Court caseAIR 1959 SC 149

Basheshar Nath's case was referred to the Income Tax Investigation Commission under section 5(1) of the Taxation on Income (Investigation Commission) Act 1947. He entered into a settlement under section 8A agreeing to pay over three lakh rupees in instalments. The Supreme Court later held section 5(1) discriminatory and void under Article 14 (Suraj Mall Mohta, M.Ct. Muthiah). When he stopped paying, the Commissioner enforced the settlement, arguing that by agreeing to it the assessee had waived his fundamental right under Article 14.

The Court held unanimously that the settlement could not be enforced. Das CJ and Kapur J held that Article 14, being founded on public policy and an injunction on the State, cannot be waived by an individual, without deciding whether all fundamental rights are unwaivable. Bhagwati J and Subba Rao J went further: no fundamental right can be waived, because the rights are placed in the Constitution as a matter of public policy and the doctrine of waiver developed in the United States does not apply to the Indian Constitution. S.K. Das J took a narrower view on the facts. The appeal was allowed.