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INDER MAL JAIN & ANR. ETC versus UNION OF INDIA & ORS. ETC.

Citation: [1984] 1 S.C.R. 1016 · Decided: 08-12-1983 · Supreme Court of India · Bench: D.A. DESAI · Disposal: Dismissed

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Judgment (excerpt)

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1016 
INDER MAL JAIN & ANR. EtC . 
v. 
UNION OF INDIA & ORS. ETC. 
December 8, 1983 
(D.A. DBSAI, R.B, MISRA, R~NGANATH MISRA, JJ.J 
The lndian 
Railways 
Act, 1890-Sec. J/4A-Valldity of-Whether 
u/tra-rlres Art. 1,9(1) (g) of Constitution of lndia. 
The Railway Tourist Agent Rules, 1980-Va/idity of-Conditl~hs prescri-
. bed for becoming authorised agent-Whether 
arbitra~y, unreasonable and 
irre/evant--Whether the R1tles ultra vir~s the Act and Art. 19(1) (g) of th' 
Constituaon. 
The petitioners who claimed to be carrying on the •business as railway· 
travel agents and rendering service to the travelling public.in booking U class 
. seats and berths· in various passanger trains, challenged the validity of sec. 
114A of lhe Indian Railways Acl, 1890 as being ultra-vires Art. 19(1) (g) of the 
Constitution and also the validity of the Railwey Tourist Agent Rules, 1980 as 
ultra-vires the Act, and Art. 19(1) (g) of the Constitution on the ground that 
the Rules and the Act placed unreasonable restrictions on the petitioners', 
right to carry on their lawful business guaranteed by Art. 19(1) (g) of the 
Constitutiion. The petitioners argued that the conditions· of eligibility prescribed 
in the Rute·s for obtaining status of authorised agents in their cumulative 
effect were impossible of compliance and were so deliberately drawn up as to 
. help and encourage wealthy commercial heavy-weights to -obtain recognition' 
sim_ultaneously denying the same opportunity to persons like the petitioners 
who cater to the needs of the. common man. The petitioners urged that 
railways earn bulk of their revenue from second class travelling passengers and 
they were the most neglected and to such needy persons, petitioners were 
affording some respite from standing in queues for hours, to be jostled out by 
shuttiog the ticket window in their face. It was -Eilso stated that the court 
should be realistic in taking note of the prevailing corruption in booking 
railway tickets which would be further accentuated if every intending 
passeng~r had to stand in the queue for hours and return empty-handed. 
Dismissing the petitions, but directing th~ Railway Board to prepare an 
appropriate scheme, 
HELD : If a privilege is granted to do a certain thing, it would be open 
to prescribe conditions for enjoying the privilege. The railway administration 
alone should ordinarily sell its tickets. 
Sec. 66 of the Act enables the 
administration to appoint authorised agents for sale of tickets. These autho· 
JisCd agents must. of necessity fulfil cert~in criteria. The criteria appear to 
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lNDER MAL v. UNION (lJesai, J.) 
1017 
have been devised with an eye on extending facility, to foreign· travellelleri as · 
well as the financial viabi1lty to &ccurc against failute to pay for tickets sold by 
recognised agents. With this end in view, the conditions for minimum financial 
guarantee and having a Money Changer's licence and other allie4 conditions 
were prescribed. Intcndment widerlying the scheme of setting up authorised 
agents is not only to check sharp practices, curb fleecing of guUiblc passengers, 
.,,,. but render efficient service. The Rules cnsurC fulfilment of the intendmcnt 
underlying the impugned provisions. Viewed froµi this angle, the conditions 
are neither irrelevant nor arbitrary. It is ·stated· by the respondents that as 
many as 17 agents have been &iven the status of authprised railways tourist 
aa;cnts in Delhi alone. This is n.ot controverted. Theeefore, the condi~ons 
are capable of being complied with. Failure or inability of some of tbc 
petitioners to comply with thetll would not be sufficient to reject them as 
unreasonable, arbitrary or irrelevant. -The conditions are reasonable and are 
conducive to ihc objects sought to be achieved. (1022 A-El 
Ramtfna Dayaram Shetty v. The International Airport Authority of India 
and Ors. (1979] 3 S.C.R. 1014 and M/s Kasturl/al Lakshmi Reddy and Ors. v . 
. State of Jammu and Kashmir and Anr., [1980) 4 S.C.C. I refeired to. 
Sec. 114A of the Act merely prescribes punishment for ,_unauthorisedly 
. carrying on of'business of procuring and supplying rai1way tickets. ·I_~ sec. 66 
envisages appointmen~ of authorised agents obviously anything to the contrary 
would be contravention of sec. 66 and if it is made punishable under sec. 114A 
of the Act. the section would not be ultra "Vires_ the Constitution. [1023F] 
· An agency has to be devise

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