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Property, as a legal and social institution, has diferent orms in diferent cultures and lega legall syst systems ems.. owev owever er,, only only a den denit itio ion n o Cons Consti titu tuti tion onal al prop proper erty ty is commo common n in all democratic countries. Since state exercises eminent domain power against private property, it is pertinent to discuss the concept o private property in brie. The institution o private property has been a controversial issue with conicting views, one completely denying the right to own private property and the other supports the holding o the private property. !owever, the right to property is a natural and inherent right o an individual. "ost o the modern modern Constituti Constitutions, ons, except except those those o communist communist countries countries have recogni#ed the right o private property. property. Thereore, citi#ens have right to own and possess the property. This right o individual conicts with the right o state to ac$uire property. % person has a right not to be deprived o his property except through due process o law. These two rights i.e., the right o eminent domain o the state and right o citi#en not to be deprived o his property except by due process o law exist in diametrical opposition. They have to be resolv resolved ed more more in avour avour o citi#en citi#ens s by limiti limiting ng the power power o eminent eminent domain. domain. Thereor Thereore, e, property is an institution governing the control and allocation o material ob&ect, and placed ultimate control over scarce resource in the hands o individual. 'n private property system, indivi individua duals ls are are grante granted d powers powers over over the contr control ol and use o resou resourc rce. e. The most most obviou obvious s maniestation o vesting control in a single person is characteri#ed as an ability to exclude others rom access to or use o the same resource in considering the diferent approaches to the the den denit itio ion n o priv privat ate e prop proper erty ty in difer diferen entt lega legall syst system ems. s. The The dist distin inct ct and and commo common n denition or Constitutional property can be ofered. The aim o the private law is to regulate relationships between individuals, thereore, denition o property in private law depends on the diferent aspects o the legal relations among individuals, but aim o constitutional law is to regulate relationship between individual and state, thereore, state protects the property right o individuals. (or example, th amendment to )S Constitution provides that *nor shall any state deprived any person lie, liberty, property, without due process o law+. 'n 'ndia ater Constitution came into orce property right is recogni#ed as a undamental right under %rticles -// and 0. 'n 'ndia, no undamental right has given rise to so much o litigation than property right between state and individuals. Though the Supreme Court o 'ndia sought to expend the scop scope e and and ambi ambitt o right right to prop proper erty ty,, but but it has has been been prog progre ress ssiv ivel ely y curta curtail iled ed thro throug ugh h constitutional amendments. The 'ndian version o eminent domain has ound in entry 12 3ist ''', which says *ac$uisition or re$uisition o property+. )nder the original Constitution %rticles -// and 0 provides or protection o property right and later they were repealed and %rticle 044% was inserted. %ccordingly no person shall be deprived o his property save by the authority o law. !owever, regarding right to property what 5ind o protection given by the )S Constituti6n similar not identical/ protection provided by the 'ndian Constitution under %rticle %rticle 044%. (or (or better understandi understanding ng o %rticle 044% it is appropriat appropriate e to discuss the repealed provisions o %rticles -// and 0 along with Constitutional amendments.
The demand or a guarantee o undamental right to property can be traced bac5 to the time o the "agna Carta, 27. That Charter set out the rights o the various classes o the medieva medievall commun community ity accor accordin ding g to their their needs. needs. 6ther 6ther ancien ancientt documen documents ts enrolle enrolled d on the stat statut ute e boo5 boo5 were were the the Petiti etition on o 8igh 8ight, t, 9 92: 2:,, the the ;ill ;ill o 8igh 8ights ts,, 9 9::- and and the the %c %ctt o settlement, <4 inaugurated in =ngland an era o Constitutional government. 'n =ngland ater Crown Proceedings %ct -1< came into orce, removed the total immunity o the Crown, thus the >ing could do only what the law o the land allowed. ?uring the time o national emergency the >ing could demand personal service within the realm. =ither the crown or a sub&ect may invade the land o another to erect ortications or the deence o the realm. The provisions o the ?eence %ct :12, which had been incorporated into the deence o the 8ealm %ct and it imposed conditions upon compulsory ac$uisitioning o land and provided or payment o compensation as a matter m atter o right to persons whose land had been ta5en over. Similar Similar provisions provisions could be seen in the )S Constitutio Constitution. n. The (ith %mendment %mendment to the %merican Constitution provides *@.. nor shall any person@.. deprived o his lie, liberty, or
property without due process o lawA nor shall private property be ta5en or public use without wi thout &ust compensation.+ The 'ndian desire or civil rights had been traced its roots deep deep in the nineteenth century. century. (or the rst time the ;engal 8egulation ' o :21 1 authori#ed compulsory ac$uisition o private property by the state. 't was implicit in the policies o the 'ndian Bational Congress in ::7, that 'ndians wanted same rights and privileges that the ;ritish masters en&oyed in 'ndia and the ;ruisers had or themselves in =ngland.'n :-1 also the Congress passed a resolution demanding demanding *xed *xed o tenure and immunity immunity rom rom D =nhancement =nhancement o land tax or suEcient suEciently ly long period o not less than sixty years. The demand or certain certain undamental undamental rights appeared appeared or the rst time in the Constitution o 'ndia ;ill, :-7. % series o resolutions adopted between -< and -- by the 'ndian Bational Congress, repeated the demands or civil rights and e$uality o status with =nglishman < %rticle 9 o this ;ill laid down a variety o rights including right to property/. 'n -- o the "ontaguFChelmsord 8eorms, the 'ndian Bational Congress at its special session held in ;ombay in %ugust -- demanded or the proposed Government o 'ndia %ct should include a *declaration o the rights o the people o 'ndia as ;ritish citi#ens.+: The next ma&or development was that inclusion o the seven undamental rights provisions in "rs. ;esants *Commo Commonw nwea ealt lth h o 'ndi 'ndia a ;ill ;ill+ + o -27 27.. 'n -29 29 the the 'ndi 'ndian an Bati Bation onal al Cong Congre ress ss pass passed ed a resolution or ta5ing steps in the councils to improve the condition o peasants and to protect the rights o labor. 'n compliance with the directions contained in the "adras Congress resolution o -2<, a comm commit itte tee e was was set set up to dra dratt a *S *Swa wara ra&& Cons Consti titu tuti tion on+ + or or 'ndi 'ndia a on the the basi basis s o a *dec *d ecla larat ratio ion n o righ right+ t+,, commi committ ttee ee came came into into being being in "ay "ay -2: 2:.. "oti "otila lall Behr Behru u was was its its chairman chairman and its report 5nown as the Behru 8eport, 8eport, contained contained an explanati explanation on o its drat Consti Constitut tution ion.. The repor reportt purpor purported ted to secur secure e the undam undament ental al rights rights includ including ing right right to property, that had been denied. The preamble preamble to the 'ndependence 'ndependence ?ay pledge that had been ta5en ta5en on 29th Hanuary -04 aErmed the inalienable right o the 'ndian people as o any other people *to have reedoms and to en&oy the ruits o their toil and have the necessities o lie, so that they may have ull opportunity o growth.This pledge was translated into the historic resolution on (undamental 8ights and =conomic Programme adopted by the >arachi Congress in -0. Thereater, the Hoint Parliamentary Committee on constitutional reorms or 'ndia -00F 01/ elt a need or some general provision to be inserted in the Constitution %ct saeguarding private property against expropriation. The committee recommended that Constitution should secure the legislation expropriating the property o particular individual should be lawul only and expropriation conned or public purposes and compensation was to be determined by some independent authority. 'n -01, the Hoint Parliamentary Committee reused the 'ndians re$uest to include a list o rights in the -07 %ct. 6nly in -19 did the ;ritish tacitly ac5nowledge the validity o the 'ndia 'ndian n view view when when the the Cabi Cabine nett "iss "issio ion n Plan Plan su sugg gges ested ted that that to cons consti titu tute te an %d %dvi viso sory ry Commit Committee tee on undam undament ental al and minorit minority y rights rights to ma5e ma5e recom recommend mendati ations ons concer concernin ning g constitutional provisions. ;y -1<, it was commonly accepted belie that the state bore a ma&or responsibility or the welare o its citi#ens. The leaders o the independence movement made no distinction between the positive and negative obligations o the state. These were the two classes under which the basic rights o the 'ndian citi#en had been grouped in the Constitution o 'ndia.The proposal drated by the Consti Constitut tution ional al adviso advisor, r, ;.B. ;.B. 8au, 8au, was accept accepted ed by the SubFCo SubFCommit mmittee tee and classi classied ed as undamental rights including right to property and directive principles in Part ''' and part 'I, respectively. 'n Pro Pro.. >.T. >.T. Shahs Shahs drat drat Const Constitu itutio tion, n, a undam undament ental al right right to prope property rty was contemplated to be guaranteed. 't not only guaranteed the right to property but also allowed reas reasona onabl ble e rest restri rict ctio ions ns on the the righ right. t. %rti %rticl cle e J was was prepa prepare red d by the the su subc bcom ommi mitt ttee ee on undamental right D also specically guaranteed the right o property and restricted the power o the state to ma5e reasonable expropriation or public purposes only. only. 't also guaranteed &ust and ade$uate compensation or such expropriation. The drat report o the subFcommittee ormula ormulated ted ve ve speci specic c rights rights in which which the right to ac$uir ac$uire e prope property rty was one. one. This was contained in clause 1 which included right to reedom o movement throughout the )nion, to reside and settle in any part o the union and to allow any occupation, trade, business or proession. The other our rights were embodied in clause -.
Khen the subFcommitt subFcommittee ee reFassemble reFassembled d on %pril 1, -1< to reconsider reconsider the drat drat clause o %lladi >rishnaswami %yyarF initiated the discussion on the necessity or imposing limita limitatio tions ns on the right to reed reedom om in situat situations ions o grave grave emergen emergency cy and danger danger to the security o the state. The subFcommittee decided to bring the ve rights in the two drat clausesF clauses - L 1F under a single provision. The consolidated provision constituted clause 4 o the report o the subcommittee o which sub clause / dealt with the right to property. Subse$ Subse$uen uently tly,, the entir entire e clause clause was modie modied d by the amendme amendments nts o ?r. ?r. ;.8.%mbed5ar and %lladi >rishnaswamy 'yyar incorporated as clause : with subclauses e/ and / with the urther conse$uential change that subFclause d/ and / were renumbered as d/ L e/ respec respectiv tively ely. Khen Khen clause clause : came came up or consid considerat eration ion beor beore e the Const Constitu ituent ent %ssembly on %pril 04, -1<, HH", Bicholas 8oy pointed out that proviso to subFclause e / was put in purposely purposely in order order to saeguard saeguard the landed and other interests interests o minorities minorities and tribal people. !e pressed or the omission o the word Mreasonable so as to exclude the &udicial review review.. 'nterv 'nterveni ening ng in the debate debate,, Hawahar Hawaharlal lal Behru Behru suppor supported ted the deleti deletion on o the word word Mreasonable or the proviso to sub clause e/ "unshi moved three amendments. The third amendment proposed that subFclause e/ which guaranteed the right *to ac$uire property+ etc., should be so amplied as to cover also the right to *hold or dispose o+ property. Clause - o the interim 8eport o the %dvisory Committee provided that the state cannot ac$uire property or public use unless the law provided or the payment o compensation. Khile redrating the constitution clause :e/ and clause -/ became clauses 7/ / and 27. 'n Hanuary -1: once again it was renumbered renumbered as %rts.0/ and and 21. %rticle 0 read / Sub&ect to the other provisions o this %rticle, all citi#ens shall have the right @@./ to ac$uire, hold and dispose o propertyA and @@.. 2/ Bothing in SubFclauses d/, e/ and / o the said clause shall efect the operation o any existing law, or prevent the state rom ma5ing any law, imposing restrictions on the exercise o any o the rights conerred by the said subFclauses either in the interests o the general public or or the protection o the interests o any aboriginal tribe. %rticle 21 read 2 N / Bo person shall be deprived o his property save by authority o law. 2/ Bo property, movable or immovable, including any commercial or industrial underta5ing shall be ta5en possession o or amount o the compensation or species the principles on ta5ing o such possess possession ion or such ac$uisitio ac$uisition, n, unless the the law provides or the payment payment o compensation or the property ta5en possession o or ac$uired and either xes the amount o comp compen ensa sati tion on,, or sp spec eci ies es the the prin princi cipl ples es on whic which, h, and and the the mann manner er in whic which, h, the the compensation is to be determined. The committee commi ttee was o the opinion that no protection to any minority group was necessary in this %rticle. 0/ Bothing in clause 2/ o this %rticle shall afect D a/ The provisions o any existing law, or b/ The provisions o any law which the state may hereater ma5e or the purpose o imposing or levying any tax or or the promotion o public health or the prevention o danger to lie or property. The %rticle, as so amended, amende d, was nally reFnumbered by the ?rating Committee Commi ttee at the stage o revision as %rticle - o the ConstitutionN / %ll citi#ens shall have the rightD/ to ac$uire, hold and dispose o property, and... 2/ Bothing in SubFclauses d/, a/ and / o the said clause shall afect the operation o any existing law in so ar as it imposes, or prevent the state rom ma5ing any law imposing, reasonable restrictions on the exercise o any o the rights conerred by the said subFclauses either in the interests o the general public or or the protection o the interests o any Schedu Schedule le Tribes. ribes. %s opinio opinions ns were were divide divided d on a guaran guarantee teed d right right to prope property rty when when the &ustiability on the airness airness o compensation came or consideration. Sardar Patel said that no discrimination should be made and compensation in all cases should be made &ustiable. Behru thundered against inclusion o right to property under undamental right urging that in the history o man notions o property had changed rom time to time and thereore the right to property should not be included as a undamental right. !owever, the right to private property was sought to be given constitutional protection in %rticle 21 o the ?rat Constitution. "unshi in his drat o the undamental rights included a clause clause that no person would be deprived deprived o his lie, liberty or property D without due process
o law. %lthough many assembly members rst approached the due process, experience o the ).S. Constitution ma5ing soon taught them that it was intimately connected with two very important problemsN with the expropriation o property and compensation or it, and with preventive detention. The expression expression *due process o law+ in relation to property rights was considered by the subFco subFcommit mmittee tee on (undame undamenta ntall 8ights 8ights on "arch "arch 29, -1<. -1<. Two days days later later the members members reinorced their earlier decision providing that no private pri vate property could be ac$uired or public use unless the law called or the payment, according to principles previously determined or &ust compensation or the property ac$uired. Khen this matter went to the %dvisory Committee, Committee, Govind Iallab Iallab Pant Pant said that i the Clause M&ust M&ust compensatio compensation n was adopted, adopted, the measures or the ac$uisition o private property or public purpose might be challenged in courts on the ground o inade$uacy o compensation and it would be held up the cases and awaiting or nal verdict o the Supreme Court which might ta5e several years, thereore, all social progress could be brought to a stand nil. !e urther, observed that the word Mpublic use is ambiguous and thereore, i this included governmental as well as social purpose it would create create diEculties diEculties by re$uiring re$uiring the state to pay ade$uate compensatio compensation. n. 8a&gopalac 8a&gopalachari hari said that that the the $ues $uesti tion on o &ust &ustnes ness s o comp compens ensat atio ion n will will go to the the cour courts ts with with the the resu result lt the the governmenta governmentall unctioning unctioning will be paraly#ed. paraly#ed. %ccording %ccording to %yyar, the word MCompensation MCompensation carried with it the idea o MHust compensation. ' the word M&ust was 5ept, every case will go to the (ederal Court. Thereore the word M&ust was to be dropped. =ven though some o the members did not wish to support this provision, according to them compensation itsel meant &ust and air compensation. 8egarding #amindari abolition, they said that it would be unair not to give #amindaris &ust compensation. Closing Closing the debates debates Sardar Sardar Patel Patel observed observed that the discussion discussion had gone on a wrong wrong trac5. 't was not correct to assume that the ob&ect o the clause was to provide or the ac$uisition o #amindaris, as by the time the clause became law most o the #amindaris would have been li$uidated. Compensation would be paid or property ta5en, and there would be no expropriation. 'n the light o this explanation, the clause was adopted by the assembly without any alteration.Khen the ?rat Constitution was circulated or eliciting opinion, a number o amendments and suggestions were received rom the members. )ltimately ater great deal o consultation, the drating committee brought orward a compromise redrat o %rticle 21. The amendment was moved in the constituent assembly on September 4, -1-, by Hawaharlal Behru who observed at the outset that although the %rticle had given much discussion and debate the $uestions involved were relatively simple. !e said that there were two approaches one rom the point o view o the individuals individuals right to property property and the other rom rom that o the commun community itys s inter interest estDbu Dbutt these these two approac approaches hes did not necess necessari arily ly conic conictt with with each each other.Behru urther said that the drat %rticle was the result o a great deal o consultation and the result in act o the attempt to bring together and compromise various approaches to the $uestion. !e analy#ed the salient eatures e atures o the drat as N . There was no $uestion o any expropriation without compensation so ar as the Constitution was concerned A 2. ' property was re$uired or a public use, the state shall pay compensationA 0. The principle on which and the manner in which compensation shall be determined and paid shall be laid down by law A 1. Khen property was ta5en by the state or a public use air and e$uitable compensation should be paid. ;ut here uture millions o people may be afected. Thereore the ultimate balancing ma&ority can only be the sovereign legislatureA 7. Khile xing the amount o compensation or speciying the principles under which or the manner in which compensation was to be determined the parliament should be the nal authority and the &udiciary could not come into picture unless there was Ma gross abuse o the law or Ma raud on the ConstitutionA 9. (inally, (inally, in the case o ;ills ;il ls pending beore the legislature o a state, the &udiciary could have no intererence. ?ealing with the $uestion o land, Behru said that the Oamindari institution in 'ndia, is the big estate system, should be abolished and in this case no &udge and no Supreme Court stand in &udgment over the sovereign will o parliament which represents the will o the entire community. !.I. >amath, %lladi >rishnaswami %yyar, >.". "unshi and "rs. 8enu5a 8ay urged that the power to determine compensation should be exclusively vested in the legislature whose decision should not be open open to chal challe leng nge e in any any cour courtt and and with with this this ob&e ob&ect ct in view view they they su sugg gges este ted d cert certai ain n
