Actual Article
Article 305: Saving of existing laws and laws providing for State monopolies
Nothing in Articles 301 and 303 shall affect the provisions of any existing law or prevent the Legislature of a State from making any law imposing reasonable restrictions on the freedom of trade, commerce, or intercourse with or within that State in the public interest, and, particularly, nothing in Articles 301 and 303 shall affect the operation of any law in force immediately before the commencement of this Constitution, in so far as it relates to, or prevents the Legislature of a State from making any law relating to, any such matter as aforesaid.
UPSC Notes for Article 305
Explanation:
- Saving of Existing Laws: Article 305 ensures that the provisions of Articles 301 and 303 do not invalidate any existing laws at the commencement of the Constitution. It allows the continuation of such laws even if they impose restrictions on trade, commerce, or intercourse.
- State Legislature’s Power: The article empowers State Legislatures to make laws that impose reasonable restrictions on trade and commerce within the State in the public interest.
- State Monopolies: The article particularly protects laws that establish State monopolies or regulate certain industries, ensuring they remain valid despite the general freedom of trade and commerce guaranteed by Articles 301 and 303.
Key Points:
- Continuity of Law: Ensures continuity and stability by protecting existing laws from being invalidated by the new constitutional provisions on trade and commerce.
- Regulatory Authority: Provides States with the authority to regulate trade and commerce within their territories, balancing the freedom guaranteed by Article 301 with the need for regulation in the public interest.
- State Monopolies: Specifically allows for the continuation and establishment of State monopolies, recognizing the role of the State in managing key industries and services.
Important Cases and Commissions Related to Article 305
Cases:
- R.C. Jall vs. Union of India (1962): The Supreme Court upheld the validity of a State law establishing a monopoly in the transportation sector, affirming the principles of Article 305.
- State of Bombay vs. F.N. Balsara (1951): The Supreme Court ruled that the Bombay Prohibition Act, which imposed restrictions on the sale and consumption of alcohol, was valid under Article 305 as it was in the public interest.
Commissions:
- Law Commission of India: Reviews and recommends amendments to ensure that existing laws comply with the principles of Article 305.
- Finance Commission: Considers the financial implications of State monopolies and other restrictive laws on trade and commerce.
Important Reports Related to Article 305:
- Law Commission Reports: Discuss the legal framework for State regulations and monopolies, recommending measures to balance regulation and freedom of trade.
- Finance Commission Reports: Analyze the economic impact of State monopolies and recommend measures to ensure they operate efficiently and in the public interest.
Previous Year Prelims Questions Related to Article 305
- (UPSC Prelims 2016) What does Article 305 of the Indian Constitution protect?
- A. Freedom of religion
- B. Existing laws and laws providing for State monopolies
- C. Right to property
- D. Freedom of speech and expression Correct Answer: B. Existing laws and laws providing for State monopolies
- (UPSC Prelims 2018) According to Article 305, what can State Legislatures do despite the provisions of Articles 301 and 303?
- A. Make laws imposing reasonable restrictions on trade, commerce, or intercourse in the public interest
- B. Amend the Constitution
- C. Impose taxes on foreign trade
- D. Create financial emergency provisions Correct Answer: A. Make laws imposing reasonable restrictions on trade, commerce, or intercourse in the public interest
Previous Year Mains Questions Related to Article 305
- Mains 2016: “Discuss the significance of Article 305 in ensuring the continuity of existing laws and the power of State Legislatures to regulate trade and commerce. How does this article balance freedom and regulation?”
- Mains 2019: “Evaluate the impact of Article 305 on State monopolies and the regulation of trade and commerce within States. What are the challenges and benefits associated with this constitutional provision?”
Additional Insights:
- Legal Continuity: Article 305 ensures that the transition to the new constitutional framework does not disrupt existing laws, providing legal continuity and stability.
- Balancing Interests: By allowing State Legislatures to impose reasonable restrictions, the article balances the need for regulation with the freedom of trade and commerce, ensuring that public interest is protected.
- State Monopolies: The article acknowledges the importance of State monopolies in certain sectors, allowing for their continuation and recognizing their role in managing critical industries and services.
Understanding Article 305 is crucial for UPSC aspirants as it provides insights into the constitutional mechanisms for preserving existing laws and regulating trade and commerce within States, emphasizing the balance between freedom and necessary regulation in the public interest. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the constitutional provisions and their impact on economic governance within the Indian Constitution.