# NARINDER S. CHADHA & ORS v. MUNICIPAL CORPORATION OF GREATER MUMBAI & ORS

- **Citation:** [2014] 12 S.C.R. 817
- **Court:** Supreme Court of India
- **Decided:** 2014-12-08
- **Case number:** Civil Appeal No. 10836 of 2014
- **Bench:** RANJAN GOGOi, R.F. Nariman
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/narinder-s-chadha-ors-v-municipal-corporation-of-greater-mumbai-ors-29602
- **Pages:** 28

## Headnote

A
B
Cigarettes and Other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce,
C
Production, Supply and Distribution) Act, 2003:
s. 6 rlw the Rules framed under the Act - Circular dated
04.07.2011 - Issued by Municipal Corporation - Adding
conditions in General Conditions of licence issued uls. 394
0
of Mumbai Municipal Corporation Act -
Validity of the
conditions - Held: s.6 of the Act lays down the condition
prohibiting sale of cigarettes - Any condition which prohibits
sale of cigarettes/tobacco products in the premises licenced
by Municipal Corporation would amount to adding another
E
exception, which is not permissible in law - The condition
No.35(C) would be ultra vires the Act and the Rules framed
thereunder - However, sub-clauses (DJ and (E) of condition
No. 35 are valid - Prohibition of smoking in Public Places
Rules, 2008 - rr.4(3) and 3(1)(c) -
Mumbai Municipal
F
Corporation Act, 1888 - s.394.
s.3(m) - 'Sale' - Definition of- Interpretation - Held: The
definition being exhaustive, would not include 'service' within
its ambit.
s. 6 rlw the Rules framed under the Act - Notice dated 5th
July, 2011 -Issued under s.44 of Tamil Nadu Public Health
Act, 1939 - Preventing hotel/restaurant owner from providing
tobacco to persons (not minors) and prohibiting Hookah Bars
G
817
H
818
SUPREME COURT REPORTS
[2014] 12 S.C.R.
,.....__
A within a radius of 300 ft. of an educational institution "- Validity·
of - Held: The notice is ultra vires the Act and the Rules -
Prohibition of Smoking in Public Places Rules, 2008 - Tamil
Nadu Public Health Act, 1939 - s.44.
B
s. 6 rlw. the Rules framed under the Act - Order dated
14. 07.2011 - Issued u/s. 33 of Bombay Police Act rlw. s. 144
Cr.P.C - Prohibiting hookah bars - Validity of - Held: The
word 'regulate' under the Police Act would not include the
.
.
power to prohibit - Power u/s. 144 Cr.P.C. is for passing
c temporary orders which cannot last beyond 2 months - Hence
the order is not valid - Bombay Police Act, 1951 - s.33 -
Code of Criminal Procedure, 1973 - s.144 - Prohibition of
Smoking in Public Places Rules, 2008.
Prohibition of Smoking in Public Places Rules, 2008 -
D rr. 3 and 4- Applicability of - Discussed.
Equity - Applicability of - 'Equity follows the law' - If the
law is clear, no notions of equity can substitute the same.
E
Words and Phrases - 'Sale' and 'Service' - Meaning of,
in the context of Cigarettes and Other Tobacco Products
(Prohibition of Advertisement and Regulation of Trade and
Commerce, Production, Supply and Distribution) Act, 2003.
Allowing the appeals, the Court
F
HELD: 1.1. Section 6 of the Cigarettes and Other
Tobacco Products (Prohibition of Advertisement and
Regulation of Trade and Commerce, Production, Supply.
and Distribution) Act, 2003 permits the sale of cigarettes
G and any other tobacco products, except to persons under
18 years of age and in an area within a radius of 100
yards of any educational institution. It is clear that any
condition which prohibits the sale of cigarettes or any
other tobacco products in premises licenced by the
H
NARINDER S. CHADHA v. MUNICIPAL CORPORATION
819
OF GREATER MUMBAI
Municipal Corporation would amount to adding another A
exception which would be impermissible in law. [Para 12]
[836-C-D]
1.2. It is not correct to say that the sale of tobacco or
tobacco related products would amount to a service. It
8
is difficult conceptually to say that "sale" and "service"
are interchangeable items. "Sale" is defined under the Act
as meaning a transfer of property in goods for
consideration. It is obvious that "sale" has to be
understood in this sense, and properly so understood
would not include "service" which would refer not to C
transfer of property in goods but to "service" as is
understood in its ordinary sense. [Paras 12 and 13] [836E-G]
.
Northern India Caterers (India) Ltd. v. Lt. Governor of D
Delhi 1979 (1) SCR 557 - relied on.
1.3. In the present case, the well established
distinction

## Text

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[2014] 12 S.C.R. 817
NARINDER S. CHADHA & ORS.
v.
MUNICIPAL CORPORATION OF GREATER MUMBAI &
ORS.
(Civil Appeal No. 10836 of 2014 Etc.)
DECEMBER 08, 2014
[RANJAN GOGOi AND R.F. NARIMAN, JJ.]