amendments to clause 2/ o %rticle 21. %ccording to "rs. 8enu5a 8oy regarding $uantum o compensation the legislature will have the supreme voice. 6n the other hand, Tha5urdas ;hargava and "ahboob %li ;aig elt that it is not only nonF&u nonF&usti sticia ciable ble it, went went agains againstt the right right to prope property rty as recog recogni# ni#ed ed under under drat drat %rticle %rticle Thereore they supported the idea to pay proper and air compensation. Similar views also expressed by Ba#iruddin %hmed and Haspat 8oy >apoor. 8egarding clause 0/ o %rticle 21, there was not much discussion on it. 'n act it ofered them an additional saeguard in as much as it re$uired provincial bills providing or compulsory ac$uisition o private property to receive the assent o the President.0 Clauses 1/ and 9/ caused great resentment among the propertied interests as well as their opponents. 8egarding clause 7/ it was not discussed much. 't was commonly assumed that the State has the inherent right to exercise those powers which are necessary to secure peace, order and promote the health, morality and convenience o the people. >apoor moved an amendment wher where e by 3aws 3aws relat elatin ing g to evac evacue uee e prop proper erty ty was was soug sought ht to be exem exempt pted ed rom rom the the re$uirements o clause 2/ o %rticle 21. "unshi, who replied to the debate at the re$uest o Pandit Hawahalal Behru, called or the re&ections o all these amendments. %ll the amendments were negative and the %rticle as moved by Pandit Behru, with a ew verbal amendments emanating rom Shri >ala Ien5ata 8ao and >apoor were approved and nally became %rticle 0 o the Constitution 02 which readN / Bo person shall be deprived o his property save by authority o law 2/ Bo property, movable or immovable, including any interest in, or in any company owning, any commercial or industrial underta5ing, shall be ta5en possession o or ac$uired or public purposes under any law authoring the ta5ing o such possession or such ac$uisition, unless the law provi provides des or compen compensat sation ion or the propert property y ta5en ta5en possessi possession on o or ac$uired ac$uired and either xes the amount o the compensation, or species the principles on which, and the manner in which, the compensation is to be determined and given. 0/ Bo such law as is reerred to in clause 2/ made by the legislature o a state shall have efect unless such law, having been reserved or the consideration o the President, has received his assent. 1/ ' any ;ill pending at the time o commencement o this Constitution in the legislature o a state has, ater it has been passed by such legislature, been reserved or the consideration o the President and has received his assent, then, notwithstanding anything in this Constitution, the the law law so asse assent nted ed sh shal alll not not be call called ed in $ues $uesti tion on in any any court court on the the grou ground nd that that it contravenes the provisions o clause 2/A 7/ Bothing in clause 2/ shall afectF a/ the provisions o any existing law other than a law to which the provisions o clause 9/ apply, or b/ the provisions o any law which the state may hereater ma5eF i/ or the purpose o imposing or levying any tax or penalty, or ii/ or the promotion o public health or the prevention o danger to lie or property, or iii/ in pursuance o any agreement entered into between the Government o the dominion o 'ndia or the Government o 'ndia and the Government o any other country, or otherwise, with respect to property declared by law to be evacuee property 9/ %ny law o the state state enacted enacted not more more than eighteen eighteen months months beore the commencement commencement o this Constitutio Constitution n may within within three three months rom such commencement commencement be submitted submitted to the president or his certication i it is certies, it shall not be called in any court on the ground that it contravenes the provisions o clause 2/ o this %rticle 0 or has contravened the provisions o sub section 2/ o section o the Government o 'ndia %ct, -07. %ter independence, no (undamental right has caused so much trouble and has given so much o litigation between the government and citi#ens as the property right. The reason is that the central and state governments have enacted massive hysteron o laws to regulate propert property y rights rights.. (irst, irst, the govern governmen mentt underto undertoo5 o5 to recon reconstr struct uct the agraria agrarian n econom economy, y, interalia, interalia, by trying to coner right to property on tillers, abolition o #amindaris, giving security o tenu tenurre to tena tenant nts, s, xing xing a ceil ceilin ing g limit limit on pers person onal al hold holdin ing g o agric agricul ultu tural ral land land and and redistributing the surplus land among the landless. Secondly, in the area o urban property, measures have been ta5en to provide housing to the people, clearance o slums and planning,
control rents, ac$uire property and impose a ceiling on urban land ownership etc., Thirdly, govern government ment has underta underta5e 5en n to regula regulate te privat private e enterp enterpris rises es and nation nationali# ali#ati ation on o some some commer commercia ciall undert underta5i a5ings ngs.. These These variou various s legisl legislati ative ve measur measures es have have been been underta underta5e 5en n to efectuate accepted goal o establishing a socialistic pattern o society. society. !ence !ence %rticl %rticles es 001 001 and -/ -// / 07 were were repea repealed led.. !istor !istorica icall evolut evolution ion and demise demise o repealed %rticles 0 and -// are still relevant or the understanding o constitutional developments o property right. Since the commencement o the Constitution undamental right conerred by %rticle 0 and %rticle -// has been modied by six times by the constitutional amendments. The rst amendment added two explanatory %rticles 0F% L 0F; to the ConstitutionA the ourth amendment amended clause 2/ o %rticle 0, added clause 2%/ 2%/ to the same %rticle %rticle,, insert inserted ed new provi provisio sions ns in %rticl %rticle e 0F% 0F% and enlarg enlarged ed the ninth scheduleA scheduleA the seventeent seventeenth h amendment amendment urther elaborated elaborated the denition denition o Mestate Mestate in clause clause 2/ o %rticle 0F%A and the twenty th amendment amended %rticle 02/, added clause 2F;/ and added a new %rticle 0FC. 'n the orty second amendment %rticle 0FC was substituted by the words * the principles specied in clause b/ or clause c/ o the %rticle 0-+ or the words *all or any o the principles laid down in part 'I o the Constitution+. %nd %rticle 0 as originally enacted was in the ollowing termsN %rt 0/ no person shall be deprived o his property save by authority o law. law. 2/ Bo property movable or immovable, including any interest, in or in any company owning, any commercial or industrial underta5ing, shall be ta5en possession o or ac$uired or public purposes under any law provides or compensation or the property ta5en possession o or ac$uired and either xes the amount o the compensation, or species the principle on which, and the manner in which the compensation is to be determined and given. 0/ Bo such law as is reerred to in clause 2/ made by the legislature o a state shall have efect unless such law, having been reserved or the consideration o the president, has received his assent. 1/ ' any bill pending at the commencement o this Constitution in the legislature o a state has, ater it has been passed by such legislature, been reserved or the consideration o the president and has received his assent, then notwithstanding anything in this Constitution, the law so assented to shall not be cancelled in $uestion is any court on the ground that it contravenes the provisions o clause2/. 7/ Bothing in clause 2/ shall afect a/ The provisions o any existing law other than a law to which the provisions o clause 9/ apply, or b/ the provisions o any law which the state may hereater ma5e D i/ or the purpose o imposing or levying any tax or penalty, or ii/ or the promotion o public health or the prevention o danger to lie or property, or iii/ 'n pursuance pursuance o any agreement entered entered into between the government government o the domination o 'ndia o the government o 'ndia and the government o any other country, or otherwise, with respect to property declared by law to be evacuee property. property. 9/ %ny law o the state state enacted enacted not more more than eighteen eighteen months months beore the commencement commencement be submitted to the president or his certication, and thereupon i the president by public notication so certies, it shall not be called in $uestion in any count on the ground that it contravened contravened the provision provisions s o clause 2/ o this %rticle or has contravened contravened the provisions provisions o sub section 2/ o section o the government o 'ndia %ct -07. Guaranteed to every citi#en o 'ndia 'ndia the right right to ac$uir ac$uire, e, hold hold and dis dispos pose e o prope property rty nally orty ourth ourth amendme amendment nt repealed the entire %rticle 0 and %rticle -// L inserted %rticle 044%. ;eore discussing the constitutional protection given to the property rights, it will be useul to examine the meaning attached to the term property and changes in its concept in recent years.The term property as used in the 'ndian Constitution has been let undened and it is used in vague manner. 'ts scope would depend upon the narrow or wider construction o the courts might put upon it. The sub&ect o property right was considered by the Supreme Cour Courtt or the rst rst time time in Chiranjit lal Chandhari v. Union of India . The $uestion was regarding the right o ordinary share holder to vote at a general meeting as property. The Supre Supreme me Court Court held held that that such such right right could could only only be regar regarded ded as prope property rty which could be ac$uired, disposed o or ta5en possession o, this was with reerence to the %rticle -//. This decision did not help much in solving the $uestion what protection property right carries. 'n commissione commissionerr H.R.E v. LT Swamar 1 court observed that there is no reason why the word
property as used in %rticle -// o Constitution, should not be given liberal and wider meaning and should not be extended to those wellFrecogni#ed types which have the sigma or characteristics o property rights. 'n this case the oEce o a "ahat was held to be a property because because the elements o re and property property o duties duties and personal interests interests blended together together and neither can be detached rom the other. 'n Saghir Ahmad v. State of Uttar Pradesh 12 the same learned &udge held that the right to play motor vehicles or gain is an interest is a commercial underta5ing and the prohibition o it i t amounts to deprivation o property within the meaning o %rticle 02/. The above three cases are a ew representative pronouncements on the$uestion o meanin meaning g o proper property ty and they show show a denite denite trend. trend. The Supreme Supreme Court uses uses the word property in the widest sense to include not only corporate but also the incorporate one. (rom this angle whatever has an economic value is considered as property and the decision in Saghir Ahmed v. State of Uttar Pradesh % signies the extent to which the concept o property can be dragged. ;ut the Supreme Courts decision did not ma5e it clear as to whether it was only the right o existing permit holders to ply the motor vehicle which constituted property or the right o every person who has the right to do business under %rticle -/g/. So ar as the acts o the case are concerned, it can be contended that the petitioners ac$uired goodwill in the business is denitely property. ;ut the language o the &udgment does not ma5e any distinction between the claims o existing permit holders and those who have claim to get permit under %rticle -/g/. Khen property is considered to be not only corporate but also incorporeal, the $uestion arises as to when one right out o the bundle o rights which is the sum total constituting the corporal property will itsel be property. The answer to this $uestion has been dependent on the mar5etability and exchangeability o the right in $uestion.' the right can be ac$uired, held and disposed o separately rom the corpus to which it is attached, it will be property, but otherwise not. 6n this reasoning the right o shareholder to vote at a general meeting was not considered as property separately rom the share. This demonstrates the dependence o the constitutional protection o property not only on the current ideal relating to property but also on the the exis existi ting ng law law whic which h give gives s reco recogn gnit ition ion to cert certai ain n inte intere rest sts s and and prov provid ided ed or or thei theirr mar5etability. 'n the recent recent case case o M.M Pathak v. Union of India the Supreme Court reiterated and emphasi#ed that the word property cannot have one meaning in %rticle -// another meaning in %rticle 0 clause / still another in %rticle 0 clause 2/. Property must have the same connotation in all the three %rticles property within the meaning o %rticle -// and clause 2 o %rticle 0 comprises every orm o property, tangible or intangible, including debts and choses in action, such as unpaid accumulation o wages, pension and cash grant. 't is to be noticed that the Constitution protects the right to property under two %rticles. )nder %rticle -//, the protection o which extends only to citi#ens which coners the the right right to ac$u ac$uir ire, e, hold hold and and disp dispos ose e o prop propert erty y aErm aErmat ativ ively ely su sub& b&ec ectt to reas reason onab able le restriction under clause 7/ %rticle - i.e., in the interest o general public and schedule tribes. %rticle 0/ specically protects the right to property by imposing a prohibition on the state against deprivation, except by authority o law. %rticle 02/ enunciates the re$uirements o a law by which property is ta5en possession o or ac$uired or public purpose by the state. 'n )nited States, States, right to property is protected protected by th amendment amendment to the constituti constitution on in the simple ormula that Mno person shall be @ deprived o his lie, liberty and property without due process o law. 'n 'ndia ater independence the then Congress ruling party had repeatedly expressed its ob&ective to abolish all the intermediaries between the state and the tiller o the soil with a view to improve the conditions o lie o the tiller who bore a heavy burden and also to promote the agriculture economy o the country. =ven beore the Constitution came into orce some o the states had introduced legislations with a view to able to achieve this purpose. )nder %rticle 01/ and 09/ legislations were enacted so that the power o e minent domain exercised in respect o the intermediary landed interests but shall not be sub&ected to the condition o payment o compensation provided under %rticle 02/. %rticle 07/ also protected certain existing laws other than those to which clause 9/ o the %rticle 0 applied. These provisions protecting property laws already enacted or on avail or these purpose were however ound to be inade$uate. This led to enact rst Constitution %mendment %ct,-7, which inserts %rticles 0F % and 0F; read with -th Schedule in the Constitution.19 The Constitution st amendment/ %ct, -7
added new provisions to the Constitution vi#, %rticles 0F% L 0F; along with Binth schedule. 't is indeed very important to 5now the history o introduction o %rticle 0F% and %rticle 0F; with ninth schedule to the Constitution. %rticle 0F; though a part and parcel o the chapter o undamental rights, does not by itsel give any undamental right. 6n the contrary, it puts certain restriction on right to property and it was believed that %rticle 0F; was an exception to %rticle 0. The then Government in power, soon ater the independence undertoo5 to achieve the ollowing tas5N / To reconstruct the agrarian economy, interalia by trying to coner right o property on the tiller, abolition o #amindars, giving security to tenure to tenants, xing a ceiling limit on personal holding o agriculture land and redistributing the surplus land among the landless. 2/ 'n the area o urban property, measures have been initiated to provide housing to people, clearance o slums and town planning, control rents, ac$uire property and impose a ceiling on urban land ownership, etc., 0/ To To regulate private enterprise and nationali#ation o some commercial underta5ings. 'nteresting cases in the property law have arisen and important constitutional battle were ought in the Supreme Court due to eforts o the government to implement above policies in practice. The most signicant controversy in these cases was the $uestion o payment o compensation or the property ac$uired. The protection o agrarian reorm legislations 1: rom abstractive litigations was one o the prominent policies o the Constitution ma5ers in molding the Constitution as an instrument o social change and a lever o socio economic &ustice. !owever, the inade$uacy o protection under %rticle 01/ L 9/ was soon reali#ed ater ater Patna atna !igh !igh Court Court decision decision in Kameshw Kameshwara ara Singh Singh v. State State of Bihar Bihar. % %bolition o #amindari came rst and oremost issue in economic programme o the ruling party. ;ut payment payment o compensation compensation posed particularly particularly a diEcult diEcult problem as it appeared to be beyond the nancial resources resources o the country country to pay &ust e$uivalent o the interest interest to be afected by such su ch prog progra ramm mme. e. To ensu ensurre that that su such ch legis legislat latio ion n did did not not run run into into heav heavy y weat weathe her, r, the the ConstitutionFramers provided a inbuilt saeguard in the constitutional provision relating to property right, vi#., the use o the word compensation in %rticle 02/ without any ad&ective li5e li5e M&ust M&ust or Mreas Mreasona onable ble, , it was thoug thought, ht, would would ensur ensure e that compen compensat sation ion need need not necessarily be ade$uate or e$ual to the property interests afected. 'n the course o time, this provision proved inade$uate to immune the land legislation rom rom challenge in courts. The word compensat compensation ion came to be interpreted interpreted as M&ust M&ust compensatio compensation. n. 3egislation 3egislation pertaining pertaining to land could also be challenged challenged under other Constitutional Constitutional provisions, provisions, especially under %rticles 1 and -//. 6n this ideology some land legislations were declared invalid. ;iha ;ihar, r, )tta )ttarr Prad Prades esh h and and "adh "adhya ya Prad Prades esh h exec execut uted ed cert certai ain n legis legisla lati tion ons s whic which h may may be compendiously be reerred to as #amindari abolition %ct. 'ssue was the Constitutional validity o ;ihar 3and 8eorms %ct,-74 which had abolished the #amindari system and provided or compensation compensation to be paid at twenty twenty times in case o ac$uired ac$uired land held by a poor man and at three times in case o ac$uired land held by a rich person. The Patna !igh Court held that although there could not be a challenge in the matter on ade$uacy o compensation in the view o %rticle 01/ and 9/, the statute was violative o %rticle 1 as it discriminated between #amindars. 't is submitted that court did not appreciate reormative spirit o e$uality as a policy underlying the statute because it wrongly accommodated e$uality as a legal spirit under %rticle 1, it classied the #amindar, or the purpose payment o compensation, in a discriminatory manner. The Patna !igh Court struc5 down certain provisions o the ;ihar 3and 8eorms %ct -74, as unconstitutional. 6n the other hand, the %llahabad L Bagpur !igh Courts upheld the corresponding legislations in )ttar Pradesh L "adhya "adhya Pradesh respectively. respectively. Khile appeal against these !igh Courts were pending beore the Supreme Court, the )nion Government reali#ed the unanticipated diEculties which had arisen in implementation o land reorm measures. measures. The central government anxious anxious o dilatory dilatory litigation and hurriedly hurriedly came to rescue the state land reorm measures with a view to put an end to all litigations relating to land reorms and save the state land reorm measure by suitably amending the Constitution. Central government elt that i we wait or nal verdict o the &udiciary may be &udicial pronouncements will be endanger the whole #amindari abolition programme. To overc overcome ome this this diE diEcu culty lty,, then then Prime Prime "inist "inister er Behru Behru intro introduc duced ed the Consti Constitut tution ional al (irs (irstt %mendment/ ;ill in 3o5 Sabha Provisional Parliament/ on :th "ay -7. =ight days ater its introduction, on 9th "ay -7 Pandith Behru moved the bill to amend the Constitution, nally, the ;ill was passed and received the assent o the President on : Hune -7<.
