The Indian Merchants' Chamber

The Indian Merchants’ Chamber

Tele GRAMS “INCHAMBU”
PHONE NO. 25212

Ref. No. 2462

LALJI NARANJI MEMORIAL
INDIAN MERCHANTS’ CHAMBER BUILDING,
BACK BAY RECLAMATION, FORT,
Bombay, 11th September, 1947.

From
Mr. Ratilal Mulji Gandhi, M.L.C.,
President, Indian Merchants’ Chamber,
Bombay.

To
The Honourable the President,
Constituent Assembly of India,
New Delhi.

Subject:- Functional Representation in the Council of States of the Union and the Upper Houses of the Provincial Legislatures.

SIR,

I am directed by the Committee of the Indian Merchants’ Chamber to submit, for your kind consideration and for the consideration of the Constituent Assembly and the appropriate Committees of that Assembly dealing with the problem, the following memorandum on the question of representation of Indian commerce and industry in the future Houses of Legislature in the Centre and in the Provinces under the provisions of the new Union and the Provincial Constitutions.

2. My Committee may in this connection be allowed to recall that on 13th July last they had submitted a representation by telegram to the Honourable the President urging the continuation of special representation for commerce and industry in the future Legislatures, both Central and Provincial. They had pointed out that the system of special representation had in the past been found to be very useful and that Commissions and Committees appointed to review the progress of Constitutional Reforms in the country from time to time had been quite outspoken in their tributes to the contribution made and the utility of the services rendered by representatives of commerce and industry in the sphere of legislative work. They had drawn the attention of the Constituent Assembly to the authoritative expressions of opinion by the Lothian Committee on Indian Franchise, when they urged the importance of securing the presence in the Legislature of men qualified to speak with knowledge and authority on economic issues. General constituencies obviously cannot be relied on to return in sufficient numbers members with practical experience of commercial and industrial problems, particularly in view of the fact that unlike other politically advanced countries party alignments on a rational basis have yet to be developed in this country. Particularly at a juncture like the present when questions of an economic character will loom large in the legislative activities of the new Dominion and in the Provinces, the presence of men, with representative capacity qualified to speak on economic and commercial matters would be of considerable advantage to the country in the accomplishment of the task ahead and the realization of the objectives underlying any planned programme of progress.

3. It transpires that the Constituent Assembly has, however, ultimately decided that functional representation shall in the future be confined to the Upper Houses, both in the Union and in the Provinces, and that there shall be no special representation for any interests in the Lower House either in the Centre or in the Provinces. While my Committee still adhere to the view that direct representation for commerce and industry in the Lower Houses has its own justification and would have been of special value in the present stage of transition, they have inevitably to take note of the decisions which have already been taken by the Constituent Assembly, and will confine their observations to matters of detail connected with the nature and constitution of the Functional Panels or Constituencies for the purpose of the representation already agreed to.

4. It would appear that in the Union Council of States not more than 25 members will be returned by Functional Constituencies or Panels on the lines of the provisions in the Irish Constitution and the Union Constitution Committee is expected to submit to the Assembly proposals regarding the delimitation of Constituencies for the purpose. Similarly, in the Provincial Legislature, wherever an Upper House is to be constituted, one half of the numerical strength allotted for functional representation is to be returned by election by special constituencies on the Irish model. My Committee presume that an adequate number of seats will be allotted for the representation of commerce and industry under the above scheme of things, both in the Union Council of States and in the Upper Houses of the Provincial Legislatures of the Provinces concerned.

5. So far as representation of commerce and industry is concerned, the method of representation through Chambers of Commerce and Associations has worked well in the past. The Southborough Committee on Constitutional Reforms had expressed their considered view that the method of representation to commerce should be through representative organizations. The Indian Franchise Committee appointed in connection with the 1935 Reforms also recognized the importance of organized bodies being chosen as the medium for special representation. Similarly, some of the Delimitation Committees then appointed had also recommended that if commercial interests were to be adequately represented in the Legislature, the member for the Commerce Constituency ought to be in a position to speak with the authority of a representative Chamber or Association behind him. My Committee, therefore, submit that the Constituent Assembly should adhere to this method of representation, so far as commercial interests are concerned, and select organized Chambers of Commerce as the Constituencies for the purpose of returning such representatives

