Supreme Court Ruling on Private Property: Not All Resources Can Be Acquired by the State
The Supreme Court has issued a landmark judgment, reversing a 1978 ruling that allowed the state to nationalize and redistribute all private property. The new ruling defines the limits of state control over private resources, emphasizing that not all priv
Supreme CourtPrivate PropertyReal EstateState ControlLegal RulingReal Estate MaharashtraNov 05, 2024
In 1978, Justice Krishna Iyer's ruling established that the Centre could nationalize and redistribute all private property. This ruling was influenced by the socialist ideology prevalent at that time and referenced Karl Marx. The court emphasized that India should not be confined to a singular economic theory.
Article 39(b) of the Constitution of India states that the State shall direct policy to ensure 'ownership and control of the material resources of the community are so distributed as best to sub-serve the common good.'
The recent decision was passed by a majority of the 9-judge bench in the Supreme Court. The panel, comprising Justices Hrishikesh Roy, B V Nagarathna, J B Pardiwala, Sudhanshu Dhulia, Manoj Misra, Rajesh Bindal, Satish Chandra Sharma, and Augustine George Masih, issued three rulings.
The Chief Justice of India (CJI) DY Chandrachud, along with six other judges, authored the decision regarding the classification of private properties as 'material resources of the community' under Article 39(b) of the Constitution. This ruling explores the possibility of such properties being seized by state authorities to promote the 'common good.'
On Tuesday, CJI Chandrachud stated, 'All private properties are not material resources. Hence, it cannot be taken over by states.'
During the case, Justice BV Nagarathna expressed a different opinion from the CJI, while Justice Sudhanshu Dhulia dissented. Justice Nagarathna emphasized that it would be unfair to criticize judges from the past for holding specific viewpoints at a different period in history.
This ruling is a major step in defining the limits of state control over private property and is expected to have far-reaching implications for the real estate sector and property owners in India.
Frequently Asked Questions
What was the 1978 ruling regarding private property?
The 1978 ruling, made by Justice Krishna Iyer, allowed the state to nationalize and redistribute all private property. It was based on socialist ideology and referenced Karl Marx.
What does Article 39(b) of the Constitution state?
Article 39(b) of the Constitution of India states that the State shall direct policy to ensure 'ownership and control of the material resources of the community are so distributed as best to sub-serve the common good.'
Who presided over the recent ruling on private property?
The recent ruling on private property was presided over by Chief Justice of India (CJI) DY Chandrachud, along with a 9-judge bench.
What is the main takeaway from the new ruling?
The main takeaway from the new ruling is that not all private properties are material resources of the community and cannot be taken over by the state. This limits the extent of state control over private property.
What were the differing opinions during the case?
Justice BV Nagarathna expressed a different opinion from the CJI, while Justice Sudhanshu Dhulia dissented. Justice Nagarathna emphasized that it would be unfair to criticize past judges for holding specific viewpoints at a different period in history.
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