%rticle 0F% smoothened the process o #amindari abolition, it did not immune the legislation dealin dealing g with with other other aspect aspects s o agraria agrarian n econom economy, y, e.g., e.g., xatio xation n o ceilin ceiling g on agricu agricultu ltural ral hold holdin ings gsAA the the deve develo lopm pmen entt o villa illage ge panc pancha haya yats ts or or efec efecti tive ve villa illage ge plan planni ning ng and and managementA the consolidation o ragmented holdings. 'n course o time, it was also elt that protection be extended to some types o industrial law as well, such as, temporarily ta5ing over management o industrial concerns. !ence, the scope o %rticle 0F% was extended by the the Cons Consti titu tuti tion on (ou (ourt rth h %men %mendm dmen ent/ t/ %c %ct, t, -77 77.. by addi adding ng a ew more more cate catego gori ries es o deprivation deprivation o property which were were to be immune rom an attac5 under %rticles 1, - L 0. =xemption now extended rom the area o agriculture land reorm to industry L mining. %rticle 0F% is still a part o the Constitution, with the repeal o %rticles '-l// and 0, much o the ration rationale ale underly underlying ing in %rticle %rticle 0F% 0F% has dis disapp appear eared. ed. %rticle %rticle 0F% 0F%// prote protects cts rom rom the operation o %rticle 1 and -// a law providing or the ollowing NF a/ The ac$uisition by the state o o any Mestate or o any rights therein therein or the extinguishment or modication o any such rightsA or, b/ The ta5ing over o the management o any property by the state or a limited period either in the public interest or to secure its proper managementA or, c/ The amalgamation o two or more corporations either in the public interest or to secure proper management o any o themA or, d/ The extinguishment or modication o any rights o managing agents, secretaries and treasurers, managing directors or directors, managers o corporations, or o any voting rights o shareholders thereoA or, e/ The extinguishment or modication o any rights accruing by virtue o any agreement, lease or license or the purpose o searching or, or winning, any mineral or mineral oil, or the premature termination or cancellation o any such agreement, lease or license. The protection o %rticle 0F%/ does not apply to a law made by a state legislature unless it has been reserved or the Presidents consideration and has received his assent. Estate: The term Mestate in the %rticle 0F%/a/ raises its own problem o connotation. The word estate does not have uniorm meaning throughout the territory in 'ndia its connotation varies varies rom place place to place. place. !ence, one unior uniorm m denit denition ion o Mestat Mestate e could could not met the situat situation ion.. To achiev achieve e compre comprehen hensiv sive e agraria agrarian n reor reorm m throug throughou houtt the countr country y it was elt necessary to cover all shades o meaning o the term Mestate. %ccordingly %rticle 0F%2/a/ explains the term Mestate would have the same meaning as is given to it by a local law relating to land tenures. Thus, to dene the word Mestate one has to loo5 to the relevant local law and adopt the denition given therein. =ven this strategy could not solve all the problems. There could be cases where where the local law does not dene estate. estate. To To cover such situation, %rticle 0F%2/a/ says that i in any area the term Mestate is not dened, then its local e$uivalent would be included therein. To determine whether a term used in a local law is an Me$uivalent Me$uivalent o Mestate or not, the basic concept o Mestate Mestate has to be 5ept dened in section section 0F% 0 F% 2/ 2/a/ a/ in view view whic which h is that that ther there e must must be land land payi paying ng land land reve revenu nue e and and held held in accordance with a law relating to land tenures. The term corresponding to this basic concept may be ta5en as the local e$uivalent o Mestate. %rticle 0F%2/a/ urther explains that the term estate includes any &agir, inam or mua or other similar grant. ;eore ;eore the
erala %grarian 8eorms %ct o -9 was struc5 struc5 down down in Karimbil Kunhikonam v. Kerala .Supreme Court held that the local law in South Canara so dened the term Mestate as not included ryotwari tenures and, thereore, a law see5ing to ac$uire ryotwari was not protected under %rticles 1 and -, and it could be tested by %rticle 1. To overcome this diEculty two new clauses, %rticle 0F %2/a/ ii/ and iii/ were added to the Constitution by seventeenth amendment to bring ryotwari settlement settlement within the term Mestate Mestate and also *any land held or let or purposes o agriculture agriculture or or purposes ancillary thereto, thereto, including waste or vacant vacant land, orest land, land, land or pasture pasture or sites o buildings and other structures occupied by cultivators o land, agricultural labourers and village artisans.+ Thus, the connotation o Mestate has been urther broadened and the entire corpus o agrarian land legislation has now been immuni#ed rom challenge under %rticle 1 and -. !owever, i some land is not Mestate as dened in %rticle 0F%2/i/ and ii/, and is also not held or let or purposes o agriculture or ancillary purposes, then it alls
outside the scope o %rticle 0l%l/a/. The protection aforded by this provision is very broad. 't is a complete answer to any any chal challen lenge ge unde underr %rti %rticl cles es 1 and and -.. 't prot protec ects ts a law even even i it is con consc scat ator ory y or discri dis crimin minato atory ry or compen compensat sation ion payabl payable e under under it is illuso illusory ry.. Thus, Thus, tenanc tenancy y legisl legislati ation, on, howsoever drastic, is protected under %rticle 0F%l/a/.Prima acie, %rticle 0F%l/a/ appears to be applic applicabl able e to all 5inds 5inds o extin extingui guishm shment ent or modic modicatio ation n o estate estates s or whatev whatever er purpos purpose. e. ;ut in Kavalapp Kavalappara ara Kottarao Kottaraothil thil Kochunini Kochunini v. State of adras the Supreme Court read down this provision and held that its purpose was to acilitate agrarian reorms and, thereore, it would protect only such legislation as had reerence to agrarian reorm. In ajravelu v. S!e"ial #e!ut$ Colle"tor a law providing or ac$uisition o land or urban development, such as slum clearance, housing schemes, creation o modern suburbs near towns, could not be protected under %rticle 0F%l/a/ as it had no relation to agrarian reorm. 'n Balmadies !lantation %td.& v. State of 'amilnadu it was held that while dealing with the provisions o Gudalur Hanman =state %bolition and Conversion into 8yothwari/ %ct that the ob&ect and general scheme o %ct was to abolish intermediaries between the State and cultiv cultivato atorr and help the actual actual cultivat cultivator or by giving giving him the estate estate o direct direct relati relations onship hip between himsel and the state. The %ct, as such in its broad outlines was held to be a measure o agrarian reorm and protected by %rticleF0F%. 'n the case o Kannan #evan (ills !rodu"e Co. %td.& v. State of Kerala the Supreme Court dealt with the provisions o >anan ?evan !ills 8esumption o lands/ %ct. 6ne o the $uestion which arose was that whether the three purpose mentioned in section - o %ct, namelyNF / reservation o lands or promotion o agriculture 2/ reservation o lands or welare o agriculture population 0/ assignment o remaining lands to agriculturists and agricultural reorm labourers could be protected under %rticle 0F% o the Constitution. C onstitution. Court held that the above three purpose were covered by the expression Magrarian reorms hence, section - o the %ct protected by the %rticle 0F% o the Constitution. 'n )odavari Sugar Mills v. S.B. Karable , >hanna H. said *the ollowing principles can be inerred rom the decided case in order to nd whether an impugnedenactment or ac$uisition o land is protected by %rticle 0F%.+ / %c$uisition o land by the state in order to en&oy the protection o %rticle 0F % should be or the purpose o agrarian reorm. 2/ %c$uisition o land by ta5ing it rom a senior member o the amily and giving it to a &unior member is not a measure o agrarian reorm. 0/ %c$uisition o land or urban slum clearance or or a housing scheme in neighborhood o a big city is not a me measure asure o agrarian reorm. 1/ %c$uisition o land by the state without speciying the purpose o which land is to be used is not a measure o agrarian agrari an reorm. 7/ Schemes o rural development envisages not only e$uitable distribution o land but also raising o economic standard and betterment o rural health and social conditions in the villages. Provisions or the assignment or hospitals, schools manure pits, tanning grounds ensure or the benet o the rural population and as such constitute a measure o agrarian reorm. 9/ Provision or reservation o land to promote agriculture and or welare o agricultural population constitutes, a measure o agrarian reorm. %grarian reorm is wider than land reorm. ' the dominant general purpose o the scheme is agrarian reorm, the scheme may provide or ancillary provisions to give ull efect to the scheme. :/ % provision xing ceiling area and providing or the disposal o surplus land in accordance with the rules is a measure o agrarian reorm. The broad ob&ective o any legislation to agrarian reorms are maternally our vi#., i/ to maximi#e agriculture output and productivityA ii/ a air and e$uitable distribution o agricultural incomeA iii/ increase in the employment o opportunities and iv/ a social or ethical order. %rticle 0F% o the Constitution does not protect the legislation which does not relate to agrarian reorm. The %rticle 0F% saved laws which provide or matters mentioned in clauses a/ to e/ thereo rom challenge under %rticles 1 or 0 notwithstanding anything contained in %rticle 0 o the Constitution97. 6nce law is ound to have relation with agrarian reorm, it is protected protected by %rt, 0l%/a/, 0l%/a/, no matter o how drastic its provisions provisions may be. 'n Kerala .
)walior *a$on + Silk Mfg. Co. %td .a law enacted in -< vest orest lands in the state without compensation and, thus, lands having standing timber worth cores o rupees were ta5en away without any compensation. %t the same time, %rticle 0l%l/a/ provided protection against %rticle 02/ which guaranteed compensation. The court held that the %ct valid under %rticle 0F%/a/ as a measure o agrarian reorm treating orest lands as agricultural lands. The court emphasi#ed that once the legislative area is barricaded %rticle 0 %, it cannot be breached %rticles 1, - and 0. Second Proviso to the Article 31-A(1)(a)-(e) The seventeenth amendment while expanding the concept o Mestate, also imposed one limitation, I'O.A the land held by a person under his personal cultivation w hich is within the the ceil ceilin ing g limit limit xed xed by the the law, law, or any any buil buildin ding g or stru struct ctur ure e stan standi ding ng ther thereo eon n or as appu appurt rtena enant nt ther theret eto, o, woul would d not not be Mac$ Mac$ui uire red d by the the stat state e unles unless s the the law law prov provid ides es or compensation which is not less than its mar5et value. This is the efect o the second proviso to the %rticle 0F%/. Thus, the land o the cultivators which is within the ceiling limit xed by the law cannot be ac$uired without paying compensation at the mar5et value thereo. thereo. %ny law contravening this provision would be void. This provision see5s to coner some protection on small cultivators having small pieces o agricultural land or selFcultivation. ' their land is ac$u ac$uir ired, ed, they they sh shou ould ld at least least be comp compen ensa sate ted d at the the mar5 mar5et et valu value e o the the land land.. The The legislature may however pay more i it i t so li5es. Though this proviso proviso added by seventeent seventeenth h constitutio constitutional nal amendment, amendment, it has been placed at the end o clause it is, in act, a proviso to sub clause 0F%/a/, because its application is conned to a law or the ac$uisition o an estate onlyA it is not concerned with any other sub clause o clause. Secondly, it is to be noted that though it is a proviso, it not only constitute as a mere limitation on the legislative power, but also coners a corresponding undam undament ental al right, right, upon upon the the person person expr expropr opriat iated. ed. Third Thirdly, ly, under under the second second provi provisoD soDthe the person whose land is Mac$uired is to be Mcompensated being not less than that the mar5et value o the land, provided i/ such land is comprised in an estateA ii/ it is under his personal cultivationA and iii/ the $uantum o land so held by him is within the ceiling limit o holding. (urther, the second proviso inserted by seventeenth amendment, in the view o the act that the land held under a ryotwari settlement were brought under the purview o %rticled 0F %/ a/. Prior Prior to the insertion insertion o the second second proviso proviso to the %rticle %rticle 0F%/ 0F%/ a/. The, no comp compen ensa sati tion on was was paya payabl ble e in case cases s comi coming ng unde underr %rti %rticl cle e 0 0FF%/ %/a a/. /. The The righ rightt o compensation under the 2nd proviso is better than the right conerred by the erstwhile %rticle 02/, because it guarantees the right to the mar5et price which was not available under %rticle 02/. This obligation remains as a substantive liability o the state, notwithstanding the repealed %rticles -// or 02/ and efect o the amendment is prospective in nature hence, it would not afect any ac$uisition made beore 24F9F-91. % law in any case o ac$uisition violates the re$uirement o second proviso shall be invalid.Section 27 o the 3and %c$uisition %ct has been held to be unconstitutional as regards the actual tillers o the soil. )nder the Proviso to %rticle 0F%/, 0F%/, cultivator cultivators s have the right to be paid ull mar5et mar5et value or their land ac$uired ac$uired the state cannot ac$uire the lands or less than the mar5et value.Supreme Court observed in #.). Mahajan v. Maharashtra Q% great right is created in avour o the owners to get compensation not less than the mar5et value o the lands, i the ac$uired land is within the ceiling limit and in personal cultivation. This is a undamental rightA and is a creature o the second proviso to %rticle 0%/a/,+ In ,anabai -Smt v. %a/man )unaji 0anole held that section 7%2/ o the "aharashtra 8estoration o 3ands to Schedule Tribes %ct, -<7 could not be enorced against the persons who hold land which is under his personal cultivation and it is within the ceiling limit prescribed by the state. !owever, in Shivgonda Anna Patil v. State of Maharastra the Supreme Court held that absence o a provision regarding payment o compensation at mar5et rate or ac$uisition o excess vacant agriculture land was not violative o the second proviso to %rticle 0F%/ o the Constitution. Second proviso to the %rticle 0F%/ does not debar debar the the legis legislat latur ure e rom rom urt urthe herr redu reduci cing ng the the ceil ceilin ing g limi limitt once once it has has been been xed. xed. 'n Kunjakutti v. State of Kerala >erala 3and 8eorms %ct, -90, as amended by the >erala 3and 8eorms %mendment/ %ct, -9-. Section :2 reduced the ceiling limit and re$uired to surrender the land held in access o the limit xed by the %mendment %ct without payment o compensation at mar5et value. 6nce ceiling limit was changed by the amended %ct, the second proviso to %rticle 0F%/ must be held to reer only to the new ceiling limit xed by
the amended %ct. The ceiling limit originally xed, ceased to exist or uture the moment it was replaced by the amended %ct. The prohibition contained in the second proviso operates only within the ceiling limit limi t xed under the existing law at the given time.
