{"id":260659,"date":"1994-12-08T00:00:00","date_gmt":"1994-12-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/papnasam-labour-union-vs-madura-coats-ltd-on-8-december-1994"},"modified":"2017-03-20T07:56:01","modified_gmt":"2017-03-20T02:26:01","slug":"papnasam-labour-union-vs-madura-coats-ltd-on-8-december-1994","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/papnasam-labour-union-vs-madura-coats-ltd-on-8-december-1994","title":{"rendered":"Papnasam Labour Union vs Madura Coats Ltd on 8 December, 1994"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Papnasam Labour Union vs Madura Coats Ltd on 8 December, 1994<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1995 AIR 2200, 1995 SCC  (1) 501<\/div>\n<div class=\"doc_author\">Author: G Ray<\/div>\n<div class=\"doc_bench\">Bench: Ray, G.N. (J)<\/div>\n<pre id=\"pre_1\">           PETITIONER:\nPAPNASAM LABOUR UNION\n\n\tVs.\n\nRESPONDENT:\nMADURA COATS LTD.\n\nDATE OF JUDGMENT08\/12\/1994\n\nBENCH:\nRAY, G.N. (J)\nBENCH:\nRAY, G.N. (J)\nHANSARIA B.L. (J)\n\nCITATION:\n 1995 AIR 2200\t\t  1995 SCC  (1) 501\n JT 1995 (1)\t71\t  1994 SCALE  (5)153\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p id=\"p_1\">The Judgment of the Court was delivered by<br \/>\nG.N.  RAY,  J.- This appeal is directed\t against  the  order<br \/>\ndated  9-4-1981\t passed by the Division Bench  of  the\tHigh<br \/>\nCourt  of  Madras in Writ Petition No. 11 19 of\t 1977.\t The<br \/>\nsaid  writ petition was moved by Respondent 1  Madura  Coats<br \/>\nLtd., for a declaration that <a href=\"\/doc\/1900929\/\" id=\"a_1\">Section 25-M<\/a> of the  Industrial<br \/>\nDisputes Act, 1947 as it stood under the <a href=\"\/doc\/858589\/\" id=\"a_1\">Industrial Disputes<br \/>\n(Amendment)   Act<\/a>,  1976  insofar  as  it   required   prior<br \/>\npermission  to be obtained to effect layoff is\tultra  vires<br \/>\nand void.  The writ petitioner Respondent I also prayed that<br \/>\nthe  State  of Tamil Nadu represented by  the  Secretary  to<br \/>\nGovernment, Labour and Employment Department, Madras  should<br \/>\nbe  restrained\tfrom enforcing the provisions  of  the\tsaid<br \/>\n<a href=\"\/doc\/858589\/\" id=\"a_2\">Industrial  Disputes (Amendment) Act<\/a> in respect of the\tlay-<br \/>\noff application being Application No. 4 of 1976 made by\t the<br \/>\npetitioner.   The petitioner also prayed for a writ  in\t the<br \/>\nnature\tof certiorari calling for the records of  the  Joint<br \/>\nCommissioner of Labour, Madras, for quashing the order dated<br \/>\n11  -9-1976  by\t which\tthe  said  lay-off  application\t was<br \/>\nrejected  by the Joint Labour Commissioner.  Along with\t the<br \/>\nsaid  Writ Petition No. 11 19 of 1977, a number\t of  similar<br \/>\nwrit petitions challenging the vires of <a href=\"\/doc\/1900929\/\" id=\"a_3\">Section 25-M<\/a> of\t the<br \/>\nIndustrial  Disputes  Act  and\tconsequential  prosecutional<br \/>\npenalty\t for  the lay-off in contravention of  <a href=\"\/doc\/858589\/\" id=\"a_4\">Section\t25-M<\/a><br \/>\nwere  heard by the Division Bench of the Madras\t High  Court<br \/>\nand by one common judgment, all the said writ petitions were<br \/>\ndisposed of.\n<\/p>\n<p id=\"p_1\">2.The  Division\t Bench of the Madras High Court\t inter\talia<br \/>\nheld that <a href=\"\/doc\/858589\/\" id=\"a_5\">Section 25-M<\/a> as it stood under the said  <a href=\"\/doc\/1210757\/\" id=\"a_6\">Amendment<br \/>\nAct<\/a>, 1976 was constitutionally invalid for the reasons given<br \/>\nby this Court in invalidating <a href=\"\/doc\/500379\/\" id=\"a_7\">Section 25-0<\/a> of the Industrial<br \/>\nDisputes Act in the decision rendered in <a href=\"\/doc\/947038\/\" id=\"a_8\">Excel Wear v. Union<br \/>\nof India<\/a> 1. The Madras High Court further held that in\tview<br \/>\nof  its\t finding  that\t<a href=\"\/doc\/1900929\/\" id=\"a_9\">Section\t 25-M<\/a>  was  constitutionally<br \/>\ninvalid,  it  was unnecessary for the court to go  into\t the<br \/>\nvalidity   or  otherwise  of  the  orders  passed   by\t the<br \/>\nauthorities  which  had been impugned in some of  the  cases<br \/>\nbefore the High<br \/>\n1 (1978) 4 SCC 224: 1978 SCC (L&amp;S) 509 :(1979) 1 SCR 1009<br \/>\n<span class=\"hidden_text\" id=\"span_1\">505<\/span><br \/>\nCourt.\tThe High Court also rejected the prayer for granting<br \/>\nleave to appeal to this Court by indicating that as the High<br \/>\nCourt  had followed the judgment of the Apex Court in  Excel<br \/>\nWear case1, there was no occasion to hold that the  impugned<br \/>\ndecision  involved a substantial question of law of  general<br \/>\nimportance  which  was required to be decided  by  the\tApex<br \/>\nCourt.\n<\/p>\n<p id=\"p_2\">3.For the purpose of appreciating the respective contentions<br \/>\nof the parties in this appeal, the provisions of Section 25-<br \/>\nM  of  the  Industrial\tDisputes  Act  as  amended  by\t the<br \/>\n<a href=\"\/doc\/858589\/\" id=\"a_10\">Industrial  Disputes  (Amendment) Act<\/a>, 1976 is\tset  out  as<br \/>\nhereunder:\n<\/p>\n<blockquote id=\"blockquote_1\"><p>\t      &#8220;25-M.\tProhibition  of\t lay-off.-  (1)\t  No<br \/>\n\t      workman  (other  than  a badli  workman  or  a<br \/>\n\t      casual  workman)\twhose name is borne  on\t the<br \/>\n\t      muster-rolls of an industrial establishment to<br \/>\n\t      which  this Chapter applies shall be laid\t off<br \/>\n\t      by  his  employer\t except\t with  the  previous<br \/>\n\t      permission   of  such  authority\tas  may\t  be<br \/>\n\t      specified\t by that appropriate  Government  by<br \/>\n\t      notification  in the Official Gazette,  unless<br \/>\n\t      such lay-off is due to shortage of power or to<br \/>\n\t      natural calamity.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_1\"><p>\t      (2)Where\tthe  workman  (other  than  badli<br \/>\n\t      workman  or casual workman) of  an  industrial<br \/>\n\t      establishment  referred to in sub-section\t (1)<br \/>\n\t      have been laid off before the commencement  of<br \/>\n\t      the <a href=\"\/doc\/858589\/\" id=\"a_11\">Industrial Disputes (Amendment) Act<\/a>,\t1976<br \/>\n\t      and    such   lay-off   continues\t  at\tsuch<br \/>\n\t      commencement, the employer in relation to such<br \/>\n\t      establishment   shall,  within  a\t period\t  of<br \/>\n\t      fifteen days from such commencement, apply  to<br \/>\n\t      the authority specified under sub-section\t (1)<br \/>\n\t      for permission to continue the lay-off.<br \/>\n\t      (3)   In\tthe  case of every  application\t for<br \/>\n\t      permission under sub-section (1)or    sub-<br \/>\n\t      section\t(2),  the  authority  to  whom\t the<br \/>\n\t      application  has been made may,  after  making<br \/>\n\t      such  inquiry  as\t he  thinks  fit,  grant  or<br \/>\n\t      refuse, for reasons to be recorded in writing,<br \/>\n\t      the permission applied for.