Freedom of Trade, Commerce and Intercourse ( Article 301-306 ) and Freedom of Trade Article 19 ( 1 ) ( g ),
Introduction: Trade has always been important because no country or State can produce all the products of its need. For this reason, we need Regulations and laws governing, managing, and facilitating trade, so that the public utility of trade, commerce, and intercourse increases.
Provisions in Indian Constitution: the freedom of trade commerce and intercourse is provided in part 13 of the Indian constitution from articles 301 to 307.
Freedom of Trade Commerce and Intercourse
Article 301 deals with the general principle of trade commerce and intercourse.
➤ Article 301 deals with the general principle of trade commerce and intercourse
➤ Article 302 – Article 305 deals with the restrictions on trade commerce and intercourse
➤ Article 306 ( repealed )
➤ Article 307 deals with the appointment of authority for carrying out the purposes of articles 301-304.
These provisions were adopted from the Australian constitution.
Objectives of such provisions :
To encourage the free flow of trade and Commerce
To maintain stability and public utility
To maintain economic unity and integration of the nation.
41. Trade and commerce with foreign countries; import and export across customs frontiers; definition of customs frontiers.
42 . Inter-State trade and commerce.
43. Incorporation, regulation, and winding up of trading corporations, including banking, insurance, and financial corporations, but not including co-operative societies.
44. Incorporation, regulation, and Incorporation, regulation, and winding up of corporations, whether trading or not, with objects not confined to one State, but not including universities.
45. Banking.
46. Bills of exchange, cheques, promissory notes, and other like instruments.
47. Insurance.
Objectives of such provisions :
➤ To encourage the free flow of trade and Commerce
➤to maintain stability and public utility
➤ to maintain economic unity and integration of the nation
➤ to promote economic balance and fair trade
➤ to reduce the barriers between the States as much as possible so that the people feel that they are members of the same country though living in different geographical areas of the nation.
Analysis of article 301: at the time when article 301 was being drafted there were two models before the constitution maker
• one is the American model and Analysis of article 301: at the time when article 301 was being drafted there were two models before the constitution maker
• one is the American model and
• another one is the Australian model But the constitutional maker accepted the Australian model with two acceptable changes
firstly, the word exclusive has been used in section 92 of the Australian constitution and is not used in article 301 of our constitution. Hence, freedom of trade, commerce, and intercourse is not exclusive in India. secondly, Unlike the Australian constitution, India has freedom of trade, commerce, and intercourse both interstate and intrastate.
Article 301: it is stated that [ subject to articles 302 to 305 ] trade, commerce, and intercourse throughout the Indian territory shall be free.
➤ Trade: buying or selling of goods excluding the manufacturing process
➤ Commerce: all forms of transportation either by land or air or water
➤ Intercourse: movement of goods from one place to another place
The State of Bombay V. R. M. D. Chamarbaugwala ( 1957 ): it was held that all activities of criminal nature or those activities which are undesirable would not be given protection under article 301. For example, lottery, gambling, trafficking of women and children, hiring of Gundams, terrorists, etc. So, the bar on these illegal activities was upheld in this case.
‘State Of Mysore vs H. Sanjeeviah 1967 Facts: In the case, the government under the Mysore Forest Act, 1900, made a law banning the movement of forest produce between sunrise and sunset.
Issue: Whether it was violative of the freedom guaranteed by Article 301 of the Constitution?
Judgment: The Supreme Court held the law void. It remarked that such a law was restrictive and not regulatory thus violative of the freedom provided under Article 301.
Article 301: it is stated that [ subject to article 302 to 305 ] trade, commerce, and intercourse throughout the Indian territory shall be course throughout the free.
➤ Trade: buying or selling of goods excluding the manufacturing process
➤ Commerce: all forms of transportation either by land or air or water.
➤ Intercourse: movement of goods from one place to another place
The State of Bombay V. R. M. D. Chamarbaugwala ( 1957 ): it was held that all activities of criminal nature or those activities which are undesirable would not be given protection under article 301.
For Restrictions on Article 301: article 301 enacts a general rule that the trade, commerce, and intercourse throughout the Indian territory shall be free. But article 302 to 305 imposes a restriction on this right.
Article 302 empowers the Parliament to impose restrictions on freedom of trade commerce and intercourse if it is in the Public Interest to do so.
This power of parliament under Article 302 is limited by article 303.
Article 303 states that if Parliament imposes any restriction on article 301, it shall not
• discriminate between any state.
• favor between any state.
a ) State should impose taxes on any good transported or imported from other states if a like good is taxed in that state too.
b ) state can impose certain reasonable restrictions on the freedom of trade, Commerce, and Intercourse for the public interest. But no bill or amendment for such shall be put forward in the state legislature without the prior approval of the president of India.
Automobile Transport Ltd vs the State of Rajasthan, ( 1962 ): There is a difference in the language used in Articles 302 and 304 as the restrictions under the former section need not be reasonable but for the latter section, the restrictions must be reasonable but for a later section, the restrictions must be reasonable.
Article 305: saves already framed laws and laws provided for state Monopoly. So, under article 305 it has been clarified that despite the freedom of trade, commerce, and intercourse the state can establish a Monopoly in the field of trade because under article 305 protection has been given to the laws establishing the Monopoly.
Conclusion: so, it can be concluded that as our country is one of the major economies in the world therefore it is important to regulate the
Provisions in Indian Constitution: the freedom of trade commerce and intercourse is provided in part 13 of the Indian constitution from articles 301 to 307
➤ Article 301 deals with the general principle of trade commerce and intercourse
➤ Article 302 – Article 305 deals with the restrictions on trade commerce and intercourse
➤ Article 306 ( repealed )
➤ Article 307 deals with the appointment of authority for carrying out the purposes of articles 301-304.
These provisions were adopted from the Australian constitution.
Difference between Article 301 and Article 19 ( 1 ) ( g )
Article 301
1. Article 301 under part XIII empowers the free flow of the stream of trade throughout the Indian territory.
2. Right under article 301 is Constitutional.
3. Right under article 301 can be claimed by any person.
4. Article 302 to 305 imposes restrictions on Article 301.
Article 19 (1) (g)
1. Article 19 ( 1 ) ( g ) under part III provides freedom d practice any occupation, trade, or Business.
2. Right under article 19 ( 1 ) ( g ) is a fundamental right.
3. Right under article 19 ( 1 ) ( g ) are only available to an Indian citizen.
4. Article 19 ( 1 ) ( g ) can be restricted by the State by virtue
Although there are some points differences between article 301 and article 19 ( 1 ) ( g ) but both of them can be said to be interrelated in some aspects because both the articles share similar objectives and are supplementary to each other.
The State Of Bombay V. R. M. D. Chamarbaugwala ( 1957 ): the Supreme Court of India observed that article 301 and article 19 ( 1 ) ( g ) are two facets of the same thing that is freedom of trade.
Automobile Transport Ltd vs the State of Rajasthan, ( 1962 ): article 19 ( 1 ) ( g ) looks at the matter from the point of view of individual rights to carry on their trade or business while article 301 looks at the matter from the point of view country’s trade and Commerce as a whole.
Conclusion :
so, it can be concluded that as our country is one of the major economies in the world therefore it is important to regulate trade, commerce, and intercourse which is an essential part of the economy. So, it becomes more useful and beneficial for the economic growth of our Nation and public utility. Article 301 provides freedom of trade commerce and intercourse but this right is not absolute, restrictions can be imposed upon the such right by virtue of article 302 305. So that it can be ensured that the right under Article 301 is being exercised legally or not.
