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Monday, November 11, 2013

Revisiting Right to Property and Article 31: A Comparative Analysis


My last article on the Kesavanandra Bharati Case discussed how right to property does not form the basic structure of our Constitution. However, there is a lot of ambiguity relating to the status of this right. In the present article, I am going to discuss about the current status of Right to Property vis-à-vis article 31 as it existed before.

Comparative Analysis

Originally, Article 31 guaranteed that “All citizens shall have the right to acquire, hold and dispose of the property.” The State, however, could impose reasonable restrictions (i) to serve the exigencies of public welfare and (ii) to protect the interest of any Scheduled Tribe [vide Art. 19 Clauses (1) (f) & (5)][1].

Also, article 31 (1) contained “no person shall be deprived of his property save by authority of law” i.e. the present article 300A. The interpretation of this phrase has been clarified by the Supreme Court in a number of cases. In the case of Bishambhar Dayal Chandra Mohan v. State of U.P., the apex court held that

“Art. 300A provides that no person shall be deprived of his property save by authority of law. The State Government cannot while taking recourse to the executive power of the State under Art. 162, deprive a person of his property.
The word 'law' in the context of Article 300A must mean an Act of Parliament or of a State Legislature, a rule, or a statutory order, having the force of law, that is positive or State-made law.[2]

Article 31 was deleted by the 44th Amendment in 1978. To understand the reasoning behind the deletion of article 31 and article 19 (1) (f), let us explore the Statement of Object and Reasons of the “The Constitution (Forty-fourth Amendment) Act, 1978”.

“3.   In view of the special position sought to be given to fundamental rights, the right to property, which has been the occasion for more than one amendment of the Constitution, would cease to be a fundamental right and become only a legal right.  Necessary amendments for this purpose are being made to article 19 and article 31 is being deleted. It would, however, be ensured that the removal of property from the list of fundamental rights would not affect the right of minorities to establish and administer educational institutions of their choice.
4.   Similarly, the right of persons holding land for personal cultivation and within the ceiling limit to receive compensation at the market value would not be affected.
5.  Property, while ceasing to be a fundamental right, would, however, be given express recognition as a legal right, provision being made that no person shall be deprived of his property save in accordance with law.”

The status of Right to Property was already made microscopic by the 42nd Amendment. 42nd Amendment introduced Article 31D that made laws relating to anti-national activities and anti-national associations immune to Judicial Review on the anvil of article 14, article 19 and article 31. Also, during this period, our country was suffering from the vices of Zamindari System and many a times, it became very difficult for the government to acquire land and property from the landlords. There was a huge need to introduce agrarian reforms and with Right to Property being sacrosanct, it was just not possible for the government to go ahead with its reforms agenda. In fact, there were many other reasons too such as the paucity of resources on part of the government. The government was not in a position to pay full compensation to the land holders. Hence, the government decided to demote the status of right to property to a mere legal right.

Implications

There are two exceptions with regard to this amendment or rather two areas that were no affected by this change in the status of Right to Property.

1. The right of minorities to establish and administer educational institutions of their choice was not affected by this amendment. This was done by introducing article 30 (1A).

2. The rights of persons holding land for personal cultivation within the ceiling limit were also not affected by this amendment. This was done by inserting a second proviso to article 31A (1).

The present article 300A says that “No person shall be deprived of his property save by authority of law”. As I mentioned earlier, the word ‘law’ in article 300A means an Act of Parliament or of a State Legislature, a rule, or a statutory order, having the force of law, that is positive or State-made law[3]. A mere executive order in this regard won’t suffice.

However, there were two crucial consequences of 44th Amendment.

1. The manner in which the compensation was to be determined or given became immune to Judicial Review.
2. The remedy under article 32 of the constitution is no more available to an aggrieved person. However, the person can approach the High Court under article 226.

The Present Position

In the case of Rajiv Sarin and Another v. State of Uttarakhand and Others, the Apex Court held that

1. The inherent powers of public purpose and eminent domain are embodied in Article 300A, and Entry 42, List III, ‘Acquisition and Requisitioning of Property’ which necessarily connotes that the acquisition and requisitioning of property will be for a public use and for compensation and whenever a person is deprived of his property, the limitations as implied in Article 300A as well as Entry 42 List III will come into the picture. The Court can always examine the legality of the legislation in question and such a question is open to judicial review.

2. Article 31B read with Ninth Schedule of the Constitution does not protect laws if they are violative of the Part III of the Constitution. In I.R. Coelho v. State of Tamil Nadu[4], the court held that the laws added to the Ninth Schedule of the Constitution would be amenable to judicial review on the ground of basic structure doctrine.

3. Under Article 300A of the Constitution the State can proceed to acquire land for specified use but by enacting a law through State legislature or by Parliament and in the manner having force of law. When the State exercises the power of acquisition of a private property thereby depriving the private person of the property, provision is generally made in the statute to pay compensation to be fixed or determined according to the criteria laid down in the statute itself.

4. It does not require payment of market value or indemnification to the owner of the property expropriated. Payment of market value in lieu of acquired property is not a condition precedent or sine qua non for acquisition. It must be clearly understood that the acquisition and payment of amount are part of the same scheme and they cannot be separated. It is true that the adequacy of compensation cannot be questioned in a court of law, but at the same time the compensation cannot be illusory (held in Kesavananda Bharati Case).

5. A distinction and difference has been drawn between the concept of ‘no compensation’ and the concept of ‘nil compensation’. As mandated by Article 300A, a person can be deprived of his property but in a just, fair and reasonable manner. In an appropriate case the Court may find ‘nil compensation’ also justified and fair if it is found that the State has undertaken to take over the liability and also has assured to compensate in a just and fair manner. But the situation would be totally different if it is a case of ‘no compensation’ at all. Basically, a law seeking to acquire private property for public purpose cannot say that ‘no compensation’ would be paid.

The next part in this series will talk about the development of “basic structure” jurisprudence in India.






[1] Right to Property and Compensation under the Indian Constitution, M.L. Singhal, Judicial Training & Research Institute Journal, April-June, 1995.
[2] Bishambhar Dayal Chandra, Mohan v. State of U.P., AIR 1982 SC 33.
[3] Ibid.
[4] (2007) 2 SCC 1.

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