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Supreme Court Affirms Right to Close Business Under Article 19 of Indian Constitution

Trending Today Supreme Court Affirms Right to Close Business Under Article 19 of Indian Constitution Bombay High Court Halts Aarey Forest Demolition: Legal Win for Environment and Tribal Rights Delhi High Court Orders Centre to Draft Deepfake Guidelines: Major Step for Digital Privacy and Free Speech in India Supreme Court Clears Uttarakhand’s Uniform Civil Code: A Historic Step Toward Gender Equality and Secular Law in India Supreme Court Reviews CAA Rules 2024: Fresh Petitions Challenge Citizenship Law on Constitutional Grounds Supreme Court Orders CBI Probe into ₹3,200 Crore Bihar Foodgrain Scam: Political Fallout and Fight Against Corruption INTERNSHIP OPPORTUNITY AT INTERVENOR LEGAL SOLUTIONS, NEW DELHI LEGAL JOB OPPORTUNITY AT HEMVATI NANDAN BAHUGUNA GARHWAL UNIVERSITY, UTTARAKHAND LEGAL JOB OPPORTUNITY AT HEAD DIGITAL WORKS, DELHI INTERNSHIP OPPORTUNITY AT VOYAGER CAPITAL Supreme Court Affirms Right to Close Business Under Article 19 of Indian Constitution PRABHAT KUMAR BILTORIA 1 JULY 2025 The Supreme Court of India affirms that the right to shut down a business is protected under Article 19(1)(g) of the Constitution. Learn how this landmark judgment impacts business owners, labor laws, and public interest. Supreme Court Declares Business Closure a Fundamental Right Under Article 19 In a landmark decision, the Supreme Court of India has ruled that the right to close a business is protected under Article 19(1)(g) of the Indian Constitution. The judgment, delivered on June 4, 2025, underscores that the freedom to practice any profession includes the right to shut down operations, subject to reasonable restrictions. This critical verdict was delivered by a bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra. Case Background: Harinagar Sugar Mills and the Closure of Its Mumbai Unit The case stemmed from a petition by Harinagar Sugar Mills Ltd. (Biscuit Division), which sought to shut down its Mumbai facility after losing a vital processing contract with Britannia Industries. The company filed a closure application on August 28, 2019, under Section 25-O of the Industrial Disputes Act, 1947. Despite the statutory requirement for a decision within 60 days, the Maharashtra Labour Department, particularly a Deputy Secretary, delayed the process by either not acting or asking unauthorized questions. Supreme Court’s Interpretation of Presumed Permission The Court ruled that failure by the State to respond within the 60-day period amounts to presumed permission for business closure. It emphasized that the Deputy Secretary’s actions lacked legal backing, as there was no delegation under Section 39 of the Act authorizing such inquiries. This interpretation ensures clarity and accountability in labor law, making it clear that bureaucratic delays cannot hinder legitimate business decisions. Legitimate Grounds and Public Interest Must Be Considered While upholding the right to close a business, the Supreme Court clarified that financial difficulty alone is insufficient. Business owners must demonstrate extraordinary circumstances or inability to continue operations. Moreover, public interest considerations under Section 25-O must be taken into account before final closure is approved. Bombay High Court Overruled: Supreme Court Upholds Lawful Closure In this ruling, the Supreme Court overturned a previous decision by the Bombay High Court, which had ruled against the company citing procedural deficiencies. The apex court concluded that the closure was lawful after the statutory deadline had passed. Additionally, the business compensated 178 employees, with the court ordering ₹15 crore to be disbursed within eight weeks, reflecting its commitment to employee welfare alongside corporate rights. Balancing Constitutional Rights with Accountability This judgment reinforces that Article 19(1)(g) not only safeguards the right to practice a profession but also the right to cease business operations. However, this right must be exercised responsibly, ensuring transparency, legal compliance, and respect for the interests of employees and the public. Leave a Reply Cancel Reply Logged in as Sada Law. Edit your profile. Log out? Required fields are marked * Message* Live Cases Supreme Court Affirms Right to Close Business Under Article 19 of Indian Constitution Sada Law • July 1, 2025 • Live cases • No Comments Bombay High Court Halts Aarey Forest Demolition: Legal Win for Environment and Tribal Rights Sada Law • June 30, 2025 • Live cases • No Comments Delhi High Court Orders Centre to Draft Deepfake Guidelines: Major Step for Digital Privacy and Free Speech in India Sada Law • June 30, 2025 • Live cases • No Comments 1 2 3 … 5 Next »

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Supreme Court Quashes Bihar’s SC List Amendment: Tanti-Tantwa Merger Declared Unconstitutional

