State of Gujarat v. Shri Ambica Mills Ltd
Article 13(2)
(2) The State shall not make any law which takes away or abridges the rights conferred by this Part and any law made in contravention of this clause shall, to the extent of the contravention, be void.
Article 13(2) is an injunction to the ‘state’ not to pass any law which takes away or abridges the fundamental rights conferred by Part III
State of Gujarat v. Shri Ambica Mills Ltd, 1974
Fact:
Company→ Impugn→Bombay Labour Welfare Fund Rules, 1953 (the Rules) as unconstitutional.
In 1953 State of Bombay enacted Act for the labour with the purpose of welfare and financing activities.
Section 19 gave powers to the state government such as to make rules and exercise them.
State of Gujarat v. Shri Ambica Mills Ltd, 1974
Fact:
Section 3: Welfare Fund : unpaid accumulations.
High Court held that the provisions of Sections 3(1) and 3(2) were invalid on the ground that they violated the fundamental right of the employer under Article 19 (1)(f).
Article 19(1)(f) Right to Acquire, hold and dispose of Property.
State of Gujarat v. Shri Ambica Mills Ltd, 1974
High Court:
without discharging the employer from his liability to the employees and that Section 3(1) therefore operated to take away the moneys of the employer without releasing him from his liability to the employees.
no machinery provided for adjudication of the claim of the employees when the amounts were required to be paid to the fund.
The State sought to justify the provisions of the Act as one relating to abandoned property
State of Gujarat v. Shri Ambica Mills Ltd, 1974
During the pendency of the writ petition before the High Court, the Gujarat Legislature passed the Bombay Labour Welfare Fund (Gujarat Amendment) Act, 1962 on January 5, 1963 (the Second Amendment Act)
Section 6A (1) it was declared that unpaid accumulations shall be deemed to be abandoned property
State of Gujarat v. Shri Ambica Mills Ltd, 1974
Court:
→ It is settled that a Corporation is not a citizen for the purpose of Article 19 of the Constitution and there has no fundamental right.
→ Can’t claim law as void.