High CourtDivision BenchDisposed of

AZAD RICKSHAW PULLERS UNION (REGD.) CH. TOWN HALL, AMRITSAR & ORS. v. STATE OF PUNJAB & OTHERS

Case / Petition Number:Writ Petition Nos. 839/79 and 563/79
Neutral Citation:1981 SCR 367

Case Details & Bench

Court
High Court
Hon'ble Judges
  • V. R. Krishna Iyer
  • R. S. Pathak
  • Chinnappa Reddy
Judgment Date
1980-08-05
Court Decision / Holding
The writ petitions are disposed of in terms of the scheme laid out by the Court: (a) license verification by the Municipal Commissioner and issuance of a certificate within a month of application, (b) applicants to seek Guarantee Scheme-backed loans from a scheduled bank (up to Rs. 900, with higher sums in special cases), (c) initial deposit (Rs. 50) and bank financing of ~95%, (d) repayment over 15 installments with possible relief on interest in normal cases, (e) seasonal nomination of substitutes for agricultural work, (f) the union to run a repair workshop and provide rickshaw stands, (g) exploration of scooters as an alternative, (h) cooperation among State, banks, and the Union to implement the plan. The petitions are thus disposed of with approval of the constructive, social-justice oriented scheme.
Final Disposition
Disposed of

Parties to the Case

Appellants / Petitioners

  • AZAD RICKSHAW PULLERS UNION (REGD.) CH. TOWN HALL, AMRITSAR & ORS.

Respondents

  • State of Punjab
  • Others

Legal Representation & Advocates

Counsels for Petitioners

  • • V. M. Tarkunde
  • • E. C. Agarwala
  • • R. S. Sharma
  • • S. M. Ashri

Counsels for Respondents

  • • O. P. Sharma
  • • R. C. Bhatia
  • • Naunit Lal

Case Synopsis & Summary

Azad Rickshaw Pullers Union (Regd.), Amritsar, and others challenged the Punjab Cycle Rickshaws (Regulation of Rickshaws) Act, 1976 (Punjab Act 41 of 1975) as a scheme that unnecessarily deprives owners of licenses and potentially harms the livelihood of cycle rickshaw pullers. The Supreme Court frames a pro-poor, socially oriented approach, emphasizing that courts should be havens of refuge for the toiler and should uphold measures translating into living law and social justice under Article 38 of the Constitution. Rather than striking down the statute, the Court constructs an enabling, time-bound scheme to realize the Act’s objectives: licensees who were licensed within one year of the Act’s coming into force may apply to the Municipal Commissioner within one month for a certificate proving license; upon verification, they may seek a loan under the Credit Guarantee Corporation of India (Small Loans) Scheme, 1971, from a scheduled bank to purchase a cycle rickshaw. The scheme contemplates a deposit (Rs. 50), bank finance up to 95% of the loan, and repayment in 15 installments; in agricultural seasons, licenses may be issued to vetted surrogates. The Court also envisions a workshop, repair facilities, rickshaw stands, and potential scooter replacements, aiming to convert workers into owners. The matter is disposed of in terms of this scheme, with agreements among the State, banks, and the Union, and with the bench expressing approval of the plan.”

Provisions of Law Cited

Constitution of India, Articles 32 and 38Punjab Cycle Rickshaws (Regulation of Rickshaws) Act, 1976 (Punjab Act 41 of 1975)Section 3(1) of Punjab Cycle Rickshaws Act, 1976Section 3(2) of Punjab Cycle Rickshaws Act, 1976Punjab Municipal Act, 1911Credit Guarantee Corporation of India (Small Loans) Guarantee Scheme, 1971

Legal Doctrines & Maxims

  • Court are havens of refuge for the toiler, not the exploiter, for the weaker claimant of social justice
  • Judicial engineering towards this goal is better social justice than dehumanised adjudication on the vires of legislation
  • Self-ownership substituted
  • Justice without power is inefficient; power without justice is tyranny
  • The quality of life of the weakest in society is the true measure of social justice

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners challenged the Punjab Act on grounds of constitutional vires and sought relief recognizing that any licensing ban should be accompanied by a viable, welfare-oriented framework to uplift rickshaw pullers. They pressed for a scheme enabling licensees to acquire ownership of the rickshaws through credit facilities and state-supported infrastructure, ensuring a durable livelihood rather than mere prohibitory measures.