A
B
Cigarettes and Other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce,
C
Production, Supply and Distribution) Act, 2003:
s. 6 rlw the Rules framed under the Act - Circular dated
04.07.2011 - Issued by Municipal Corporation - Adding
conditions in General Conditions of licence issued uls. 394
0
of Mumbai Municipal Corporation Act -
Validity of the
conditions - Held: s.6 of the Act lays down the condition
prohibiting sale of cigarettes - Any condition which prohibits
sale of cigarettes/tobacco products in the premises licenced
by Municipal Corporation would amount to adding another
E
exception, which is not permissible in law - The condition
No.35(C) would be ultra vires the Act and the Rules framed
thereunder - However, sub-clauses (DJ and (E) of condition
No. 35 are valid - Prohibition of smoking in Public Places
Rules, 2008 - rr.4(3) and 3(1)(c) -
Mumbai Municipal
F
Corporation Act, 1888 - s.394.
s.3(m) - 'Sale' - Definition of- Interpretation - Held: The
definition being exhaustive, would not include 'service' within
its ambit.
s. 6 rlw the Rules framed under the Act - Notice dated 5th
July, 2011 -Issued under s.44 of Tamil Nadu Public Health
Act, 1939 - Preventing hotel/restaurant owner from providing
tobacco to persons (not minors) and prohibiting Hookah Bars
G
817
H
818
SUPREME COURT REPORTS
[2014] 12 S.C.R.
,.....__
A within a radius of 300 ft. of an educational institution "- Validity·
of - Held: The notice is ultra vires the Act and the Rules -
Prohibition of Smoking in Public Places Rules, 2008 - Tamil
Nadu Public Health Act, 1939 - s.44.
B
s. 6 rlw. the Rules framed under the Act - Order dated
14. 07.2011 - Issued u/s. 33 of Bombay Police Act rlw. s. 144
Cr.P.C - Prohibiting hookah bars - Validity of - Held: The
word 'regulate' under the Police Act would not include the
.
.
power to prohibit - Power u/s. 144 Cr.P.C. is for passing
c temporary orders which cannot last beyond 2 months - Hence
the order is not valid - Bombay Police Act, 1951 - s.33 -
Code of Criminal Procedure, 1973 - s.144 - Prohibition of
Smoking in Public Places Rules, 2008.
Prohibition of Smoking in Public Places Rules, 2008 -
D rr. 3 and 4- Applicability of - Discussed.
Equity - Applicability of - 'Equity follows the law' - If the
law is clear, no notions of equity can substitute the same.
E
Words and Phrases - 'Sale' and 'Service' - Meaning of,
in the context of Cigarettes and Other Tobacco Products
(Prohibition of Advertisement and Regulation of Trade and
Commerce, Production, Supply and Distribution) Act, 2003.
Allowing the appeals, the Court
F
HELD: 1.1. Section 6 of the Cigarettes and Other
Tobacco Products (Prohibition of Advertisement and
Regulation of Trade and Commerce, Production, Supply.
and Distribution) Act, 2003 permits the sale of cigarettes
G and any other tobacco products, except to persons under
18 years of age and in an area within a radius of 100
yards of any educational institution. It is clear that any
condition which prohibits the sale of cigarettes or any
other tobacco products in premises licenced by the
H
NARINDER S. CHADHA v. MUNICIPAL CORPORATION
819
OF GREATER MUMBAI
Municipal Corporation would amount to adding another A
exception which would be impermissible in law. [Para 12]
[836-C-D]
1.2. It is not correct to say that the sale of tobacco or
tobacco related products would amount to a service. It
8
is difficult conceptually to say that "sale" and "service"
are interchangeable items. "Sale" is defined under the Act
as meaning a transfer of property in goods for
consideration. It is obvious that "sale" has to be
understood in this sense, and properly so understood
would not include "service" which would refer not to C
transfer of property in goods but to "service" as is
understood in its ordinary sense. [Paras 12 and 13] [836E-G]
.
Northern India Caterers (India) Ltd. v. Lt. Governor of D
Delhi 1979 (1) SCR 557 - relied on.
1.3. In the present case, the well established
distinction between "sale" and "service" would continue
to apply in view of the definition of "sale" contained in
Section 3(m) of the Cigarettes Act. The definition is a
"means" and "includes" one. Such definition is an
exhaustive definition. There is thus, no scope to include
"service" in such a definition. [Para 13] [839-E-G]
·
E
P. Kasilingam and others v. P. S. G. College of F
Technology and others 1995 (2) SCR 1061: 1995 Supp (2)
sec 348 - relied on.
1.4. Even if it is accepted that 'sale' would amount to
'service', Rule 4(3) of Prohibition of Smoking in Public
G
Places Rules, 2008 would become ultra vires Section 6
of the Act inasmuch as it would prohibit the sale of
cigarettes and other tobacco products in a smoking area
in hotels, restaurants and airports, thus, adding one more
exception to the two exceptions already contained in
H
820
SUPREME COURT REPORTS
(2014] 12 S.C.R.
