General and commercial law
December 2012 GCL Solved Paper
1. (a) Freedom of trade and profession is provided under Article 19 (1)
(g) of the Constitution of India. This gives the citizens the right to pursue any trade, profession, business or occupation in any place within India. This right is, however, not absolute. It can be restricted by the State in the following cases –
- When the State feels it is essential to do so in the public interest.
- When it is felt that there should be some basic qualifications for any occupation or profession, it can provide so.
- When the State feels that it needs to establish control in some area of trade, occupation or business, so that it can be better tended.
These restrictions shall be considered valid when the conditions of the trade or business restricted at that time justify them, for example, for keeping the price of essential services down. Hence, the State can take over these rights to any extent – from being one of the participants in that trade to being the only one, provided it is justified in doing so.
On behalf of the State it was argued that Article 19(6) of the Constitution indicated, as in its amended state, that the carrying on by the State, or by a corporation owned or controlled by the State, of any trade, business or industry or service, whether to the exclusion, complete or partial, of the citizens or otherwise, was a permissible restriction on an individual's right of trading. [Sagir Ahmad And Ors. vs The Govt. Of The State Of Uttar ... on 17
November, 1953]
1.(b) The Parliament can extend the legislative powers given to it by the
Constitution to formulate laws under special situations to include certain subjects of the State List. Some of the conditions under which the Parliament may extend its powers include the situations explained belowIn the National Interest (Under Article 249)
Proclamation of Emergency (Article 250) in any state by the President.
If two states agree that the Parliament can
1. (a) Freedom of trade and profession is provided under Article 19 (1)
(g) of the Constitution of India. This gives the citizens the right to pursue any trade, profession, business or occupation in any place within India. This right is, however, not absolute. It can be restricted by the State in the following cases –
- When the State feels it is essential to do so in the public interest.
- When it is felt that there should be some basic qualifications for any occupation or profession, it can provide so.
- When the State feels that it needs to establish control in some area of trade, occupation or business, so that it can be better tended.
These restrictions shall be considered valid when the conditions of the trade or business restricted at that time justify them, for example, for keeping the price of essential services down. Hence, the State can take over these rights to any extent – from being one of the participants in that trade to being the only one, provided it is justified in doing so.
On behalf of the State it was argued that Article 19(6) of the Constitution indicated, as in its amended state, that the carrying on by the State, or by a corporation owned or controlled by the State, of any trade, business or industry or service, whether to the exclusion, complete or partial, of the citizens or otherwise, was a permissible restriction on an individual's right of trading. [Sagir Ahmad And Ors. vs The Govt. Of The State Of Uttar ... on 17
November, 1953]
1.(b) The Parliament can extend the legislative powers given to it by the
Constitution to formulate laws under special situations to include certain subjects of the State List. Some of the conditions under which the Parliament may extend its powers include the situations explained belowIn the National Interest (Under Article 249)
Proclamation of Emergency (Article 250) in any state by the President.
If two states agree that the Parliament can