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_2\"><p>\t      (4)Where an application for permission  has<br \/>\n\t      been made under sub-section(1)   or   sub-<br \/>\n\t      section  (2)  and the authority  to  whom\t the<br \/>\n\t      application is madedoes not communicate  the<br \/>\n\t      permission   or  the  refusal  to\t grant\t the<br \/>\n\t      permission to the employer within a period  of<br \/>\n\t      two   months  from  the  date  on\t which\t the<br \/>\n\t      application  is made, the\t permission  applied<br \/>\n\t      for  shall be deemed to have been\t granted  on<br \/>\n\t      the  expiration  of  the said  period  of\t two<br \/>\n\t      months.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_3\"><p>\t      (5)Where\tno  application\t for   permission<br \/>\n\t      under  sub-section  (1) is made, or  where  no<br \/>\n\t      application  for permission under\t sub-section<br \/>\n\t      (2) has been made within the period  specified<br \/>\n\t      therein, or where the permission for the\tlay-<br \/>\n\t      off or the continuance of the lay-off has been<br \/>\n\t      refused,\tsuch lay-off shall be deemed  to  be<br \/>\n\t      illegal  from  the date on which\tthe  workmen<br \/>\n\t      have  been laid off and the workmen  shall  be<br \/>\n\t      entitled to all the benefits under any law for<br \/>\n\t      the  time\t being in force as if they  had\t not<br \/>\n\t      been laid off.\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\" id=\"span_1\">\t      506<\/span><\/p>\n<blockquote id=\"blockquote_4\"><p>\t      (6) The provisions of <a href=\"\/doc\/858589\/\" id=\"a_12\">Section 25-C<\/a> (other than<br \/>\n\t      the  second  proviso thereto) shall  apply  to<br \/>\n\t      cases of lay-off referred to in this section.<br \/>\n\t      Explanation.-   For  the\tpurposes   of\tthis<br \/>\n\t      section,\ta workman shall not be deemed to  be<br \/>\n\t      laid  off\t by  an employer  if  such  employer<br \/>\n\t      offers  any alternative employment  (which  in<br \/>\n\t      the opinion of the employer does not call\t for<br \/>\n\t      any  special skill or previous experience\t and<br \/>\n\t      can  be  done  by the  workman)  in  the\tsame<br \/>\n\t      establishment from which he has been laid\t off<br \/>\n\t      or in any other establishment belonging to the<br \/>\n\t      same  employer,  situate in the same  town  or<br \/>\n\t      village, or situate within such distance\tfrom<br \/>\n\t      the establishment to which he belongs that the<br \/>\n\t      transfer\twill not involve undue\thardship  to<br \/>\n\t      the  workman  having regard to the  facts\t and<br \/>\n\t      circumstances  of his case, provided that\t the<br \/>\n\t      wages  which would normally have been paid  to<br \/>\n\t      the  workman are offered for  the\t alternative<br \/>\n\t      appointment also.&#8221;\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_5\"><p>\t      4.    Mr Kumar, learned counsel appearing\t for<br \/>\n\t      the appellant has contended that the  decision<br \/>\n\t      rendered\tin  Excel  Wear\t case1\tis   clearly<br \/>\n\t      distinguishable  and the High Court  has\tgone<br \/>\n\t      wrong  in\t relying on the\t said  decision\t and<br \/>\n\t      accepting the reasons which weighed with\tthis<br \/>\n\t      Court  in\t striking  down\t the  constitutional<br \/>\n\t      validity\tof  <a href=\"\/doc\/500379\/\" id=\"a_13\">Section 25-0<\/a> of  the  Industrial<br \/>\n\t      Disputes Act by holding that the said  reasons<br \/>\n\t      are  equally  applicable\tin  considering\t the<br \/>\n\t      validity\tof  the\t <a href=\"\/doc\/858589\/\" id=\"a_14\">Section 25-M<\/a>  and  on\tsuch<br \/>\n\t      premises declared <a href=\"\/doc\/858589\/\" id=\"a_15\">Section 25-M<\/a> as ultra  vires<br \/>\n\t      the Constitution.\t Mr Kumar has submitted that<br \/>\n\t      in  the  decision in Excel  Wear\tcase1,\tthis<br \/>\n\t      Court  noticed the distinguishing features  in<br \/>\n\t      <a href=\"\/doc\/858589\/\" id=\"a_16\">Section  25-M<\/a> and <a href=\"\/doc\/858589\/\" id=\"a_17\">Section 25-N<\/a>, when  compared<br \/>\n\t      with  <a href=\"\/doc\/500379\/\" id=\"a_18\">Section 25-0<\/a> of the Industrial  Disputes<br \/>\n\t      Act.   This Court noticed that: (SCC  p.\t238,<br \/>\n\t      para 16)<br \/>\n\t      &#8220;<a href=\"\/doc\/1900929\/\" id=\"a_19\">Section\t25-M<\/a>  dealt with the  imposition  of<br \/>\n\t      further restrictions in the matter of lay-off.<br \/>\n\t      <a href=\"\/doc\/700346\/\" id=\"a_20\">Section 25-N<\/a> provided for conditions precedent<br \/>\n\t      to  retrenchment of workmen.  In\tthese  cases<br \/>\n\t      the vires of neither of the two sections\twere<br \/>\n\t      attacked.\t Rather, a contrast was made between<br \/>\n\t      the said provisions with those of <a href=\"\/doc\/500379\/\" id=\"a_21\">Section 25-0<\/a><br \/>\n\t      to  attack  the latter.  The  main  difference<br \/>\n\t      pointed  out  was that in sub-section  (3)  of<br \/>\n\t      <a href=\"\/doc\/1900929\/\" id=\"a_22\">Section 25-M<\/a>, the authority while granting  or<br \/>\n\t      refusing permission to the employer to  layoff<br \/>\n\t      was required to record reasons in writing\t and<br \/>\n\t      in  sub-section (4) a provision was made\tthat<br \/>\n\t      the permission applied for shall be deemed  to<br \/>\n\t      have  been  granted on the expiration  of\t the<br \/>\n\t      period of two months.  The period provided  in<br \/>\n\t      sub-section (4) enjoins the authority to\tpass<br \/>\n\t      the order one way or the other within the said<br \/>\n\t      period.\tSimilarly,  in\tsub-section  (2)  of<br \/>\n\t      <a href=\"\/doc\/700346\/\" id=\"a_23\">Section  25-N<\/a>  reasons  are  required  to\t  be<br \/>\n\t      recorded\tin writing for grant or\t refusal  of<br \/>\n\t      the   permission\tfor  retrenchment  and\t the<br \/>\n\t      provision\t for retrenchment and the  provision<br \/>\n\t      for  deemed permission was made in  subsection<br \/>\n\t      (3)   on\tthe  failure  of  the\tgovernmental<br \/>\n\t      authority to communicate the permission or the<br \/>\n\t      refusal within a period of three months.&#8221;\n<\/p><\/blockquote>\n<p id=\"p_3\">5.   In\t Excel\tWear&#8217;  decision\t this  Court  analysed\t the<br \/>\nprovisions  of <a href=\"\/doc\/500379\/\" id=\"a_24\">Section 25-0<\/a> and it has been  indicated\tthat<br \/>\nunder  <a href=\"\/doc\/500379\/\" id=\"a_25\">Section\t25-0<\/a>, if in the opinion of  the\t appropriate<br \/>\nGovernment, the reasons for the intended closure are not<br \/>\n<span class=\"hidden_text\" id=\"span_2\">507<\/span><br \/>\nadequate and sufficient or if the closure was prejudicial to<br \/>\nthe  public  interest,\tpermission to close  down  could  be<br \/>\nrefused.   It  was pointed out by this\tCourt  that  reasons<br \/>\ngiven  for the closure by the employer might be correct\t yet<br \/>\npermission  could be refused if they were thought to be\t not<br \/>\nadequate  and  sufficient  by the State\t Government  and  no<br \/>\nreason\twas required to be given in the order  granting\t the<br \/>\npermission or refusing it.  It was also pointed out that the<br \/>\nappropriate Government was not enjoined to pass the order in<br \/>\nterms  of sub-section (2) and <a href=\"\/doc\/500379\/\" id=\"a_26\">Section 25-0<\/a> within  90  days&#8217;<br \/>\nperiod of the notice.  