Article 305 of the Costitution of India with Case law
Here is a detailed explanation of Article 305 of the Constitution of India, along with relevant case law:
📜 Article 305 – Constitution of India
"Savings of existing laws and laws providing for State monopolies"
✅ Text of Article 305 (Simplified):
Nothing in Articles 301 or 303 shall prevent the State from:
Carrying on any trade, business, industry or service (whether to the exclusion of citizens or otherwise), or
Making any law for that purpose.
👉 Provided that:
No law shall be made under this Article that violates Article 301 (freedom of trade) unless it is reasonable and in the public interest.
🔍 Context & Related Articles:
| Article | Subject |
|---|---|
| Article 301 | Freedom of trade and commerce across India |
| Article 303 | Prohibits discrimination between states in trade |
| Article 305 | Exception: allows state monopolies and existing laws even if they restrict trade |
🧾 Key Points About Article 305:
| Feature | Description |
|---|---|
| Scope | Permits state-owned monopolies or exclusive control in trade |
| Protection | Protects existing laws (before Constitution came into force) and allows future laws too |
| Limitation | Must not violate freedom of trade (Art. 301) unless reasonable and in public interest |
| Purpose | Balancing free trade with governmental regulation or ownership |
⚖️ Important Case Laws on Article 305:
1. R.M.D. Chamarbaugwala v. Union of India
Citation: AIR 1957 SC 628
Context: Whether state monopolies violate free trade under Article 301.
Held: State can create monopolies in trade, and such action is protected under Article 305.
Relevance: Upheld constitutional validity of state-controlled enterprises.
2. Atiabari Tea Co. Ltd. v. State of Assam
Citation: AIR 1961 SC 232
Facts: Assam taxed transport of tea through its territory; question of whether it violated Article 301.
Held: Article 301 guarantees freedom of trade, but Article 305 allows reasonable restrictions including those for state monopolies.
Relevance: Article 305 is a safeguard for states' power in trade.
3. K.K. Kochunni v. State of Madras
Citation: AIR 1959 SC 725
Context: Challenged land law that affected rights in princely states.
Held: A law in existence before the Constitution is protected under Article 305 even if it restricts trade.
Relevance: Article 305 saves pre-Constitution laws that may seem restrictive.
4. State of Gujarat v. Shri Ambica Mills Ltd.
Citation: AIR 1974 SC 1300
Facts: Challenged a Gujarat law granting the state monopoly over textile trade.
Held: Laws enabling state monopolies are valid under Article 305 if made in public interest.
Relevance: Confirmed public interest test for validity of restrictive trade laws.
📚 Summary Table:
| Feature | Details |
|---|---|
| Purpose | To protect state-run trade/industry from invalidation under free trade provisions |
| Protects | (1) Existing laws before Constitution |
(2) **State monopolies**, if in public interest |
| Judicial review? | Yes — courts can examine whether the restriction is reasonable and in public interest |
| Limitation | Must not be arbitrary or discriminatory |
🧠 Why Article 305 Matters:
Balances free market with state regulation
Allows government to control essential sectors (e.g., petroleum, electricity, transport)
Protects PSUs and exclusive government operations from legal challenge under free trade clauses
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