A Section 6. It is, thus, clear that this condition would be
ultra vires the Cigarettes Act and the Rules properly .so
read. [Para 13] [839-G-H]
1.5 Condition No. 35(C) of the impugned circular
B essentially reproduces Rule 4(3) of the Rules and then
adds the words "or any apparatus designed to facilitate
smoking". The effec~ of the added words is that a Ho.okah
cannot be provided by the hotel, restaurant or airport
being an apparatus designed to facilitate smoking. It
C cannot be said thatthe Hookah would be "other things"
designed to facilitate smoking which would be prohibited
under Rule 3(1)(c). Rule 3 deals with the prohibition of
smoking in public places, which is referable to Section 4
(main part) whereas Rule 4 is. referable to the proviso to
Section 4. Rule 3 would only apply where there is a total
D prohibition of smoking in all public places. On the other
hand, where smoking is allowed in a smoking area or
space, sub-rule (3) of Rule 4 ma.kes it clear that such
place can be used for the purpose of "smoking". Under
Rule 2(f) words and expressions not defined in these
E Rules but defined in the Act shall have the meanings,
respectively, assigned to them in the Act. The definition
of "smoking" contained in Section 3(n) o"i the Act
includes smoking of tobacco in any form with the aid of
a pipe, wrapper, or any other instrument, which would
F obviously include a Hookatt, That being the case,
"smoking" with a Hookah would be permissible under
Rule 4(3) and the expression ... no other service shall be
allowed" obviously refers to services other than the
providing ofa Hookah. It is, thus, evident that the added
G words in clause (C) of Condition No.35 are clearly ultra
vires the Act and the Rules. Rule 3(1)(c) ·and Rule 4(3)
have to be. harmoniously construed. What is expressly
allowed by Rule 4(3) cannot be said to be taken away by
Rule 3(1){c). [Paras 14, 15, 16, 17, 18 and 19] [840-A-H;
H 841-A-B]
F
NARINDER S. CHADHA v. MUNICIPAL CORPORATION 821
OF GREATER MUMBAI
1.6. Sub-clauses (D) and (E) of Condition No. 35 are
A
regulations relatable to buildings which is a purely
municipal function within the Municipal Corporation's
ken. There is no challenge to the dimensions of the
smoking area set out in these sub-clauses. So far as
these conditions are concerned, the dimensions set out B
in (D) and (E)' will have to be followed in all cases. [Para
20] [841-C, D]
2. The notice dated 5th July, 2011 is ultra vires the
Cigarettes Act and the Rules made thereunder as it
prevents the owner of the hotel/restaurant from providing C
tobacco to persons who are not minors and asking such
persons affirmatively to stop people from sucking and
swallowing tobacco. Further, sale of tobacco can only be
prohibited within a radius of 100 yards of an educational
establishment and not 300 feet as is stated in the D
impugned notice. [Para 23] [841-G, H; 842-A]
3. Order dated 14th July, 2011, purportedly made
under Section 33 of the Bombay Police Act read with
Section 144 Cr.P;C. prohibited hotels and restaurants
from providing the facility of hookah and prohibited
E
hookah bars. The Division Bench of High Court
· concluded that Section 33 of the Bombay Police Act
would include the power to prohibit, stating that the word
"regulate" would include "restriction" and even
"prohibition". The word "regulate" would not include the
F
power to prohibit. Further, Section 144 Cr.P.C provides
a power to grant only temporary orders which cannot last
beyond 2 months from the making thereof. If Section 144
is to be invoked, the order dated 14th July, 2011 would
have expired 2 months thereafter. The High Court stated
G
that while administering the law, it is to be tempered with
equity. One of the maxims of equity is that ·equity follows
the law'. If the law is clear, no notions of equity can
substitute the same. [Paras 24, 25 and 26] [842-B-C; 843B-C; 844-D, E]
H
824
SUPREME COURT REPORTS
[2014] 12 S.C.R.
A
Himat Lal K. Shah v. Commissioner of Police,
Ahmedabad 1973 (2) SCR 266: ,1973 (1) SCC 227 - relied
on.
Godawat Pan Masala Products l.P. ·Ltd. & Anr. v. Union
B of India & Ors. 2004 (3) Suppl. SCR 239: (2004) 7 SCC 68;
Bajinath Kedia v. State of Bihar & Ors. 1970'(2) SCR 100:
1969 (3) sec 838;
1989 (2) SCR 92:, 1989 (2) sec 541 - cited.
Case L:.aw Reference:
c
2004 (3) Suppl. SCR 239 cited
Para 3
1970 (2) SCR 100
cited
Para 3
1989 (2) SCR 92
cited
Para 3
D
1979 (1) SCR 557
relied on
Para 13
1995 (2) SCR 1061
relied on
Para 13
1973 (2) SCR 266
relied on
Para 24
E
CIVIL APPELLATE JURISDICTION : Civil 'Appeal No.
F
G
H
10836 of 2014.
From the Judgment and Order dated 11-08-2011 of the
High Court of Judicature at Bombay in Writ Petition {Lodging)
No. 1540 of 2011.
WITH
Civil Appeal Nos. 10837-10839, 10840, 10841-10843, 1084410845 and 10846 of 2014
· Pinky Anand, ASG, Chander Uday Singh, R.P. Bhatt, R.S.
Suri, Sajan Poovayya, Rohan Thawani, Hardeep Singh Anand,
Anand Daga, Vandana Sehgal, Shikha Sachdev, Navin
Chawla, Arpit Maheshwari, Ketan Paul, Nakul Dewan, Mrigank
Prabhakar, Faraz Maqbool, Ejaz Maqbool, Pradhuman, Gohil,
NARINDER S. CHADHA v. MUNICIPf.L CORPORATION
823
OF GREATER MUMBAI
Vikash Singh, Ms. Taruna Singh Gohil, Jaikriti S .. Jadeja,
A
Sunder Khatri, Shital Khatri, Rajesh Goyal, J.J. Xavier,
Bhargava V. Desai, VishaLChaudhary, Shailender Saini, Ms.
