Supreme Court Declares State Orders Unconstitutional in Pension Scheme for Journalists — Invalidates 5% Deduction from Advertisement Bills.

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Case Note & Summary

The case involved a writ petition filed by Hindustan Times and others against the State of Uttar Pradesh, challenging the validity of two orders that mandated a 5% deduction from advertisement bills for a pension scheme for journalists. The petitioners contended that the deductions were unconstitutional as they were not backed by any legislative authority, given that the matter of pension for journalists was governed by the Working Journalists and other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955. The respondents argued that the scheme was a welfare measure for journalists and that the petitioners could choose not to accept government advertisements if they disagreed with the deduction. The court analyzed the legislative competence of the State, concluding that the State could not impose such a deduction without a valid law, as it encroached upon a matter already covered by central legislation. The court further held that the deduction constituted a deprivation of property without authority of law, violating Article 300A of the Constitution. Additionally, the court recognized that the imposition of the deduction would adversely affect the financial viability of newspapers, infringing upon their freedom of speech and expression under Article 19(1)(a). Ultimately, the Supreme Court declared the impugned orders unconstitutional and void, allowing the writ petition without any order as to costs.

Headnote

A) Constitutional Law - Legislative Competence - Imposition of Tax or Fee - Constitution of India, 1950, Article 162 - The State of Uttar Pradesh lacked legislative competence to impose a 5% deduction from advertisement bills as it encroached upon the field covered by the Working Journalists and other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955. The court held that the impugned orders were unconstitutional as they were beyond the legislative powers of the State. (Paras 4-5).

B) Constitutional Law - Right to Property - Deprivation of Property - Constitution of India, 1950, Article 300A - The deduction imposed by the State without legislative authority constituted deprivation of property without the authority of law. The court emphasized that any such action must be supported by a valid law, which was absent in this case. (Paras 5-6).

C) Constitutional Law - Freedom of Speech - Impact on Newspaper Operations - Constitution of India, 1950, Article 19(1)(a) - The imposition of the deduction directly affected the financial viability of newspapers, thereby infringing upon the freedom of speech and expression. The court recognized the essential role of advertisements in sustaining newspapers and held that restrictions on advertisement revenue would violate fundamental rights. (Paras 6-7).

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Issue of Consideration

Whether the State of Uttar Pradesh had the legislative competence to impose a 5% deduction from advertisement bills for a pension scheme for journalists.

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Final Decision

The Supreme Court declared the impugned orders dated 24th September, 1991 and 16th October, 1991 unconstitutional and void, allowing the writ petition without any order as to costs.

Law Points

  • Constitutional validity
  • legislative competence
  • pension scheme
  • executive power
  • taxation
  • freedom of speech
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Case Details

2002 LawText (SC) (11) 32

Writ Petition (civil) 328 of 1992

2002-11-01

V.N. Khare, S.B. Sinha

Hindustan Times & Ors.

State of U.P. & Anr.

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Nature of Litigation

Writ petition challenging the validity of state orders imposing a deduction from advertisement bills.

Remedy Sought

Petitioners sought to declare the state orders unconstitutional.

Filing Reason

Petitioners objected to the 5% deduction from advertisement bills for a pension scheme.

Issues

Whether the State had the legislative competence to impose a deduction from advertisement bills. Whether the deduction infringed upon the petitioners' rights under the Constitution.

Submissions/Arguments

Petitioners argued that the deduction was unconstitutional and beyond the State's legislative powers. Respondents contended that the scheme was a welfare measure and that petitioners could choose not to accept government advertisements.

Ratio Decidendi

The State lacked legislative competence to impose a deduction from advertisement bills for a pension scheme, which was governed by central legislation. The deduction constituted deprivation of property without authority of law and infringed upon the freedom of speech and expression.

Judgment Excerpts

The impugned orders were beyond the legislative competence of the State. The deduction constituted deprivation of property without authority of law. The imposition of the deduction directly affected the financial viability of newspapers.

Procedural History

The writ petition was filed under Article 32 of the Constitution of India challenging the validity of orders issued by the State of Uttar Pradesh regarding deductions from advertisement bills.

Acts & Sections

  • Working Journalists and other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions Act:
  • Constitution of India: Article 32, Article 14, Article 19(1)(a), Article 300A, Article 162
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