Fertilizer Corporation Kamgar Union v Union of India
Restrictive rules of standing are antithetical to a healthy administrative law; standing in public interest litigation must receive liberal reception at the judicial doorsteps.
Facts
Workers of the Fertilizer Corporation, through their union, challenged the sale of certain plant and machinery of the public undertaking, alleging it was effected at an undervalue and contrary to public interest. A threshold question arose whether the workmen had locus standi to challenge such a managerial/commercial decision affecting the corporation.
Issues
- Whether the workmen/union had locus standi to challenge the sale of the undertaking's assets.
- Whether public interest litigation should be entertained where the petitioners are not directly the parties whose rights are affected.
Arguments
The petitioners argued that as persons vitally interested in the undertaking and its public character they had standing, and that restrictive standing would leave administrative illegality unchecked. The respondents argued the sale was a managerial decision and the workmen lacked any enforceable right entitling them to invoke Article 32.
Held
The Court observed that if a plaintiff with a good cause is turned away merely because he is not sufficiently affected personally, a government agency is left free to violate the law, which is contrary to the public interest. PIL is part of the process of participative justice and standing in such litigation must have liberal reception at the judicial doorsteps. The Court distinguished justiciability of the issue from standing to agitate it. On the facts, however, the challenge to the commercial transaction did not succeed on merits.
Ratio decidendi
Restrictive rules of standing are the antithesis of a healthy system of administrative law; in public interest litigation the rule of standing must be liberally construed, and justiciability and standing are distinct questions.
Significance
An early and frequently cited authority articulating the rationale for relaxing locus standi in public law, laying conceptual groundwork later consolidated in S.P. Gupta and the broader PIL movement led by Krishna Iyer and Bhagwati JJ.
Related
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Source: /Users/tiwari/Documents/All Law Books/raw/Admin Law/6 Judicial Review_ Writs.docx.md
