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  • Happy Hours For States; SC Constitution Bench by a Majority of 8:1 Upholds the Power of States to Regulate Industrial Alcohol

    Wednesday, October 23, 2024

    Happy Hours For States; SC Constitution Bench by a Majority of 8:1 Upholds the Power of States to Regulate Industrial Alcohol

     

    SC nine judge bench comprising CJI DY Chandrachud, Justices Hrishikesh Roy, Abhay S. Oka, B.V. Nagarathna, J.B. Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma And Augustine George Masih decided the question of whether “intoxicating liquor” in Entry 8 only includes potable alcohol, such as alcoholicbeverages or also includes alcohol which is used in the production of other products. In Synthetics and Chemicals Ltd. v. State of U.P (1990 (1) KLT OnLine 1009 (SC)), a Seven-Judge Bench held that denatured spirit is industrial alcohol and is outside the jurisdiction of States under Entry 8, List II of the Seventh Schedule to the Constitution. The correctness of the said judgment was answered through this reference.

     

    The Court formulated six questions for adjudication by a larger Bench. They are reproduced below:

    a. Does Section 2 of the IDRA have any impact on the field covered by Section 18G of the same or Entry 33 of List III of the Seventh Schedule?

    b. Does Section 18G of the aforesaid Act fall under Entry 52 of List I of the Seventh Schedule of the Constitution, or is it covered by Entry 33 of List III thereof?

    c. In the absence of any notified order by the Central government under Section 18G of the above Act, is the power of the State to legislate in respect of matters enumerated in Entry 33 of List III ousted?

    d. Does the mere enactment of Section 18G of the IDRA, give rise to a presumption that it was the intention of the Central government to cover the entire field in respect of Entry 33 of List III so as to oust the States’ competence to legislate in respect of matters relating thereto?

    e. Does the mere presence of Section 18G of the IDRA, oust the State’s power to legislate in regard to matters falling under Entry 33(a) of List III?

    f. Does the interpretation given in Synthetics (1990 (1) KLT OnLine 1009 (SC), in respect of Section 18G of the IDRA correctly state the law regarding the States’ power to regulate industrial alcohol as a product of the Scheduled industry under Entry 33 of List III in view of clause (a) thereof?

     

    The majority judgment authored by CJI DY Chandrachud concluded as follows

     

    “Entry 8 of List II of the Seventh Schedule to the Constitution is both an industry-based entry and a product-based entry. The words that follow the expression “that is to say” in the Entry are not exhaustive of its contents. It includes the regulation of everything from the raw materials to the consumption of ‘intoxicating liquor’;

     

    Parliament cannot occupy the field of the entire industry merely by issuing a declaration under Entry 52 of List I. The State Legislature’s competence under Entry 24 of List II is denuded only to the extent of the field covered by the law of Parliament under Entry 52 of List I;

     

    Parliament does not have the legislative competence to enact a law taking control of the industry of intoxicating liquor covered by Entry 8 of List II in exercise of the power under Article 246 read with Entry 52 of List I;

     

     

    The judgments of the Bombay High Court in FN Balsara v. State of Bombay, this Court in FN Balsara (1951 KLT OnLine  813 (SC)) and Southern Pharmaceuticals (1981 KLT OnLine 1079 (SC)) did not limit the meaning of the expression ‘intoxicating liquor’ to its popular meaning, that is, alcoholic beverages that produce intoxication. All the three judgments interpreted the expression to cover alcohol that could be noxiously used to the detriment of health;

     

    The expression ‘intoxicating liquor’ in Entry 8 has not acquired a legislative meaning on an application of the test laid down in Ganon Dunkerley (1958 KLT OnLine 1305 (SC));

     

    The study of the evolution of the legislative entries on alcohol indicates that the use of the expressions “intoxicating liquor” and “alcoholic liquor for human consumption” in the Seventh Schedule to the Constitution was a matter well-thought of. It also indicates that the members of the Constituent Assembly were aware of use of the variants of alcohol as a raw material in the production of multiple products;