Sadhana Sandhu, D.S. Mahra, Sushma Suri, Rahul Malhotra,
Simar Suri, G. Suri, Chanchal Kumar Ganguli, Ajay Aggarwal,
Kanika Gamber, Ruchika, Sumit Attri, Priyadarshi Banerjee,
B
Prabal Mehrotra, Rajan Narain, M. Yogesh Kanna, Santha
Kumaran, J. Janani, Lalit Bhasin, Nina Gupta, Mudit Sharma,
Parvez A. Khan, Shirin Khajuria for the appearing parties.
The Judgment of the Court was delivered by
R.F. NARIMAN, J. 1. Leave granted,
2. In this batch of matters, we are concerned with the
Municipal Corporations of various cities implementing the
c
Cigarettes and other Tobacco Products
D
{Prohibition of Advertisement and Regul~tion of Trade and
Commerce, Production, Supply & Distribution) Act, 2003. In the
first case before us, namely, civil appeal arising out of SLP{C)
No.30832 of 2011 -
Narinder S. Chadha and others v.
Municipal Corporation of Greater Mumbai and others, a
E
judgment of the Bombay High Court dated 11th August, 2011
disposed of a writ petition in which several wide ranging
contentions were urged, and ultimately decided that the
impugned circular dated 4th July, 2011 only implemented the
Cigarettes and other Tobacco Products (Prohibition of
F
Advertisement and Regulation of Trade and Commerce,
Production, Supply & Distribution) Act, 2003 (hereinafter
referred to as the "Cigarettes Act") and the Prohibition of
Smoking in Public Places Rules, 2008 {hereinafter referred to
as the "Rules") and dismissed the challenge to the said circular.
Similarly, in cases arising from Chennai and Ahmedabad,
G
similar circulars/notices were under challenge and in both the
impugned judgments in SLP(C) Nos.19247-19248 of 2012
(Temperature etc. v. Deputy Police Commissioner, Zone-1
Ahmedabad and Others) and SLP(C) No.8143 of 2014
H
824
SUPREME COURT REPORTS
[2014] 12 S.C.R.
A (Robustaa (Hyglow Cafe) v. The Commissioner Corporation of
Chennai and others), the Gujarat and Madras High Courts
followed the Bombay High Court judgment dated 11th August,
2011 ·and, consequently, dismissed the writ petitions filed
before them. It is from these three judgments that appeals have
B been preferred.
·
3. Mr. C.U. Singh, learned senior advocate appearing on
·behalf of the appellants in the civil appeal arising out of SLP(C)
No.30832 of 2011 . made wide ranging arguments on the
genesis of the .Cigarettes Act and the fact that it was legislation
C made under Entry 52 List I read with Entry 33 List Ill of the 7th
Schedule to the Constitution of India. He cited Godawat Pan
Masala Products l.P. Ltd. & Anr. v. Union of India & Ors.,
(2004) 7 sec 68, particularly the concluding paragraph 77 (6)
stating that the Cigarettes Act is a special Act dealing only with
D tobacco and tobacco products, while the Prevention of Food
Adulteration Act, 1954 is general and must therefore yield to
the Cigarettes Act. He also cited Bajinath Kedia v. State of
Bihar & Ors., (1969) 3 SCC 838 for the proposition that once
the requisite declaration under Section 2 of the Cigarettes Act
E is made; the State Government is denuded of any power to
legislate in the field occupied by the Cigarettes Act. He also
cited Paluru Ramakrishnaiah & Ors. v. Union of India &
Anr., (1989) 2 SCC 541 for the proposition that executive
instructions and conditions cannot be contrary to statute or
F statutory rules. Ultimately, however, he contenqed that there
were three features of the impugned circular which required to
be struck down being ultra vires the Cigarettes Act and ihe
Rules made therein.
4. The first condition did not allow a licensee of a
G restaurant to keep or sell or provide any tobacco or tobacco
H
· related products in any form in the licenced premises. This,
according to him, was contrary to Section 6 of the Cigarettes
Act and the Rules made thereunder. Further, smoking areas
which are to be used only for the purpose of smoking cannot
NARINDER S. CHADHA v. MUNICIPAL CORPORATION
825
OF GREATER MUMBAI [R.F. NARIMAN, J.)
have any apparatus designed to facilitate smoking. This in hisA
respectful submission puts a bar on Hookah smoking and is
also outsid.e the scope of the Cigarettes Act read with the
Rules. Further, smoking area dimensions laid down in
paragraphs (D) and (E) of Condition No.35 were also
conditions which one did not find either in the Cigarettes Act
B
or in the Rules made thereunder and, hence, were ultra vires.
Other learned counsel appearing for other appellants and
interveners adopted the arguments of Shri Singh.
5. Mr. R.P. Bhatt, learned senior counsel appearing for the
C
Municipal Corporation of Greater Mumbai argued before us that
on a true reading of the Cigarettes Act and the Rules made
thereunder, all that the added conditions did was to implement
the Cigarettes Act and the Rules and on a true construction of
the Act and Rules nothing was really added to what is already
. there. Miss Pinky Anand, learned Additional Solicitor General
D
appearing on behalf of the Union, broadly supported Mr. Bhatt's
stand.
6. In view of the rival contentions, the point that needs to
be decided in this case is in a narrow compass. We have
E
basically to see whether the impugned circular dated 4th July,
2011 travels outside the Cigarettes Act and the Rules or merely
seeks to implement the said Act and the Rules as they stand.
