Supreme Court Upholds Right to Trade on Public Streets with Regulation — Balances Public Use and Private Business Rights.

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Case Note & Summary

The case involved petitioners claiming the right to engage in street trading on the pavements of Delhi, asserting that they had previously been allowed to do so by municipal authorities. They contended that the refusal to permit them to continue their trade violated their fundamental rights under Articles 19(1)(g) and 21 of the Constitution. The respondents argued that there is no legal right to occupy a specific area on public pavements for trading, emphasizing that streets are meant for public passage. The Supreme Court, while recognizing the right to trade, clarified that this right does not extend to occupying a specific place permanently. The court noted that street trading must be regulated to prevent public nuisance and ensure the streets remain accessible for public use. It held that the Municipal Corporation of Delhi has the authority to permit hawkers but must do so with appropriate regulations. The court directed that a comprehensive scheme be developed to manage street trading effectively, balancing the rights of traders with the need for public order and convenience. The decision underscored the importance of reasonable restrictions on the right to trade in the interest of the public (Paras 1050-1058).

Headnote

A) Constitutional Law - Right to Trade - Fundamental Right to Carry on Trade - Article 19(1)(g) of the Constitution of India - The right to carry on trade or business on public streets is recognized, but it must be regulated to prevent chaos and ensure public convenience. The court held that while individuals have the right to trade, they do not have the right to occupy a specific place permanently (Paras 1052-1053).

B) Municipal Law - Authority of Municipal Corporations - Delhi Municipal Corporation Act, 1957 - The Municipal Corporation has the authority to permit hawkers on sidewalks, but this must be done with proper regulation. The court emphasized the need for a scheme to manage street trading effectively (Paras 1052-1053).

C) Public Interest - Balancing Rights - Article 19(6) of the Constitution - The right to trade is subject to reasonable restrictions in the interest of the public. The court noted that unrestricted trading could lead to public nuisance and chaos (Paras 1052-1053).

D) Regulatory Framework - Necessity for Regulation - The court highlighted the need for a comprehensive scheme to regulate street trading, ensuring that it serves public convenience without obstructing traffic (Paras 1057B-C).

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Issue of Consideration

Whether petitioners have a fundamental right to occupy specific places on public pavements for trading.

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Final Decision

The Supreme Court held that while the petitioners have the fundamental right to carry on trade, they do not have the right to occupy a specific place permanently. The court emphasized the need for regulation of street trading to prevent public nuisance and ensure public convenience. It directed the Municipal Corporation to develop a comprehensive scheme for managing street trading effectively.

Law Points

  • Fundamental rights
  • Article 19(1)(g)
  • Article 21
  • street trading
  • public nuisance
  • reasonable restrictions
  • municipal authority
  • regulatory measures
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Case Details

1989 LawText (SC) (08) 23

Special Leave Petition (C) No. 15257 of 1987

1989-08-30

L.M. Sharma, E.S. Venkataramiah, S. Natarajan, N.D. Ojha, Kuldip Singh

1989 AIR 1988, 1989 SCR (3) 1038, 1989 SCC (4) 155

V.M. Tarkunde, G. Ramaswamy, R.B. Datar, O.P. Sharma, Dr. L.M. Singhvi, A.K. Sen, R.C. Gubrele, R.K. Maheshwari

Sodan Singh etc.

New Delhi Municipal Committee & Anr.

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Nature of Litigation

Special leave petitions and writ petitions regarding street trading rights.

Remedy Sought

Petitioners sought the right to occupy specific places on pavements for trading.

Filing Reason

Claim of violation of fundamental rights under Articles 19(1)(g) and 21.

Previous Decisions

Delhi High Court dismissed their claims, leading to the appeal.

Issues

Whether petitioners have a fundamental right to occupy specific places on public pavements for trading. The extent of municipal authority to regulate street trading.

Submissions/Arguments

Petitioners argued for the right to trade on pavements as a fundamental right. Respondents contended that streets are for public passage, not for private business.

Ratio Decidendi

The right to trade on public streets is recognized but must be regulated to prevent chaos and ensure public convenience. The right does not extend to occupying a specific place permanently.

Judgment Excerpts

The right to carry on trade or business mentioned in Article 19(1)(g) of the Constitution, on street pavements, if properly regulated, cannot be denied. The Municipal Corporation has full authority to permit hawkers and squatters on the side walks where they consider it practical and convenient.

Procedural History

The petitioners filed special leave petitions against the judgments of the Delhi High Court dismissing their claims regarding street trading rights. The cases were placed before a larger bench due to the challenge of a previous decision.

Acts & Sections

  • Constitution of India: Article 19(1)(g), Article 21
  • Delhi Municipal Corporation Act: Section 3
  • Punjab Municipal Act: Section 173, Section 188
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