The Supreme Court on Thursday set aside the Punjab and Haryana High Court decision staying the Haryana law providing 75 per cent reservation in private sectors to locals by just a one-line order.
A bench presided over by Justice L Nageswara Rao set aside the high court's interim order of February 3 for having not given sufficient reasons for suspending the operation of the Haryana State Employment of Local Candidates Act 2020.
The top court wondered if all statutes can be dealt with one-line order.
It asked the High Court to decide the challenge to the validity of the state legislation within four weeks. The bench also protected the industries from any coercive action by the state government.
Appearing for the Haryana government, Solicitor General Tushar Mehta said there cannot be a stay on the law without going into merits. The law is meant for Class III and IV jobs, he said, adding there are four states which had passed such a law.
He also pointed out the stay was granted on a writ petition by the Faridabad Industries Association within 90-second of hearing.
Senior advocate Dushyant Dave, appearing for the association, contended if the law was allowed to operate, there would be daily prosecutions as there were nine lakh companies in Haryana. He said even law firms over there can't employ juniors from other states as the definition of 'employer' was sweeping in the law.
Senior advocate Shyam Divan, also representing the association, contended the law would have a profound impact on businesses. He said if the law is not stayed, let there be no coercive steps under it.
After hearing the counsel, the bench said let the High Court decide the matter within one month and the state government would not take any coercive steps against the industries.
In its plea, the state government said the stay order was passed on a plea by Faridabad Industries Association in violation of the principle of natural justice as the High Court opened the hearing with a predetermined conclusion and did not afford any opportunity to its law officer.
"The order is completely in teeth of the law laid down by the Supreme Court which unambiguously held that if a legislation which pertains to reform or change should not be stayed at an interim stage," it said.
Maintaining that the HC's order was ex facie unsustainable and liable to be set aside, the state government said the 2020 Act was in no way arbitrary or unjust as the law was for a limited period of 10 years after January 15, 2022 and required every employer to hire 75 per cent local candidates to such posts where gross salary is less than Rs 50,000 per month. The amount was further reduced to Rs 30,000 per month.
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