TMI Blog2002 (2) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant placed reliance on decisions of the Constitution Bench of this Court in The Corporation of Calcutta Anr. vs. Liberty Cinema (AIR 1965 SC 1107) and M/s.Hoechst Pharmaceuticals Ltd. Anr. vs. State of Bihar Ors. (AIR 1983 SC 1019). It was submitted that compulsory impost could be either by way of tax or fee and that the definition of 'taxation' as found in Article 366 (28) of the Constitution of India and the said cases were not considered in Gasket Radiators (supra). The appeal was, therefore, referred to a Bench of three learned Judges. The Bench of three learned Judges opined that in Gasket Radiators (supra), a concept of impost in the form of compulsory contribution had been given birth to and whether such birth should further multiply was a question touching the interpretation of the Constitution and referred the appeal to a Constitution Bench of five Hon'ble Judges. That is how this appeal has come up before us. Mr.A.K.Jain, the learned counsel appearing for the appellant, contended that the appellant was a purchaser and exporter of fishes and there was no relationship of employer and employee between the appellant and the fishermen as such th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act enables the Government to frame a scheme to be called 'the Kerala Fishermen's Welfare Fund Scheme' (for short, 'the scheme') for the establishment of a fund under the Act by name the Kerala Fishermen's welfare Fund (for short, 'the fund') for the welfare of fishermen and directs that soon after the framing of the scheme the fund shall be established in accordance with the provisions of the Act and the scheme. Various items of amounts which form constituents of the fund and are required to be credited to the fund are enumerated in sub-section (2). Clause (a) of sub-section (2) refers to contributions required to be made under section 4 of the Act. Sub-section (3) directs that the fund shall be vested in and administered by the Board and sub-section (4) enumerates the objects of the fund. They are as under : 3. Fishermen's Welfare Fund Scheme.- (1) to (3) *** *** *** (4) The fund may be utilised for all or any of the following purposes, namely :- (a) to provide for distress relief to fishermen in times of natural calamities; (b) for payment of financial assistance to fishermen who suffer permanent or temporary disablement; (c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant, a dealer under the Act, was served with a notice by the Board under Section 4(2) of the Act for the period 1988-89 to 1994-95 calling upon it to show cause why contribution under Section 4 (2) of the Act should not be demanded from it. It is alleged that without considering the objections, the order of assessment was passed against it on November 30, 1995. This prompted the appellant to challenge the validity of the assessment order and Section 4(2) of the Act, in the aforementioned writ petition in the High Court of Kerala at Ernakulam which was dismissed by the common judgment on August 22/23, 1996. It is against that order that the appellant is in appeal before this Court. Having regard to the objects of the Act, the High Court opined that the fishermen are the ultimate beneficiaries of this benevolent legislation. They fight against the surging waves in the sea for catches of the fishes which after changing hands, reach the exporters for being exported to foreign countries. The fishermen are the backbone of the industry and without them the industry cannot exist and unless they are kept in good humour, the industry cannot nourish or flourish. Therefore, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want. Keeping these constitutional objectives and the Statement of Objects and Reasons in mind it cannot but be said that the Act and the establishment of welfare fund thereunder for requirements of fishermen outlined in sub-section (4) of Section 3 of the Act is a commendable legislation. It will be apt to refer to the observations of Alagiriswami, J. in his concurring opinion in Mangalore Ganesh Beedi Works (supra) : Nobody can dispute the need for setting right those evils. But good intentions should not result in a legislation which would become ineffective and lead to a lot of fruitless litigation over the years. Now adverting to the constitutional validity of the impugned provisions, it must be remembered that Part IV of the Constitution contains, as noticed above, fundamental principles in governance of the country. They indicate and determine the direction for the State but they are not legislative heads or the fields of legislation like the Entries in the Lists I, II and III of the Seventh Sched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnappa Reddy, J. who speaking for the Court observed : In our understanding, Entries 23 and 24 of List III, of their own force, empower Parliament or the Legislature of a State to direct the payment by an employer of contributions of the nature of those contemplated by the Employees' State Insurance Act for the benefit of the employees. In Mangalore Ganesh Beedi Works (supra), the constitutional validity of Sections 3, 4, 2(g), 2(g)(h), 2(m), 26, 27 and 31 of the Beedi and Cigar Workers (Condition of Employment) Act, 1966 was assailed on the ground of lack of legislative competence in the Parliament to enact such a law. Having noticed the special feature of the industry of manufacture of beedi through various categories of workers, the said Act was passed by the Parliament to provide for the welfare of workers in beedi and cigar establishments and to regulate the conditions of their work and for matters connected therewith. A Constitution Bench of this Court held that having regard to the true nature and character of the legislation meant for enforcing better conditions of labour amongst those who are engaged in the manufacture of beedis and cigars, the said Act, in pit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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