It was indicated in Excel Wear  case&#8217;<br \/>\nthat even though a situation might arise both from the point<br \/>\nof view of law and order and financial aspect that  employer<br \/>\nwould  find it impossible to carry on business\tany  longer,<br \/>\npermission  could  be  refused even  when  the\treasons\t for<br \/>\nintended closure were bona fide but the authority  concerned<br \/>\nfelt  that  the closure was against public  interest,  which<br \/>\nreason\twould  be universal in all cases of  closure.\tSuch<br \/>\nprovision  with potentiality to pass unreasonable order\t was<br \/>\nheld  to  be  beyond  the  pale\t of  reasonable\t restriction<br \/>\npermitted by <a href=\"\/doc\/626103\/\" id=\"a_27\">Article 19(6)<\/a> of the Constitution.\n<\/p>\n<p id=\"p_4\">6.   The learned counsel has submitted that <a href=\"\/doc\/1900929\/\" id=\"a_28\">Section 25-M<\/a> and<br \/>\n<a href=\"\/doc\/700346\/\" id=\"a_29\">Section 25-N<\/a> have common distinguishing features which\tmake<br \/>\nthe  said  two provisions different from  <a href=\"\/doc\/500379\/\" id=\"a_30\">Section  25-0<\/a>\t the<br \/>\nvalidity of which was considered by this Court in Excel Wear<br \/>\ncase&#8217;.\t  In  the  aforesaid  circumstances,  the   decision<br \/>\nrendered in Excel Wear case1 is not applicable for  deciding<br \/>\nthe constitutional validity of <a href=\"\/doc\/1900929\/\" id=\"a_31\">Section 25-M<\/a>.\n<\/p>\n<p id=\"p_5\">7.   The  learned  counsel for the  appellant  has  strongly<br \/>\nrelied on the decision of this Court in the case of  <a href=\"\/doc\/700780\/\" id=\"a_32\">Workmen<br \/>\nv.   Meenakshi\tMills  Ltd<\/a>.2  In  the  said  decision,\t the<br \/>\nconstitutional validity of <a href=\"\/doc\/700346\/\" id=\"a_33\">Section 25-N<\/a> as it stood prior to<br \/>\nthe  substitution  by <a href=\"\/doc\/858589\/\" id=\"a_34\">Industrial Disputes  (Amendment)\tAct<\/a>,<br \/>\n1984  was taken into consideration and it has been  held  by<br \/>\nthis   Court  that  conferment\tof  power   on\t appropriate<br \/>\nGovernment  authority  to  grant or  refuse  permission\t for<br \/>\nretrenchment  is  not vitiated on the ground of\t absence  of<br \/>\nprovision  for appeal or revision against or review  of\t the<br \/>\norder passed by the Government or authority as the order  is<br \/>\nrequired  to be a speaking order to be passed  on  objective<br \/>\nconsiderations.\t It has also been held that sub-section\t (2)<br \/>\nof  <a href=\"\/doc\/858589\/\" id=\"a_35\">Section  25-N<\/a>  is not vitiated on  the  ground  of\tnon-<br \/>\nprescription of guidelines for exercise of the power because<br \/>\nexercise  of  the  power under\t<a href=\"\/doc\/858589\/\" id=\"a_36\">Section\t 25-N<\/a>  being  quasi-<br \/>\njudicial  in  nature  and  not\tpurely\tadministrative\t and<br \/>\ndiscretionary,\tguidelines are not required.  Moreover,\t the<br \/>\npower has to be exercised not only by indicating reasons but<br \/>\nalso  in  accordance  with the objective  indicated  in\t the<br \/>\nStatement of Objects and Reasons given in the said  <a href=\"\/doc\/1596533\/\" id=\"a_37\">Amending<br \/>\nAct<\/a>,  19&#8217;\/6  as\t also  the  basic  idea\t of  settlement\t  of<br \/>\nindustrial  disputes and promotion of industrial peace.\t  It<br \/>\nhas also been held in the decision in Meenakshi Mills  case2<br \/>\nthat  <a href=\"\/doc\/858589\/\" id=\"a_38\">Section  25-N<\/a> as it stood prior to the  <a href=\"\/doc\/1596533\/\" id=\"a_39\">Amending\tAct<\/a>,<br \/>\n1984,  though  imposed restriction on  employer&#8217;s  right  to<br \/>\nretrench  workmen,  but such retrenchment  were\t imposed  in<br \/>\nconsonance with<br \/>\n2 (1992) 3 SCC 336: 1992 SCC (L&amp;S) 679<br \/>\n<span class=\"hidden_text\" id=\"span_3\">508<\/span><br \/>\nthe Directive Principles of the Constitution and in  general<br \/>\npublic\tinterest  and  therefore should be  presumed  to  be<br \/>\nreasonable.\n<\/p>\n<p id=\"p_6\">8.   The   learned  counsel  has  also\tsubmitted  that\t  in<br \/>\nMeenakshi  Mills case2 this Court has  specifically  pointed<br \/>\nout that the decision in Excel Wear case1 is not  applicable<br \/>\nfor  considering the constitutional validity of the  <a href=\"\/doc\/858589\/\" id=\"a_40\">Section<br \/>\n25-N<\/a>.\tIt  has\t been  pointed\tout  in\t distinguishing\t the<br \/>\ndecision  made in Excel Wear case1 that sub-section  (2)  of<br \/>\n<a href=\"\/doc\/858589\/\" id=\"a_41\">Section 25-0<\/a> provided for an order being passed by the State<br \/>\nGovernment  refusing  to  grant\t permission  to\t close\t the<br \/>\nundertaking on its subjective satisfaction and there was  no<br \/>\nrequirement  for recording of reasons in the said order\t and<br \/>\nin these circumstances, this Court held that the absence  of<br \/>\na  right  of  appeal  or review\t or  revision  rendered\t the<br \/>\nrestriction  as\t unreasonable.\t The  learned  counsel\t has<br \/>\ntherefore  submitted  that  in\tview  of  the  decision\t  in<br \/>\nMeenakshi  Mills  case2,  the  constitutional  validity\t  of<br \/>\n<a href=\"\/doc\/858589\/\" id=\"a_42\">Section\t 25-M<\/a>  cannot  be challenged and  <a href=\"\/doc\/858589\/\" id=\"a_43\">Section  25-M<\/a>\t and<br \/>\n<a href=\"\/doc\/858589\/\" id=\"a_44\">Section\t 25-N<\/a>  having  common  features\t and  being  clearly<br \/>\ndistinguishable from <a href=\"\/doc\/500379\/\" id=\"a_45\">Section 25-0<\/a> of the Industrial Disputes<br \/>\nAct,  the  reasons indicated in Meenakshi  Mills  case2\t for<br \/>\nupholding the constitutional validity of <a href=\"\/doc\/700346\/\" id=\"a_46\">Section 25-N<\/a>  fully<br \/>\napplies for upholding the constitutional validity of <a href=\"\/doc\/1900929\/\" id=\"a_47\">Section<br \/>\n25-M<\/a>.  The learned counsel has therefore submitted that\t the<br \/>\nappeal should be allowed by holding that <a href=\"\/doc\/1900929\/\" id=\"a_48\">Section 25-M<\/a> as  it<br \/>\nstood  prior  to  <a href=\"\/doc\/1596533\/\" id=\"a_49\">Amending Act<\/a>, 1984 was  valid\t and  orders<br \/>\npassed under <a href=\"\/doc\/1900929\/\" id=\"a_50\">Section 25-M<\/a> cannot be held illegal and void.\n<\/p>\n<p id=\"p_7\">9.   Dr Shankar Ghosh, learned Senior Advocate appearing for<br \/>\nRespondent 1, Madura Coats Ltd., has however submitted\tthat<br \/>\nfor  appreciating the question of  unreasonable\t restriction<br \/>\nimposed\t on  the  fundamental right to\tcarry  on  trade  or<br \/>\nbusiness  under the guise of protecting public interest,  it<br \/>\nis  necessary  to consider whether or  not  the\t restriction<br \/>\nimposed under the statute is consistent with and limited  to<br \/>\nthe extent of control required for achieving the purpose for<br \/>\nwhich  the  restriction was sought to be imposed.   In\tthis<br \/>\nconnection, Dr Ghosh has referred to an earlier decision  of<br \/>\nthis  Court in Chintaman Rao v. State of M.p3. In  the\tsaid<br \/>\ndecision, Sections 3 and 4 of the Central Province and Berar<br \/>\nRegulation  of Manufacture of Bidi  (Agricultural  Purposes)<br \/>\nAct, 1948 were taken into consideration.  