;rie introspection into parliamentary debates concerning the rst amendment led by the then prime minister Behru reveals that the basic intention o the amendment was to prevent &udicial intervention with %cts intended to promote social change towards a more e$ual e$ual &ustic &ustice, e, and the consti constitut tution ional al goal goal o egalita egalitaria rianis nism. m. %rticle %rticle 0F% 0F% creat creates es doubt, doubt, whether %rticle 0F; illustrative o %rticle 0F%. The expression without pre&udice to the generality o the provisions in %rticle 0F; convey the massage protection mentioned in the %rticle is not limited to any particular %ct. (urther, the protection under %rticle 0F; is available against all the provisions o part ''' o the Constitution. ;ut in case o %rticle 0F% such protection is limited to agrarian legislations only and protection against to the %rticles 1 and -. !ence, %rticle 0F; is neither illustrative nor nor su sub& b&ec ecte ted d to %rti %rticl cle e 0 0F% F%.< .<< < %rti %rticl cle e 0 0FF; stat states es that that vali valida dati tion on o cert certai ain n %c %cts ts L 8egulations without pre&udice to the generality o the provisions contained in %rticle 0F%, none o the %cts and regulations specied in the ninth schedule nor any other provision thereo shall be deemed to be void, or ever to have become void, on the ground that such %cts, regulations or provisions are inconsistent with or ta5es away or abridges any o the rights conerred conerred under part ''' o the constitut constitution ion and notwithstanding notwithstanding any &udgment, &udgment, decree or order o any court or tribunal to the contrary, each o the said %cts and regulations shall, sub&ect to the power o competent legislation to repeal or amend it, otherwise continue in orce. Khen a competent legislature passes a law within the purview o clauses a/ to e/ o %rticle 0F%, it automatically receives protection under %rticle 0F% with the result that the law cannot be hallenged in any court on the ground ground that any o its provisions provisions violate %rticles 1 and -. 'n so ar as %rticle 0F; is concerned, it does not dene the category o laws which are to receive its protection, and secondly, going little urther than %rticle 0F%, it afords protection to scheduled laws against all the provisions o the part ''' o the Constitution. Bo %ct can be placed in the ninth schedule except by parliament. !ence, ninth schedule is a part o the Constitution. Bo additions or alterations can be made therein without constitutional amendments. Thereore by constitutional amendments all the Oamindari %bolitions laws were placed under the ninth schedule. Parliament enacted %rticle 0F% retrospectively, even though, may not be suEcient to ensure the validity o legislation which has already declared as void by the courts. 'n Kameshwar Sing case court held that it is advisable to have a urther provision i.e., %rticle 0F ; specially to bypass &udgments which stri5ing down such legislation. That seems to be the reason why %rticle 0F; was enacted and statutes alling within %ct 0F% were included in the ninth schedule also. 'n order to implement implement the above policies policies and to have agrarian agrarian reorm reorm and to establi establish sh social socialism ism,, the govern governmen mentt ac$uir ac$uired ed proper property ty o citi#en citi#ens s withou withoutt paymen paymentt o ade$ ade$ua uate te comp compen ensa sati tion on as i had had no nan nanci cial al reso resour urce ces s to meet meet with with the the amou amount nt o compensation. Citi#ens used to challenge the concerned ac$uisition laws on the ground that it violates violates undamental undamental right to property property.. The &udiciary &udiciary also tilt towards towards protecting protecting property right rights s bein being g und undam ament ental al righ rights ts under under %rti %rticl cles es - / // / and and 0 now now omit omitte ted d by 11 11th th consti constitut tutiona ionall amendme amendment/ nt/.. To come come out o this this situat situation ion,, to nulli nulliy y the &udgmen &udgments ts o the Supreme Court and to uplit the campaign o agrarian reorms, the parliament introduced the %rticle 0F; and ninth schedule to the Constitution in addition to %rticle 0F%. %rticles 0% L 0; represents a novel innovative and drastic techni$ue o constitutional amendments. 't immune immune the laws agains againstt all attac5 attac5 on the ground ground o breach breach o any undament undamental al rights rights guaranteed under part ''' o the Constitution. %rticle 0F;, does not by itsel give any undamental right. The %cts and regulations placed under under ninth schedule shall shall not be deemed to be void or ever to have become void on the ground o its inconsistency with any undamental right. 'n Kameshwar Kameshwar Singh case, the
Supreme Court said that no %ct brought under the ninth schedule could be invalidated on the ground o violation o any undamental rights. Kith Kith the intro introduc ductio tion n o the above amendme amendment, nt, it became became very easy easy or the Govern Governmen mentt to ac$uir ac$uire e propert property y and to carryo carryout ut difer diferent ent agraria agrarian n reorm reorms. s. (irstly irstly the ac$uisition laws under the ear o being challenged were inserted in the ninth schedule by the cons consti titu tuti tion onal al amend amendme ment nts s and and ther thereby eby the the conc concer erne ned d laws laws were were made made immun immune e rom rom challenge against any o the undamental rights guaranteed under part ''' o the Constitution. Thus, it was not possible or a citi#en to challenge the constitutionality o any ac$uisition law by which his land has been ac$uired because, it placed under ninth schedule. "eans %rticle 0F; protected every legislation within the umbrella o the ninth schedule. %nother %nother signicant signicant characteristi characteristic c eature eature o the %rticle 0F; 0F; is that it is having retrospec retrospective tive efect. %s a result o this any legislation earlier declared as void by the Supreme Court on the ground that it violated any o the undamental rights, revives o such void legislation by inserting the legislation under ninth schedule by constitutional amendment. Supreme Court in State of Uttar Pradesh v. Brijendra Singh held that with this characteristic eature o %rticle 0F; it became very easy or the parliament to validate any %ct already declared as unconstitutional, simply by constitutional amendment amendment putting such nconstitutional %ct under the ninth schedule. once a legislation legislation enters enters into the protectiv protective e umbrella umbrella o the Binth Schedule Schedule its constitutionality cannot be challenged, this position was maintained till the decision o the Supreme Court in Kesavananda Bharati case. 'n Kesvananda !harati v. State of Kerala the court by
landmar5 &udgment in I.*. Coelho Coelho -dead -dead b$ %.*. v. State of 'amil 2adu !" # others 244< 2 SCC'/ tried extensively to determine the nature L character o protection provided by %rticle 0F; to the laws added to the schedule by Constitutional amendments. Tamil Badu 8eserva eservatio tion n %c %ctt provi provided ded 9- percen percentt reserv reservati ation on or bac5war bac5ward d classe classes s has been been passed passed through theConstitution <7th amendment/ %ct, --1 placed under the ninth schedule to the Constitution and thus to ta5e the legislation out o the ambit o &udicial review. review. !owever, the Constitutional validity o Tamil Badu 8eservation %ct was challenged beore the Supreme Court on the ground o landmar5 &udgment in Indra Sawhne$ case. Supreme Court struc5 down the <7th amendment and held that 9-R o reservation to the bac5ward classes shall be arbitrary and is antithetical to the reasonable classication permitted under %rticle 1 o the Constitution. 8easonable classication is one o the basic structure o the Constitution. %ter the repeal o property right %rticle 0/ rom part ''' o the Constitution, there was no &ustication or continuing with anything li5e the ninth schedule. The whole o it should have been scrapped. Similarly, &udicial review over the legislation is that the legislation which alter the basic structure o the Constitution belongs to the court cannot be ta5en away by any subteruges li5e ninth schedule. The Hanuary, 244< &udgment in ".R #oelho $dead% &' L.R v. State of Tamil (adu restoration that position. The TwentyFth TwentyFth %mendment o the Constitution in -< added a new clause, %rticle 0FC, to the Constitution. 6riginally, %rticle 0FC runs as ollowsN )(otwithstanding an'thing contained in Article *+ no law giving e,ect to the polic' of the state towards securing the principles speci-ed in clause $&% or clause $c% of Article + shall &e deemed to &e void on the ground that it is inconsistent with/ or ta0es awa' or a&ridges an' of the rights conferred &' Article *1/ Article * or Article +*2 and no law containing a declaration that it is for giving e,ect to such polic' shall &e called in 3uestion in an' court on the ground that it does not give e,ect e,e ct to such polic'4 . )p to -<, the position position was that undamental undamental rights prevailed prevailed over the directive directive principles o state policy, and a law enacted to implement the directive principle could not be valid i it conicted with a undamental right. %rticle 0FC sought to change this relationship to some extent by conerring primacy on %rticle 0-b/ and c/ over %rticles 1, - and 0.-0 % new %rticle 0FC laid down that no law which declared that it was or giving efect to the principle specied in clause b/ L c/ o %rticle 0- would be called in $uestion on the ground that it is inconsistent with the undamental rights. Thus, %rticle 0FC was much broader than %rticle 0%. Khile %rticle 0% is limited to specied topics, %rticle 0FC was not so limited. 't did not lay down specic heads which were immuni#ed immuni#ed but let a general general power to the state legislatures legislatures to select any topic or adopt any measures which might purport to have some nexus with the ob&ectives under the %rticle 0-b/ L c/. %rticle %rticle 0FC thus dealt with ob&ects ob&ects with unlimited unlimited scope and it was added to provide provide protection to nonFagrarian reorms legislation as %rticle 0% was limited to agrarian reorms only. %rt 0C also contained a proviso that i a legislation contains declaration that it is or giving efect to %rticle 0, 0- clauses b/ L c/ it cannot be $uestioned on the ground that it does not give efect to such policy. 't said that when the legislature declared that the law was to give efect to the policy underlying under %rticle 0-b/ and c/, court would be debarred rom reviewing the same even i the law might not, in reality be concerning %rticle 0-b/ L c/. The second part o %rticle 0FC originally sought to oust the &urisdiction o the the courts. The validity o %rticle 0FC was challenged in Kesvananda !harati v. State of Kerala it is also 5nown as undamental right case/. The Supreme Court held that basic eature o the Constitution cannot be altered even by constitutional amendment. ;y a ma&ority o
review. (or a law to get the protection o %rticle 0FC, the court has to determine whether there is a connection between the law in $uestion and %rticle 0-. ' the court nds that the domi domina nant nt ob&e ob&ect ct o the the law is to give give efec efectt to the the dire direct ctiv ive e prin princi cipl ple, e, it woul would d acco accord rd prot protec ecti tion on to the the law law unde underr %rtic %rticle le 0 0FC FC.. ;u ;utt i the the law law thou though gh pass passed ed seemi seeming ngly ly or or efectu efectuati ating ng the direct directive ive princi principle ple is, in pith pith and substa substance nce,, one or accomp accomplis lishin hing g an unauthori#ed purpose not covered by the directive principle, suchlaw could not protected under %rticle 0FC. 'n Mir3a!ur Moti Kureshi Kasab ,amat v. State of )ujarat a state %ct totally totally banning slaughter o bulls and bulloc5s was challenged as imposing unreasonable restrictions under %rticle -/g/ read with %rticle -9/ in so ar as it banned slaughter o these animals above the age o 9 years when they become useless as drought animals. The state &ustied the %ct as being related to several directive di rective principles, such as %rticles 0-b/, 0-c/, 1< and 1: and thus ruled that the impugned %ct had no nexus with any o these ?irective principles and reused the protection o %ct 0FC. The court held that the %ct was unconstitutional in so ar as it banned slaughter o bulbs above the age o 9 years. 6n the the othe otherr hand hand,, in the the *astri$a *astri$a Mill Ma3door Ma3door Singh v. State of Maharashtra/ the court ound a clear nexus between the impugned %ct and %rticle 0-b/. The impugned %ct nationali#ed a spinning and weaving mills. The alternative to the nati nation onal ali# i#at ation ion woul would d be Mli$ Mli$uid uidat atio ion n and and unemp unemplo loym yment ent o all all the the empl employ oyees ees o the the underta underta5in 5ing+. g+. The %c %ctt ensur ensured ed contin continuan uance ce o the the undert underta5i a5ing ng as a produ producti ctive ve unit unit and continuatio continuation n in employment employment o all the employees. employees. Thereore, Thereore, the impugned impugned %ct undoubtedly undoubtedly was or efectuating the directive principles in %rticle 0-b/ towards securing the ownership and control o the underta5ing are so utili#ed as best to subserve the common good. The validity o the %ct could not thereore, be assessed under %rticles 1 and - because o the immunity conerred by %rticle 0FC. %rticle 0FC was amended, its scope was urther expanded, and it was sought to be made much more drastic, through the orty second constitutional amendment in -<9. The rst part o %rticle 0FC says that no law giving efect to any o the directive principles shall be deemed to be void on the ground o inconsistency with %rticles 1 and -. Thus primary is now sought to be given to all the directive principles and not only to %rticle 0- b/ and c/ over %rticles 1 and -. 'n Minerva Mills %td. v Union of India A "inerva mills was nationali#ed and ta5en over over by the Centra Centrall Govern Governmen mentt under under the provi provisio sions ns o the Sic5 Sic5 Textile extile )ndert )nderta5i a5ings ngs Bationali#ation/ %ct, -<1. The petitioners shareholders and creditors o "inerva "ills 3td./ challenged the Bationalisation %ct on the ground o inraction o %rticles 1, -/ / and g/ and %rticle 02/. The Government contended that legislation was protected by amended scope o %rticle 0FC was ather enlarged by orty second amendment/. %rticle 0FC gives absolute primacy to ?irective Principles over (undamen undamental tal 8ights 8ights.. *The *The harmon harmony y L balanc balance e betwee between n undam undament ental al rights rights and direct directive ive principles is an essential eature o the basic structure o the Constitution. !owever, this harmony basic structure o the Constitution/ is discarded by orty second amendment and accordingly the scope o %rticle 0FC was enlarged by orty second amendment was declared as unconstitutional.+ 'n Basantibai Mohanlal Khetan / A the constitutional validity o the "aharashtra !ousing and ?evelopment %ct -<< was challenged and !igh Court declared the %ct as void. The matter went to the Supreme Court and it held that the %ct is protected under %rticle 0FC rom being challenged as violative o %rticles 1, - and 0 o the Constitution as the %ct is intended to secure the ob&ects contained in %rticle 0-b/ o the Constitution. Khile considering the scope, ambit and validity o %rticle 0FC, the ma&ority &udgment in Kesanvanda !harati, !harati, held that the rst part o %rticle 0FC was valid but the second part, vi#., no law containing a declaration that it is or giving efect such policy shall be called in $uestion in any court on the ground that it does not give efect to such policy+ was held to be invalid. 6nce the conditions mentioned in %rticle 0FC are ullled by the law, no $uestion o compensation arises because the said %rticle expressly excluded not only %rticles 1 and - but also %rticle 0 which, by virtue o twenty th amendment has placed the word Mamount or the word Mcompensation in %rticle 02/. 'n Bhim Singhji v. Union of India / the )rban 3and Ceiling and 8egulation %ct, -<9, was held to be protected under %rticle 0FC. The purpose o the law is to inhibit the concentration
o urban lands in the hands o ew persons and to achieve e$uitable distribution o such lands to sub serve the common good. The %ct is thus intended to achieve and implement the purposes o %rticle 0- b/ and c/. ;ut section 2< thereo was held to be invalid as it imposed a restriction on the transer o any urban land with a building or a portion o such building, which was within the ceiling area. 'n Sanjeev Coke Mfg. Co. v. Bharat Coking Coal %td. $the Supreme Court considered the $uestion whether the Co5ing Coal "ines Bationali#ation/ %ct, -<2, was entitled to the protection o %rticle 0FC. The court ruled that the %ct in $uestion promoted the policy o %rticle 0-b/. 8eerence in %rticle 0-b/ to *material resources+ o the community is not only to the the reso resour urce ces s owned owned by the the commu communi nity ty as a whol whole e but but also also to resour esource ces s owne owned d by indivi individua duall members members o the commun community ity. 8esourc esources es o the commun community ity do not mean public public resources only but include private resources as well. The word QdistributeQ in %rticle 0- b/ has been used in a wider sense so as to ta5e in all manner and method o distribution. 't includes, transormation o wealth rom private ownership into public ownership and is notconned to that which is already public owned. 'n Sanjeev Coke Mfg. Co$ Co $ case the court also re&ected the argument that a discr dis crimi imina nato tory ry law coul could d not not be prot protec ecte ted d unde underr %rti %rticl cle e 0 0FC FC.. *To ma5 ma5e it a cond condit itio ion n precedent that a law see5ing protection under the %rticle 0FC must be nondiscriminatory or based on reasonable classication is to ma5e the %rticle 0FC meaningless. ' %rticle 1 is not ofended, no one needs to give any immunity rom an attac5 based on %rticle 1.+ Thus, *where *where %rticle 0FC comes in %rticle %rticle 1 goes out.+ out.+ Bationali#a Bationali#ation tion laws have invariably invariably been held to be valid under %rticle 0FC. ' once the conditions mentioned in %rticle 0FC are ullled by law, no $uestion o compensation arises as %rticle 0 is expressly excluded. The $uestion o compensation becomes totally irrelevant. The court observed that *%rticle 0FC was not merely a pragmatic approach to socialism but imbibed a theoretical aspect by which all means o production, 5ey industries, mines, minerals, public supplies, utilities and service may be ta5en gradually under public ownership, management manageme nt and control+. The state o Tamil Badu enacted Tamil Badu State Carriages and Contract Carriages %c$uisition/ %ct, -<0 to nationali#ed the entire transport service as also part o the entire assets o the units thereo. The %ct was held valid and i sub serves the ob&ect o %rticle 0-b/ L 0FC which gives protective umbrella against %rticle 02/ the court cannot stri5e down the %ct merely because the compensation or ta5ing over the transport services or its units is not provided or.%rticle 0F? was inserted by 12nd amendment but it was omitted by the 10 rd amendm amendment ent.. 't sought sought to save save laws which provi provided ded or preven preventio tion n or prohib prohibiti ition on o antiF antiF nati nation onal al acti activi viti ties es or the the prev preven enti tion on o ormat ormation ion o or the the proh prohib ibit itio ion n o anti antina nati tion onal al associations. Such laws immune rom challenge on the ground o violation o %rticles 1, - or 0. Such immunity was conerred only to central laws. Thus the ma&ority at the centre could easily pave the path to dictatorship and on a party rule by outlawing other parties. (ortunately it was omitted by the orty third amendment. ame ndment. )nder %rticle -/ only citi#ens o 'ndia are entitled to claim the right, whereas under %rticle 0/ any person irrespective o citi#enship not to be deprived o his property without authority o law. %rticle -/ relates to the rights o citi#en to ac$uire, hold and dispose o property though they are not in immediate possession thereo, but under %rticle 0/ the person is already in possession o property and then the deprivation is caused by the state. ;oth these %rticles were repealed by the (orty (ourth %mendment %ct, -<:. %rticle -// guaranteed to the citi#ens o 'ndia a right to ac$uire, hold and dispose o property. %rticle -7/however, permitted the state to imposed reasonable restrictions on this this righ rightt in the the inte intere rest st o gene genera rall publ public ic or or or the the prot protec ecti tion on o the the inte intere rest sts s o any any sche schedu dule led d trib tribe. e. The The expr expres essi sion on Mint Minter eres estt o gener general al publ public ic in %rti %rticl cle e -7 7// was held held synonymous with public interest. interest. 't did not mean that the interest interest o the public o the hole o 'ndiaA it meant interest o a Msection o the public. The term Mpublic interest very broad and it includes public order, public health, morality etc. Khether a piece o legislation was in public interest or not was a &ustiable matter. % law designed to abate a grave nuisance and thus protec protectt public public health health or a law to prote protect ct the wea5er wea5er sections sections o the public, public, especia especially lly members o low castes 1 was held to be in public interest.
