"Prima Facie Untenable": Karnataka HC Directs State To Not Proceed With Circular Which Stated That Shops Not Having 60% Signage In Kannada Would Be Sealed

The Karnataka High Court on Monday directed the State Government to not proceed with the implementation of the condition in the Karnataka Language as Comprehensive Development (Amendment) Act 2024, by which it would seal the premises failing to have 60% use of Kannada in signboards of businesses and establishments

A single judge bench of Justice M Nagaprasanna while hearing a petition filed by Retailers Association of India said “The circular issued by the state government dated 26-02-2024, which is in furtherance of the Act and its implementation. It would indicate that if 60 percent of the boards are not in Kannada, those business establishments or undertakings would be sealed down. This prima facie is untenable.”

Advocate General submitted that the intention of the state is not to seal down but to enforce the 60 percent boards to be in Kannada.

He added that the matter would require consideration and for the purpose of consideration would require a statement of objection by the state as the act is called in question.

Court stated that till such time the state shall not insist on the contents of the circular dated 28-02-2024, with regards to the sealing down of the premises. The rest of the insistence shall remain subject to the decision of the petition.

The association approached the court calling in question a legislation of the state–namely—-Karnataka Language as Comprehensive Development (Amendment) Act 2024. It sought to declare that Sections 17(6), 23 and 27 of the Kannada Language Comprehensive Development Act, 2024 as amended by the Karnataka Language Comprehensive Development (Amendment) Act 2024 as unconstitutional, violative of fundamental rights of the petitioners, violative of Trademarks Act were void ab initio.

Advocate Manu Kulkarni submitted that the statement of object and reasons of the Act, takes its foundation from Article 345 of the Constitution, and it was not notified in the official gazette making it unenforceable.

However, Advocate General K Shashi Kiran Shetty clarified that the Act has been gazetted and placed on record a copy of the gazette.

Further the petitioners argued that Section 17(6) of the Kannada Language Comprehensive Development Act, 2024 has been amended by the impugning Act. It stated the difference between the unamended section and the amended section, and said that the unamended mandated 50 percent of the board in all commercial establishments to be in Kannada which has increased to 60 percent.

It was also brought to the notice of the court that an attempt was made to amend the Karnataka Shops and Commercial Establishments Act by enforcing Kannada language, had become subject matter of challenge and the court disposed of the petition in June 2009, striking down the said amendment.

During the hearing, the court orally told the petitioner, “What is going to happen if two lines of Kannada comes (in the board)? Legislation we will consider, sealing down of the premises. I am not for it. You operate in Karnataka, your business is growing in Karnataka, why not put the name of the establishment in Kannada.”

It added “State is not imposing that everyone of your employee should be a Kannadiga, no. What is the state saying or imposing that a board which is the size of the English board should be in Kannada.”

Further the court took into consideration the contention of the petitioner seeking time to implement the circular. The bench noted that the Advocate General assured that all retailers and business undertakings would be given complete clarity as and when sought or even unsought.

Directing the state government to file objections to the petition. It said that the Act mandates that the state government by notification in the official gazette shall appoint a date for it to come into force, and till the clarification is issued no precipitative action be taken only if the Act does not come into force.

Case Title: RETAILERS ASSOCIATION OF INDIA & Others AND STATE OF KARNATAKA & Others.

Case No: WP 7525/2024

Appearance: Advocate Manu Kulkarni for Petitioner.

Advocate General K Shashi Kiran Shetty for Respondents.