Under <a href=\"\/doc\/452505\/\" id=\"a_51\">Section 3<\/a> of<br \/>\nthe said Act, the Deputy Commissioner was empowered to issue<br \/>\nnotification  thereby fixing a period to be an\tagricultural<br \/>\nseason\twith  respect to such villages as may  be  specified<br \/>\ntherein.   Under  sub-section (1) of <a href=\"\/doc\/185363\/\" id=\"a_52\">Section 4<\/a> of  the\tsaid<br \/>\nAct, the Deputy Commissioner was empowered to issue an order<br \/>\nin  respect  of\t such villages as  he  may  specify  thereby<br \/>\nprohibiting the manufacture of Bidi during the\tagricultural<br \/>\nseason.\t  Sub-section  (2)  of <a href=\"\/doc\/185363\/\" id=\"a_53\">Section 4<\/a>  provided  that  no<br \/>\nperson residing in a village specified in such order,  shall<br \/>\nduring\tthe  agricultural  season,  engage  himself  in\t the<br \/>\nmanufacture  of Bidis and no manufacturer shall\t during\t the<br \/>\nsaid season employ any person for the manufacture of  Bidis.<br \/>\nIn Chintaman Rao case3 this Court has held:<br \/>\n3 1950 SCR 759 : AIR 1951 SC 11 8<br \/>\n<span class=\"hidden_text\" id=\"span_4\">509<\/span><br \/>\n&#8220;The  phrase  &#8216;reasonable  restriction&#8217;\t connotes  that\t the<br \/>\nlimitation  imposed  on a person in enjoyment of  the  right<br \/>\nshould\tnot be arbitrary or of an excessive  nature,  beyond<br \/>\nwhat  is required in the interests of the public.  The\tword<br \/>\n&#8216;reasonable&#8217; implies intelligent care and deliberation, that<br \/>\nis,   the  choice  of  a  course  which\t  reason   dictates.<br \/>\nLegislation  which  arbitrarily or excessively\tinvades\t the<br \/>\nright\tcannot\t be   said  to\tcontain\t  the\tquality\t  of<br \/>\nreasonableness\tand  unless  it\t strikes  a  proper  balance<br \/>\nbetween\t the freedom guaranteed in <a href=\"\/doc\/935769\/\" id=\"a_54\">Article 19(1)(g)<\/a> and\t the<br \/>\nsocial\tcontrol\t permitted by clause (6) of <a href=\"\/doc\/1218090\/\" id=\"a_55\">Article  19<\/a>,  it<br \/>\nmust be held to be wanting in that quality.&#8221;\n<\/p>\n<p id=\"p_8\">10.It  has  been held by this Court in the  said  decision<br \/>\nthat  the object of the statute is to provide  measures\t for<br \/>\nthe  supply of adequate labour for agricultural purposes  in<br \/>\nBidi  manufacturing  areas of the Province and it  could  be<br \/>\nachieved  by  legislation  restraining\tthe  employment\t  of<br \/>\nagricultural  labour in the manufacture of Bidis during\t the<br \/>\nagricultural  season.  Even in point of time, a\t restriction<br \/>\nmay  have been reasonable if it amounted to a regulation  of<br \/>\nthe  hours  of\twork in the  business.\t But  the  aforesaid<br \/>\nprovisions  of\tthe Act have no reasonable relation  to\t the<br \/>\nobject in view but the said provisions are drastic in  scope<br \/>\nthat they go in much excess of the object.\n<\/p>\n<p id=\"p_9\">11.Dr Ghosh has also referred to another decision of  this<br \/>\nCourt  in <a href=\"\/doc\/1466885\/\" id=\"a_56\">Dwarka Prasad Laxmi Narain v. State of Up4 In<\/a>\t the<br \/>\nsaid case, constitutional validity of clause 43 of U.P\tCoal<br \/>\nControl Order, 1953 was taken into consideration and it\t has<br \/>\nbeen held in the said decision that the licensing  authority<br \/>\nmay  grant,  refuse  to grant, renew or refuse\tto  renew  a<br \/>\nlicence\t and  may  suspend, cancel,  revoke  or\t modify\t any<br \/>\nlicence\t or any term thereof granted by him under the  order<br \/>\nfor  reasons  to be recorded for the action he\ttakes.\t Not<br \/>\nonly  so,  the power could be exercised by any to  whom\t the<br \/>\nState Coal Controller may choose to delegate the same.\tSuch<br \/>\nwide power including the power to delegate to any person  of<br \/>\nthe  choice of the Controller without any guiding  principle<br \/>\nwas  held  to  be  unreasonable and far\t in  excess  of\t the<br \/>\nreasonable restriction required to achieve the purpose.\n<\/p>\n<p id=\"p_10\">12.Dr  Ghosh has further referred to the decision of  this<br \/>\nCourt  in  <a href=\"\/doc\/1959928\/\" id=\"a_57\">Pathumma  v.\t State\tof  Kerala5<\/a>.   In  the\tsaid<br \/>\ndecision,  the constitutional validity of Section 20 of\t the<br \/>\nKerala\tAgriculturists\tDebt  Relief  Act  was\ttaken\tinto<br \/>\nconsideration  by  a larger Bench of seven Judges.   It\t has<br \/>\nbeen held in the said decision by upholding the validity  of<br \/>\nSection\t 20  of\t the Kerala Act\t that  in  interpreting\t the<br \/>\nconstitutional provision, the court should keep in mind\t the<br \/>\nsocial\tsetting\t of  the country so as to  show\t a  complete<br \/>\nconsciousness and deep awareness of the growing requirements<br \/>\nof  the\t society, the increasing needs of  the\tnation,\t the<br \/>\nburning\t problems of the day and the complex  issues  facing<br \/>\nthe  people  which  the Legislature in\tits  wisdom  through<br \/>\nbeneficial  legislation,  seeks\t to  solve.   The   judicial<br \/>\napproach should be dynamic rather than static, pragmatic and<br \/>\nnot pedantic and elastic rather than rigid.  It has<br \/>\n4    1954 SCR 803 : AIR 1954 SC 224<br \/>\n5    (1978) 2 SCC 1 : AIR 1978 SC 771<br \/>\n<span class=\"hidden_text\" id=\"span_5\">510<\/span><br \/>\nalso been indicated that <a href=\"\/doc\/1218090\/\" id=\"a_58\">Article 19<\/a> guarantees all the seven<br \/>\nfreedoms to the citizens of the country including the  right<br \/>\nto  hold, acquire and dispose of property.  But\t <a href=\"\/doc\/1218090\/\" id=\"a_59\">Article  19<\/a><br \/>\nalso  provides\treasonable  restrictions  to  be  placed  by<br \/>\nParliament  or the Legislature in public interest.   It\t has<br \/>\nbeen further indicated that in judging the reasonableness of<br \/>\nthe  restrictions imposed by clause (6) of <a href=\"\/doc\/1218090\/\" id=\"a_60\">Article  19<\/a>,\t the<br \/>\nCourt has to bear in mind the directive principles.  It\t has<br \/>\nalso  been indicated that restriction to be reasonable\tmust<br \/>\nnot  be arbitrary or in excessive nature so as to go  beyond<br \/>\nthe requirement of the interest of general public.\n<\/p>\n<p id=\"p_11\">13.Dr  Ghosh  has finally referred to the decision  of\tthis<br \/>\nCourt  in <a href=\"\/doc\/801977\/\" id=\"a_61\">Management of Kairbetta Estate  v.  Rajamanickam6<\/a>.<br \/>\nIn  this decision, this Court considered the import  of\t the<br \/>\nexpression &#8220;any other reason&#8221; in the definition of &#8220;lay-off&#8217;<br \/>\nunder  <a href=\"\/doc\/1418464\/\" id=\"a_62\">Section\t2(kkk)<\/a> of Industrial Disputes Act.   It\t has<br \/>\nbeen held that:\n<\/p>\n<p id=\"p_12\">&#8220;Any  other reason to which the definition refers, must,  we<br \/>\nthink,\tbe a reason which is allied or analogous to  reasons<br \/>\nalready specified.&#8221; Dr Ghosh contends that the definition of<br \/>\nlay-off\t clearly indicates a number of\tcontingencies  which<br \/>\nmay  justify  lay-off.\tHe has submitted that  in  Meenakshi<br \/>\nMills  case2,  this  Court has also  noted  the\t distinctive<br \/>\nfeatures of &#8220;lay-off&#8217;.