Fertilizer Corporation Kamgar Union (Regd.), Sindri v Union of India
Rule established
Art.32 is a remedy for enforcement of fundamental rights, not a general instrument for judicial review of every managerial/commercial decision; courts will not interfere with bona fide business decisions of public undertakings absent a demonstrable rights violation.
Facts
- The Fertilizer Corporation of India, a public sector undertaking, decided to sell certain surplus and obsolete plant and machinery
- Workers, through their union, challenged this decision via writ petition under Art.32, apprehending adverse effects on employment and job security
- The core question: whether this commercial decision could be reviewed and struck down as violating workers' fundamental rights
Issue
- Whether workers can invoke Art.32 to challenge a bona fide commercial decision of a public sector undertaking, absent a direct violation of a specific fundamental right.
Held
- Art.32 is available for the enforcement of fundamental rights, and a petition must disclose an actual infringement
- A bona fide commercial or managerial decision (sale of surplus machinery) does not by itself violate any fundamental right merely because it may have downstream effects on employment
- The Court exercised restraint, recognising courts are not well-placed to second-guess legitimate business judgments absent mala fides, arbitrariness, or actual rights violation
- The petition was not maintainable on the facts
Ratio Decidendi
Art.32 is a remedy for enforcement of fundamental rights, not a general instrument for judicial review of every administrative or commercial decision that may have some indirect impact on citizens; courts will decline to interfere with bona fide managerial decisions absent a demonstrable rights violation.
How to use it in an exam
- Part A: Outer limits of Art.32 standing and justiciability.
- Part B: Contrast with Bandhua Mukti Morcha (1984) to show the spectrum from restrained review here to expansive PIL activism there.
- Key line: "An apprehended economic consequence to workers, without more, does not convert a commercial decision into a fundamental rights violation."
Source
Source: AIR 1981 SC 344
This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.