Contentions of Respondents

The State defended the Act as a humane instrument to eradicate exploitation by middlemen, arguing that positive rescue measures could and should be integrated to make the ban workable without undermining social justice.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A \ #### c 366 AZAD RICKSHAW PULLERS UNION (REGD.) CH. TOWN HALL. AMRITSAR & ORS. ETC. _v._ STATE OF PUNJAB & OTHERS _Augu$1_ _5,_ 1980 ##### [V. R. KRISHNA IYER, R. s. PATHAK & o. CHINNAPPA REDDY, JJ.] _Constitution_ _of India_ 1950, _Articles_ 32 _and_ 38 & _The Punjab Cycle Rickshaws_ _(Regulation_ _of_ _Rickshaws) Act,_ _1976-Court_ _fra1;ning_ _scheme for cycle rickshaw_ _drivers._ The Punjab Cycle Rickshaws (Regulation of Rickshaws) Act, 1976 (Punjab Act 41 of 1975), was designed to regulate the issue of licenses to actual drivers of cycle rickshaws, plying within the municipal areas of the State. The petitioners in their Writ Petitions challenged the Act. D HELD : (Per Krishna Iyer & Chinnappa Reddy, JJ. Pathak J. agreeing with the scheme of directions framed). E F G H _A:_ The Court framed the following sc.heme : (a) Every rickshaw puller including every petitioner, who has beer{ a licensee within one year of the coming into force of the Act shall be entitled to apply to, the Municipal Commissioner for a ~erti­ ficate or other document to the effect that he has been a licensee for rickshaw pulling. [369 Fl (b) The Municipal Commissioner will verify the records and will .;irant ~ the necessary certificate or other document within one month from the date of the application. [369 G] (c) On receipt of the municipal certificate the rickshaw puller will apply to the Credit Guarantee Corporation of India (Small Loans) under the Guarantee Scheme of 1971 for advance of a loan upto Rs. 900. [369 H-370 Al (d) The loan amount shall be repaid by the rickshaw puller in 15 monthly instalments. If there are delayed payments of instalments of Joan, higher rate of interest will be recoverable. [370 FJ (e) When the rickshaw pullers during the agricultural season go to work in their fields, they shall nominate other rickshaw ·pullers without employment to ply ·the rickshaws during that, season. The Municipal Commissioner, if satisfied that the nomination made is bona fide will issue licence to such pullers or nominees of the licensed rickshaw pullers, in the agricultural season. [370 H-371 Al B. (1) Under the Constitutional system courts are· havens of refuge for the toiler, not the exploiter, for the weaker claimant of social justice, not the stronger pretender who seeks to sustain the _status_ _quo ante_ by judicial wri~ in the name of fundamental rights. [367 El AZAD RICKSHAW PULLERS UNION _v._ PUNJAB _(Krishna Iyer,_ _J.)_ 367 (2) No higher duty or more solemn responsibility rests upon this Court . than to uphold every State measure_ that translates into living law . the pre~mbular promise of social j~stice reiterated in Artfcle 38 '. of the Constitution. [F] ' (3) The success of well-meant statutory schemes depends on the sym- : ·- biosis of legislative embargo on exploitative working conditions · and viable facilities or acceptable alternatives whereby shackles are shaken off and self-ownership substitJted. Judicial engineering to-. wards this goal is better social justice than, dehumanised adjudication on the vires of legislation. [ll-368 A] A,, B· ###### c, ·ORIGINAL JURISDICTION : Writ Petition Nos. 839 and 563 /79. (Under Article 32 of the Constitution) _V._ _M._ _Tarkunde_ and _E. C.-Agarwala_ for the Petitioner in W. P. No. 839/79. _R._ S. _Sharma_ and S. _M._ _Ashri_ for the Petitioner in W.P. No. 563 / _19._ _0. P._ _Sharma_ and _R._ C. _Bhatia_ for the RR. No. 1 in WP Nos. 839 D and 563. _Naunit Lal_ for RR 2 in WP Nos. 839 and 563, The ·following Judgments were delivered : # t KRISHNA IYER, J.-The challenge in these writ petitions compel us to remind ourselves that under our constitutional system courts :are havens of refuge for _the toiler, not the exploiter, for the weaker daimant of social justice, not the stronger pretender who seeks to \'lustain the _status quo ante_ by judicial writ in the name of fundamental right. No higher duty or more solemn responsibility rests upon this court than to uphold eve!)'