\n<\/p>\n<p id=\"p_13\">14.Dr  Ghosh has contended that the decision  rendered\tin<br \/>\nMeenakshi  Mills  case2\t has  not  laid\t down  any  absolute<br \/>\nproposition that unfettered restriction on the right to hold<br \/>\nand  acquire  property\tand  carry  on\ttrade  and  business<br \/>\nactivity  can  be  imposed  only  on  the  score  of  social<br \/>\ninterest.   He\thas also submitted that in  Meenakshi  Mills<br \/>\ncase2, the provisions for retrenchment under <a href=\"\/doc\/700346\/\" id=\"a_63\">Section 25-N<\/a> of<br \/>\nthe  Industrial Disputes Act were taken\t into  consideration<br \/>\nbut  retrenchment is a crystallised or frozen  occasion\t and<br \/>\nthe same should not be held on a par with the provisions for<br \/>\nlay-off\t under\t<a href=\"\/doc\/1900929\/\" id=\"a_64\">Section 25-M<\/a>.  It has been contended  by  Dr<br \/>\nGhosh\tthat   if  the\tdistinction  between   lay-off\t and<br \/>\nretrenchment and different types of problems associated with<br \/>\nlay-off\t and  retrenchment are considered  in  their  proper<br \/>\nperspective  the  reasonings for upholding the\tvalidity  of<br \/>\n<a href=\"\/doc\/700346\/\" id=\"a_65\">Section\t 25-N<\/a> should not be made applicable in deciding\t the<br \/>\nvires of <a href=\"\/doc\/1900929\/\" id=\"a_66\">Section 25-M<\/a>.\tDr Ghosh has submitted that for\t the<br \/>\npurpose\t of  upholding\tthe  constitutional  validity  of  a<br \/>\nstatute,  upon\ta  challenge  on  account  of\tunreasonable<br \/>\nrestriction,  the Court is required to look into  the  facts<br \/>\nand  circumstances and the ground realities under which\t the<br \/>\noffending  provision  of the statute is to be  applied.\t  No<br \/>\nstrait-jacket  formula,\t therefore,  can be  laid  down\t for<br \/>\ndeciding the question of reasonable restriction in each\t and<br \/>\nevery statute.\tHe has submitted that in the matter of\tlay-<br \/>\noff  under  <a href=\"\/doc\/1900929\/\" id=\"a_67\">Section  25-M<\/a>, excepting in the  case  of  power<br \/>\nfailure\t and natural calamity, in all other cases,  even  if<br \/>\nthere  are  genuine urgent grounds for immediate  action  of<br \/>\nlay-off, a prior permission is required to be obtained.\t  It<br \/>\nis  permissible under <a href=\"\/doc\/1900929\/\" id=\"a_68\">Section 25-M<\/a> to defer disposal  of  an<br \/>\napplication for such permission for approval up to a  period<br \/>\nof  two\t months\t from  the  date  of  application  even\t  if<br \/>\nultimately such permission is accorded.\t Such outer limit<br \/>\n6 (1960) 3 SCR 371 : AIR 1960 SC 893<br \/>\n<span class=\"hidden_text\" id=\"span_6\">511<\/span><br \/>\nof  two months in a given case, may be\twholly\tunreasonable<br \/>\nthereby frustrating the very purpose for which an  immediate<br \/>\naction for lay-off was warranted.  Dr Ghosh has submitted in<br \/>\nsupport of his contention that even if in a given case there<br \/>\nis breakdown of essential components of a machinery  without<br \/>\nwhich the productive activity in a particular factory cannot<br \/>\nbe carried on and even if it so happens that any attempt  to<br \/>\nrun the factory involves substantial risk even in respect of<br \/>\nother\tplants\tand  also  the\tlabour\tforce  involved\t  in<br \/>\noperational activity, the management though has a bona\tfide<br \/>\nand  urgent need to immediately lay-off the labourers  whose<br \/>\nservice\t cannot be gainfully utilised until  the  productive<br \/>\nactivities can be effectively restored on some future  date,<br \/>\ncannot\tresort\tto  lay-off lawfully  unless  permission  is<br \/>\naccorded by the authority concerned.  Dr Ghosh has submitted<br \/>\nthat  it  may  not  be unlikely\t that  in  some\t cases\tsuch<br \/>\nmachinery being imported and highly sophisticated may not be<br \/>\nrepaired  and  commissioned  in near future and\t a  case  of<br \/>\nimmediate  lay-off was essentially necessary, but the  rigid<br \/>\nprovisions  of\t<a href=\"\/doc\/1900929\/\" id=\"a_69\">Section\t 25-M<\/a>  do  not\tprovide\t for  taking<br \/>\nimmediate  action  in  such and\t similar  contingency.\t The<br \/>\nprovisions of <a href=\"\/doc\/1900929\/\" id=\"a_70\">Section 25-M<\/a> requiring formal approval in\t all<br \/>\ncircumstances except in the case of power failure or natural<br \/>\ncalamity  must\tbe  held to be\tabsolutely  undesirable\t and<br \/>\nharsh.\t The restriction imposed in <a href=\"\/doc\/1900929\/\" id=\"a_71\">Section 25-M<\/a> is  far  in<br \/>\nexcess\tof reasonable restriction necessary to\tachieve\t the<br \/>\nobject\tof  preventing improper action of  the\temployer  in<br \/>\nresorting  to  lay-off.\t  The  unreasonable  compulsion\t  in<br \/>\nretaining  a  large labour force without any  service  being<br \/>\nrendered by them may lead to closure of the unit being\tsick<br \/>\nand economically not a viable unit.  Such undesirable result<br \/>\nbrought on the employer on compulsion cannot be held to be a<br \/>\nnormal\t incidence  of\ta  reasonable  restriction  on\t the<br \/>\nemployer&#8217;s  right to lay-off.  Such provision may  not\teven<br \/>\nserve  the interest of labour force because in the event  of<br \/>\nclosure,,  the job opportunity is bound to be  affected\t and<br \/>\nthe  economic  interest\t of the nation is  bound  to  be  in<br \/>\njeopardy.    Dr\t Ghosh\thas  submitted\tthat  the   problems<br \/>\nassociated  with &#8220;lay-off&#8217; have their special  features\t and<br \/>\nincidence  and\tthe  principle\tunderlying  the\t restriction<br \/>\nimposed on retrenchment under <a href=\"\/doc\/700346\/\" id=\"a_72\">Section 25-N<\/a> as considered  in<br \/>\nMeenakshi  Mills  case2 is not applicable on  all  fours  in<br \/>\nconsidering  the reasonableness of the restrictions  imposed<br \/>\nin  <a href=\"\/doc\/1900929\/\" id=\"a_73\">Section  25-M<\/a>.  Dr Ghosh has submitted  that  the  broad<br \/>\nfeatures  which weighed with this Court in  holding  <a href=\"\/doc\/500379\/\" id=\"a_74\">Section<br \/>\n25-0<\/a> as unconstitutional in Excel Wear case1 are  applicable<br \/>\nin deciding the constitutional validity of <a href=\"\/doc\/1900929\/\" id=\"a_75\">Section 25-M<\/a>.  In<br \/>\nthe  aforesaid facts, the impugned decision holding  <a href=\"\/doc\/1900929\/\" id=\"a_76\">Section<br \/>\n25-M<\/a> before amendment in 1984 as unconstitutional should not<br \/>\nbe interfered with and the appeal should be dismissed.\n<\/p>\n<p id=\"p_14\">15.After  considering  the respective submissions  of  the<br \/>\nlearned\t counsel  for the parties  and\tconsidering  various<br \/>\ndecisions  of  this  Court  in\tdeciding  the  question\t  of<br \/>\nreasonableness\tof the restriction imposed by a\t statute  on<br \/>\nthe  Fundamental  Rights  guaranteed by <a href=\"\/doc\/1218090\/\" id=\"a_77\">Article\t 19<\/a>  of\t the<br \/>\nConstitution  of  India (reference to which  would  be\tmade<br \/>\nhereinafter), it appears to us that the following principles<br \/>\nand guidelines should be kept in mind for considering<br \/>\n<span class=\"hidden_text\" id=\"span_7\">512<\/span><br \/>\nthe  constitutionality\tof  a  statutory  provision  upon  a<br \/>\nchallenge  on  the alleged vice of unreasonableness  of\t the<br \/>\nrestriction imposed by it:\n<\/p>\n<blockquote id=\"blockquote_6\"><p>\t      (a)   The restriction sought to be imposed  on<br \/>\n\t      the  Fundamental Rights guaranteed by  <a href=\"\/doc\/1218090\/\" id=\"a_78\">Article<br \/>\n\t      19<\/a>  of the Constitution must not be  arbitrary<br \/>\n\t      or  of an excessive nature so as to go  beyond<br \/>\n\t      the  requirement of felt need of\tthe  society<br \/>\n\t      and object sought to be achieved7.