% restrictio restriction n to be Mreasona Mreasonable ble means it must not be excessiv excessive e or arbitrary arbitrary.. % ew examples may be cited here to indicate how courts ad&udicated upon the reasonableness o restrictions under %rticle -7/. Sei#ure o goods rom the possession o a citi#en by a police without authority o law inringed %rticle -l//.The provisions in the Sea Customs %ct laying down that i a public oEcer sei#es gold, diamonds, cigarettes, cosmetics in reasonable belie that, these are smuggled goods was held valid and then the burden to prove that they are not smug smuggl gled ed all alls s on the the pers person on rom rom whom whom poss posses essi sion on the the good goods s have have been been sei# sei#ed ed.. The The provisions has been made to chec5 widespread smuggling and so was held to be in the interest o general public. Article 31(%) o& the 'onstitution Provides &or 'oulsor* Ac+uisition o& ,and The power o eminent domain is essential essential to a sovereign sovereign government government.. The provision o the th amendment to the Constitution o the )nited States is that private prop propert erty y cann cannot ot be ta5e ta5en n or publ public ic us use e with withou outt &ust &ust comp compen ensa sati tion on.. The The prin princi cipl ple e o compulsory ac$uisition o property is ounded on superior claims o the whole community over an individual citi#en, is applicable only in those cases where private property is wanted or public use or demanded or the public welare. %ccordingly, the right o eminent domain does not imply a right in the sovereign power to ta5e the property o one citi#en and transer it to another, even or a ull compensation where the public interest will be in no way promoted by such transer. The limitation on the power o eminent domain is that the ac$uisition or ta5ing possession o property must be or a public purpose has been expressly engrated in clause 2/ o %rticle 0 o the Constitution o 'ndia. Bo property shall be compulsorily ac$uired or re$uisitioned save or a public purpose. The Supreme Court C ourt pointed out in State of Bihar v. Kameshwar Kameshwar Singh % case that %rticle 02/, as it stood beore the amendment did not expressly ma5e, the existence o Mpublic purpose a condition precedent to the power o ac$uisition, but it was an essential ingredient o eminent domain, and the clause proceeded on theassumption that ac$uisition can be or a public purpose. %ter a scrutiny o the authorities, ?as H. in Kameshwa Kameshwarr Singh case, reached the conclusion that no hard and ast denition o *public purpose+ can be laid down or its concept, it has been rapidly changing in all countries, he ormulated as a wor5ing denition, that whatever urthers the general interest o the community, as opposed to the particular interest o the individual must be regarded as a public purpose. Parliament passed the rst amendment %ct adding two %rticles namely 0F% and 0F; with ninth schedule. %rticle 0F% gives protection to the agrarian laws, and %rticle 0F; gives protection to the laws which are placed under ninth schedule o the Constitution irrespective o the sub&ect matter o laws. !owever having regard to the properties which were not covered by %rticles 0F% and 0F; i.e., right to compensation or the property property ac$uired compulsorily or public purpose purpose covered by %rticle 02/ o the Constitution.- %lthough the ramers o the 'ndian Constitution chose not to prex the word &ust or reasonable or Made$uate to the word Mcompensation in %rticle 022/, this led to or the diEculty. %rticle 02/ as it stood beore its abrogation in -<: run as ollowsN ollow sN )(o propert' shall &e compulsoril' ac3uired or re3uisitioned save for a pu&lic purpose and save &' authorit' of a law which provides for ac3uisition ac3uisition or re3uisition re3uisitioning ing of the propert' for an amount which ma' &e -5ed &' such law or which ma' &e determined in accordance with such principles and given in such manner as ma' &e speci-ed in such law and no such law shall &e called in 3uestion in an' court on the ground that the amount so -5ed or determined is not ade3uate or that the whole or an' part of such amount to &e given otherwise than in cash.4 The original %rticle 02/ was substituted by the twenty th constitutional amendment in -< and later %rticle 02/ has been repealed but discussion thereon has been included here partly partly or its histor historica icall import importanc anceA eA partly partly to illust illustrat rate e &udici &udicial al activi activism sm and creat creativi ivity ty in interpreting the Constitution and partly because o a 5ind o tussle between the Supreme Court and parliament, as the constituent body, on the $uestion o compensation or property ac$uired. The controversy regarding ade$uacy o the payment o compensation was nally laid to rest by the ourth amendment to the Constitution. 't curtailed the powers o the courts to review law which authori#ed compulsory ac$uisition o property. property. The ollowing cases gives bac5ground to the ourth amendment. 'n the rst three cases the states concerned attempted to deprive the owner benets o ownership without ta5ing over the property in $uestion. (irstly, irstly, in #warkadas Srinivas v. Shola!ur S!inning + 0eaving "o. %td .$the Sholapur Spinning and Keaving co. %ct o -74 enabled e nabled the government to ta5e control o the property
o Sholapur Spinning L Keaving Company. The $uestion was whether the %ct was invalid as it did not provide or compensation. The government did not ac$uire the property thereore government was contended that %rticle 0 clause 2/ providing or compensation did not apply since only clause / applied any authori#ed law was suEcient to deprive a person property right. %s clause / authori#es any deprivation o property under authority o law. law. The learned chie &ustice would postulate that the limiting power thereo is correct by clause 2/. The Supreme Court held that the Sholapur Spinning and Keaving Company %ct -74 was void. %rticle 0 clause / and 2/ should be read together. So when there is deprivation o property, though there is no ac$uisition by the state clause 2/ applied and compensation becomes payable. !ence, any deprivation o property should beN 1) Authoried b* la / (Article 31 clause 1) (%) Necessitated b* a ublic urose / (Article 31 'lause %) (3) Sub0ect to a*ent o& coensation.1% Secondly, Secondly, in Saghir Ahmed v. State of Uttar Pradesh % issue was based on the 8oad Transport Transport %ct, -7, which vested in the state government the road transport services in the interest o the general public. Supreme Court held that the %ct was unconstitutional as it ofended did not provide compensation/ the provisions o %rticle 02/ o the Constitution. The act that passenger buses o the appellants had not been ac$uired or might not have been deprived but they were depriving their business o running buses or hire on public roads. (ollowing the Shollapur case discussed above, the Supreme Court held that depriving a person o his interest in a commercial underta5ing even though state did not ac$uire or ta5e possession o it, attracted the provisions o %rticle 02/. State of 0est Bengal v. Subodh )o!al Bose is the third case relevant to the present present discussion. discussion. This case made it $uite clear that the obligation obligation o paying paying compensatio compensation n arose only where the state action resulted in the substantial deprivation o private property o the individual. The Supreme Court held that the abridgment o right was not amount to substantial deprivation o the right to property within the meaning o %rticle 0. The Kest ;engal 8evenue Sales %ct :7- was declared void by the Supreme Court as it inringed %rticle 0 o the Constitution. The &udgment inthis case shed new light on the extent o protection o property property rights under the Constitutio Constitution n Patan&al Patan&alii Sastri C.H. observed observed that the Constitutio Constitution n made a denite brea5 with the old order and introduced new concepts in regard to many matter matters, s, partic particula ularly rly relat relating ing to word word Mac$ui Mac$uisit sition ion which which is used used in narro narrow w sense sense in the Constitution it might have used in same sense in pre constitutional legislation. 'n ?ecember, -70 %rticle 0/ and 02/ came or interpretation beore theSupreme Court in State of 0est Bengal v. Bela Banerjee case. Provisions Provisions o the Kest ;engal 3and 3and ?evelopment and Planning %ct, -1: provides or ac$uisition o land or a public purpose and xed the limit on the amount o compensation payable or the land ac$uired so that it may not not exce exceed ed the the mar5 mar5et et valu value e o the the land land on 0st ?ecemb ?ecember er -19 19.. 'mpu 'mpugn gned ed %c %ctt is a permanent enactment and lands ac$uired under it may be many years ater it came into or orce, ce, the the xin xing g o the the mar5 mar5et et valu value e on 0st ?ece ?ecemb mber er -19 19,, as the the ceil ceilin ing g on the the compensation without reerence to the value o the land at the time o the ac$uisition is arbi arbitra trary ry and and cann cannot ot be rega regard rded ed as due due comp compli lian ance ce with with the the lett letter er and and sp spir irit it o the the re$uirement o %rticle 02/ but state sought to support this ceiling o compensation on the ground that the legislature had been given under %rticle 02/ the discretionary power to lay down the principles which should should govern the determination determination o the amount to be given to the owner owner or the prope property rty ac$uir ac$uired. ed. Supre Supreme me Court Court held held that that such such princi principle ples s must must ensur ensure e compensation must be &ust e$uivalent o what w hat the owner has been deprived o. These our cases especially last two cases led the ourth amendment by which second proviso proviso to the %rticle 02%/ was added. %rticle 02%/ states *where *where a law does not provide provide or the transer o the ownership or right to possession o any property to the state or to a corpora corporatio tion n owned owned or controll controlled ed by the state, state, it shall shall not be deemed deemed to provi provide de or the compulsory compulsory ac$uisition ac$uisition or re$uisitio re$uisitioning ning o property, property, notwithstandin notwithstanding g that it deprives deprives any person o his property+. The net result o the ourth amendment to the Constitution was to nulliy the decisions o the our cases discussed above. 'n Chiranjit %al4s case it was held that %rticle -/ / would continue until the owner owner deprived o such property by authority o law under %rticle 0. ' there was Mdeprivation o property under clause / o %rticle 0 by law, the citi#en was not entitled to compensate at all, while he was entitled to compensation i property was ac$uired or re$uisitioned under clause clause 2/ upon the point as to what is Mdeprivation Mdeprivation there there was conict. conict. 'n Kochunni Kochunni6s 6s case
court made it clear that clause / dealt with deprivation o property other than ac$uisition or re$uisition as mentioned in the clause 2/ and there could be no ac$uisition or re$uisition unless there was transer o ownership or a right to possession to the state or its nominee. 'oarison o& 'lauses 'lauses (1) # (%) o& Article 31 Clause Clause / and 2/ are not the same. The ormer ormer is the genus o which a species is reerred in clause 2/. 'n the clause 2/ o %rticle 0 deprivation is restricted to Mta5ing possession there is no such restriction and deprivation therein relation to Many mode o deprivation. Clause / permits deprivation o whatever the 5ind except by authority o law. ?estruction o property in order to prevent re rom spreading will come under clause / and not clause 2/. Clause / may be termed in mere parlance with Mpolice power o the state. Khile clause 2/ reers to the power o the eminent domain. Compensation is allowed only or the the latt latter er cate catego gory ry and and not not or or the the ormer ormer.. Thus Thus i under under Mthe Mthe poli police ce power power ther there e is a regulation or letting accommodation under the deence o 'ndia rules to enable eEcient prosecution o the war or the maintenance o essential supplies and services no compensation is liable while clause 2/ is a restriction restriction upon the powers o the legislature legislature clause / is not later is a limitation limitation on the executive while the ormer is a restrain on the legislature. Clause / cannot be challenged except on the ground o legislative competence. % law arising under the clause 2/ to be valid must rst ulll the terms o clause 2/ unless it is saved by clauses 1/ and 9/ or %rticles 0F% and 0F;. Since the word Mcompensation occurred in %rticle 02/, rom the inauguration o Constitution, the courts had had been aced with two critical critical $uestions. $uestions. / Khat was the the signicance signicance o the word Mcompensation and 2/ Khat should be the role o the courts in this respect The developments in this regard could be discussed in three stages. The word compensation in %rticle 02/ was not $ualied by any ad&ective li5e M&ust or Made Made$u $uat ate e.. Beve Bevert rthe heles less, s, the the cour courts ts too5 too5 the the posi positi tion on that that su such ch as omis omissi sion on was was immaterial, and the word Mcompensation standing alone by itsel meant M&ust and Me$uivalent compensation or the interest in the property ac$uired. 2his aroach as adoted in a nuber o& cases b* the Suree 'ourt vi. (1) #warkanath Srinivas v. Sola!ur S!inning + 0eaving Co. %td .$(%) %td .$(%) Saghir Ahmed v. State of Uttar Pradesh 13 (3) Sate of 0est Bengal v. Subodh )o!al Bose 134 () State of 0est Bengal v. Bela Banerjee 135 135 2he 2he court ourt e ehasi asied ed tha that 6co 6coe ens nsat atio ion7 n7 ean eantt 60us 60ustt e+ui e+uiva vale lent nt77 to the the ro roer ert* t* ac+u ac+uir ired ed and and it is a 0usti8able atter hich the courts could ad0udicate uon. 2he sae rincile as alied in Madras v . #. 2amasiva$a 2amasi va$a Mudaliar. Mudaliar. % "adras law providing or payment o compensation or ac$uisition o ligniteFbearing land on the basis o the land value on %pril 2:, -1<, irrespective o the date o ac$uisition was held invalid. The court held that ree#ing land value with reerence to a specied date denied denied the the lando landown wners ers incre incremen mentt in land land valu value e sinc since e the the sp spec eci ied ed date date till till the the date date o ac$uisition and this did not amount to Mcompensation as envisaged in %rticle 02/. Thus, beore -77, the Supreme Court had ta5en the position that a statute was liable to be struc5 down down as inrin inringin ging g %rticle %rticle 02/ on the the ground ground that Mcompen Mcompensat sation ion provi provided ded by it was inade$uate and compensation ought to be the &ust e$uivalent o the property o which a person was deprived hence, ade$uacy o compensation was a &usticiable matter. ii) 9udicial Interretation o& the ord 'oensation &ro 1! to 1!51 ;eore ourth amendment to the constitution the Central Government became uneasy at the &udicial insistence on payment o ull mar5et value or the property ac$uired as it thought that it would place an onerous burden on the countrys countrys slender resources resources and would throw out o year the envisaged socioFeconomic programme involving reconstruction o property relations. Thereore, the Constitution (ourth %mendment/ %me ndment/ %ct,-77, amended the %rticle 02/ with a view to ma5e the $uestion o Made$uacy o compensation as MnonF&ustiable, The courts were now debarred rom going into the $uestion whether the $uantum o compensation provided by a law or the property property being ac$uired or re$uisitione re$uisitioned d by the state was Made$uate Made$uate or not. This amendment however ailed to exclude exclude the courts completely rom rom the area o Mcompensation. 'n -9, in Burrakur Coal Co. v. India , a law ac$uiring coalFbearing land provided compensation only or the land but not or minerals therein. The Supreme Court reused to hold the law bad arguing that the $uestion o nonFpayment o compensation or
minera minerals ls ree reerr rred ed to ade$u ade$uac acy y o comp compen ensa sati tion on in whic which h the the cour courtt coul could d not not go. go. This This pronouncement was in accord with what the ourth amendment was designed to envisage. ;ut, thereater, the &udicial view underwent a change. 'n ajravelu v. S!e"ial #e!ut$ Colle"tor / the Supreme Court too5 the view that the amended %rticle 02/ still retained retained the word Mcompensation Mcompensation which meant that the meaning meaning o the express expression ion compens compensati ation on as given given to it in !ella !ella !aner7e !aner7ee e case had been accepted. Thereore, a law provide or ac$uisition or re$uisition o property should provide or a M&ust compensation or what the owner was being deprived o. %lthough, under amended %rticle 02/, the principles prescribed under legislation the &ust e$uivalent compensation could not be $uestioned on the ground o inade$uacy yet, i the principles laid down were not relevant to the value o the property ac$uired at the time o ac$uisition, then court could intervene and scrutini#e the ade$uacy o compensation or validity o the principles. Thus, *i the compensation is illusory, or i the principles prescribed are irrelevant to assesses the value o the property at or about the time o its ac$uisition+ then it could be said that the legislature had played a raud on the Constitution. The compensation given might not be ade$uate, yet it should not be constitute as a raud on the legislative power. The court thus asserted a power o &udicial review on compensation in certain situations. 'n act, however, under the new norm, compensation could be less than the mar5et value o the property ac$uired. The new ormula was somewhat diferent rom, rather less rigorous than, the ;ella ;aner&ees ;aner&ees view, but still still the courts claimed claimed a oothold oothold in the area o compensatio compensation n and did not completely vacated the eld. 'n pursuance o this &udicial approach, in -9<, the Supreme Court declared invalid the "etal Corporation Corporation o 'ndia %c$uisit %c$uisition ion o )nderta5ing/ )nderta5ing/ %ct, %ct, -97 in Union of India v. Metal Cor!oration. %s it did not provide or the compensation within the meaning o %rticle 02/. The "etalCorporation was ac$uired on 6ctober 20rd, -97 with a view to providing or the ull develo developme pment nt o the lending lending deposit deposits s at #awar #awar 8a&ast 8a&asthan han// and or the exped expedien ientt completion o the scheme underta5en by it. )nder the %ct, there are principles or valuation o its assets. / ac$uisition o unused e$uipments by the company which is in good condition were to be valued at the actual cost A 2/ the used e$uipment was to be valued at the written down value determined in accordance with the principles contained in the 'ncome Tax %ct. The Supreme Court did not agree with the basis o cost price o the unused machinery when it was ac$uired ac$uired was relevant relevant to the xing o compensatio compensation n at the time o the nationali#ation nationali#ation o the company nor did the doctrine o written down value accepted in the 'ncome Tax %ct aford guidance or ascertaining compensation or the used machinery. machinery. Thus two principles regarding valuation and compensation were irrelevant to the xation o the value o the machinery as on the date o ac$uisition. !ence the %ct was held invalid as it not providing compensation within the meaning o %rticle 02/.12 The law to &ustiy itsel had to provide or the payment o a M&ust e$uivalent o the land ac$uired or the principles laid down were relevant to xation o comp compens ensat atio ion n and and was was not not arbit arbitra rary ry then then,, ade$u ade$uac acy y o comp compens ensat atio ion n coul could d not not be $uestioned in any court. The court however insisted that i the principles are relevant to the xing o Mcompensation, and are not Marbitrary, then the Made$uacy o the resultant product could not be $uestioned in a court. The &udicial &udicial view appeared appeared to have undergone undergone some change change in )ujarat v . Shantilal . )nder the ;ombay Town Planning %ct,-77 a notication expressing intention o the government to ac$uire a plot o land was issued in -12A the actual ac$uisition too5 place in -7<, and compensation was assessed with reerence to its mar5et value in -12. This was challenged on the ground that the value o the land determined with reerence to the date o declaration o the intension to ma5e the scheme not on the date o actual ac$uisition hence, it could not be regarded as the M&ust e$uivalent o the property ac$uired. The Supreme Court upheld the %ct because the principle or determining Mcompensation laid down therein could not be said to be Mirrelevant to determination o Mcompensation, nor could the compensation be regarded as Millusory.17 Millusory.17 This decision corrected the view expressed in the metal corporation case, that even ater ourth amendment the expression *compensation+ in %rticle 02/ should continue to be interpreted as a M&ust e$uivalent o the property ta5en over by the state. Khile repudiating this extreme view, the principle was reiterated that the illusory character o the compensation or the irrelevance o the principles o valuation was still open to &udicial review. review. The dichotomy o the &udicial views expressed in Metal Cor!oration and Shantilal case were that in the ormer case, the court laid emphasis on &ust e$uivalent o the property ac$uired, and, thereore, i the law in $uestion specied principles or xing compensation