6. Having stated the general case for the continuance of the method of representation through organised Chambers, my Committee would like to place before the Constituent Assembly the claim of the Indian Merchants’ Chamber, Bombay, for being selected as a Constituency for the purpose of direct representation both in the Union Council of States and in the Upper House of the Provincial Legislature in Bombay. This Chamber was established in the year 1907 and was almost the first corporate organization representing general interests of Indian trade, commerce and industry all over India. Under the Montagu-Chelmsford Reforms scheme, the Chamber was given the seat allotted for Indian commerce in Bombay in the Legislative Council. This Chamber again is the only body which enjoyed the privilege of an exclusive and continuous seat representing Indian commerce in the Central Indian Legislative Assembly. Under the 1935 Government of India Act also the Chamber was selected as the Constituency for representation of commerce both in the Central Legislature and in the Provincial Legislature. It is relevant in this connection to refer to the following observations made by the Delimitation Committee in Bombay at the time of the 1935 Reforms. They stated: “If special representation is to be given to commerce, it is, in our opinion, essential that the Associations which form these Constituencies should be well-established and of such standing and importance that they could be relied upon to send to the Assembly as their representatives men of outstanding ability and experience, whose expert knowledge would be of help to the Legislature… The Indian Merchants’ Chamber is, in our opinion, fully representative of the interests of Indian commerce generally and is best fitted to represent these interests in the Provincial Legislatures”. The representatives elected by the Chamber, both in the Indian Legislative Assembly (Central), and the Bombay Legislative Assembly, who have been on the whole men of great talents and capacity, contributed materially to the legislative work in the respective spheres. They have besides successfully voiced the sentiments and feelings of the Indian commercial community, and there has been no occasion on which the representative character of the members returned by the Chamber has in any way been challenged or questioned. The Lothian Committee on Indian Franchise, after reviewing the claims made in respect of special representation on the last occasion, observed that: “The commercial and industrial organisations now recognized for the purpose of representation in the Legislature are in our view fully capable of representing interests of industry and commerce as such”. My Committee, therefore, submit that on grounds both of its pre-eminent position as a leading and well-organized Chamber representing commercial and industrial interests and of the record of service which it has rendered through its successive representatives in the Legislatures, the claim of this Chamber for being selected as the medium for representation for a seat in the Central Upper House and for adequate number of seats in the Provincial Upper House in Bombay is justified and is in accord with the avowed object of the method of special representation so as to secure the presence in the Legislature of members with representative capacity.

7. My Committee may here be allowed to make some reference to the present organisational position and strength of the Indian Merchants’ Chamber. As mentioned before, the Chamber was established in the year 1907. It has since the Montagu-Chelmsford Reforms been represented both in the Central Legislative Assembly and in the Provincial Legislature. In addition, the Chamber enjoys the privilege of sending representatives to various Public Bodies, such as the Indian Central Cotton Committee, the Board of the Bombay Port Trust, Bombay Municipal Corporation, Senate of the University of Bombay, Local Advisory Committees of the Railways, Governing Body of the I.M.M.T.S. “Dufferin”, the Indian Sailors’ Home Committee, Board of Communications, Traffic Advisory Committee and several other official and advisory organisations. The Chamber has a general membership of over 2,300 spread all over the country. Its membership is not confined to the Province of Bombay. The Chamber represents more than 75 different types of trades and business, and has on its own roll a number of leading Joint Stock Companies and Corporations, including all the leading Banks, Insurance Companies, Shipping and Industrial undertakings. Besides, 106 trade Associations representing different trades, such as grain, seeds, sugar, rice, bullion, iron, chemicals, yarn, machinery and stores, paper, silk, cloth, oils, electrical goods, etc. are affiliated to the Chamber as members. The total strength of the affiliated Associations runs into thousands. In a practical sense thus, the representatives elected by the Chamber can be deemed to be representatives of the large number of Associations representing different branches of trade and commerce affiliated to it. The organization of the Chamber is thus very broad-based, and by recognizing the Indian Merchants’ Chamber as a Constituency for purposes of representation in the future Houses of Legislature, Government would be affording representation to all branches of economic, trade and industrial activities.

8. I am directed to send herewith a copy of the List of Members of the Chamber including the List of Associations affiliated to it, in order to convince the Constituent Assembly of the nature and extent of the activities represented within the ambit of this Organization.

9. My Committee hope that the Union Constitution Committee and the Constituent Assembly will readily recognize the claim of this Chamber for being selected as one of the Constituencies for direct representation of commerce and industry in the Houses of Legislature both in the Centre and in the Province of Bombay.

I have the honour to be
Sir,
Your obedient servant,

<Signature>

President