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_7\"><p>\t      (b)   There  must\t be a direct  and  proximate<br \/>\n\t      nexus  or a reasonable connection between\t the<br \/>\n\t      restriction  imposed and the object sought  to<br \/>\n\t      be achieved8.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_8\"><p>\t      (c)   No\tabstract or fixed principle  can  be<br \/>\n\t      laid down which may have universal application<br \/>\n\t      in  all  cases.\tSuch  consideration  on\t the<br \/>\n\t      question\t of   quality\tof   reasonableness,<br \/>\n\t      therefore,  is expected to vary from  case  to<br \/>\n\t      case9.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_9\"><p>\t      (d)   In\t    interpreting      constitutional<br \/>\n\t      provisions, courts should be alive to the felt<br \/>\n\t      need of the society and complex issues  facing<br \/>\n\t      the  people which the Legislature\t intends  to<br \/>\n\t      solve through effective legislation10.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_10\"><p>\t      (e)   In\tappreciating such problems and\tfelt<br \/>\n\t      need of the society the judicial approach must<br \/>\n\t      necessarily be dynamic, pragmatic and  elastic\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_11\"><p>\t      11.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_12\"><p>\t      (f)It is imperative that for consideration  of<br \/>\n\t      reasonableness  of  restriction imposed  by  a<br \/>\n\t      statute, the Court should examine whether\t the<br \/>\n\t      social  control as envisaged in <a href=\"\/doc\/1218090\/\" id=\"a_79\">Article 19<\/a>  is<br \/>\n\t      being  effectuated by the restriction  imposed<br \/>\n\t      on the Fundamental Rights 12.<\/p><\/blockquote>\n<p id=\"p_15\">\t      (g)   Although  <a href=\"\/doc\/1218090\/\" id=\"a_80\">Article 19<\/a> guarantees all\t the<br \/>\n\t      seven freedoms to the citizen, such  guarantee<br \/>\n\t      does not confer any absolute or  unconditional<br \/>\n\t      right but is subject to reasonable restriction<br \/>\n\t      which  the  Legislature may impose  in  public<br \/>\n\t      interest.\t It is therefore<br \/>\n7    <a href=\"\/doc\/1256541\/\" id=\"a_81\">Chintaman Rao v. State of M.P<\/a>, 1950 SCR 759 : AIR\t1951<br \/>\nSC  118; <a href=\"\/doc\/1466885\/\" id=\"a_82\">Dwarka Prasad Laxmi Narain v. State of\t U.P<\/a>.,\t1954<br \/>\nSCR  803  : AIR 1954 SC 224; <a href=\"\/doc\/947038\/\" id=\"a_83\">Excel Wear v. Union  of  India<\/a>,<br \/>\n(1978) 4 SCC 224: 1978 SCC (L&amp;S) 509: (1979) 1 SCR 1009<br \/>\n8    <a href=\"\/doc\/1681994\/\" id=\"a_84\">O.K. Ghosh v. E.X. Joseph<\/a>, AIR 1963 SC 812; <a href=\"\/doc\/1959928\/\" id=\"a_85\">Pathumma v.<br \/>\nState of Kerala<\/a>, (1978) 2 SCC 1 AIR 1978 SC 771; <a href=\"\/doc\/700780\/\" id=\"a_86\">Workmen  v.<br \/>\nMeenakshi Mills Ltd<\/a>., (1992) 3 SCC 336: 1992 SCC (L&amp;S) 679<br \/>\n9    <a href=\"\/doc\/1431786\/\" id=\"a_87\">Kavalappara  Kottarathil Kochuni v. State of  Madras  &amp;<br \/>\nKerala<\/a>, AIR 1960 SC 1080 : (1960) 3 SCR 887 : <a href=\"\/doc\/678245\/\" id=\"a_88\">Jyoti  Pershad<br \/>\nv.  Administrator<\/a>.for Union Territory of Delhi, AIR 1961  SC<br \/>\n1602 (1962) 2 SCR 125; <a href=\"\/doc\/1959928\/\" id=\"a_89\">Pathumma v. State of Kerala<\/a>, (1978) 2<br \/>\nSCC 1 : AIR 1978 SC 771<br \/>\n10   <a href=\"\/doc\/678245\/\" id=\"a_90\">Jyoti  Pershad v. Administrator<\/a>.for Union Territory  of<br \/>\nDelhi, AIR 1961 SC 1602 (1962) 2 SCR 125; <a href=\"\/doc\/1959928\/\" id=\"a_91\">Pathumma v.  State<br \/>\nof Kerala<\/a>, (1978) 2 SCC 1 : AIR 1978 SC 771<br \/>\n11   <a href=\"\/doc\/678245\/\" id=\"a_92\">Jyoti  Pershad v. Administrator<\/a>.for Union Territory  of<br \/>\nDelhi,\tAIR  1961  SC  1602 (1962)  2  SCR  125;  <a href=\"\/doc\/1547238\/\" id=\"a_93\">Fatehchand<br \/>\nHimmatlal  v. State of Maharashtra<\/a>, (1977) 2 SCC 670  :\t AIR<br \/>\n1977 SC 1825; <a href=\"\/doc\/1959928\/\" id=\"a_94\">Pathumma v. State of Kerala<\/a>, (1978) 2 SCC 1  :<br \/>\nAIR 1978 SC 771<br \/>\n12   State of Madras v. VG.  Row, AIR 1952 SC 196 : 1952 SCR<br \/>\n597; State of U.P v. Kaushailiya, AIR 1964 SC 416 : (1964) 4<br \/>\nSCR 1002; <a href=\"\/doc\/1959928\/\" id=\"a_95\">Pathumma v. State of Kerala<\/a>, (1978) 2 SCC 1 :\t AIR<br \/>\n1978 SC 771<br \/>\n<span class=\"hidden_text\" id=\"span_8\">513<\/span><br \/>\n\t      necessary to examine whether such\t restriction<br \/>\n\t      is meant to protect social welfare  satisfying<br \/>\n\t      the need of prevailing social values13.\n<\/p>\n<p id=\"p_16\">\t      (h)   The reasonableness has got to be  tested<br \/>\n\t      both  from  the  procedural  and\t substantive<br \/>\n\t      aspects.\tIt should not be bound by processual<br \/>\n\t      perniciousness  or jurisprudence\tof  remedies\n<\/p>\n<p id=\"p_17\">\t      14.\n<\/p>\n<p id=\"p_18\">\t      (j)   Restriction\t imposed on the\t Fundamental<br \/>\n\t      Rights  guaranteed  under <a href=\"\/doc\/1218090\/\" id=\"a_96\">Article\t 19<\/a>  of\t the<br \/>\n\t      Constitution must not be arbitrary, unbridled,<br \/>\n\t      uncanalised   and\t excessive  and\t  also\t not<br \/>\n\t      unreasonably  discriminatory.   Ex  hypothesis<br \/>\n\t      therefore, a restriction to be reasonable must<br \/>\n\t      also  be\tconsistent with <a href=\"\/doc\/367586\/\" id=\"a_97\">Article\t 14<\/a>  of\t the<br \/>\n\t      Constitution.\n<\/p>\n<p id=\"p_19\">\t      (k)   In\tjudging\t the reasonableness  of\t the<br \/>\n\t      restriction  imposed by clause  (6)of  <a href=\"\/doc\/1218090\/\" id=\"a_98\">Article<br \/>\n\t      19<\/a>,  the Court has to bear in  mind  Directive<br \/>\n\t      Principles of State Policy15.\n<\/p>\n<p id=\"p_20\">\t      (l)Ordinarily,  any restriction so  imposed<br \/>\n\t      which   has   the\t effect\t of   promoting\t  or<br \/>\n\t      effectuating  a  directive  principle  can  be<br \/>\n\t      presumed\tto  be a reasonable  restriction  in<br \/>\n\t      public interest16.\n<\/p>\n<p id=\"p_21\">16.  In\t Meenakshi Mills case2, the contention that  <a href=\"\/doc\/700346\/\" id=\"a_99\">Section<br \/>\n25-N<\/a> has imposed unreasonable restriction on the fundamental<br \/>\nright  to hold property and to carry on business  activities<br \/>\nhas  been rejected by indicating that the object  underlying<br \/>\nthe enactment of <a href=\"\/doc\/700346\/\" id=\"a_100\">Section 25-N<\/a> by introducing prior  scrutiny<br \/>\nof  the\t reasons for retrenchment is  to  prevent  avoidable<br \/>\nhardship  to  the employees resulting from  retrenchment  by<br \/>\nprotecting  existing employment and to check the  growth  of<br \/>\nunemployment  which would otherwise be the  consequences  of<br \/>\nretrenchment  in industrial establishment employing a  large<br \/>\nnumber\tof workmen.  