7. For a determination of this case, it will be necessary to
set out the relevant statutory provisions. First, the Cigarettes
Act-
"Section 3- Definitions. - In this Act, unless the
context otherwise requires,-
(k) "production", with its grammatical variations and
cognate expressions, includes the making of cigarettes,
cigars, cheroots, beedis, cigarette tobacco, pipe tobacco,
hookah tobacco, chewing tobacco, pan masala or any
F
G
H
826
SUPREME COURT REPORTS
(2014] 12 S.C.R.
A
chewing material having tobacco as one of its ingredients
(by whatever name called) or snuff and shall includeB
c
D
E
F
G
H
...
(i) Packing, labeling or re-labelling, of containers;
(ii) Re-packing from bulk packages to retail packages; and
(iii) The adoption of any other method to render the tobacco
product marketable;
·
(I) "public place" means any place to which the public have
access, whether as of right or not, and includes auditorium,
hospital buildings, railway waiting room, amusement
centres, restaurants, publicl offices, court buildings,
educational institutions, libraries, public conveyances and
the like which are visited by general public but does not
include any open space;
(m) "sale", with its grammatical variations and cognate
expressions, means any transfer of property in goods by
one person to another, whether for cash or on credit, or
by way of exchange, and whether wholesale or retail, and
includes an agreement for sale, and offer for sale and
exposure for sale;
(n) "smoking", means smoking of tobacco in any form
whether in the form of cigarette, cigar, beedis or otherwise
with the aid of a pipe. wrapper or any other instruments;
(p) "tobacco products" means the products specified in the -
Schedule."
1. Cigarettes
2. Cigars
3. Cheroots
"THE SCHEDULE
[See Section 3(p)]
NARINDER S. CHADHA v. MUNICIPAL CORPORATION
827
OF GREATER MUMBAI [R.F. NARIMAN, J,]
4. Beedis
5. Cigarette tobacco, pipe tobacco and hookah tobacco
6. Chewing Tobacco
7.Snuff
8. Pan masala or any chewing material hailing tobacco as
one of its ingredients (by whatever name called).
9. Gutka
10. Tooth powder containing tobacco."
"Section 4. Prohibition of smoking in a public place.-
No person shall smoke in any public place:
A
B
c
Provided that in a hotel having thirty -rooms or a
D
restaurant having seating capacity of thirty persons or
more and in the airports, a separate provision for smoking
area or space may be made.
Section 6. Prohibition on sale of cigarettes or other
E
tobacco products to a person below the age of
eighteen years and in particular areas.- No person shall
sell, offer for sale, or permit sale of, cigarette or any other
tobacco product-
(a) to any person who is under eighteen years of age, and
(b) in an area within a radius of one hundred yards of any
educational institution.
F
Section 21. Punishment for smoking in certain
G
places.- (1) Whoever contravenes the provisions of section
4 shall be punishable with fine which may extend to two
hundred rupees.
H
A
B
c
D
E
F
G
H
82.8
SUPREME COURT REPORTS
[2014) 12 S.C.R.
(2) An offence under this section shall be compoundable
and shall be tried summarily in accordance with the
procedure provided for summary trials in the Code of
Criminal Procedure, 1973 (2 of 1974).
Section 24. Punishment for sale of cigarette or any
other tobacco products in certain places or to
persons below the age of eighteen years.- (1) Any
person who contravenes the provisions of section 6 shall
be guilty of an offence under this Act and shall be
punishable with fine which may extend to two hundred
rupees.
(2) All offences under this section shall be compoundable
and shall be tried summarily in accordance with the
procedure provided for summary trials in the Code of
Criminal Procedure, 1973 (2 of 1974).
Section 31. Power of the Central Government to
make rules.- (1) The Central Government may, by
notification in the Official Gazette, make rules to carry out
the provisions of this Act.
(2) Without prejudice to the generality of the foregoing
power, such rules may.provide for all or any of the following
matters, namely: -
(a) specify the form and manner in which warning shall be
given in respect of cigarettes or other tobacco products
under clause ( o) of section 3;
(b) specify the maximum permissible nicotine and tar
contents in cigarettes or other tobacco products under the
proviso to sub-section ~5) of section 7;
(c) specify the manner in which the specified warning shall
be inscribed on each package of cigarettes or other
tobacco products or its label under sub-section (2) of
NARINDER S. CHADHA v. MUNICIPAL CORPORATION 829
OF GREATER MUMBAI [R.F. NARIMAN, J.]
section 8;
(d) specify the height of the letter or figure or both to be
used in specified warning or to indicate the nicotine and
tar contents in cigarettes or other tobacco prod_ucts under
section 10;
•
(e) provide for the manner in which entry into and search
A
B
of any premises is to be conducted and the manner in
which the seizure of any package of cigarettes or other
tobacco products shall be made and the manner in which
seizure list shall be prepared and delivered to the person
C
from whose custody any package of cigarettes or other
tobacco products has .been seized;
(f) provide for any other matter which is required to be, or
may be, prescribed.
o
(3) Every rule made under this Act and every notification
made under section 30 shall be laid, as soon as may be
after it is made, before each House of Parliament while it
is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive
E
sessions, and if, before the expiry of the session
immediately following the session or the successive
session aforesaid, both Houses agree in making any
modification in the rule or notification or both Houses agree
that the rule or notification should not be made, the rule or
F
notification shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without
prejudice to the validity of anything previously done under
that rule or notification."
