Association of Old Settlers of Sikkim & Ors v. Union of India & Anr. (2023)
Quick Summary
This case tested who qualifies as “Sikkimese” for Section 10(26AAA) income-tax exemption. The old rule used the 1961 Sikkim Subjects Register and a gender-based proviso. The Supreme Court said both were unfair. All Indians who permanently lived in Sikkim before 26 April 1975 must be counted. The gender bar on Sikkimese women who married outside the group after 1 April 2008 was struck down.
- Equality under Articles 14 & 15 applies to tax benefits.
- Definition should match the law’s purpose: help genuine residents.
- Gender-based exclusions are unconstitutional.
Issues
- Is the 1961 register a fair and rational way to define “Sikkimese” for tax relief?
- Does the proviso that penalises Sikkimese women for marrying non-Sikkimese violate equality?
- Do the exclusions fail Article 14’s classification test and Article 15’s gender bar?
Rules
- Article 14: Classification needs intelligible differentia and a rational link to the law’s aim.
- Article 15: No discrimination only on the ground of sex; marital status cannot be used to penalise women.
- Purpose Rule: Benefits must reach true residents; paperwork alone cannot defeat substance.
Facts (Timeline)
helpPre-1975
Indian nationals settled in Sikkim for work and trade; many kept Indian citizenship and were not in the 1961 Register.
26 Apr 1975
Sikkim merged with India; “Sikkim Subjects” got Indian citizenship by order.
2008
Section 10(26AAA) inserted; exemption tied to the 1961 Register/1990–91 orders; gender proviso added for women marrying non-Sikkimese after 1 Apr 2008.
Petition
Old Settlers and affected women challenged the exclusions as arbitrary and discriminatory.
Judgment
Court widened “Sikkimese” to include pre-1975 permanent settlers; struck down the gender proviso.
Arguments
Petitioners (Old Settlers & Women)
- Residents before 26.04.1975 are genuine; register is a poor proxy.
- Gender proviso punishes women for marriage choice; violates Articles 14 & 15.
- Purpose is to help residents, not only those with old paperwork.
Respondents (Union of India)
- Register provides certainty and prevents misuse.
- Proviso aims to keep benefit within the Sikkimese group.
- Legislative policy choice should be respected.
Judgment
helpThe Court held that the exclusions were arbitrary. “Sikkimese” must include all Indian citizens permanently settled in Sikkim before 26.04.1975. The proviso that removed benefits from Sikkimese women who married non-Sikkimese after 01.04.2008 was unconstitutional and void.
Ratio Decidendi
A classification that blocks genuine residents or targets women based on marriage fails Articles 14 and 15. The definition must fit the purpose: relief for residents of Sikkim.
Why It Matters
- Secures tax fairness for long-time residents left out by paperwork gaps.
- Affirms that gender-based penalties in tax benefits are unconstitutional.
- Guides future laws: use purpose-fit criteria, not rigid documents.
Key Takeaways
- “Sikkimese” now includes pre-1975 permanent settlers with Indian citizenship.
- Gender proviso struck down—no penalty for women’s marriage choices.
- Purpose over paperwork: eligibility must mirror legislative aim.
Mnemonic + 3-Step Hook
Mnemonic: S.I.K.K.I.M. — Settlers pre-1975, Inclusion over register, Key purpose, Kick out arbitrariness, Inequality barred, Marriage neutrality.
- Spot: Who is a genuine resident?
- Test: Does the line drawn fit the law’s purpose?
- Apply: Use Articles 14/15 to remove unfair exclusions.
IRAC Outline
Issue
Is the old “Sikkimese” definition and gender proviso constitutional?
Rule
Article 14 classification + Article 15 sex-based bar; aim-fit and non-discrimination required.
Application
Register test excluded genuine residents; marriage proviso singled out women—both irrational.
Conclusion
Wider inclusion ordered; gender proviso struck down as unconstitutional.
Glossary
- Sikkim Subjects Register
- A 1961 list used by the former kingdom to mark local subjects.
- Intelligible Differentia
- A clear line that separates groups for a valid legal purpose.
- Proviso
- A condition attached to a law; here, it unfairly targeted women.
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