Trending Today Supreme Court Quashes Bihar’s SC List Amendment: Tanti-Tantwa Merger Declared Unconstitutional Supreme Court Strikes Down Arbitrary Bail Conditions Violating Privacy in Frank Vitus v. NCB (2024) ESSAY WRITING COMPETITION BY TNNLU LEGAL JOB OPPORTUNITY AT NLU, ODISHA LEGAL JOB OPPORTUNITY AT MIND MERCHANTS INTERNSHIP OPPORTUNITY AT HAMMURABI & SOLOMON PARTNERS Kerala High Court Affirms Transgender Parents’ Right to Gender-Neutral Birth Certificate Delhi High Court Orders Immediate Abortion for Minor Rape Survivor After AIIMS Delay Supreme Court Quashes False Rape Case Based on Promise of Marriage: A Landmark Judgment on Misuse of Law Anna University Sexual Assault Case: Convict Gets 30 Years Rigorous Imprisonment in Landmark Verdict Supreme Court Quashes Bihar’s SC List Amendment: Tanti-Tantwa Merger Declared Unconstitutional NITU KUMARI 3 June 2025 The Supreme Court of India ruled that only Parliament can amend the Scheduled Castes (SC) list under Article 341, striking down Bihar‘s resolution to include the Tanti caste. Read the full case analysis and its implications on caste-based reservations. Introduction On July 15, 2024, the Supreme Court of India delivered a landmark ruling in the case Dr. Bhim Rao Ambedkar Vichar Manch Bihar, Patna vs. The State of Bihar & Others. The case challenged a 2015 notification by the Bihar government attempting to move the Tanti-Tantwa caste from the Extremely Backward Class (EBC) category to the Scheduled Castes (SC) list. The Court found this action unconstitutional, affirming that such changes can only be made by Parliament under Article 341 of the Constitution of India. Case Details at a Glance Case Name: Dr. Bhim Rao Ambedkar Vichar Manch Bihar, Patna vs. State of Bihar & Others Judgment Date: July 15, 2024 Citation: 2024 INSC 528 Presiding Judges: Hon’ble Justices Vikram Nath and Prashant Kumar Mishra Background and Context State Action in 2015 On July 1, 2015, the Government of Bihar issued a resolution to move the Tanti-Tantwa caste from the EBC category to the SC list, citing cultural and historical similarity with the Pan/Sawasi caste. Legal Challenge Petitioners argued the move violated Article 341 of the Constitution, which gives only the Parliament of India the power to modify the Scheduled Castes list. Despite this, the Patna High Court upheld the state’s action, prompting the appeal to the Supreme Court. Key Legal Issues Does the State Government have the authority to change the SC list under Article 341? Is the classification of Tanti-Tantwa as synonymous with Pan/Sawasi justified? Can a state extend SC benefits through a notification without parliamentary approval? Arguments Presented Petitioners’ Arguments Violation of Article 341: Only Parliament has authority over SC list amendments. Rejection by Registrar General of India: The RGI had already rejected the state’s 2011 recommendation. Mala Fide Intent: Petitioners claimed it was a political move to bypass constitutional procedure. Non-Severability: The removal from EBC and addition to SC were inseparable and both must be invalidated. Respondent’s Defense Clarification, Not Amendment: The State claimed the move was merely a clarification about caste synonymy. Commission Recommendations: It followed the State Backward Commission’s recommendations. Ethnographic Support: Previous reports claimed Tanti-Tantwa was similar to Pan/Sawasi. Supreme Court Verdict Judgment Summary Justice Vikram Nath delivered the judgment, ruling that only Parliament of India can make changes to the SC list. The notification issued by the Bihar Government was found to exceed state powers and was declared unconstitutional. Union Government’s Position The Ministry of Social Justice and Empowerment supported the petitioners, stating that Tanti-Tantwa is not listed under Bihar’s SC list. It had repeatedly advised the state against issuing SC certificates to members of this caste. Key Takeaways Ratio Decidendi Only Parliament has the power to alter Scheduled Caste lists under Article 341. Obiter Dicta The Court stressed the necessity of respecting constitutional processes to avoid abuse of reservation policies. Guidelines Issued SC quota jobs held by Tanti-Tantwa individuals must be reassigned. The caste will return to its EBC status. No recovery of previous benefits due to the State’s mistake. Conclusion This landmark ruling reinforces the constitutional principle that state governments cannot independently amend the Scheduled Castes list. It protects the integrity of India’s reservation system, ensuring that affirmative action is implemented fairly and lawfully. By quashing the Bihar government’s 2015 notification, the Supreme Court of India has upheld the constitutional process and safeguarded the rights of genuinely marginalized communities. Leave a Reply Cancel Reply Logged in as Sada Law. Edit your profile. Log out? Required fields are marked * Message* Case Laws Supreme Court Quashes Bihar’s SC List Amendment: Tanti-Tantwa Merger Declared Unconstitutional Supreme Court Quashes Bihar’s SC List Amendment: Tanti-Tantwa Merger Declared Unconstitutional Sada Law • June 3, 2025 • Case law • No Comments Supreme Court Strikes Down Arbitrary Bail Conditions Violating Privacy in Frank Vitus v. NCB (2024) Supreme Court Strikes Down Arbitrary Bail Conditions Violating Privacy in Frank Vitus v. NCB (2024) Sada Law • June 3, 2025 • Case law • No Comments Supreme Court: Divorced Muslim Women Entitled to Maintenance Under Section 125 CrPC Alongside 1986 Act Supreme Court: Divorced Muslim Women Entitled to Maintenance Under Section 125 CrPC Alongside 1986 Act Sada Law • June 2, 2025 • Case law • No Comments 1 2 3 … 5 Next »

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