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Closure of industries on holidays not unreasonable, rules Supreme Court

The Supreme Court has ruled that compulsory closure of industries on national holidays and festivals could not be treated as ''unreasonable'' and, therefore, did not violate the fundamental right to carry on trade and business.

The ruling was handed down by a division bench comprising Justice S Saghir Ahmad and Justice B N Kirpal, which dismissed an appeal by MRF Limited challenging the constitutional validity of the Kerala Industrial Establishments (National and Festival Holidays Amendment) Act, 1990.

After falling to get relief from the Kerala high court, the appellant had approached the apex court.

''We are of the opinion that the Act by which the national and festival holidays have been increased is fully constitutional and does not, in any way, infringe the right of the appellant to carry on its trade or business under Article 19 (1)(g) of the Constitution,'' the judges observed.

The judges rejected the contention of the appellant that increasing the number of national and festival holidays violated their fundamental rights and that it was also arbitrary since it was compelled to pay its labourers and other employees even for days on which they did not work.

The court also rejected the plea of the appellant of equality before the law as enshrined under Article 14 of the Constitution.

''The decision to raise the number of the national and festival holidays by a legislative amendment is based upon relevant material considered by the state government, including the fact that the holidays allowed by the central government and other public sector undertakings were far greater in number that those prescribed under this Act,'' the judges said.

The judges said as pointed out earlier, the act was a social legislation to give effect to the Directive Principles of the State policy contained in Article 43 of the Constitution.

''The law so made cannot be said to be arbitrary nor can it be struck down for being violative of Article 14 of the Constitution.''

The court also turned down the appellant's contention that the industries or their representatives should have been given a hearing before raising the number of holidays.

''The principles of natural justice cannot be imported in the matter of legislative action. If the legislature, in exercise of its plenary power under Article 245 of the Constitution, proceeds to enact a law, those who will be affected... cannot legally raise a grievance that before the law was made, they should have been given an opportunity of hearing,'' the judges ruled.

The judges felt the principle of natural justice, including right of hearing, could not be invoked in the making of law either by Parliament or by a state legislature.

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