. State measure that translates into living law the preambular promise of social justice reiterated in Article 38 of the Constitution. We might have been called upon to examine '€rom this angle of constitutionalised humanism, the vires cf the Punjab Cycle Rickshaws (Regulation of Rickshaws) Act, 1976 (Punjab Act 41 of 1975) (the Act for short), desi~ed to deliver the tragic tribe 0f rickshaw pullers, whose lot is sweat, toil, blood and teats, from the exploitative clutches of cycle rickshaw owners by a statutory ban on i1on-owner rickshaw drivers. But negative bans, without supportive schemes, can be a remedy aggravating the malady. For, the hungry "human animal, euphemistically called rickshaw puller, loses, iµ the name of mercy, even the opportunity to slave and live. So, the success of such well-meant statutory schemes depends on the symbiosis of legislative embargo on exploitative working conditions and viable faci lities or acceptable alternatives ·whereby shackles are shaken off and E F G ~H I! B ##### c D E F 368 SUPREME COURT REPORTS [I98fl 1 S;C.R.. _J_ self-ownership substituted. Judicial engineering towards this goal is better social justice than dehumanised adjudication on the vires of legislation. Court and counsel agreed on this constructive approach and strove through several adjournments, to mould a scheme of acquisition of cycle rickshaws by licensed rickshaw pullers without financial hurdles, suretyship problems and, more than all, that heartless enemy, at the implementational level of all progressive projects best left unmentioned. Several adjournments, several formulae and several modifications resulted in reaching a hopefully workable proposal. In fairness to the State, we must mention that when the impugned legislation was enacted Government had such a supportive financial arrangement and many rickshaw-pullers had been baled out of their economic bondage. Some hitch somewhere prevented several desperate rickshawdrivers getting the benefit, which drove them to this Court. Anyway, all is well that ends well and judicial activism gets its highest bonus when its order wipes some tears from some eyes. Here, the bench and the bar have that .reward. These ·prefatory observations explain why a pronouncemrnt on the validity of the Act is not called for, although _prima facie,_ we see no constitutional sin in the statute as now framed. We now proceed to set out in our judgment the termsi and conditions which will carry with them the implications and obligations of undertakings to the court so far as the parties to the case are concerned. Counsel for the State assures us that the Credit Guarantee Corporation of India (Small Loans) will also abide by the court's direction although not a party formally. So also, the:Punjab National Bank which is the financing agency parties have agreed upon. There is no dispute that the purpose of the statute is obviously benign as is manifest from the Statement of Objects and Reason& which runs th.?s : In order to eliminate the exploitation of rickshaw pullers by the middlemen and for giving a fillip to the scheme of the State Government for arranging interest-free loans for the actual pullerir G to enable them to purchase their own rickshaws, it is considered· necessary· to regulate the issue of licences in favour of the actual drivers of cycle-rickshaws, plying within the municipal areas of the State. Section 3 which clamps down the impugned ban read thus : H 3(1) Notwithstanding anything contained to the contrary in the Punjab Municipal Act, 1911, or any rule or order or bye-law made thereunder or any other law for the time being in force, n0: ;:;,4, .,:; ·~·'-~}-:1:,-1:-·~"-->-i*':: ::E~J::~;;:<J-•:'i ' AZAD RICKSHAW PULLERS UNION _v._ PUNJAB _(Krishna Iyer,_ _**J.)