It has also been indicated in the\tsaid<br \/>\ndecision that the restriction imposed in <a href=\"\/doc\/700346\/\" id=\"a_101\">Section 25-N<\/a> on the<br \/>\n,  right  of  retrenchment of the employer  is\tintended  to<br \/>\nmaintain  higher  tempo of production  and  productivity  by<br \/>\npreserving industrial peace and harmony, and in that  sense,<br \/>\n<a href=\"\/doc\/700346\/\" id=\"a_102\">Section\t 25-N<\/a> seeks to give effect to the mandate  contained<br \/>\nin the Directive Principles of the Constitution as contained<br \/>\nin Articles 38, 39(a), 41 and 43.  It has been indicated  in<br \/>\nMeenakshi  Mills  case2 that ordinarily any  restriction  so<br \/>\nimposed which has the effect of promoting or effectuating  a<br \/>\ndirective  principle  can  be  presumed\t to  be\t  reasonable<br \/>\nrestriction in public interest and a restriction imposed  on<br \/>\nthe employer&#8217;s right to terminate the service of an employee<br \/>\nis not alien to the constitutional scheme<br \/>\n13   State of Madras v. VG.  Row, AIR 1952 SC 196 : 1952 SCR<br \/>\n597; State of U.P. v. Kaushailiya, AIR 1964 SC: 416:  (1964)<br \/>\n4 SCR 1002; <a href=\"\/doc\/1201493\/\" id=\"a_103\">Bachan Singh v. State<\/a> a Punjab, (1971) 1 SCC 712<br \/>\nAIR 1971 SC 2164; <a href=\"\/doc\/1959928\/\" id=\"a_104\">Pathumma v. State<\/a> a Kerala, (1978)2 SCC  1<br \/>\n: AIR 1978 SC 771<br \/>\n14   <a href=\"\/doc\/1547238\/\" id=\"a_105\">Fatehchand Himmatlal v. State of Maharashtra<\/a>, (1977)  2<br \/>\nSCC  670:  AIR 1977 SC 1825; <a href=\"\/doc\/947038\/\" id=\"a_106\">Excel Wear v. Union  of  India<\/a>,<br \/>\n(1978) 4 SCC 224: 1978 SCC (L&amp;S) 509 :(1979) 1 SCR 1009<br \/>\n15   <a href=\"\/doc\/257876\/\" id=\"a_107\">Kesavananda Bharati Sripadagalvaru v. State of  Kerala<\/a>,<br \/>\n(1973)\t4  SCC 225 : AIR 1973 SC 146 1; <a href=\"\/doc\/1130169\/\" id=\"a_108\">State of  Kerala  v.<br \/>\nN.M.  Thomas<\/a>, (1976) 2 SCC 310 : 1976, SCC (L&amp;S) 227  :\t AIR<br \/>\n1976  SC 490; <a href=\"\/doc\/1959928\/\" id=\"a_109\">Pathumma v. State of Kerala<\/a>, (1978) 2 SCC 1  :<br \/>\nAIR 1978 SC 771<br \/>\n16  <a href=\"\/doc\/700780\/\" id=\"a_110\">Workmen v. Meenakshi Mills Ltd<\/a>., (1992) 3 SCC 336:\t1992<br \/>\nSCC (L&amp;S) 679<br \/>\n<span class=\"hidden_text\" id=\"span_9\">514<\/span><br \/>\nwhich  indicates that the employer&#8217;s right is not  absolute.<br \/>\nWe  may indicate here that even in Excel Wear case1  it\t has<br \/>\nbeen held that:\n<\/p>\n<p id=\"p_22\">&#8220;the  right to close a business is an integral part  of\t the<br \/>\nfundamental  right to carry on a business.  But as no  right<br \/>\nis absolute in its scope so is the nature of this right.  It<br \/>\ncan certainly be restricted, regulated or controlled by\t law<br \/>\nin the interest of general public.&#8221; (emphasis supplied)\n<\/p>\n<p id=\"p_23\">17.In  Meenakshi  Mills case2, it has been held\t that  the<br \/>\npower  to  grant or refuse permission  for  retrenchment  of<br \/>\nworkmen conferred under sub-section (2) of <a href=\"\/doc\/700346\/\" id=\"a_111\">Section 25-N<\/a>\t has<br \/>\nto  be\texercised  on  an  objective  consideration  of\t the<br \/>\nrelevant facts after affording an opportunity to the parties<br \/>\nhaving\tan  interest in the matter and reasons\thave  to  be<br \/>\nrecorded in the order that is passed.  The enquiry which has<br \/>\nto be made under sub-section (2) before an order granting or<br \/>\nrefusing  permission for retrenchment of workmen is  passed,<br \/>\nwould  require an examination of the particulars  which\t are<br \/>\nrequired  to  be supplied by the  employer.   Such  decision<br \/>\nbeing quasi-judicial, is justiciable before High Court.\t  In<br \/>\nview  of the time-limit of three months prescribed  in\tsub-<br \/>\nsection\t (3) of <a href=\"\/doc\/700346\/\" id=\"a_112\">Section 25-N<\/a>, there is need for\t expeditious<br \/>\ndisposal  which may not be feasible if the  proceedings\t are<br \/>\nconducted  before  a  judicial\tofficer\t accustomed  to\t the<br \/>\njudicial  process.   Moreover,\tduring the  course  of\tsuch<br \/>\nconsideration, it may become necessary to explore the  steps<br \/>\nthat may have to be taken to remove the causes necessitating<br \/>\nthe  proposed  retrenchment which  may\tinvolve\t interaction<br \/>\nbetween the various departments of the Government.  This can<br \/>\nbe  better appreciated and achieved by an Executive  Officer<br \/>\nrather than a Judicial Officer.\t It has also been  indicated<br \/>\nin  Meenakshi Mills case2 that in the matter of exercise  of<br \/>\nthe power conferred by sub-section (2) of <a href=\"\/doc\/700346\/\" id=\"a_113\">Section 25-N<\/a>,\t the<br \/>\npower has to be exercised keeping in view the provisions  of<br \/>\nthe  Act and the object underlying the <a href=\"\/doc\/1596533\/\" id=\"a_114\">Amending Act<\/a> of\t1976<br \/>\nwhereby\t <a href=\"\/doc\/700346\/\" id=\"a_115\">Section 25-N<\/a> was inserted in the Act.\t The  object<br \/>\nunderlying   the   requirement\tof  prior   permission\t for<br \/>\nretrenchment  of  workmen  introduced  by  <a href=\"\/doc\/700346\/\" id=\"a_116\">Section  25N<\/a>\t  as<br \/>\nindicated  in the Statement of Objects and Reasons  for\t the<br \/>\n<a href=\"\/doc\/1596533\/\" id=\"a_117\">Amending  Act<\/a> of 1976, is to prevent avoidable\thardship  to<br \/>\nthe  employees\tresulting from\tretrenchment  by  protecting<br \/>\nemployment  to\tthose already employed and  maintain  higher<br \/>\ntempo\tof   production\t and  productivity   by\t  preserving<br \/>\nindustrial  peace  and\tharmony.   The\tsaid   consideration<br \/>\ncoupled with the basic idea underlying the provisions of the<br \/>\nAct, namely, settlement of industrial disputes and promotion<br \/>\nof  industrial peace, gives a sufficient indication  of\t the<br \/>\nfactors\t which\thave to be home in mind by  the\t appropriate<br \/>\nGovernment or authority by exercising its power to grant  or<br \/>\nrefuse permission for retrenchment under sub-section(2).\n<\/p>\n<p id=\"p_24\">18.In  our view, the aforesaid observations  in\t upholding<br \/>\nthe validity of Section25-N  squarely apply  in\t upholding<br \/>\nthe validity of <a href=\"\/doc\/1900929\/\" id=\"a_118\">Section 25-M<\/a>.  It is evidentthat\tthe<br \/>\nLegislature  has taken care in exempting the need for  prior<br \/>\npermission  for lay-off in <a href=\"\/doc\/1900929\/\" id=\"a_119\">Section 25-M<\/a> if such\t lay-off  is<br \/>\nnecessitated   on  account  of\tpower  failure\tor   natural<br \/>\ncalamities  because  such reasons being\t grave,\t sudden\t and<br \/>\nexplicit,  no further scrutiny is called for.  