     

    Entry 8 of List II is based on public interest. It seeks to enhance the scope of the entry beyond potable alcohol. This is inferable from the use of the phrase ‘intoxicating’ and other accompanying words in the Entry. Alcohol is inherently a noxious substance that is prone to misuse affecting public health at large. Entry 8 covers alcohol that could be used noxiously to the detriment of public health. This includes alcohol such as rectified spirit, ENA and denatured spirit which are used as raw materials in the production of potable alcohol and other products. However, it does not include the final product (such as a hand sanitiser) that contains alcohol since such an interpretation will substantially diminish the scope of other legislative entries;

     

    The judgment in Synthetics (7J) (1990 (1) KLT OnLine 1009 (SC) is overruled in terms of this judgment;

     

    Item 26 of the First Schedule to the IDRA must be read as excluding the industry of “intoxicating liquor”, as interpreted in this judgment;

     

    The correctness of the judgment in Tika Ramji (1956 KLT OnLine 1018 (SC)) on the interpretation of word ‘industry’ as it occurs in the legislative entries does not fall for determination in this reference; and

     

    The issue of whether Section 18G of the IDRA covers the field under Entry 33 of List III does not arise for adjudication in view of the finding that denatured alcohol is covered by Entry 8 of List II."

     

    The dissent by Justice B.V. Nagarathna

     

    Entry 33(a) – List III has to be read in the context of Entry 52 – List I. IDRA is relatable to Entry 52 – List I. Section 2 of the IDRA has a nexus and is connected with Section 18G of the said Act. Therefore, Entry 33(a) – List III is impacted by Section 2 read with Section 18G of the IDRA.

     

    Section 18G of the IDRA is directly relatable to Entry 52 – List I which has to be read in the context of Section 2 of IDRA. The doctrine of occupied field applies and the legislative field under Entry 33(a) – List III is covered by the said provision on the basis of doctrine of occupied field under first part of Article 254 of the Constitution.

     

    Even in the absence of any notified order by theCentral Government under Section 18G of the IDRA, the power of the States to legislate in respect of matters enumerated in Entry 33(a) – List III is ousted on the basis of the doctrine of occupied field as aforestated. On this aspect, the judgment of this Court in Synthetics and Chemicals (7J) is correct.

     

    The mere enactment of section 18G of the IDRA gives rise to a presumption that it was the intention of the Parliament and Central Government to cover the entire field in respect of Entry 33(a) - List III so as to oust the States' competence to legislate in respect of matters relating thereto.

     

    The mere presence of Section 18G of the IDRA would oust the State's power to legislate in regard to matters falling under Entry 33(a) - List III. The doctrine of occupied field applies.

     

    The interpretation given in Synthetics andChemicals case, (1990) 1 SCC 109 in respect of Section 18G of the IDRA correctly states the law. Even with regard to “industrial alcohol” as a product which falls within “Fermentation Industries” in respect of which the Union has assumed control, in the absence of a notified order, the competence of the State to act under Entry 33- List III is denuded.

    Short edits by Adv. Ashly Harshad

    Hon’ble Chief Justice of India, Mr. Justice Dr. Dhananjaya Y Chandrachud,  Hon’ble Mr. Justice Hrishikesh Roy, Hon’ble Mr. Justice Abhay S. Oka, Hon’ble Mr. Justice B.V. Nagarathna, Hon’ble Mr. Justice J. B. Pardiwala, Hon’ble Mr. Justice Manoj Misra, Hon’ble Mr. Justice Ujjal Bhuyan, Hon’ble Mr. Justice Satish Chandra Sharma & Hon’ble Mr. Justice Augustine George Masih

