fertilizer corporation. kamgar union (regd) v. union of india case brief by Shivansh

 Case brief 108

fertilizer corporation. kamgar union (regd) v. union of india

Court: Supreme Court of India

Issue: Legality of the sale of plants and equipment of the Sindri Fertilizer Factory.

Facts:

- The Sindri Fertilizer Factory sold certain plants and equipment to respondent No. 4, whose tender was accepted by the Tender Committee and approved by the Board of Directors.

- The workers (petitioners) challenged the sale, claiming various issues, including the decision to sell without calling for any report, manipulation of the sale price, unfair restriction on fresh offers, resulting in a loss to the public exchequer, and jeopardizing the employment of workers.

Petitioners' Contentions:

- Petitioners contended that the sale violated their fundamental right under Article 19(1)(g) to carry on their occupation as industrial workers.

- They argued that the sale was arbitrary and unfair, violating the provisions of Article 14 of the Constitution.

Respondents' Objection:

- The respondents raised a preliminary objection to the maintainability of the writ petition, stating that the petitioners lacked locus standi and that the sale did not violate any fundamental rights.

Court's Decision:

- The court dismissed the petition, upholding the respondents' objection.

- The court clarified that the petitioners' right under Article 19(1)(g) to work as industrial workers was not affected by the sale.

- It was ruled that the sale did not violate any fundamental rights, and there was no evidence of arbitrariness, unfairness, or mala fides in the sale process.

- The court emphasized that the jurisdiction of Article 32 is meant to enforce fundamental rights and remedies for their violation. The petitioners' claim lacked a violation of fundamental rights.

Important Points:

- The court stressed the need for judicial review within defined parameters and limitations on interference with administrative decisions.

- It highlighted the importance of liberalizing locus standi for public interest litigation and participation in the justice process.

- The court mentioned that internal management, business activities, and institutional operations of public bodies cannot be subjected to judicial inspection unless there is a violation of fundamental principles of fairness and reasonableness.