There may  be<br \/>\nvarious\t other contingencies justifying an immediate  action<br \/>\nof lay-off but<br \/>\n<span class=\"hidden_text\" id=\"span_10\">515<\/span><br \/>\nthen the Legislature in its wisdom has thought it  desirable<br \/>\nin  the\t greater public interest that  decision\t to  lay-off<br \/>\nshould\tnot be taken by the employer on its  own  assessment<br \/>\nwith  immediate effect but the employer must  seek  approval<br \/>\nfrom the authority concerned which is reasonably expected to<br \/>\nbe  alive  to  the problems  associated\t with  the  industry<br \/>\nconcerned and other relevant factors, so that on scrutiny of<br \/>\nthe  reasons pleaded for permitting layoff,  such  authority<br \/>\nmay  arrive at a just and proper decision in the  matter  of<br \/>\naccording or refusing permission to lay-off.  Such authority<br \/>\nis  under  an obligation to dispose of\tthe  application  to<br \/>\naccord\tpermission for a lay-off expeditiously and,  in\t any<br \/>\nevent,\twithin\ta period not exceeding two months  from\t the<br \/>\ndate of seeking permission.  It may not be unlikely that  in<br \/>\nsome cases an employer may suffer unmerited hardship up to a<br \/>\nperiod\tof two months within which his application for\tlay-<br \/>\noff is required to be disposed of by the authority concerned<br \/>\nbut  having undertaken a productive venture by\testablishing<br \/>\nan  industrial\tunit employing a large\tlabour\tforce,\tsuch<br \/>\nemployer has to face such consequence on some occasions\t and<br \/>\nmay  have  to  suffer some hardship  for  sometime  but\t not<br \/>\nexceeding two months within which his case for a lay-off  is<br \/>\nrequired  to  be  considered  by  the  authority   concerned<br \/>\notherwise  it  will  be\t deemed\t that  permission  has\tbeen<br \/>\naccorded.   In the greater public interest  for\t maintaining<br \/>\nindustrial  peace  and harmony and to  prevent\tunemployment<br \/>\nwithout\t just  cause,  the restriction\timposed\t under\tsub-<br \/>\nsection (2) of <a href=\"\/doc\/1900929\/\" id=\"a_120\">Section 25-M<\/a> cannot be held to be  arbitrary,<br \/>\nunreasonable  or  far in excess of the need for\t which\tsuch<br \/>\nrestriction has been sought to be imposed.\n<\/p>\n<p id=\"p_25\">19.It  may  be pointed out that sub-section  (3)  requires<br \/>\nrecording  of reasons for the decision taken, and a copy  of<br \/>\nthe  order is required to be communicated to all  concerned.<br \/>\nFurther, by force of sub-section (4), permission sought\t for<br \/>\nshall be deemed to have been granted, if the decision is not<br \/>\ncommunicated   within  the  mentioned  period.\t  Procedural<br \/>\nreasonableness\thas been taken care of by these\t provisions.<br \/>\nAs regards substantive reasonableness, we feel satisfied, as<br \/>\nthe  power  in question would be exercised  by\ta  specified<br \/>\nauthority and as it can well be presumed that the one to  be<br \/>\nspecified  would be a high authority who would be  conscious<br \/>\nof his duties and obligation.  If such an authority would be<br \/>\ninformed  that\tlay-off is reuired because  of,\t any  sudden<br \/>\nbreakdown  of machinery, which illustration was given by  Dr<br \/>\nGhosh\tto  persuade  us  to  regard  the   restriction\t  as<br \/>\nunreasonable, we have no doubt that the authority would\t act<br \/>\npromptly  and see that the establishment in question is\t not<br \/>\nput to loss for no fault on its part.  As every power has to<br \/>\nbe  exercised  reasonably,  and as such\t an  exercise  takes<br \/>\nwithin its fold, exercise of power within reasonable time we<br \/>\ncan  take for granted that the statutory provision  requires<br \/>\nthat  in apparent causes (like sudden breakdown)  justifying<br \/>\nlay-off, the authority would act with speed.\n<\/p>\n<p id=\"p_26\">20.As  already\tindicated,  the\t distinguishing\t  features<br \/>\nbetween\t <a href=\"\/doc\/1900929\/\" id=\"a_121\">Section  25-M<\/a>\tand <a href=\"\/doc\/700346\/\" id=\"a_122\">Section 25-N<\/a>  on  one  hand\t and<br \/>\n<a href=\"\/doc\/500379\/\" id=\"a_123\">Section 25-0<\/a> on the other have been noticed in the  decision<br \/>\nin Excel Wear case1.\n<\/p>\n<p id=\"p_27\">21.In  our  view, the reasonings indicated in  Excel  Wear<br \/>\ncase1  in striking down <a href=\"\/doc\/500379\/\" id=\"a_124\">Section 25-0<\/a> are not applicable\t for<br \/>\nconsidering the constitutional<br \/>\n<span class=\"hidden_text\" id=\"span_11\">516<\/span><br \/>\nvalidity  of&#8217; <a href=\"\/doc\/1237804\/\" id=\"a_125\">Section 25-M(2)<\/a>.\tOn the contrary, it  appears<br \/>\nto us that the reasonings indicated in Meenakshi Mills case1<br \/>\nin upholding the validity of <a href=\"\/doc\/700346\/\" id=\"a_126\">Section 25-N<\/a> squarely apply  in<br \/>\nupholding the vires of <a href=\"\/doc\/1900929\/\" id=\"a_127\">Section 25-M<\/a>.  It also appears to  us<br \/>\nthat  the  impugned  provision\tof  <a href=\"\/doc\/1900929\/\" id=\"a_128\">Section  25-M<\/a>  satisfies<br \/>\nvarious\t  aspects  of  scrutiny\t for  upholding\t  reasonable<br \/>\nrestriction  on\t the fundamental right when  tested  in\t the<br \/>\ncontext of guidelines and principles indicated hereinbefore.<br \/>\nThe  restriction  appears necessary to us in  larger  public<br \/>\ninterest  and to protect the interest of workmen,  who,\t but<br \/>\nfor  the restriction may be subjected to uncalled  for\tlay-<br \/>\noff.   The  application of this\t restriction  to  industrial<br \/>\nestablishments specified in <a href=\"\/doc\/1834455\/\" id=\"a_129\">Section 25-K<\/a> duly takes care  of<br \/>\nthe  hardship  which  could otherwise  be  caused  to  small<br \/>\nestablishments.\t Directive Principles do require placing  of<br \/>\nthe restriction on large industrial establishments employing<br \/>\nlarge  number  of  workmen.  The impugned  decision  of\t the<br \/>\nMadras\tHigh Court, therefore, must be held to be  erroneous<br \/>\nand the same is, set aside by upholding the vires of <a href=\"\/doc\/1900929\/\" id=\"a_130\">Section<br \/>\n25-M<\/a>  of  the  Industrial  Disputes  Act,  1947\t which\t was<br \/>\nintroduced under the <a href=\"\/doc\/1596533\/\" id=\"a_131\">Amending Act<\/a> of 1976.  This appeal\t is,<br \/>\ntherefore, allowed without, however, any order as to costs.\n<\/p>\n<p><span class=\"hidden_text\" id=\"span_12\">517<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Papnasam Labour Union vs Madura Coats Ltd on 8 December, 1994 Equivalent citations: 1995 AIR 2200, 1995 SCC (1) 501 Author: G Ray Bench: Ray, G.N. (J) PETITIONER: PAPNASAM LABOUR UNION Vs. RESPONDENT: MADURA COATS LTD. DATE OF JUDGMENT08\/12\/1994 BENCH: RAY, G.N. (J) BENCH: RAY, G.N. (J) HANSARIA B.L. (J) CITATION: [&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-260659","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>Papnasam Labour Union vs Madura Coats Ltd on 8 December, 1994 - 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\/papnasam-labour-union-vs-madura-coats-ltd-on-8-december-1994\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Papnasam Labour Union vs Madura Coats Ltd on 8 December, 1994 - Free Judgements of Supreme Court &amp; 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