    State of U.P. & Ors v. M/S Lalta Prasad Vaish

    Decided on 23rd October, 2024

    For judgment click here

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    THE KERALA MUNICIPALITY (AMENDMENT) ORDINANCE, 2021

  • 14 OF 2021

    THE KERALA PANCHAYAT RAJ (AMENDMENT) ORDINANCE, 2021

  • 33 OF 2021

    THE KERALA PANCHAYAT RAJ (SECOND AMENDMENT) ORDINANCE, 2021

  • 19 OF 2021

    THE KERALA   PROVISIONAL COLLECTION OF REVENUES (AMENDMENT) ORDINANCE, 2021

  • 6 OF 2021

    THE KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS (AMENDMENT) ORDINANCE, 2021

  • 42 OF 2021

    THE KERALA TOWN AND COUNTRY PLANNING (AMENDMENT) ORDINANCE, 2021

  • 49 OF 2021

    THE UNIVERSITY LAWS (AMENDMENT) (No.3) ORDINANCE, 2021

  • No.22 of 2021

    The Kerala Epidemic Diseases Ordinance, 2021

  • 3 of 2021

    THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ORDINANCE, 2021

  • 2 of 2021

    THE TRIBUNALS REFORMS (RATIONALISATION AND CONDITIONS OF SERVICE) ORDINANCE, 2021

  • 6 of 2021

    THE HOMOEOPATHY CENTRAL COUNCIL (AMENDMENT) ORDINANCE, 2021

  • 5 of 2021

    THE INDIAN MEDICINE CENTRAL COUNCIL (AMENDMENT) ORDINANCE, 2021

  • Bill No. 1

    THE KERALA EPIDEMIC DISEASES BILL, 2021

  • 7 of 2021

    THE ESSENTIAL DEFENCE SERVICES ORDINANCE, 2021

  • 72 OF 2021

    KERALA EDUCATION (AMENDMENT) ORDINANCE, 2021

  • 71 of 2021

    Kerala Disaster and Public Health Emergency (Special Provisions) Ordinance, 2021

  • 56 of 2021

    THE JUVENILE JUSTICE (CARE AND PROTECTION OF CHILDREN) AMENDMENT BILL, 2021(as introduced in loksabha)

  • 104 of 2021

    THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) BILL, 2021

  • Bill No. 116 of 2021

    THE TRIBUNALS REFORMS BILL, 2021

  • 115 of 2021

    THE GENERAL INSURANCE BUSINESS (NATIONALISATION) AMENDMENT BILL, 2021

  • 119 of 2021

    THE CENTRAL UNIVERSITIES (AMENDMENT) BILL, 2021

  • 124 of 2021

    THE CONSTITUTION (ONE HUNDRED AND TWENTY-SEVENTH AMENDMENT) BILL, 2021

  • 120 of 2021

    THE TAXATION LAWS (AMENDMENT) BILL, 2021

  • 78 OF 2021

    THE KERALA CLINICAL ESTABLISHMENTS (REGISTRATION AND REGULATION) AMENDMENT ORDINANCE, 2021

    legislation h

  • Notfn.No. 9042/Leg.B

    THE KERALA PUBLIC SERVICE COMMISSION (ADDITIONAL FUNCTIONS AS RESPECTS THE SERVICES UNDER THE WAQF BOARD) ORDINANCE, 2021 58 of 2021

    Legislation B

  • 29

    THE KERALA EDUCATION (AMENDMENT) BILL, 2021

  • Bill No. 31

    THE KERALA GENERAL SALES TAX (AMENDMENT) BILL, 2021

  • 3751/Leg.G1/2020/Law

    THE KERALA PRIVATE FORESTS (VESTING AND ASSIGNMENT) (AMENDMENT) ORDINANCE, 2021 dated 2.7.2021

  • 85 OF 2021

    THE KERALA MICRO SMALL AND MEDIUM ENTERPRISES FACILITATION (AMENDMENT) ORDINANCE, 2021

  • 124 OF 2021

    THE KERALA MINERALS (VESTING OF RIGHTS) ORDINANCE, 2021

  • 138 OF 2021

    THE KERALA PUBLIC SERVICE COMMISSION (ADDITIONAL FUNCTION AS RESPECTS CERTAIN CORPORATIONS AND COMPANIES) AMENDMENT ORDINANCE, 2021