**_ 369 owner of a cycle rickshaw shall be granted any licence in respect of his cycle rickshaw nor his licence shall be· renewed by any municipal authority after the commencement of this Act unless the cycle rickshaw is to be plied by such owner himself ; (2) Every licence in respect of a cycle rickshaw granted or renewed prior to the commencement of this Act shall stand revoked, . on the expiry of a period of thirty days after such commencement · if it does not conform to Jhe provisions of this Act. The State was alive to the need for positive rescue measures be· yond blanket ban on licensing and so decided to provide interest-free loans to actual rickshaw pliers so that they could acquire their own - rickshaws and free themselves from the coils of middlemen who preyed upon the little earnings from the toils of the pullers. Luckily, the nationalised banks collaborated in this socially oriented Scheme called the Credit Guarantee Corporation of India (Small Loans) Guarantee Scheme, 1971. And the Credit Corporation agreed to stand surety for the amounts to be advanced by banks to rickshaw pliers. Certainly, the Union of Rickshaw Pliers'-the petitioner-readily accepted the conditions designed for their deliverance since they had nothing to lose except their chains. Thus, we have all the factors ready to cooperate in effectuating the purpose of saving the rickshaw pullers and making them owners . . All that we have to do is to set out a self-working, specific scheme which makes the statutory ban not a negative, self-defeating interdict, **but** a positive economic manumission. All the counsel have played a role in the dynamic process which has resulted In the judicial project we are giving effect to. Every rickshaw plier, including every petitioner, who· has been - **a** licensee in the Amritsar or other municipality within one year of . the coming into force of the Act will be entitled to apply to the Municipal Commissioner _within one month from today_ for a certificate or other document to the effect that he has been a licensee for rickshaw ·pulling within the aforesaid period. The Municipal Commissioner will verify the records on receipt of such application and will grant the necessary certificate or other document _within one month from_ _the date_ _of_ _application._ He shall not delay the issuance of the certi· ficate. He shall .not be over-strict, but shall be liberal in the exercise of the certificate issuing power. '(Punctiliousness, especially with the weaker sections, is the path to harassment, corruption, dilatoriness and exasperation. Welfare measures often breed de-moralisation through - heartless legalism and this very case is, to some extent, an illustration). **On** receipt of the municipal certificate, the rickshaw puller concern.:d **A** **B** #### **c** **D** **E** **F** **G** **H** A ##### I, 'c ###### 'D 'E G ###### 'H ###### : *' 370 SUPREME COURT REPORTS [1981) l S.C.R. will apply to the Credit Guarantee Corporation of India (Small Loans), under the Guarantee Scheme of 1971, praying to the said Corporation that it stand guarantee to the Punjab National Bank (or other schedule bank mutually agreed upon) for advance of a loan upto Rs. 900 (and in · special cases for a larger sum if satisfied that the price ~fa cycle rickshaw is more than Rs. 900). The Punjab National Bank (or other scheduled bank mutually chosen) will receive !Ii sum of Rs. 50 by way of deposit towards the loan 'to be advanced to the applicant. The rickshaw pliers shall make this initial deposit to be eligible for the bank loan. The balance of the loan shall be guaranteed by the Credit Guarantee Corporation of India (Small Loans) whereupon the concerned bank will advance the sum needed for the purchase of a . cycle rickshaw to the manufacturer or vendor indicated by the applicant. The petitioner union will be p~rmitted by the Municipality to· set up and run a workshop for repair and allied types· of work and ·a service station for the cycle-rickshaws. Sufficient space will be allowed in suitable places f~r rickshaw stands and safe keeping.· of rickshaws' within the limitations of availability and subject to moderate charges. A realistic understanding of the life-style of rickshaw pliers in ' Amdtsar indicates that during the agricultural season many of them ,. Thereupon, the applicant (rickshaw puller) will take delivery of the cycle rickshaw and produce the voucher evidencing purchase and ###### delivery of the· rickshaw and, if needed, produce the rickshaw for physical verification by the bank's officials within one week of taki~g such delivery, and thereafter whenever directed. He will also sign the ·necessary forms and undertakings required by the bank so as to hypo thecate the cycle rickshaw in favour of the