A nine-judge Constitutional bench of the Supreme Court on Monday in a majority verdict held that not all private resources of the individuals are material resources of the community that the government can take over to subserve a common good. The top court however unanimously upheld the Article 31C of the Indian Constitution (as interpreted in Kesavanada Bharti verdict) which states that laws that implement the state’s policy towards Directive Principles Of State Policy (DPSP) are not void.
The top court today delivered its judgment on the issue of whether private resources form part of the ‘material resource of the community’ under Article 39(b) of the Constitution. Atircle 39(b) is the DPSP that deals with government’s power to takeover privately owned property or material resourced for a common good.
In a landmark verdict, the apex court today said that it cannot subscribe to Justice Iyer’s philosophy that every asset, including that of private individuals, can be termed community resource. CJI Chandrachud while dictating the judgment said that not all privately owned resources can be acquired by the State even as the State can stake claims over resources that are material and are held by the community, for public good.
The bench today overturned a series of its judgments since 1978 that reflected the socialist economic policy of that time in India. These previous verdicts by the Supreme Court had held that to develop an egalitarian society, a government can direct a redistribute community’s material resources, including privately properties of individuals, to subserve common good.
The nine judge-bench’s majority judgment was authored by CJI Chandrachud, for self and Justices Hrishikesh Roy, J B Pardiwala, Manoj Misra, Rajesh Bindal, S C Sharma and A G Masih. Justice B V Nagarathna partially dissented with CJI while Justice S Dhulia differed with the CJI.
The bench headed by CJI Chandrachud in a majority verdict held that Justice Krishna Iyer’s 1978 ruling which held that all properties of private individuals can be termed community property by the government advanced socialist economic ideology, and hence is unsustainable today.
The top court today gave its verdict noting that there was a shift towards socialist economy in 1960s and 70s, but the focus shifted to market oriented economy since 1990s after India opened itself to Globalisation.
The Supreme Court said that adopting a dynamic economic policy through the last 30 years has made India the fastest growing economy in the world.
