Punjab & Haryana High Court Declares 75% Domicile Quota For Haryana Locals In Private Sector As Unconstitutional

1. Introduction of the Act (Haryana State Employment of Local Candidates Act, 2020):

• The Act was introduced in the Haryana State Assembly in 2020.
• The background of the Act was stated as the influx of a large number of migrants competing for low-paid jobs, impacting local infrastructure and housing, leading to slums and environmental and health issues.
• The Act aimed to give preference to local candidates in low-paid jobs for social, economic, and environmental reasons.

2. Legal Challenge:

• Several petitions were filed challenging the constitutionality of the Act.
• One of the petitioners, Faridabad Industries Association, argued that the Act represented an unprecedented intrusion by the government into the fundamental rights of private employers under Article 19 of the Constitution.
• The petitioner contended that the restrictions imposed by the Act were arbitrary, capricious, excessive, and uncalled for.

3. Constitutional Concerns Raised by Petitioners:

• The Act was argued to be contrary to the principles of justice, equality, liberty, and fraternity laid down in the Preamble of the Constitution.
• It was also contended that the Act violated the right to equality enshrined in Article 14 and Article 19 of the Constitution.
• The petitioners claimed that the Act posed a serious threat to the unity and integrity of the country by creating a wedge between persons domiciled in different states.

4. Proceedings in the High Court:

• The High Court considered four key issues:
  • Whether the Writ Petitions are maintainable.
  • Whether the State has legislative competence to pass the Impugned Act.
  • Whether the State can implement reservation policy in the private sphere.
  • Whether the Act amounts to a reasonable restriction.
• All four issues were decided in favor of the petitioners.

5. High Court’s Decision:

• The High Court, through a bench consisting of Justice G.S. Sandhawalia and Justice Harpreet Kaur Jeewan, declared the Haryana State Employment of Local Candidates Act, 2020, as unconstitutional and violative of Part III of the Constitution.
• The Act was set aside, meaning it was rendered ineffective.

6. Stay Order and Supreme Court’s Involvement:

• Earlier, the High Court had stayed the operation of the Act in 2022.
• The Supreme Court, on appeal by the High Court, lifted the stay and requested an expeditious decision on the matter.
• Private employers were protected from coercive action under the legislation until the final outcome of the case.

7. Legal Representation:

• Various advocates and senior advocates represented the petitioners and the state of Haryana during the proceedings.

8. Final Verdict:

• The High Court’s final verdict was in favor of the petitioners, striking down the domicile reservation in the private sector jobs in Haryana.

The case title is “IMT Industrial Association and another v. State of Haryana and connected cases.” The judgment is detailed and would provide a comprehensive understanding of the court’s reasoning in this matter.