RASHID AHMED vs THE MUNICIPAL BOARD, KAIRANA.THE UNION OF INDIA and THE ST

The Supreme Court held that the prohibition in byelaw No.2 of the U.P. Municipalities Act, 1916, which required prior permission for establishing wholesale markets, was void due to the absence of a provision for issuing licenses, rendering the restrictions unreasonable under Article 19(6) of the Constitution. The Court ruled that the municipal board's grant of a monopoly further limited the petitioner's right to carry on business, thus violating his fundamental right under Article 19(1). The prosecution of the petitioner for contravening the byelaws was deemed illegal, and the existence of an appeal under Section 318 was not considered an adequate remedy to bar the petitioner's application under Article 32.