G
The Prohibition of Smoking in Public Places Rules, 2008
are also relevant.
H
830
SUPREME COURT.REPORTS
[2014] 12 S.C.R.
A
"2. Definitions.-lri these rules, unless the context otherwise
requires,-
B.
(d} "public place" defined in Section 3(1} of the Act shall
also include work places, shopping malls, and cinema
halls.
(e} "smoking area or space" mentioned in the proviso to
Section 4 of the Act shall mean a separately ventilated
smoking room !hate
(i) is physically separated and surrounded by full height
walls on all .four sides;
(ii) has an entrance with an automatically closing door
normally kept in close position;
D
(iii) has an air flow system, as specified in schedule I,
(iv) has negative air pressure in comparison with the
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remainder of the building. '
·
(f) Words and expressions used herein and not defined in
these rules but defined in the Act shall have the meanings,
respectively, assigned to them in the Act.
3. Prohibition of smoking in a public place.~ (1) The
owner, proprietor, manager, supervisor or in charge of the
affairs of a public plaee shall ensure that:
(a) No person smokes in' the public place (under his
jurisdiction/implied).
·
·
(b) The board as specified in schedule JI is displayed
prominently at the entrance of the public place, in case
there are more than one entrance at each such entrance
and conspicuous place(s) inside. In case if there are more
than one floor, at each floor including the staircase and
entrance to the lift/s at each floor.
NARINDER S. CHADHA v. MUNICIPAL CORPORATION 831
OF GREATER MUMBAI [R.F. NARIMAN, J.]
(c) No ashtrays, matches, lighters or other things designed
A
to facilitate smoking are provided in the public place.
(2) The owner, proprietor, manager, supervisor or incharge
of the affairs of a public place shall notify and cause to be
displayed prominently the name of the person(s) to whom
8
a complaint may be made by a person(s) who observes
any person violating the provision of these Rules.
(3) If the owner, proprietor, manager, supervisor or the
authorized officer of a public place fails to act on report of
such violation, the owner, proprietor, manager, supervisor
C
or the authorized officer shall be liable to pay fine.
equivalent to the number of individual offences.
4. Hotels, Restaurants and Airports. - (1) The owner,
proprietor, manager, supervisor or in-charge of the affairs
0
of a .hotel having thirty or more rooms or restaurant having
seating capacity of thirty persons or more and the
· manager of the airport may provide for a smoking area or
space as defined in rule 2(e).
(2) Smoking area or space shall not be established at the
E
entrance or exit of the hotel, restaurant and the airport and
shall be distinctively marked as "Smoking Area" in English
and one Indian language, as applicable.
(3) A smoking area or space shall be used only for the
F
purpose of smoking and no other service(s) shall be
allowed.
(4) The owner, proprietor, manager, supervisor or incharge of the affairs of a hotel having thirty or more rooms
G
may designate separate smoking rooms in the manner
prescribed as under:
(a)
all the rooms so designated shall form a separate
.section in the same floor or wing, as the case may
be. In case of more than one floors/ wings the room
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•
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shall be in one floor/wing as the case may be.
B
(b)
all such rooms shall be distinctively marked as
"Smoking rooms" in English and one Indian
language, as applicable.
·
(c)
the smoke from such room shall be ventilated
outside and does not infiltrate/permeate into the
non-smoking areas of the hotel including lobbies
and the corridors."
c
8. The Cigarettes Act was really in implementation of
World Health Assembly Resolutions and was enacted to put a
total ban on advertising of tobacco products and to prevent the
sale of tobacco products to minors. It is also legislation which
seeks to implement Article 47 of the Constitution which reads
0 as under:-
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"47. Duty of the State to raise the level of nutrition and
the standard of living and to improve public health.-·
The State shall regard the raising of the level of nutrition
and the standard of living of its people and the
improvement of public health as among its primary duties
and, in particular, the State shall endeavour to bring about
prohibition of the consumption,· except for medicinal
purposes of intoxicating drinks and of drugs which are
injurious to health."
9. It all began vide an order dated 5th May, 2011 in a
Public Interest Litigation which is No.111 of 2011 in which the
Bombay High Court asked the Municipal Corporation to
incorporate terms and conditions while issuing licences under
G Section 479 of the Mumbai Municipal Corporation· Act so as
to comply with the provisions of the Cigarettes Act and the
Rules made thereunder. This was directed to be done within a
period of six weeks. It is as a result of this direction that the
impugned circular dated 4th July, 2011 was issued in which
H
NARINDER S. CHADHA v. MUNICIPAL CORPORATION 833
OF GREATER MUMBAI [R.F. NARIMAN, J.)
Conditions 35 to 37 in general conditions of licence issued
A
under Section 394 of the Mumbai Municipal Corporation Act
were to be added. These conditions read as under:
"Condition No. 35: The· licensee shall not keep or
allow to keep or sell or provide any tobacco or tobacco
8
related products in any form whether in the form of
cigarette, cigar. bidis or otherwise with the aid of a pipe,
wrapper or any other instrument in the licensed premises.