or the property ac$uired to achieve that ob&ect then the ade$uacy o the compensation was not challenged in a court o law. 'n Shantilal case, case, the court repudiated the idea o &ust e$uiva e$uivalent lentA A it now had emphas emphasis is on compe compensa nsatio tion n and would interv intervene ene only only i it was illusory, or i the principles specied or the purpose were irrelevant. To To appreciate Shantilal ruling, it is necessary to remember that it is a wellFrecogni#ed principle o land ac$uisition that compensation is payable with reerence to its value on the date o notication ac$uiring the land and not on the date the state ta5es actual possession thereo. !ence, it had to uphold the law in Shantilal even i it involved dilution o the etal #orporation #orporation principle. The Shantilal case thus restored much greater reedom to the legislature to order compe nsation in the way it wanted or or any property ac$uired. The scope o &udicial review was restricted to the extreme situation o abuse o legislative power. The The ull ull impa impact ct o this this view iew is seen seen in the the Bank 2ational 2ationalisati isation on case. The gove govern rnmen mentt ac$u ac$uir ired ed the the unde underta rta5i 5ing ng o 1 named named ban5s ban5s unde underr ;an5 ;an5in ing g Comp Compan anie ies s %c$u %c$uisi isitio tion n and Transer ranser o )ndert )nderta5in a5ing/ g/ %c %ctt -9-, -9-, The %ct laid laid down down the princi principles ples or xation o compensation permitted the named ban5s to continue nonban5ing business and do even ban5ing business outside 'ndia in those countries where government controlled ban5s were not permitted to operate. The %ct was struc5 down by the Supreme Court has as an unconstitutional by a ma&ority o to on the grounds that i/ the prohibition o ban5ing busine business ss to the named named ban5s ban5s was hostil hostile e dis discri crimina minatio tion n orbid orbidden den by %rticl %rticle e 1A ii/ ii/ the princip principles les laid laid down down or xatio xation n o compens compensati ation on were were irrele irrelevan vantt and so what what would would be determined thereby was not compensation within the meaning o %rticle 02/A and iii/ there was an indirect restriction upon the carrying on o nonFban5ing business which is ofered under %rticle -//. This decision critici#ed on the ground that it runs counter to what the ourth amendment to the Constitution C onstitution is designed to achieve. There is substantial truth in another criticism that the Supreme Court has oten been changing its view on compensation. 't naturally results into many diEculties in enacting social economic legislations. ;ut because o %rticles 0F% L 0F;, socio economic legislation could not be $uestioned in court o law. 6nly ew types o laws not alling within the purview o %rticles 0F% L 0F; could be $uestioned under %rticle 02/. So long as right to property as a undamental right exists in the Constitution, it is the duty o the courts to apply it in a meaningul manner. The &udgment now clearly shows that %rticle -// would apply to ac$u ac$uis isit itio ion n o prop proper erty ty all allin ing g unde underr %rti %rticl cle e 0 02 2/. /. Ther There eor ore, e, an en$u en$uir iry y into into the the reasonableness o the Mprocedural provisions o an ac$uisition law will not be excluded. (or instan instance ce Mi a tribun tribunal al is authori authori#ed #ed by the %ct to determ determine ine compens compensati ation on or prope property rty compulsorily ac$uired, without hearing the owner o the property, the %ct would be liable to struc5 down under %rticle -//.+1: The &udicial view enunciated in the Bank 2ationali3ation case was not palatable to the central government which thought that it run counter to what the ourth amendment o the the Cons Consti titu tuti tion on was was desi design gned ed to achi achiev eve e and and would would creat create e diEc diEcul ulti ties es in the the way way o governments socioFeconomic programme. %ccordingly, %rticle 02/ was reconstructed by twentyFth constitutional amendment in -<. The ma&or ma&o r change efected in %rticle 02/ in -< was that substitute the word Mamount or the word Mcompensation. The word Mcompensation had come to be interpreted by the courts as &ust e$uivalent o the property ac$uired. ;ut the word Mamount had no such connotation. The purpose o the amendment thereore was to dilute &udicial review o the $uantum o money ofered by the government in lieu o the property ac$uired by it. The amendment also claried that the amount may be given wholly or partly otherwise than in cash. The tas5 o xin xing g the the amou amount nt,, or layi laying ng down down the the prin princi cipl ples es on whic which h it was was to be paid paid,, must must be discharged by the legislature itsel and this matter could not be let to the discretion o the execu executiv tive. e. Thus, Thus, a legal legal provi provisio sion n leavin leaving g it entir entirety ety to the govern governmen mentt that that re$ui re$uisit sition ion property at any rate xed by its discretion violated %rticle 02/ as it ailed to speciy the principles on which the amount was to be paid or the property ac$uired. The efect o the change made in %rticle 02/ by substitution o the word amount or compe compensa nsatio tion n came came to be consid considere ered d by the Supreme Supreme Court in Kesvananda Bharati v . Kerala. The broad efect o the multiple &udicial opinions delivered was broadly as ollowsN amount was not the same concept as compensation, and the court would not go into the $uestion o its ade$uacy. Bevertheless, Mamount could be Millusory or Marbitrary or grossly
low which would shoc5 not only the &udicial conscience but the conscience o prudent man. Though the amount need not be the mar5et value o the property ac$uired or re$uisitioned, yet it should have some reasonable relationship with the value o such property. 6n this view, a restricted &udicial review over the Mamount payable or property ac$uired was is possible. )nder %rticle %rticle 02/, 02/, the state state could ac$uire ac$uire or re$uisitio re$uisition n o property property or a public public purpos purpose e only only. There Thereor ore, e, a legisl legislatu ature re had no power power *to ac$uir ac$uire e proper property ty or a private privateFF purpos purpose+. e+. ;y virtue virtue o =ntry =ntry 12, 3ist ''' o Sevent Seventh h Schedu Schedule, le, a legisl legislatu ature re could could ac$uir ac$uire e property even without a public purpose, but Q%rticle 02/ would be an obstacle or such law. That obstacle would disappear i the law ell within the the compass o %rticle 0%. Since the existence o Mpublic purpose was an essential condition or ac$uiring or re$uisitioning o property under %rticle 02/, a law l aw enacted or the Mpurpose, but having no Mpublic purpose to support it, was unconstitutional. Khether a public purpose existed or not was &usticiable matter as stated by the Supreme Court in State of Bomba$ v. *. S. 2anji $ Qprima acie the Government is the best &udge as to whether Mpublic purpose is serv served ed by issu issuin ing g a re$u re$uis isit itio ion n orde order, r, but but it is not not the the sole sole &udg &udge. e. The The cour courts ts have have the the &urisdiction and it is their duty to determine the matter whenever a $uestion is raised whether a re$uisition order is or is not or a Mpublic purpose. The courts however adopted a very liberal attitude on the $uestion o public purpose, and it was rare indeed or a court to hold that an ac$uisition o land was not or public purpose. The courts showed a good deal o deerence on this matter to the legislative and executive determination and &udgment, but, nevertheless, ultimate power vested in courts. %ccordingly, a provision excluding the &urisdiction o the courts rom this area, and ma5ing decisions o either the executive or the legislature as to Mpublic purpose nal and conclusive was held ultra vires under %rticle 02/. Section 90/ o the 3and %c$uisition %ct, :-1, provides that the declaration by the State Government the existence o public purpose or land ac$uisition *shall be conclusive evidence that the land is needed or public purpose.+ This provision would have been ultra vires %rticle 02/ had it not been protected under %rticl %rticle e 07/ 07/a/. a/. This This provi provisio sion n complet completely ely barred barred &udici &udicial al revie review w o public public purpos purpose e o an ac$u ac$uis isit itio ion n under under the the %c %ctt exce except pt when when it is Mcol Mcolou oura rabl ble e.. Beit Beithe herr the the meani meaning ng nor nor the the existence o public purpose under this %ct was &ustiable. The nding o the government under section 90/ was conclusive not only with regard to public purpose but also regarding its need and governments satisaction thereon. !owever, where ac$uisition would not serve any purpose, or where it was or a Mprivate purpose, it could be challenged as being Mcolourable. )nder %rticle 02/, the state could ac$uire or re$uisition property or public purpose only. only. The concept o Mpublic purpose connotes public welare. Kith the onward march o the concept o socioFeconomic welare o the people, notions as to the scope o general interest o the community are ast changing and expanding. The concept o Mpublic interest is thus elastic and not static, static, and varies with time and needs o the society. society. Khatever Khatever urthers the general general intere interest st o the commun community ity as oppose opposed d to partic particula ularr inter interest est o the indivi individua duals, ls, may be regarded as public purpose. Khether a public purpose existed or not was a &usticiable matter as state tated d by Supr upreme eme Cour Courtt in State provision excluding excluding the State of Bo Bomba mba$ $ v. 2anji 2anji . provision &urisdiction o the courts rom this area, and ma5ing decisions o either the executive executive or the legislature as to the public purpose nal and conclusive was held ultravires %rticle02/. % ew example o what held &udiciary as Mpublic purpose or which land could validly be ac$uired under %rticle 0 2/ are N i. (inding (inding accommodation or an individual having no housing accommodation. ii. !ousing a staf member o a oreign consulateA iii. %ccommodating an employee o a road transport corporation F a statutory bodyA iv. iv. %ccommodating a government servantA v. Bationali#ation o landA vi. %grarian reorm abolishing intermediaries between government and tille rs o the soilA vii. =stablishing an institution o technical educationA viii. Constructing houses or industrial labour by a companyA ix. Promoting coFoperative housing societies in ?elhi to relieve housing shortageA x. Planned development o ?elhiA xi. ?evelopment o housing, shopping and industrial sitesA
'n addition to the aboveFmentioned conditions imposed by %rticle 02/, a law made by a state legislature, and alling within the purview o %rticle 02/, has to ulll yet another cond condit ition ion vi#. vi#. it was not not to be efect efectiv ive e unti untill it had had been been rese reserv rved ed or or the the Pres Presid iden ent ts s consid considerat eration ion and had receiv received ed his assent assent.9 .9< < This This was the the efect efect o %rticle %rticle 00/. The purpose underlying in %rticle 00/ was to bring the state legislation providing or ac$uisition or re$uisition property under the central government control. So as to ensure that no un&ust expropriated legislation enacted by a state. Article 31 'lause () Clauses 1 and 9 o %rticle 0 is an exception to %rticle 02/. The present clause 1/ deals with pending ;ills i, a state legislates not union parliament/ relating to ac$uisition o property at the the time time o the the comm commen ence ceme ment nt o the the Cons Consti titu tuti tion on.. 6nce 6nce su such ch a ;ill ;ill is pass passed ed by the the legislature and assented by the president it is immune rom the *compensation clause+ o %rticle 02/. % law covered by %rticle 0 clause 1 will be considered valid even though it does not comply with the re$uirement o ade$uacy o compensation. Article 31 'lause () This clause provides as an exception to the application o clause 2/ o %rticle 0. Thus %rticle 02/ cannot apply toNF . the provisions o any existing law other than a law to which %rticle 0/ applies. The latter stipulates that laws enacted more than eighteen months beore the commencement o the Constitution shall not be afected by %rticle 02/. 2. a/ the provisions o any uture statute o taxation or penaltyA or b/ law or promotion o public health or prevention o danger to lie or propertyA or c/ law which is the result o agreement between the government o 'ndia and any other country with reerence to evacuee property. 'n respect o the above categories o laws, courts shall have no power to examine their validity validity on the ground ground o want o provisio provision n or compensatio compensation. n. 'n Kamshwer Singh v. State of Bihar court held that %rticle 01/ does not debar the court orm $uestioning the law on the ground o public purpose. Article 31 'lause (4) This clause clause provides provides that i a preFconst preFconstitutio itution n statute statute has been enacted enacted within within : months beore beore the Constitution Constitution came into orce orce beore beore 29th Han -74/ and it was submitted submitted or the Presidents certication by 29th Han -74, and was so certied, such statute cannot be $uestioned in any court on the ground o contravention o ade$uacy o compensation under clause 2/ o %rticle 0. 't will be seen that clause 1/ o %rticle 0 applied to the bills pending in the state legislature at the time o the commencement o the Constitution while clause 9/ pertains the laws enacted by the state within eighteen months rom the commencement o the Constitution. %rticle %rticle 02/ did not remove remove the bar o %rticle %rticle 1. % law could be challenged challenged on the basis o discrimination in the matter matter o payment o compensation. compensation. %rticle 02/ precluded precluded the challenge on ade$uacy o amount but not on discrimination, i any, law made discrimination betwee between n owners owners o land land under under li5e li5e circum circumsta stance nces s and condit condition ions. s. (or (or examp example, le, a person person whose land was ac$uired or construction o a hospital or a school could not be paid less amount than one whose land was ac$uired or any other lucrative pro&ect. Classication could not be made or the purpose purpose o payment payment o compensatio compensation n on the basis o the public purpose or which the land was ac$uired. %s regards the owner, he lost his land and it was immaterial or him whether his land was ac$uired or one or the other public purpose. The $uestion concerning the interFrelationship interFrelationship between %rticles -// and 0 created diEculties and there were several changes in the &udicial view in this area. 'nitially, the &udicial view was that %rticle -// would not apply to a law Mdepriving, as distinguished rom, Mrestricting a citi#en o his property and the validity o law depriving a person rom his prop propert erty y could could be ad&u ad&udg dged ed only only under under %rti %rticl cle e 0 and and not not unde underr %rti %rticl cle e -l l/ // /.. ' an ac$uisition law was valid under %rticle 02/, the ac$uisition o property would be &ustied under, the law, and once the property ac$uired there was no property let in respect o which %rticle -//could apply. This This view view underw underwent ent a change change in KK Ko"kunni v. State of Madras The .The actual situation was that the petitioner was the holder o the >avalappara Sthanam having extensive propert properties ies attach attached ed to it. These These prope properti rties es consti constitut tuted ed an impart impartial ial estate estate in which which the members o the amily had no interest. The "adras legislature enacted a law declaring that sthanam property having certain characteristics would be deemed to be tarwad property. The
validity o the %ct was challenged under %rticle -//. The Supreme Court held that the %ct by treating sthanam property, by a ction o law, as tarwad property, deprived the sthanees o their properties without compensation. The law was thus expropriat expropriator or in character character and on its ace stamped stamped with unreasonableness also, no public interest was served by the law. Thus, it was held bad under %rticle -// and was not saved by %rticle -7/. The court explained the reason to apply %rticle -// to Mdeprivation o property alling under %rticle 0/ as ollowsN The ourth amendment to the %rticle 02/ in -77 had changed the position. ;eore this amendment, %rticle 0 / and 2/ were regarded as not mutually exclusive in scope and content, but as dealin dealing g with with the same same sub&ec sub&ectFm tFmatt atter, er, vi#., vi#., ac$uis ac$uisiti ition on or ta5ing ta5ing posses possessio sion n o proper property ty reerred to in %rticle 02/. 6n this view, %rticle 0 was a selFcontained provision providing or a sub&ect diferent rom that dealt under %rticle - and, thereore, to harmonise the %rticles - and 0, and to avoid overlapping between these two provisions, %rticle -// could not be applied to the Mdeprivation o property but such an analogy could not be drawn ater the ourth amendment. ;ecause %rticle 0/ and 02/ came to deal with two diferent conceptsN %rticle 0/ dealt with Mdeprivation o property by authority o law, and %rticle 02/ read with %rticle 0'2/%/ which dealt with Mac$uisition and re$uisition o property. property. The law depriving a person o his property, as envisaged by %rticle 0/, should be a Mvalid law which meant that it should not inringe any other undamental right including %rticle -//. The Kochunni ruling meant that the legislative power to deprive a person o his property came to be controlled by %rticle -//, and the reasonableness o the l aw could be ad&udged ad&udged under under %rticle %rticle -7/. -7/. ?eprivation ?eprivation does afect afect the right to to hold, ac$uire ac$uire and possession o property. The biggest advantage o the %rticle -// was that procedural norms o a law depriving a person o his property could be ad&udged or their reasonableness, and the law could be declared as void i it lac5ed proper procedural saeguards against the exercise exercise o administrative power powe r. The Supreme Court sought to away with this anomaly in the celebrated !an0 (ationali8ation case. 6verruling its previous pronouncements, pronouncements, the court held that %rticle -/ / would apply to the ac$uisition o property alling under %rticle 02/ and thereore, an *en$uiry into the reasonableness o the procedural provisions+ o an ac$uisition law was not excluded. Thus, *i a tribunal is authori#ed by the %ct to determine compensation o property compulsorily ac$uired without hearing the owner, the %ct would be liable to be struc5 down unde underr %rti %rticl cle e - / // /.+ .+ Thus Thus,, an ac$u ac$uis isit itio ion n law law had had to pass pass the the test test o proc proced edur ural al reasonablen reasonableness. ess. The challenge challenge to an ac$uisition ac$uisition law under %rticle %rticle -// -// was limited to the $uestion o procedural unreasonableness. 't was the culmination o the trend initiated by the court in Kochu ochunn nnii case case but, but, this this view view coul could d not not run run in very very long long.. ;y the the twen twenty tyF Ft th h constitutional amendment, a new clause, %rticle 02F%/, was added to say that nothing in the %rticle -// *shall afect any law as is reerred to in %rticle 02/.+ The idea was to ensure that a law enacted to, ac$uire any property by the Government would not be tested with reerence to %rticle -//. % law o ac$uisition was only to be ad&udged under %rticle 02/ but %rticle -// could still be invo5ed in case o deprivation. ort*-ourth Aendent (undamental (undamental right to property we had been studied as a ore ront o constitutional contr controve oversy rsy or over over twenty twenty ve years. years. ?espite ?espite o number number o amendme amendments nts since -7, -7, narrowing its scope, controversy did not subside. (undamental right to property came in the way o socioFeconomic reorms. 't was thereore, resolved by the Hanata Government by the Constitutional orty ourth amendment. The Constitution orty ourth amendment/ ;ill was introduced by the law "inister Shanty ;hushan, interFalias, or the above purpose in the house o the people on 7th may -9:. 't would however be ensured that the removal o property rom the list o undamental right rights s woul would d not not afect afect the the righ rightt o minor minorit itie ies s to esta establ blis ish h and and admin adminis iste terr educ educat ation ional al institutions o their choice similarly right o compensation at the rate o mar5et value or the property ac$uired which is within the ceiling limit and under his personal cultivation second prov provis iso o to %rti %rticl cle e 0 0F% F%/. /. The The ;ill ;ill soug sought ht to achi achiev eve e the the ob&ec ob&ecti tive ves s by ma5in ma5ing g ollo ollowin wing g amendments in the Constitution. (irst, deletion o %rticle -// which guaranteed to every citi#en right to ac$uire, hold and dispose o property. property. Second, addition o clauseF%/ in %rticle 04,vi#., in ma5ing law providing or compulsory ac$uisition o property o any educational institution established and administered by a minority, reerred in clause / o %rticle 04, the state shall ensure that the amount xed or determined under such law or the ac$uisition o such property is such as would not restrict or abrogate the right guaranteed under that
clause. Third, deletion o sub heading *right to propertyQ. (ourth, deletion o %rticle 0. (ith, conse$uential changes in %rticles 0F% and 0FC. Sixth, insertion o chapter 'I in part J'' with the heading *right to property+. The chapter contained %rticle 044% which provides that *Bo person shall be deprived o his property saves by the authority o law+. Seventh, omission o entries :<,-2 and 04 in the ninth schedule.
