nthereto so as to create\t a  loophole  by  which\t large-scale<br \/>\nindustries can\tanhilitate  the\t small-scale industries.  On<br \/>\nbehalf of the respondents, Shri C.S.  Vaidyanathan,  learned<br \/>\nAdditional  Solicitor  General\tand Shri F.S.Nairman, Senior<br \/>\nAdvocate apart from pointing out the decision of the  Bombay<br \/>\nand  Delhi  High  Courts  submitted  that  the\tNotification<br \/>\nimpugned herein was in conformity with the provisions of the<br \/>\nAct and no interference is called for.\n<\/p>\n<p>The Central Government can exercise the powers under<br \/>\nSection\t 29-B (2B) of the Act to determine the nature of any<br \/>\narticle or class  of  articles\tthat  may  be  reserved\t for<br \/>\nproduction  by any small-scale industrial undertaking and to<br \/>\ndetermine the same, must constitute  an\t Advisory  Committee<br \/>\nconsisting  of\tsuch persons as have the necessary expertise<br \/>\nto give advise on such matters.\t In the leading judgment, my<br \/>\nlearned Brother has set out the details of the\tconstitution<br \/>\nof  Advisory  Committee and the advice tendered by it to the<br \/>\nGovernment before issuing Notification impugned herein.\t  If<br \/>\nthat  Committee was of the opinion that any article or class<br \/>\nof articles must be taken out of the category of small-scale<br \/>\nindustrial undertakings, certainly, the same could  be\tdone<br \/>\nand  such exercise of power will not be ultra vires the said<br \/>\nprovision.  However, the thrust of argument of\tShri  Shanti<br \/>\nBhushan\t is  that such determination could be with reference<br \/>\nto only nature\tor  class  of  any  article  that  could  be<br \/>\nreserved   for\t production  of\t small-scale  industry\tand,<br \/>\ntherefore, there cannot be classification on  the  basis  of<br \/>\nthe  size  of the industry or the process adopted to produce<br \/>\nsuch articles.\tIn other words, if such a course is  adopted<br \/>\nby  taking  out any category of article or class of articles<br \/>\nfrom the scope of small-scale industries, it is obvious that<br \/>\nthere cannot be a competition between  small-scale  industry<br \/>\nand  large  scale  industry thereby the small-scale industry<br \/>\nwould be routed out of the market.\n<\/p>\n<p>In matters of trade and commerce or economic policy.<br \/>\nthe wisdom of the Government must be  respected\t and  courts<br \/>\ncannot lightly interfere with the same unless such policy is<br \/>\ncontrary to the provisions of the constitution or any law or<br \/>\nsuch policy  itself  is\t wholly\t arbitrary.   In the present<br \/>\ncase, the two  categories  of  articles\t considered  in\t the<br \/>\nNotification are &#8216;Zip fasteners&#8217; manufactured by small-scale<br \/>\nindustries  and\t &#8216;Zip fasteners&#8217; manufactured by large scale<br \/>\nindustries in integrated units.\t In  order  to\timprove\t the<br \/>\nquality\t  of   &#8216;Zip   fasteners&#8217;   must\t be  allowed  to  be<br \/>\nmanufactured by integrated units which would certainly\tfall<br \/>\nwithin\tthe  category  of  large  scale\t industries  as\t the<br \/>\ninvestment has\tto  be\theavy  in  such\t cases.\t    Articles<br \/>\nmanufactured by other industrial units.\t Such categorisation<br \/>\nof goods depending upon the process adopted is well-known in<br \/>\nfiscal statutes\t and  is  not unknown commercially.  If same<br \/>\nprinciple is extended in categorisation of articles for\t the<br \/>\npurpose of production of quality goods and in quality if the<br \/>\ntwo  types  of articles are different, those manufactured by<br \/>\nadopting the integrated process and the\t other\tby  ordinary<br \/>\nprocess,  certainly the two articles will fall into separate<br \/>\ncategories and thus, satisfy the provisions of Section\t29-B<br \/>\n(2B).\n<\/p>\n<p>Therefore, there  is  no  substance  in the argument<br \/>\naddressed by Shri Shanti  Bhushan  that\t the  classification<br \/>\ninto  &#8216;Zip  fasteners&#8217;\tmanufatured  by\t integrated units is<br \/>\nviolative of the provisions of the Act and  that  contention<br \/>\ndeserves  to be rejected. I rest with the expression on this<br \/>\naspect of the matter.\n<\/p>\n<p>New Delhi,&#8230;&#8230;&#8230;&#8230;&#8230;.J<br \/>\nSeptember 3, 1998.(S.Rajendra Babu)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Zippers Karamchari Union vs Union Of India &amp; Ors on 3 September, 1998 Author: R Babu Bench: S. Rajendra Babu PETITIONER: ZIPPERS KARAMCHARI UNION Vs. RESPONDENT: UNION OF INDIA &amp; ORS. DATE OF JUDGMENT: 03\/09\/1998 BENCH: S. RAJENDRA BABU ACT: HEADNOTE: JUDGMENT: Judgement Rajendra Babu J. I agree with what has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-166940","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Zippers Karamchari Union vs Union Of India &amp; Ors on 3 September, 1998 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/zippers-karamchari-union-vs-union-of-india-ors-on-3-september-1998\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zippers Karamchari Union vs Union Of India &amp; 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