  • 39

    THE KERALA EDUCATION (AMENDMENT) BILL, 2021/BILL No. 39

  • 38

    THE KERALA CO-OPERATIVE SOCIETIES (AMENDMENT) BILL, 2021/Bill No. 38

  • 95 OF 2021

    THE KERALA SELF FINANCING COLLEGE TEACHING AND NON-TEACHING EMPLOYEES (APPOINTMENT AND CONDITIONS OF SERVICE) ORDINANCE, 2021

  • 47

    THE KERALA PRIVATE FORESTS (VESTING AND ASSIGNMENT) AMENDMENT BILL, 2021

  • 58

    THE KERALA CO-OPERATIVE SOCIETIES (SECOND AMENDMENT) BILL, 2021

  • 56

    THE KERALA GENERAL SALES TAX (AMENDMENT) BILL, 2021

  • 54

    THE UNIVERSITY LAWS (AMENDMENT) BILL, 2021

  • 70

    THE KERALA LABOUR WELFARE FUND (AMENDMENT) BILL, 2021

  • 65

    THE KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS (AMENDMENT) BILL, 2021

  • 64

    THE KERALA HEADLOAD WORKERS (AMENDMENT) BILL, 2021

  • 8 of 2021

    THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES (AMENDMENT) ORDINANCE, 2021

  • 51

    THE KERALA EMPLOYMENT GUARANTEE WORKERS' WELFARE FUND BILL, 2021

  • 44

    THE KERALA REPEALING AND SAVING BILL, 2021

  • 59

    THE KERALA MINERALS (VESTING OF RIGHTS) BILL, 2021

  • 66

    THE KERALA MICRO SMALL AND MEDIUM ENTERPRISES FACILITATION (AMENDMENT) BILL, 2021

  • 144 OF 2021

    THE KERALA PUBLIC HEALTH ORDINANCE, 2021

  • 140 OF 2021

    THE KERALA PRIVATE FORESTS (VESTING AND ASSIGNMENT) AMENDMENT ORDINANCE, 2021

  • 142 OF 2021

    THE KERALA INDUSTRIAL SINGLE WINDOW CLEARANCE BOARDS AND INDUSTRIAL TOWNSHIP AREA DEVELOPMENT (AMENDMENT) ORDINANCE, 2021

  • 9 of 2021

    THE CENTRAL VIGILANCE COMMISSION (AMENDMENT) ORDINANCE, 2021

  • 151 of 2021

    Narcotic Drugs and Psychotropic Substances (Amendment) Act, 2021

  • XLIII of 2021

    Mediation Act, 2021 

  • Bill No. 85

    THE KERALA LAND REFORMS (AMENDMENT) BILL, 2021

  • 2 OF 2022

    THE KERALA MARITIME BOARD (AMENDMENT) ORDINANCE, 2022

  • 3 OF 2022

    THE KERALA LOK AYUKTA (AMENDMENT) ORDINANCE, 2022

  • 21 of 2022

    Constitution (Scheduled Tribes) Order (Amendment)  Act, 2022

  • Bill No. 84

    THE KERALA AGRICULTURAL INCOME TAX (REPEAL) BILL, 2021

  • Bill No. 88

    THE KERALA CO-OPERATIVE SOCIETIES (AMENDMENT) BILL, 2022

  • Bill No. 91

    THE KERALA PRIVATE FORESTS (VESTING AND ASSIGNMENT) AMENDMENT BILL, 2022

  • 6 OF 2022

    THE KERALA INDUSTRIAL SINGLE WINDOW CLEARANCE BOARDS AND INDUSTRIAL TOWNSHIP AREA DEVELOPMENT (AMENDMENT) ORDINANCE, 2022

    Law (Legislation-C) Department

  • 10 OF 2022

    THE KERALA LIVESTOCK AND POULTRY FEED AND MINERAL MIXTURE (REGULATION OF MANUFACTURE AND SALE ) ORDINANCE, 2022

    Law (Legislation-I)

