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Supreme Court of India· 18 September 2026

Is a rule mandating denaturants for methanol proportionate where less restrictive alternatives exist and the industries' burden is met only by a possible benefit?

M/S BALAJI FORMALIN PVT. LTD. & ANR v. UNION OF INDIA & ANR
2026 INSC 1009 · WRIT PETITION (C) NO. 893 OF 2019
Coram: Justice J.B. Pardiwala · Justice K. Vinod Chandran
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Answer

A rule mandating denaturants for methanol is not proportionate where less restrictive alternatives exist and the industries' burden is met only by a possible benefit.

No. A rule mandating denaturants for methanol is not proportionate where less restrictive alternatives exist and the industries' burden is met only by a possible benefit. The State failed to show that no equally effective and less restrictive alternative was available, while the burden on the industries was substantial and continuing against a benefit that remained only a possibility.

Headnote

Constitution of India — Art.14 — Art.19(1)(g) — Art.19(6) — Poisons Act, 1919 — Subordinate legislation — Proportionality — Constitution of India — Art.19(6) — Proportionality test — Held: A restriction on a fundamental right must pursue a legitimate aim, be suitable and necessary, and be balanced against the individual's right. This four-fold test governs whether a restriction under Article 19(6) is proportionate. (¶54, 55, 56, 57, 58) Constitution of India — Subordinate legislation — Grounds of challenge — Held further: The validity of a subordinate legislation can be challenged on the same grounds available against a plenary legislation. These include lack of legislative competence, being ultra vires the Constitution or the parent Act, and being manifestly arbitrary or unreasonable. (¶23, 24) Constitution of India — Art.19(1)(g) — Hardship not a ground alone — Held further: Hardship caused to a section of society is not by itself ground to strike down a legislation that is otherwise fair and reasonable. Such State action must nonetheless be reasonable and proportionate to withstand scrutiny. (¶39) Maharashtra Poisons Rules, 1972 — Rule 18A — Rule 18B — Application of the proportionality test — Held further: A rule mandating denaturants for methanol is not proportionate where less restrictive alternatives exist and the industries' burden is met only by a possible benefit. Rules 18A and 18B held violative of Articles 14 and 19(1)(g); petitions and appeal allowed. (¶56, 57, 58, 60, 68)

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In the Court's own words
Paragraph 56The second test is whether the state action is suitable for achieving such an aim. The evaluation under this test would entail an analysis of whether the impugned restriction can further the intended objective. As discussed in the foregoing paragraphs of this judgment that by restricting the purchase of methanol through licensing framework under Rule 18A(1), and consequential action of confiscation under Rule 18B would not even remotely achieve the aim of stopping the addition of methanol in liquor.
Paragraph 57As regards adoption of less restrictive measures, the State has failed in showing that no equally effective and less restrictive alternative was available. In our considered view, the check- points or rather the safeguards in the Maharashtra Poison Rules if implemented in letter and spirit would better address the problem of pilferage and diversion.
Paragraph 58Finally, the answer to the last test lies in the question whether the burden placed on a class of citizens is out of proportion to the benefit it is likely to produce. On one hand lies the burden on the industries as noted in paragraph 44 above, namely, loss of yield, reduced life of catalyst leading to more byproduct formation impacting environment and quality of formaldehyde, high power consumption, reduced life of equipment, increased susceptibility of health hazards owing to improper evaporation, etc, while on the other, lies the benefit of identification which the State hopes would prevent the harm sought to be addressed. Thus, the burden on the industries is substantial and continuing but the benefit that the State claims to achieve is only a possibility.
Acts & Sections
Rule 18A Maharashtra Poisons Rules, 1972Rule 18B Maharashtra Poisons Rules, 1972Article 14 Constitution of IndiaArticle 19(1)(g) Constitution of IndiaArticle 19(6) Constitution of India

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Also decided in this judgment
Must a restriction on a fundamental right pursue a legitimate aim, be suitable and necessary, and be balanced against the individual's right?Can the validity of a subordinate legislation be challenged on the same grounds available against a plenary legislation?Is hardship caused to a section of society by itself ground to strike down a legislation that is otherwise fair and reasonable?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections