KOLUTHARA EXPORTS LTD vs STATE OF KERALA

The Supreme Court upheld the constitutional validity of Section 4(2) read with Section 2(d) of the Kerala Fishermen’s Welfare Fund Act, 1985, affirming that the State can impose contributions for welfare purposes under Entry 23 of the Concurrent List without necessitating an employer-employee relationship. The Court distinguished the case from previous rulings, emphasizing the welfare nature of the legislation as aligned with Articles 39 and 41 of the Constitution. The appeal was referred to a Constitution Bench for further interpretation of the constitutional implications of such imposts.