  • 5 of 2022

    THE   KERALA LOCAL SELF GOVERNMENT COMMON SERVICE ORDINANCE, 2022

    legislation h

  • 9 of 2022

    THE KERALA MARITIME BOARD (AMENDMENT) ORDINANCE, 2022 (9 of 2022)

  • 12 OF 2022

    THE KERALA PUBLIC HEALTH ORDINANCE, 2022

  • 93 of 2022

    THE CRIMINAL PROCEDURE (IDENTIFICATION) BILL, 2022

  • 85

    Kerala Land Reforms (Amendment) Bill, 2021

  • bill no. 102

    The Kerala protection of River banks and regulation Removal of sand Act Amendment Bill,2022

  • 110

    THE KERALA CO-OPERATIVE SOCIETIES (AMENDMENT) BILL, 2022 - Bill No. 110

  • Bill No. 109

    THE KERALA PRIVATE FORESTS (VESTING AND ASSIGNMENT) AMENDMENT BILL, 2022

  • 113

    THE KERALA CO-OPERATIVE SOCIETIES (SECOND AMENDMENT) BILL, 2022

  • 123 of 2022

    THE FAMILY COURTS (AMENDMENT) BILL, 2022

  • 126

    The Kerala Document Writers.....Fund (Amendment) Bill, 2022

  • 111

    THE KERALA LIVESTOCK AND POULTRY..........SALE ) BILL, 2022

  • 127

    THE KERALA CO-OPERATIVE SOCIETIES (SECOND AMENDMENT) BILL

  • 128

    THE KERALA LIVESTOCK AND POULTRY ...... AND SALE ) BILL, 2022

  • 129

    Kerala Maritime Board (Amendment) Bill, 2022

  • 134

    THE KERALA INDUSTRIAL SINGLE WINDOW CLEARANCE BOARDS AND INDUSTRIAL TOWNSHIP AREA DEVELOPMENT (AMENDMENT) BILL, 2022

  • 7 of 2022

    Kerala Private Forest (Vesting and Assignment) Ordinance, 2022

  • 135

    The Kerala Public Enterprises (Selection and Recruitment) Board Bill, 2022

  • 133

    THE KERALA LOK AYUKTA (AMENDMENT) BILL, 2022

  • 136

    THE KERALA LOCAL SELF GOVERNMENT COMMON SERVICE BILL, 2022

  • 15 OF 2022

    THE KERALA PUBLIC HEALTH ORDINANCE, 2022

    Law (Legislation-H) Department

  • Bill No. 143

    THE SREE PANDARAVAKA LANDS (VESTING AND ENFRANCHISEMENT) AMENDMENT BILL, 2022

  • 142

    THE KERALA MOTOR TRANSPORT WORKERS' PAYMENT OF FAIR WAGES (AMENDMENT) BILL, 2022

  • 146

    Kerala Panchayat Raj Amendment Bill, 2022

  • 145

    Kerala Municipality Amendment Bill, 2022

  • 145

    Kerala Municipality (Amendment) Bill, 2022

  • 146

    THE KERALA PANCHAYAT RAJ (AMENDMENT) BILL, 2022

  • 148

    Non-Resident Indians' (Keralites) Commission Bill, 2022

  • 102

    THE KERALA PLANTATION TAX (REPEAL) BILL, 2021

  • 149

    The University Laws(Amendment)(No.2) Bill,2022

  • 137

    THE KERALA HIGH COURT.....RETIREMENT AGE) BILL, 2022

  • Bill No. 102

    Kerala Protection of River Banks and Regulation of Removal of Sand (Amendment) Bill, 2022