2he debate: The main debate on the ;ill had ta5en place is the house o people on
. ?eo was opposes opposes to the amendment o %rticle -// as the property was necessary or the subsistence and wellF being o the people. There would not be any rational dispute on this except as to the $uantum and the 5ind o property property a person should be allowed to hold. There There was no democracy in the world in which the right to property was not recogni#ed. C.>. Chandrappan critici#ed the ?eos observation he, said that it was clear rom the history o human development that or the times immemorial human 5ind lived without property, private property was not something whic which h was born born alon along g with with the the huma human n being being but it was was an inve invent ntio ion n by the the huma human n or or exploiting others. The members should be happy that the proposed amendment would put an end to exploitation. This would add to human happiness because the right would no more be used by the &udiciary to stri5e at the very roots o the legislation by which society wanted to advance advance and struggle against eudalism eudalism and monopoly monopoly.. 8am Hethmalani Hethmalani accepted accepted the thesis thesis that that all privat private e prope property rty must must yield yield to paramo paramount unt public public purpos purpose. e. %rticle %rticle 02/ 02/ was the bulwar5 o many antiFsocial elements because under it the even poor man could say that the state would not ta5e his property unless and until he waspaid mar5et value o the property which is ac$uired as a compensation. That is i s why this %rticle must go. 8eerring to Hethmalanis observations, ;hushan said that *he heard or the rst time that %rticle -/ / was a charter o the poor+. !e believed that when there was clash between the rich and the poor, the undamental rights part was a charter o the rich against the encroachments o the poor. "ost o the poor in 'ndia did not have any property, and ew who possessed did not need %rticle -// to preserve it, because their right to elect their government was a ull guarantee so ar as their property was concerned. ;hushan submitted that this %rticle was not necessary or the poor masses to protect their interest.;hushan, explained the diference between the legal right and undamental right. The latter could be exer exerci cise sed d agai agains nstt the the elec electe ted d legis legisla latu ture res s so that that it migh mightt impos impose e a rest restri rict ctio ion n on the the legislative power o the state. 6n the $uestion o the acceptance o due process or procedure established by law, ;hushan said that it would amount to ma5ing the right to property as undamental right rom the bac5 door. 'n both the cases the &udiciary might rustrate the legislative willA he urther explained that the $uestion o payment o mar5et value o the property ac$uired would not arise out o the language used in the drat %rticle. !e also said that the legislature would not ac$uire property or private purpose but or public purpose.%ter the reply o Shanti ;hushan, the house accepted the amendments in property rights as they were introduced by him. This amendments were then discussed in the council o the states.>.;.%sthana, agreeing with amendments he said that as a result o these amendments, compensation on the the prin princi cipl ple e o 3uid 3uid pro 3uo 3uo would not be payable. Bow a law relating to ac$uisition o
property could not be challenged on the ground that it went against the constitutional scheme which provided or $uid pro $uo compensation. 't would or parliament or state legislatures to pass such a law. They might ma5e any provision or compensation or not e ven provide or itA it would not be challengeable. Bonetheless law should be airA or example in case o the rich, it might give one tenth o him propertys value and in the case o poor the whole o it. 8eplying on the debate on 0 %ugust, Shanti ;hushan reiterated what he said on %rticle 044F% especially on compensation/ in the house o the people. 'n this opinion no scope o the bac5door entry o the mar5et value o compensation in view o the language o this %rticle. The %merican concept o due process o law or the expression *procedure established by law+ used in %rt 2 were not accepted in %rticle 044F% because that would have amounted to ma5ing the constitutional right to property as undamental right rom the bac5 doorA %gain the $uestion o payment o e$uivalent compensation or the property ac$uired would not arise in the view o the language used in the %rticle, %rticle , and the legislature would ac$uire property only or a public purpose. %gain there would be no danger to small armers as %rticle 0F% was being being retai retained ned.. The emphas emphasis is was that that the popula popularly rly electe elected d legisl legislatu ature re be truste trusted. d. The intent intention ion was to ensure ensure that passag passage e o a legisl legislati ative ve enactm enactment ents s to &usti &ustiy y any 5ind o deprivation.
Since Since prope property rty right right has been been broug brought ht outsid outside e the previ preview ew o part part ''' o the Constitution, the aggrieved individual would not be competent to move to Supreme Court under %rticle 02, or any violation o %rt 044%. This remedy would be under %rticle 229 or civil court.:4 %rticle 0/ laid down that no person can be deprived o his property without the authority o law. law. %rticle 0/ has been repealed and reappeared as new %rticle 044F% 044F% saying that no person shall be deprived de prived o his property save by authority o law. law. Thus, a law will be necessary to deprive a person o his property. property. 'n all democratic countries, one basic principle is recogni#ed, vi#., that the government cannot interere with property rights o an individual without authority o law a valid law/. (act that rights in property can be curtailed, abridged or modied only by exercising its legislative power. %n execu executiv tive e order order depriv depriving ing a person person o his prope property rty,, withou withoutt being being bac5e bac5ed d by law, law, is not constitutionally valid. The word Mlaw in %rticle %rticle 044F% 044F% means a valid law. law. Such a law will thereore thereore be sub&ected to other provisions o the Constitution, e.g., %rticles 1, -l/g/ and 04. 6rdinarily, the word Mlaw in %rticle 044F% may mean a Mpositive or Mstatemade law, e.g., a law made by parliament or a state legislature, or a rule, or a statutory order, having a orce o law. Can it be said, content o a law will be solely within the legislative discretion, and legislature can ma5e any law it li5es sub&ect to %rticle 1 and other constitutional provisions. 'n ,ilubhai 2anbhai Kha"har v. State of )ujarat the Supreme Court has stated that the word Mlaw used in %rticle 044F% must be %ct o parliament or state legislature, rule or statutory order having orce o law. %ter orty ourth amendment, does the Constitutional obliga obligatio tion n to pay compens compensati ation on surviv survive, e, becaus because e there there is no expr express ess provi provisio sion n in the Constitution outside the two cases specied in %rticle 04F%/ and the second proviso to the %rticle 0%/ re$uiring the state to pay compensation to an expropriated owner/. The efect o the repeal o %rticle 02/ would be that the right to compensation would cease to be a undamental and would be a mere legal right. The ostensible purpose o repealing %rticle 0, spec sp ecia iall lly y %rti %rticl cle e 0 02 2/, /, is to ma5 ma5e ree ree the the legi legisl slat atur ure e rom rom the the restr estrai aint nt o payi paying ng ompensation or property ac$uired. ;ut doubts have been raised whether this purpose can be achieved. (or example, it has been argued that the two re$uirements o Mpublic purpose and Mcompensation in case o ac$uisition o property are inherent and essential elements, or ingredients, or *inseparable concomitants+ o the power o eminent domain thereore, o entry 12, 3ist ''' o the Constitution. The word property property used under %rticle %rticle 044% must understood understood in the context context o govern government ment has sover sovereign eign power power over over the prope property rty within within its &urisd &urisdict iction ion.. ?epriv ?eprivati ation on connotes diferent concept, %rticle 044% gets attracted to an ac$uisition or ta5ing possession o private property, by necessary implication o public purpose in accordance with the law made by parliament or state legislature. 't is inherent in every sovereign state to exercise its eminent domain power in i n expropriating private property without owners consent.
There is basic undamental distinction recogni#ed by the law between re$uisition and ac$uisition itsel in the entry 12 o list ''' o the seventh schedule mar5s a distinction between ac$uisition and re$uisition o property. property. The original or iginal %rticle 0clause 2/ o the Constitution also recogn recogni#e i#ed d the dis distin tincti ction on betwee between n compuls compulsory ory ac$uis ac$uisiti ition on and re$uis re$uisitio ition n o prope property rty. %c$uisition means ac$uiring by title o the expropriated owner whatever the right and extent o the title may be. The right which was vested with the original holder passes to the ac$uirer leaving leaving nothin nothing g or the ormer ormer.. ;ut the concep conceptt o re$uis re$uisitio ition n involv involves es merely merely ta5ing ta5ing o *domain or control over the property without ac$uiring the rights o ownership+ and must be by its very nature o temporary duration. =xcept public purpose limitation, no other limitation was imposed or ac$uisition o property. property. %ter the orty ourth amendment, the crucial $uestion is that now the concept o socialist 'ndia is wearing then, will the Supreme Court, is a creative bid, read in 044F% a right to compensation or ac$uisitiondeprivation o private property There is no gain saying the act act that that or growt growth h o wealth wealth and and capi capita tall is abso absolu lute tely ly esse essent ntia ial. l. % stra strate tegy gy whic which h the the Supreme Supreme Court can adopt or this purpose may be to lin5 %rticle 044F% with %rticle %rticle 1 and to interpret the word Mlaw in %rticle 044F% in the same sense o Mlaw in %rticles 2F22. !owever, it should be underlined that %rticle 2 does not apply to the property area nevertheless, the court can interpret the word 3aw in %rticle 044F% in a meaningul sense, and not in the sense o merely any statutory law. (or example, compulsory transer o %s property by law to ; without any compensation may be held invalid. ;ut this needs &udicial creativity o a high orde order, r, su such ch as that displa displaye yed d by the cour courtt in Menak Menaka a )andhi )andhi4s 4s case. That there is a possibility that %rticle 044F% may be interpreted by the court in a creative manner to extend some protection protection against against an extremely extremely harsh law is illustrated illustrated by the recent recent ;ombay !igh Court decision in Basantibai v. State of Maharastra& % State o "aharashtra !ousing and ?evelopment ?evelopment %ct, %ct, -<9, provides provides the basis or determinati determination on o Mamount or ac$uisition ac$uisition o land land with within in munic municipa ipall limit limits. s. The The law law was was not not &ust &ust and and air air inso insoar ar as it prov provide ided d less less compensation or the ac$uisition oproperty than provided under the 3and %c$uisition %ct, :-1. The !igh Court assessed the validity o this portion o the %ct. 'n the rst place, the court held that the %ct did not efectuate the directive principle under %rticle 0-b/, and so could not claim the protection o %rticle 0FC against %rticle 1. 'n the second place, the court read the dual re$uirements o public purpose and compensation in %rticle 044% is inherent in the the conc concep eptt o emin eminent ent doma domain. in. )nde )nderr %rti %rticl cle e 04 044% 4%,, the the legi legisl slat atur ure e cann cannot ot sanct sanctio ion n deprivation o property or a private purpose. The court saidN QThe entire democratic structure o this country is based upon the concept o Mrule o law and it is not possible to imagine that the legislation can provide or compulsory ac$uisition o private property or a purpose which is not a public purpose. The court ound it diEcult to accept that by deletion o %rticle 0, the parliament intended to coner absolute right on the legislature to deprive a citi#en o his property by merely passing a law without complying with the re$uirement o public purpose and compensation. 'n the third place, the provisions o the law providing or compensation were discriminatory as it provided less or urban land and more or rural land which could not be substantiated on valid grounds. The law was thus invalid under %rticle 1 and also under %rticle 044F%. 044F%. The court said that really spea5ing, the value o land in the developed town within the municipal area could could have no compar compariso ison n with the value value o the land land in rural rural area and it was diEcul diEcultt to understand why more compensation, including solatium, was provided or rural lands and the same was denied or urban lands. 'n the ourth place, this was $uite a remar5able assertion on the part o the court, even assuming that the law was protected rom challenge against %rticles 1 and -. %ter ane0a 9andhi 9andhi case , the expression *authority o law+ must mean *&ust, air and reasonable+ law. Procedure prescribed by the law must be air and reasonable procedure independently o the protection guaranteed under %rticle 1 and -. The legislation providing or deprivation o property under %rticle 044% must be *&ust, air and reasonable+. The impugned provisions did not ulll this re$uirement re$uirement the provisions providing providing or difere diferenti ntial al compens compensati ation on or urban urban and rural rural lands lands were were dis discri crimin minato atory ry.. The avour avourabl able e treatment shown to the owners o land in rural area was not shown to be &ustied or any reason whatsoever. The provision was invalid under %rticle 044F%. =ven i protected rom challenge against %rticle 1, - and 0 because o %rticle 0FC, it could still be struc5 down as being neither neither &ust or air nor reasonable. reasonable. This pronouncem pronouncement ent lays down several several signicant signicant propositions. (irstly, the dual re$uirements o public purpose and compensation inherent in the concept o eminent domain are to be read in %rticle 044% itsel. Secondly, instead o compensation, the court has used several times the word Mamount indicating that
compensation payable or property ac$uired need not be an exact e$uivalent and may be less than that. Thirdly, Thirdly, %rticle %rticle 044F% 044F% envisages envisages a *&ust, *&ust, air and reasonabl reasonable+ e+ law and not any law. law. (ourthly, even i a law is protected rom challenge against %rticle 1, - and 0 because o %rticle 0FC, it can still be invalidated because o its not being *&ust, air and reasonable+ these $ualities are derivable not only rom %rticle 1 but also rom %rticle 044% ater "ane5a approach. 'n :ilu&hai 'n :ilu&hai (an&hai Khachar vs State of 9u7arat the court has ruled that the law may x an amount or which may be determined in ccordance with such principles as may be laid therein and given in such manner as may be specied in such law l aw.. !owever such law shall not be $uestioned on the ground that the amount xed or amount determined is not an ade$uate. ;ut at the same time the amount xed must not be illusory. The principles laid to determine the amount must be relevant to determine the amount. This observation shows that ac$uisition o property by the state involves payment o some money in lieu thereo. Khen ac$uisition o property is lin5ed with %rti le 0-b/ or 0-c/ , payment o amount is still necessaryA it need not be ade$uate compensation but at the time it, cannot be illusory. %de$uate compensation or property ac$uired seems to be a dead concept except under land ac$u ac$uis isit itio ion n stat statut ute, e, or su such ch othe otherr simi simila larr %c %cts ts.. 't is howe howeve verr let let to the the legi legisl slat atur ure e to determine on what terms and conditions can property be ac$uired by the state or public purpose. The orty ourth amendment ma5es the legislature supreme in this respect and legislative amendments are not sub&ect to &udicial review except on the ground o violation o any other undamental right, or example, the right to e$uality in %rticle 1 or on the ground o legislative competency. 't may thus appear that the orty ourth amendment has not made any substantive alternation in so ar as right to property is concerned, even beore this amendment the right to compensation had been ta5en away by the 27th amendment, the re$uirement o public purpose is still implied in %rticle 044F%.The efect transerence o the right to property orm part ''' o the Constitution is that direct enorceability o this right by the Supreme Court %rt %rtic icle le 02 02// is no mor more. The The !igh !igh Cour Courts ts are are empo empowe werred to issu issue e writ writs s not not only only or or enorcement o undamental rights but Mor any other purpose.+ (orty (orty ourth amendment amendment has been prima ace made the right to property property irmly and compr comprehen ehensiv sively ely secur secured ed under under the Consti Constitut tution ion than than beore beore,, states states will will not now able able to ac$uire private property without showing public purpose and without paying compensation on mar5et value o the property. 'n other words, the courts in 'ndia will now be ree to give some $uality and extent o protection to private property as the courts in )nited States given under due process clause. ;ecause o =ntry 12 o the concurrent list, both parliament and state legislature have power to legislate on ac$uisition or re$uisition o property. The law must be a valid law and no law o ac$uiring a private property can be valid unless or a public purpose and payment o compensation. The 11th amendment has made the property right as a human right and constitutional right. . The Constitution ater 11th amendment/ does not expressly coner the right to ac$uire, hold and dispose o property. ;ut i a person has ac$uired and hold the property he cannot be deprived o it without the authority o law. % person cannot be deprived o his property by an executive action or by any other similar device. 2. The protection given to private property under %rticle 044F% is available to all persons who hold property property in 'ndia, 'ndia, citi#ens as well as aliens and natural natural persons persons as well as legal persons such as corporate bodies etc. 0. The law authori#ing deprivation o property must be passed by the proper authority i.e. by parliament or state legislature. 1. The law empowering deprivation o property must be consistent with all the provisions o the constitution. This means a/ the law must be passed by a competent legislature, legislature, and b/ it must not afect adversely any o the rights, undamental or constitutional D in a manner not warranted by the Constitution. 'n this behal, the validity o such law will be examined in the light o the earlier decisions decisions o the Supreme Court. 7. The law authori#ing deprivation o property must be air and &ust. The approach o the Supreme Court in ane0a 9andhi6s case the term Mlaw in %rticle 2 will be the guiding star to the Supreme Court or determining the validity o a law under %rticle 044%.