bank. So far as the payment of interest to the bank is cbncerned, both sides agree that it will be governed by the Scheine for advance to the cycle rickshaw pullers framed by the State Government. The bank shall advance 95% by 1 way of loan towards the purchase of the cycle rickshaw. The 1mm of Rs. ~O. to be deposited initially by the rickshaw puller is expected to cover the remaining 5 % . . The loan amount shall be repaid by the rickshaw puller concerned· in 15 monthly instalments (or in weekly ###### or daily instalments so that by the end of each month I/ 15th of the amount is cleared). If there are delayed payments of instalmenti of loans, higher rates of interest will be recoverable from the loanee· (the ·rickshaw pliers) as per the 1971 scheme. The amount of interest, in . case instalments are paid duly, will be met by the Government ai an - act of relief for the rickshaw pliers. The rickshaw pliers shall, on purchase, hypothecate the vehicles to the bank which advances the loan and this will be an undertaking to the court. way of loan towards the purchase of the cycle rickshaw. AZAD RICKSHA\11 PULLERS UNION, _v._ :PUNJAB _(Krishna_ _Iyer,_ _J.)_ 37:1 go to work 11ominating other rickshaw· pliers ·without ~employment to ~ ply the rickshaws during that season. The Municipal Commissioner, if satisfied that the nomination made is _bona_ _fide,_ will issue licences to such surrogates .or nominees of the licensed rickshaw pliers for the agricultural season. · The bank which advances the loan and the Credit G_uarantee Corporation which guarantees the repayment will, at all reasonable times, be entitled to. have physical verification of the vehicles, without interference with. the occupation of the ri~kshaw pliers. If group insurance of rickshaws and of the life of the rickshaw pliers is feasible, the Municipal Commissioner will 'work out a sclieme in this behalf in consultation with the unions in the field. Likewise. any project whereby cycle rickshaws can be replaced by scooters by stages, will also be considered so that the rickshaw pullers of today may become scooter drivers of tomorrow owning the vehicles themselves. It is a notorious fact that rickshaw pullers have an occupational hazard and suffer from pulmonary tuberculosis and i;o, the &tate must be deeply concerned progressively to replace rickshaw pulling with mechanical propulsion. It would appear that i;hort of i;cooters there are mechanised cycle rickshaws which are fairly inexpensive and which are being experimented with. Such vehicles may be a boot to the miserable who now torture themselves to keep body and soul together. After all, the quality of life of the weakest in society is the true measure of social justice. The conditions and directions we have incorporated in this judgment shall be implemented in its true spirit and import by the State, the Municipal Corporation, the Credit Guarantee Corporation, the nationalised banks and the Union and its members. We are happy to record our appreciation of the role of counsel and of the parties in bringing about this solution. The State by exercising its legislative power alone, could not produce justice until this formula was hammered out. The Court with its process of justice alorie could not produce a viable project. But now, justice and power have come together and, hopefully, we have fulfilled the words of Blaise .Pascal; .B ### c D E F 'G "Justice without power is inefficient; power without justice is tyranny. Justice and power must, therefore, be brought together, H so that whatever is just may be powerful, and whatever is powerful may be just." -~· 372 SUPREME COURT REPORTS ll981l 1 S.C.R. ###### A Until fresh licences are granted to the cycle-rickshaw pliers under the scheme we have incorporated in the order . the present petitioner~ will be allowed to ply their cycle-rickshaws . . The writ petitions are disposed of on the above lines. B PATHAK, J.-1 agree with the entire scheme of directions framed by my learned brother for the purpose of enabling the rickshaw pliers to acquire and own cycle rickshaws including the financial arrangements envisaged in the scheme, and also the making of provision for the repairs and· maintenance of the cycle rickshaws. I need add nothing more. N.V.K. \ ## (