Article 302 of the Costitution of India with Case law

📜 Article 302 of the Constitution of India

Title: Power of Parliament to impose restrictions on trade, commerce and intercourse

Text of Article 302:

"Parliament may by law impose such restrictions on the freedom of trade, commerce or intercourse between one State and another or within any part of the territory of India as may be required in the public interest."

🧠 Explanation:

Article 302 gives Parliament the power to restrict the freedom of trade and commerce guaranteed under Article 301.

However, such restrictions must be justified as being in the "public interest".

It provides flexibility to manage national-level economic, security, or environmental concerns.

⚖️ Leading Case Laws on Article 302:

1. Atiabari Tea Co. Ltd. v. The State of Assam

Citation: AIR 1961 SC 232
Facts: Assam imposed a tax on transportation of tea. The question was whether this violated Article 301 and if it could be saved under Article 302.

Held:

Freedom of trade (Article 301) is not absolute.

Parliament can impose reasonable restrictions under Article 302 if done in public interest.

But States cannot do so without following Article 304.

Key Principle: Article 302 is an enabling provision, but the restriction must be reasonable and for public good.

2. State of Madras v. N. Sheshiah

Citation: AIR 1954 Mad 482
Held:

Confirmed that Article 302 empowers only Parliament, not State Legislatures.

Any restriction must not be arbitrary or disproportionate.

3. Jindal Stainless Ltd. v. State of Haryana

Citation: (2017) 12 SCC 1
Facts: The case dealt with entry tax and its constitutional validity under Articles 301–304.

Held:

The Court reaffirmed that free trade across states is a constitutional right under Article 301.

Restrictions under Article 302 by Parliament are permissible, but must be based on public interest, and be non-discriminatory.

🔍 Scope and Limits of Article 302:

AspectDescription
Who can restrict?Only Parliament, not State legislatures.
What can be restricted?Trade, commerce, and intercourse between states or within India.
When is restriction valid?Only if it is in the public interest.
Judicial Review?Yes, courts can assess whether restriction truly serves public interest.

🔁 Related Constitutional Provisions:

ArticleRelevance
Article 301Guarantees freedom of trade and commerce throughout India.
Article 303Prohibits discriminatory trade laws between states.
Article 304Allows states to impose reasonable restrictions on trade with conditions.

📚 Summary Table:

FeatureDetails
Article302
Empowered BodyParliament of India
PurposeTo impose trade restrictions in public interest
LimitationRestrictions must be reasonable and non-discriminatory
Key CasesAtiabari Tea Co., Jindal Stainless Ltd., N. Sheshiah
Judicial Review?Yes

 

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