MOHAMMAD YASIN vs THE TOWN AREA COMMITTEE,JALALABAD AND ANOTHER.

The Supreme Court ruled that a license fee imposed for carrying on an occupation, trade, or business must have legal authority; otherwise, it constitutes an unreasonable restriction on the fundamental right to trade under Article 19(1)(g) of the Constitution. The Court held that the bye-laws of the Town Area Committee of Jalalabad, which required a fee for wholesale trading in vegetables and fruits, were invalid as they lacked the necessary legal backing under Section 293(1) and Section 298(2)(g)(d) of the U.P. Municipalities Act, 1916. Consequently, the imposition of such fees was deemed unconstitutional and could be challenged under Article 32.