Case Note & Summary
The case involved a writ petition filed by the Nair Service Society challenging the State of Kerala's notification regarding the identification of the 'creamy layer' among backward classes. The Society contended that the State's acceptance of the Narendran Commission's report violated the Supreme Court's earlier judgments, particularly in Indra Sawhney-I and II, which mandated the exclusion of the creamy layer from the benefits of reservation. The Supreme Court had previously directed that the creamy layer should be identified based on income criteria, and the State's failure to comply with these directives led to contempt proceedings. The Court noted that the State of Kerala had enacted the Kerala State Backward Classes (Reservation of Appointments or Posts in the Services Under the State) Act, 1995, which was later struck down for being unconstitutional. The Court also highlighted that the Narendran Commission's report, which proposed to include more individuals under the reservation scheme, did not adhere to the established guidelines. The Court emphasized that the identification of the creamy layer must be realistic and based on social and economic advancement, and it criticized the arbitrary nature of the State's actions. Ultimately, the Court upheld the writ petition, asserting that the State must comply with the principles laid down in its previous judgments regarding the creamy layer's identification and reservation benefits.
Headnote
A) Constitutional Law - Reservation Policy - Identification of 'Creamy Layer' - Article 16(4) of the Constitution of India - The Court emphasized the necessity of excluding the 'creamy layer' from backward classes to ensure that benefits of reservation reach the truly backward members. It held that the State must adhere to the guidelines established in previous judgments regarding the identification of the creamy layer (Paras 1-8). B) Contempt of Court - Non-compliance with Supreme Court Orders - The State of Kerala was found guilty of contempt for failing to implement the Supreme Court's directives regarding the creamy layer. The Court provided the State with an opportunity to comply with its orders before imposing sanctions (Paras 9-12). C) Judicial Review - Validity of Commission's Terms of Reference - The Court scrutinized the terms of reference of the Narendran Commission, asserting that they must align with the principles laid down in earlier judgments. It ruled that the criteria for identifying the creamy layer must not favor any particular section arbitrarily (Paras 13-20).
Issue of Consideration
Whether the State of Kerala's notification regarding the identification of 'creamy layer' among backward classes complied with the Supreme Court's directives.
Final Decision
The Supreme Court upheld the writ petition, ruling that the State of Kerala's notification regarding the creamy layer was unconstitutional and did not comply with the directives laid down in previous judgments. The Court emphasized the need for the State to adhere to the established criteria for identifying the creamy layer and directed that the recommendations of the Joseph Committee should be implemented until the State formulates its own criteria.
Law Points
- Reservation policy
- creamy layer identification
- constitutional validity
- contempt of court
- backward classes
- judicial review