9. Such legislation may be challenged as violative o %rticles 1, -, 29 or 04 etc. or other appropriate undamental rights. 't deserves to be noted in this behal that %rticle 0FC which is the present orm was inserted by twenty th amendment specically coners superiority on directive principles o state policy over undamental undamental rights conerred conerred by %rticles 1, - and 0. Bow, right to property property is included included in %rticle %rticle 044 % which is not mentioned mentioned in %rticle %rticle 0FC. 't is submitted that the right to property will have greater protection than what it would have had, it remained in %rticle 0. !ence it is submitted that the deletion o %rticle 0 and insertion o %rticle 044% would ma5e substantial diference as regar regards ds the consti constitut tution ional al promo promotio tion n to right right to prope property rty. %rticl %rticle e 044% 044% is ree ree rom rom the dominance o the M?irective principles o state policy and it would aford greater protection to the right to property than what would have been in %rticle 0. %lthough ater the orty ourth amendment, might be property is no more a undamental right, certain property rights still retain the character o or relation to, undamental rights. =g. a. %rticl %rticle e 04/ 04/a/ a/ provi provides des that that any compul compulsor sory y ac$uis ac$uisiti ition on o proper property ty belong belonging ing to an educational educational institution institution o a religious religious or a linguistic linguistic minority, the compensatio compensation n payable payable shall be such as would not restrict restrict or abrogate abrogate the right guaranteed guaranteed to that minority under %rticle %rticle 04/ b. %rticle 0 protects laws providing or ac$uisition o states, ta5ing over management etc. c. )nder the second proviso to the %rticle 0F%, a person holding land within the ceiling limit and cultivate it personally he entitles to the mar5et value as compensation on its ac$uisition. d. %rticle 0F; ma5e valid certain %cts and regulations pertaining to land reorms which are listed in the ninth schedule, notwithstanding any contrary &udgment, decree order o any court. e. %rticle 0FC provides protection to the laws giving efect to certain directive principles.
In P.'.Muni .'.Muni"hikk "hikkanna anna *edd$ v. *evamma ,the Supreme Court o 'ndia has held that the right to property is not &ust a statutory right but is also a human right. The Supreme Court appears appears to have have appro approved ved the decisi decision on o the =uropea =uropean n Court Court o !uman !uman 8ights 8ights in :.A.P'e $;5ford Ltd%.v. UK -: where the =C!8 too5 the concept o adverse possession very un5indly. un5indly. 'n P.T P.T."unichi55anna ."unichi55anna 8eddy the Supreme Court held that the right o property is now cons consid ider ered ed to be not not only only a cons consti titu tuti tion onal al or stat statut utor ory y righ rightt but but also also a huma human n righ right. t. ?eclaration o the 8ights o "an and o the Citi#en <:- enunciates right to property under %rticle
under the 'Jth Schedule and protected by %rticle 0 ;. (or example 3and %c$uisition %ct, :-1. 'n I.*.Coelho v. State of 'amil 2adu the %pex Court held that even though an %ct is plac placed ed under under the the 'Jth 'Jth Sche Schedu dule le by a cons consti titu tuti tion onal al amen amendm dmen ent, t, it would would be open open to challenge on the ground that it destroys or ta5es away or abrogates the basic structure o the Consti Constitut tution ion.. The Court Court held held that that the &usti &usticat cation ion or coner conerrin ring g prote protecti ction on not not blan5 blan5et et protection/ on the 'Jth Schedule shall be a matter o ad&udication, examining the nature and exte extent nt o inr inrac acti tion on o und undam ament ental al right right by a stat statut ute e and and su such ch stat statut ute e soug sought ht to be constitutionally protected on the touchstone o the basic structure doctrine as reected in %rticle 2 read with %rticles 1 and -. The Court held that %rticles 1, - and 2 are the basic structure o the Constitution thereore, basic essence o the right cannot be ta5en away. =ssence o the human right which according to the recent &udgments include property rights/ would necessarily mean ull compensation or ac$uisition o property right. ' the laws afects the basic structure could not be protected even though included in the 'Jth Schedule. 'n Kesavananda Bharati case the Supreme Court held that i a law held to beviolative o undamental rights i it is incorporated in the 'Jth shall be open to challenge on the ground that it destroys or damages the basic structure o the constitution. The Court urther held 241 that, constitution constitutional al amendments amendments are made by the parliament are sub&ected sub&ected to limit limitat atio ion n and and i the the $ues $uesti tion on o limi limita tati tion on is to be deci decided ded by the the parl parliam iamen entt itse itsel, l, parliament enacts the impugned amendment %ct and gives complete immunity to it. 't would disturb disturb the chec5s chec5s and balances on the Constituti Constitution. on. The authority authority to enact law and decides legality o it cannot be vest in thesame organ. The basic structure doctrine re$uires the state to &ustiy the degree o invasion on undamental rights. Parliament is presumed to legislate compatibly with undamental rights. The greater the invasion, the greater is the need or &ustication. The power to grant immunity on a ctional basis would nulliy the basic structure doctrine. 't was urther held that the Court is bound by all the provisions o the Constitution and also the basic structure doctrine. Thus, placing any %ct in the 'Jth Schedule also by constitutional amendment would not save the %ct i it violates the part o the Constitution. (or example a law does not provide ull compensation or depriving the right to property could not be saved even by constitutional amendment placed under ninth schedule. Bow property right has the status o human right which would be a basic structure o the Constitution. Since according to the doctrine o basic eatures, human rights including property rights as now envisaged/ are part o the basic structure under %rticle 2 read with %rticles 1 and -. ?epriving a person o his human right inclu includin ding g propert property y right/ right/ by the State State may re$uir re$uire e the State to pay ull ull compens compensati ation on mar5et value/. Thus, all avenues o depriving a citi#en o his property without ull compensation would be beyond legislative capacity. ' &udicial dictum o the Supreme Court were to develop this trend o right to property is part o human rights and thereore any ta5ing over or ac$uisition would re$uire ull indemnity or compensation in the light o %rticle 2 read with %rticles 1 and -. 't would surely be a wonderul accomplishment. The necessary corollary o this would be that the right to compensation or ac$uisition o property would be a human right and thereore encompassed under the basic structure o the Constitution. The wheel would surely have turned more than ull circle since the entire entire tussle tussle betwee between n the legisl legislatu ature re and the Hudici Hudiciary ary began began immedia immediatel tely y ater ater the commencement o the Constitution with regard to reusal o state to pay ull compensation or ac$u ac$uis isit itio ion n o prop proper erty ty,, whic which h may may at that that time time have have been been nece necess ssar ary y but but it is tota totally lly un&ustied. )nder %rticle 04F%/ ma5ing any law providing or the compulsory ac$uisition o any property o a minority educational institution, the state is re$uired to ensure that the amount xed by or determined under such law or the ac$uisition o such property is such as would not restrict restrict or abrogate abrogate the right guaranteed guaranteed to establish establish and administer administer educational educational institutions o their choice. )nder %rticle 29 since the right o religious denominations or any section thereo to own and ac$uire moveable and immoveable property is guaranteed sub&ect to public order, morality and health. That is submitted that any law o ac$uisition in order to apply to a religious denomination, apart rom ull compensation, must also satisy the test o being being necess necessary ary either either or public public order order,, moralit morality y and health health.. 8ecentl ecently y Supre Supreme me Court Court in various cases determined the property right is not only statutory and constitutional right, it is also a human right o an individual. Thereore there is no disproportionate intererence by the state in ac$uiring property o an individual i ndividual hence compensation should be reasonable.
The original Constitution o -74 had saeguarded the right to property, recogni#ed the same under part the ''' o the Constitution. !owever, soon ater the Constitution o 'ndia came into orce a long drawn out battle commenced between the persons who were sought to be deprived o their property and the legislature and executive until its nal culmination. )ltimately by the orty ourth constitutional amendment right to property as originally envisaged by the -74 Constitution was deleted and only a small raction o the right was retained in %rticle 044F% as a constitutional right. The whole genesis o the dispute over the righ rightt to prop proper erty ty was was the the unwi unwill llin ingn gnes ess s o the the legi legisl slat atur ure e and and exec execut utiv ive e to pay pay ull ull compensation or ull mar5et value or the property ac$uired. The Constitutional obligation to pay compensation underwent underwent massive changes because o the word word compensation used in %rticle 02/. !ence tussle between the parliament and the &udiciary as a result o which brought series o constitutional amendments to property right. Constitution ma5ers reused to 5eep the word prex M&ust or the word compensation unde underr the the %rti %rticl cle e 0 02 2/. /. %ter ter the the Cons Consti titu tuti tion on came came into into orc orce e pos positi ition on beor beore e ourt ourth h amen amendm dmen ent/ t/ cour court, t, in seri series es o case cases s inte interp rprreted eted the the word word Mcom Mcompe pens nsat atio ion n as M&us M&ustt compensation or Mcompensation e$uivalent to the property ac$uired by the state. Kithout paying e$uivalent compensation no property could be ac$uired even or public purpose, it was a great hurdle or the state. Thereore constitutional ourth amendment brought changes in the %rticle 02/ i.e./ or the property ac$uired compensation need not be &ust or e$uivalent comp compens ensat atio ion. n. The The very very ob&e ob&ect ct o our ourth th amend amendme ment nt excl exclud ude e the the &udic &udicial ial revi review ew over over Mcompensation on the ground o M&ust compensation was ailed to achieve. !owever even ater the ourth amendment in series o cases court interered by way o interpretation and held held that that the the word word Mcom Mcompe pens nsat atio ion n means means Me$u Me$uiv ival alen entt to the the prop propert erty y ac$u ac$uir ired ed or &ust &ust compensation. =ven though state has sovereign power to ac$uire property or public purpose, ac$uis ac$uisiti ition on cases cases are are came came beor beore e the courts courts on the groun ground d that that compen compensat sation ion was not ade$ ade$ua uate te.. Ther There eor ore e by twen twenty ty th cons consti titu tuttiona ionall amen amendm dme ent in -< < the the wor word Mcompensation in %rt 02/ was substituted by the word Mamount. ;y this amendment some extent extent battle between between &udiciary &udiciary and parliament parliament comes to an end. Court interpreted interpreted the word Mamount something diferent rom word Mcompensation these two words are not synonymous and also court held that amount declared or ac$uisition o property by State must not be illusory or it should not disproportionate to the property ac$uired. 'n Kesavananda !harati v. State of Kerala the ma&ority o the Supreme Court held that the amount which was xed by the legislature could not be arbitrary or illusory or must be determined by the principle which are relevant or determining compensation. )p to (orty Second %mendment %ct -<9, the essential parts o %rticle 02/ were repealed by pride predecessor amendments nally, orty ourth amendment repealed the right to property i.e., %rticles -// and 0 altogether rom part ''' o the Constitution and inserted the %rticle 044F% into the Constitution %rticle 0/ was reappeared in %rticle 044F%/. !owever, here the $uestion arises even ater repealing %rticle 02/, can twin re$uirements Mpublic Mpublic purpos purpose e and const constitu itutio tional nal obliga obligatio tion n to pay Mcompe Mcompensa nsatio tion n be surviv survived ed or can government exercise its eminent domain power arbitrarily irrespective o Mpublic purpose and Mcompensation. The rationale o orty ourth amendment is loosening the undamental right status and conrm the status o legal right to the property held by individuals. 'n case o litigation between the state and individual regarding property right, court always tilt towards in avour o protection o property right had been a undamental right o individuals. !ence land looser or usurper could directly moved beore the Supreme Court or enorcement o property right. Bowhere in the world democratic government recogni#ed with arbitrary power. 'ndia being a democratic country could not exercise its sovereign power in an arbitrary manner. Thereore govern government mental al inter interere erence nce may occur occur in the orm orm o expr expropr opriat iation ion o proper property ty rights rights o individuals when public interest warrants. =xpropriation o property must be sub&ected to some conditions and limitations and it should not be in accordance with the whims and ancies ancies o the govern government ment.. The moral moral basis basis and conditions conditions o expr expropr opriat iation ion will be the essential condition o eminent domain power. !ence even ater the removal o %rticle 0 altogether, there must be &ustication or the intererence with individual property right by the Government. !ence, compensation must be proportional to the intererence, it is evident rom the 3and %c$uisition %ct :-1. 'n the present scenario, property right is loo5ing rom the
perspective o human right thereore colonial 3and %c$uisition %ct :-1 replaced by the 8ight to (air Compensation and Transparency in 3and %c$uisition, 8ehabilitation and 8esettlement %ct,240. (orty ourth amendment did not intended to remove the constitutional restraints li5e Mpublic purpose and Mcompensation on eminent domain power. 't can be counter argued that obligation to pay compensation ows rom entry 12 o list ''' o the I'' schedule to the Constitution and obligation to pay compensation arise rom the doctrine o eminent domain or the right to ac$uire private property or public purposes which is an incidence o a sovereign stat state. e. "a&or "a&or chan change ges s ate aterr orty orty ourt ourth h amen amendm dment ent,, repeali epealing ng the the Prop Proper erty ty righ rightt rom rom (undamen undamental tal rights rights,, now prope property rty right right is only only legal legal right, right, or const constitu itutio tional nal right. right. )nless )nless statut statute e provid provides, es, govern government ment need need not to pay e$uiva e$uivalent lent compen compensat sation ion to the prope property rty ac$uired. ;ut now the court has addressed the compensation re$uirement in the context o a air balance test. %ccordingly ta5ing o property without payment o an amount reasonably related its value value woul would d norm normal ally ly cons consti titu tute te a disF disFpr prop opor orti tion onat ate e inte inter rer eren ence ce whic which h could could not not be cons consid ider ered ed as &ust &ustic icia iabl ble. e. !owe !oweve ver, r, acco accord rdin ing g to the the cour courts ts obse observ rvat atio ion n stat statut ute e or constitutio constitutional nal provision provision does not guarantee guarantee a right to ull compensation compensation in all circumstances circumstances except under second proviso to the %rticle 0F%// even though compensation awarded must be $ualiy the air balance test. Bevertheless, orty ourth amendment does not have any efect on the power o eminent domain or the sovereign power o the state, urther it smoothen the proceedings o ac$uisition. %t the same time %rticle 2 cannot be applied to the ac$uisition proceedings because ob&ective o the orty ourth amendment shit the concept o property rom undamental right status to legal right status. Thereore, i you say proceedings o ac$uisition hit %rticle 2, property right again through bac5 door entry ma5e the property right as a undamental right, the ob&ect o the orty ourth amendment will be deeated.