The Commissioner may permit smoking area as per
Section 4 of Cigarette and other Tobacco Products
C
(Prohibition of Advertisement and Regulation of Trade and
Commerce Production Supply and Distribution) Act, 2003
(COTPA) in an eating house having seating capacity of.
thirty persons or more.
A) The smoking area shall mean separately ventilated
smoking room that:
i. is physically separated and surrounded by full height
walls on all four sides.
ii. has an entrance with an automatically closing doors
normally kept in close position.
iii. has an air flow system that
a. is exhausted directly to the ou.tside and not mixed
back into the supply air for the other parts of the
building.
..
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b. is fitted with a non-recirculation exhaust
ventilation system or an air cleaning system, or by
G
a combination of the two, to ensure that the air
discharges only in a manner that does not recirculate or transfer it from a smoking area or
space to non-smoking areas.
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iv. has negative air pressure in comparison with the
remainder of the building.
B) The smoi<ing area shall not be established at the
Entrance or Exit of the. eating house and shall be
distinctively marked as "Smoking Area" in English
& in Marathi as per the COTPA.-
C) The Smoking area shall be used only for the ·
purpose of smoking and no other service(s) or any
apparatus designed to facilitate smoking shall be
provided.
D) The smoking area shall not be less than 100 sq.
ft. with each side of the room shall not be less than
8 ft. and height of the room shall not be less than 9
ft The smoking area shall be included in the
licensed area of the eating house.
E) The total area of the smoking room shall not be
more than 30% of the total licensed service area
of the eating house.
.Condition No.36: No person below the age of 18 years
shall be permitted in the smoking area.
Condition No.37: The owner, proprietor, manager,
supervisor in charge of the eating house shall notify and
caused to be displayed prominently the name of the
person(s) to whom .a complawt may be made by a
person(s) who observes any person violating the provisions
of COTPA.
The Licensee shall comply with the aforesaid
conditions and breach of any of the condition shall entail
cancellations/ suspensions/ revocations of License.
The proposal regarding inclusion of the smoking
NARINDER S. CHADHA v. MUNICIPAL CORPORATION
835
OF GREATER MUMBAI [RF. NARIMAN, J.]
area in the licensed area of Eating House shall be
A
approved by the concerned DEHO.
All concerned officers of Health Department &
Licence Department are hereby instructed to stringently
enforce the above mentioned condition nos. 35 to 37 of
8
the general conditions of Licences under Section 394 of
MMC Act. These conditions should be incorporated in all
existing as well new Eating House Licenses.
A notice may be issued to all the existing Eating
Houses Licensees that condition nos. 35 to 37 shall be
C
deemed to be incorporated in the existing licenses and
any breach of the same shall entail suspension/revocation
of the said License.
All the concerned Officers of the Health Department
D
are directed to take special drive against those eating
houses against whom complaints of serving hukkah are
received and take stringent action by following due
procedure."
10. Mr. Bhatt appearing for the Municipal Corporation
· urged that this circular would be valid being issued under
Section 394 (1)(d) of the Mumbai Municipal Corporation Act
which reads as under:-
"394. Certain articles or animals not to be kept and certain
trades, processes and operations not to be carried on
without a licence; and things liable to be seized destroyed,
etc., to prevent danger or nuisance.
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(1) Except under and in accordance with the terms and
conditions of the licence granted by the Commissioner, no
G
person shall-
(d) keep or use, or suffer or allow to be kept or used, in or
upon any premises, any article or animal which, in the
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[2014) 12 S.C.R.
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opinion of the Commissioner, .is dangerous to life, health
or property, or likely to create a nuisance either from its
nature or by reason of the manner in which, or the
conditions under which, the same is, or is proposed to be,
kept or used or suffered or allowed to be kept or used;"
B
c
11. According to Mr. C.U. Singh, the very first paragraph
of Condition No.35 is bad inasmuch as it does not allow the
licensee to keep or sell or provide any tobacco or tobacco
related products in the licenced premises. We find
considerable force in this submission.
12. It will be noticed that Section 6 of the Cigarettes Act
permits the sale of cigarettes and any other tobacco products,
except to persons under 18 years of age and in an area within
a radius of 100 yards of any educational institution. It is clear
D that any condition which prohibits the sale of cigarettes or any
other tobacco products in premises licenced by the Municipal
Corporation would amount to adding another exception which
would be impermissible in law. Mr. Bhatt sought to uphold this
condition with a reference to Rule 4(3) as, in his submission,
E in a smoking area "no other service shall be allowed".
According to him, the sale of .tobacco or. tobacco related
products would amount to a service that cannot be so allowed.
13. We cannot accept this contention for more than one
F
reason. First and foremost, it is difficult conceptually to say that
"sale" and "service" are interchangeable items. "Sale" is
defined under the Act as meaning a transfer of property in
goods for consideration. It is obvious that "sale" has to be
understood in this sense, and properly so understood would not
include "service" Which would refer not to transfer of property
G in goods but to "service" as is understood in its ordinary sense.
H
In Northern India Caterers (India) Ltd. v. Lt. Governor of
Delhi [1979] 1 S.C.R. 557, a distinction wcis made between
· sale of food and the provision of services in hotels and
restaurants. The Court held:-
'
NARINDER S. CHADHA v. MUNICIPAL CORPORATION
837
OF GREATER MUMBAI [R.F. NARIMAN, J.)