  • 153

    The Kerala General Sales Tax (Amendment)Bill,2022

  • 150

    THE UNIVERSITY LAWS (AMENDMENT) (No.3) BILL, 2022

  • 290 OF 2022

    Repealing and Amending Act, 2022

  • NOTIFICATION No. 448

    THE KERALA FINANCE BILL, 2023

  • Bill No. 162

    THE KERALA PRIVATE FORESTS (VESTING AND ASSIGNMENT) AMENDMENT BILL, 2023

  • Bill No. 80 of 2023

    THE FOREST (CONSERVATION) AMENDMENT BILL, 2023

  • 1 of 2023

    THE KERALA HEALTHCARE SERVICE PERSONS AND HEALTHCARE SERVICE .......ORDINANCE, 2023

  • 2 OF 2023

    THE KERALA TAXATION LAWS (AMENDMENT) ORDINANCE, 2023

  • 167

    THE INDIAN PARTNERSHIP (KERALA AMENDMENT) BILL, 2023

  • 93 OF 2023

    Registration of Births and Deaths (Amendment) Act, 2023

  • 101 OF 2023

    Mines and Minerals (Development and Regulation) Amendment Bill, 2023

  • LIII OF 2023

    Press and Registration of Periodicals Act, 2023

  • 168

    The Kerala Building Tax (Amendment) Bill, 2023

  • Bill No. 169

    Kerala Healthcare Service Persons and Healthcare Service Institutions(Prevention of Violence and Damage to Property) Amendment Bill, 2023

  • Bill No. 164

    Abkari Amendment Bill, 2023

  • Bill No. 172

    Kerala Conservation of Paddy Land and Wetland Amendment Bill, 2023

  • Bill No. 113 of 2023

    THE DIGITAL PERSONAL DATA PROTECTION BILL, 2023

  • Bill No. 173

    THE KERALA GOVERNMENT LAND ASSIGNMENT (AMENDMENT) BILL, 2023

  • 374 of 2019

    THE MAINTENANCE AND WELFARE OF PARENTS AND SENIOR CITIZENS (AMENDMENT) BILL, 2019

  • 175

    Kerala Panchayat Raj (Amendment) Bill, 2023

  • 176

    Kerala Municipality (Amendment) Bill, 2023

  • Bill No. 124 OF 2023

    Constitution (One Hundred and Twenty-eighth Amendment) Act, 2023

  • Bill No. 178

    THE CODE OF CRIMINAL PROCEDURE (KERALA SECOND AMENDMENT) BILL, 2023

  • 4 of 2023

    THE KERALA PANCHAYAT RAJ (AMENDMENT) ORDINANCE, 2023

  • 3 of 2023

    THE KERALA MUNICIPALITY (AMENDMENT) ORDINANCE, 2023

  • 100 of 2023

    JAMMU AND KASHMIR REORGANISATION (AMENDMENT) BILL, 2023

  • 172 of 2023

    THE JAMMU AND KASHMIR REORGANISATION (SECOND AMENDMENT) BILL, 2023

  • 175 of 2023

    Bharatiya Sakshya (Second) Adhiniyam, 2023

  • 174 of 2023

    BHARATIYA NAGARIK SURAKSHA (SECOND) SANHITA, 2023

  • 173 of 2023

    BHARATIYA NYAYA (SECOND) SANHITA, 2023

  • 194 OF 2023

    Telecommunications Bill, 2023

  • 190

    Kerala Public Service Commission (Additional Functions As Respects Certain Corporations And Companies) Amendment Bill, 2024

  • 188

    The Kerala Municipality (Amendment) Bill, 2024

  • XVIII OF 2024

    Water (Prevention and Control of Pollution) Amendment Act, 2024

  • 193

    THE KERALA FINANCE BILL, 2024

  • Bill No. 196

    Kerala Panchayat (Second Amendment) Bill, 2024

  • 200

    2024 ലെ കേരള നികുതി വസൂലാക്കൽ (ഭേദഗതി) ബിൽ 

  • 213

    Non Residents Keralites Welfare (Amendment) Bill, 2024

  • 230

    Kerala Industrial Infrastructure Development (Amendment) Bill, 2024

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Government Order / Circular
  • 13402/J2/12/G

    Appointment and Deployment of Teachers in Aided ... read more... 10-Apr-2012

  • D2/7318/12/DPI

    Period of Probation of Officers in State Service ... read more... 03-Apr-2012

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