THE PRAKASH COTTON MILLS (PRIVATE) LTD. AND OTHERS vs THE STATE OF BOMBAY (NOW MAHARASHTRA)

The Supreme Court ruled that the notification issued by the Government of Bombay under Section 114(2) of the Bombay Industrial Relations Act, 1946, was beyond the powers conferred on the State Government and thus invalid. The Court held that the notification violated Article 14 of the Constitution by granting arbitrary power to the State, and also contravened Article 19(1)(g) by imposing unreasonable restrictions on the right to carry on business. The decision emphasized that the State's power under Section 114(2) is limited by existing agreements and must conform to industrial law established by the Full Bench of the Industrial Court.