MESSRS. DWARKA PRASAD LAXMI NARAIN vs THE STATE OF UTTAR PRADESH AND TWO OTHERS.

The Supreme Court ruled that Clause 4(3) of the Uttar Pradesh Coal Control Order, 1953, which grants arbitrary powers to the licensing authority to regulate trade in coal, is unconstitutional as it imposes unreasonable restrictions on the freedom of trade guaranteed under Article 19(1)(g) of the Constitution. The Court emphasized that such provisions do not fall within the reasonable restrictions allowed under Article 19(6). Consequently, the provision was declared void, reinforcing the principle that laws must not confer uncontrolled power upon the executive.