Case Note & Summary
The dispute arose from a Writ Petition filed by Zippers Karamchari Union under Article 32 of the Constitution of India, challenging the approval granted to YKK Corporation for setting up integrated plants for manufacturing zip fasteners in India. The petitioners, claiming to represent various trade unions, argued that the zip fastener industry had been reserved for small scale industries since 1971 and that the Central Government's decision to dereserve this sector for YKK was illegal. They contended that the notification allowing YKK to establish an integrated plant violated the provisions of the Industries (Development and Regulation) Act, 1951, particularly Section 29-B, which aimed to protect small scale industries. The petitioners highlighted that the zip fastener industry had been operational in India since 1949 and that many small scale units were successfully competing in the market. The court examined the legality of the Notification No.S.O. 309(E) dated May 30, 1986, which allowed for the establishment of integrated plants. The court noted that the notification was based on recommendations from an Advisory Committee and aimed to improve the quality of zip fasteners to compete in the international market. The court found that the integrated plant was a distinct category and did not violate the provisions of the Act. The court dismissed the petition, stating that the approval granted to YKK was neither illegal nor irrational, and that the concerns raised by the petitioners regarding job losses were unfounded given the existing market dynamics. The court concluded that the petitioners had not made a case for the relief sought, leading to the dismissal of the writ petition.
Headnote
A) Constitutional Law - Article 32 - Writ Petition for Mandamus - The petitioners sought to quash the permission granted to YKK for setting up integrated plants for manufacturing zip fasteners, alleging violation of the Act. The court held that the approval was valid and did not violate the provisions of the Act, as the integrated plant was a separate category from small scale industries (Paras 1-27).
Issue of Consideration
Whether the approval granted to YKK for setting up integrated plants for manufacturing zip fasteners violated the provisions of the Industries (Development and Regulation) Act, 1951.
Final Decision
The Supreme Court dismissed the Writ Petition, holding that the approval granted to YKK was valid and did not violate the provisions of the Industries (Development and Regulation) Act, 1951. The court found no merit in the petitioners' claims regarding job losses and the legality of the notification.
Law Points
- Article 32
- Industrial Policy
- Foreign Investment Promotion Board
- small scale industry
- dereservation
- Notification No.S.O. 309(E)
- Section 29-B
- Constitution of India