"Like the hotelier, a restaurateur provides many services
A
in addition to the supply of food. He provides furniture and
furnishings, linen, crockery and cutlery, and. in the eating
places of today he may add music and a specially provided
area for floor dancing and in some cases a floor show. The
view taken by the Englii;h law found acceptance on
American soil, and after some desultory dissent initially in
certain states it very soon became firmly established as
B
the general view of the law. The first addition of American
Jurisprudence [ Vol. 46, p. 207, para 13) sets forth the
statement of the law in that regard, but we may go to the c
case itself, Electa 8. Merrill v. James W. Hodson [1915
B LRA 481) from which the statement has been derived.
Holding that the supply of food or drink to customers did
not partake of the character of a sale of goods the Court
commented:
'The essence of it is not an agreement for the
transfer of the general property of the food or drink
placed at the command of the customer for the
satisfaction of his desires, or actually appropriated
D
by him in the process of appeasing his appetite or
E
thirst. The customer does not become the owner of
the food set before him, or of that portion which is
carved for his use, or of that which finds a place
upon his plate, or in side dishes set about it. No
designated portion becomes his. He is privileged
F
to eat, and that is all. The uneaten food is not his.
He cannot do what he pleases with it. That which
is set before him or placed at his command is
provided to enable him to satisfy his immediate
wants, and for no other purpose. He may satisfy
G
those wants; but there he must stop. He may not
turn over unconsumed portions to others at his
pleasure, or carry away such portions. The true
essence of the transaction is service in the
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[2014] 12 S.C.R.
satisfaction of a human need or desire,- ministry
to a bodily want. A necessary incident of this
service or ministry is the consumption of the food
required. This consumption involves destruction,
and nothing remains of what is consumed to which
the right of property .can be said to attach. Before
consumption title does not pass; after consumption
there remains nothing to become the subject of title.
What the customer pays for is a right to satisfy his
appetite by the process of destruction. What he thus
pays for includes more than the price of the food
·as such. It includes all that enters into the
conception of service, and with it no small factor of
direct personal service. It does not contemplate the
transfer of the general property in the food applied
as a factor in the service rendered."
This led to the Constitution 46th Amendment Act by which
Article 366 (29A) was inserted. Article 366 (29A) reads as
follows:-
"Article 366 (29-A) "tax on the sale or purchase of goods"
includes-
(a) a tax on the transfer, otherwise than in pursuance of a
contract, of property in any goods for cash, deferred
payment or other valuable consideration;
(b) a tax on the transfer of property in goods (whether as
goods or in some other form) involved in the execution of
a works contract;
(c) a tax on the delivery of goods on hire-purchase or any
system· of payment by installments;
(d) a tax on the transfer of the right to use any goods for
any purpose (whether or not for a specified period) for
cash, deferred payment or other valuable consideration;
NARINDER S. CHADHA v. MUNICIPAL CORPORATION
839
OF GREATER MUMBAI [RF. NARIMAN, J.]
(e) a tax on the supply of goods by any unincorporated
A
association or body of persons to a member thereof for
cash, deferred payment or other valuable consideration;
(f) a·tax on the supply, by way of or as part of any service
or in any other manner whatsoever, of goods, being food
8
or any other article for human consumption or any drink
(whether or not intoxicating), where such supply or service
is for cash, deferred payment or other valuable
consideration,
and such transfer, delivery or supply of any goods shall be
C
deemed to be a sale of those goods by the person making
the transfer, delivery or supply and a purchase of those
goods by the person to whom such transfer, delivery or
supply is made;".
It will be seen ·that the definition of tax on the sale or
D
purchase of goods has been artificially expanded more
particularly by sub-clause (f), with which we are concerned,
where the distinction between "sale" and "service" has been
done away with. In the present case, the well established · E
distinction between "sale" and "service" would continue to apply
in view of the definition of "sale" contained in Section 3(m). It
will be noticed that the definition is a "means" and "includes"
one. It is well settled that such definition is an exhaustive
definition (see: P. Kasilingam and others v. P.S.G. College
of Technology and others 1995 Supp (2) SCC 348 at para . F
19). There is thus, no scope to include "service' in such a
definition. Further, even if we were to accept Mr. Bhatt's
contention, Rule 4(3) would become ultra vires Section 6 of the
Act inasmuch as it would prohibit the sale of cigarettes and
other tobacco products in a smoking area in hotels, restaurants
G
and airports, thus, adding one more exception to the two
· exceptions already contained in Section 6. It is, thus, clear that
this condition would be ultra vires the Cigarettes Act and the
Rules properly so read.
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14. It will be seen that Condition No. 35(C) of the impugned
circular essentially reproduces Rule 4(3) of the said Rules and
then adds the words "or any apparatus designed to facilitate
smoking". The effect of the added words is that a Hookah
cannot be provided by the hotel, restaurant or airport being an
B apparatus designed to facilitate smoking.
·
15, Mr. Bhatt sought to derive power for the added words
from Rule 3(1 )(c) and argued that the Hookah would be "other
things" designed to facilitate smoking which would be prohibited
C under Rule 3(1)(c).
16. We find it difficult to accept this contention because, if
carefully read, Rule 3 deals with the prohibition of smoking in
public places, which is referable to Section 4 (main part)
whereas Rule 4 is referable to the proviso to Section 4. Rule 3
D would only apply where there is a total prohibition of smoking
in all public places as is clear from Rule 3(1)(a) which makes
it is incumbent on the owner, proprietor, etc.