Supreme Court Ruling on Private Property and State Acquisition

Source: This post on Supreme Court Ruling on Private Property and State Acquisition has been created based on the article “Not all private properties can be used by State for the community: Supreme Court holds in majority decision” published in The Hindu on 6th November 2024.

Why in news?

Recently, SC gave judgment on Private Property and State Acquisition.

About the judgement

1) A nine-judge Constitution Bench of the Supreme Court ruled that not all private properties can be regarded as “material resources of the community” for use by the State to promote the “common good.”

2) The majority opinion emphasized that allowing the State blanket authority to acquire private assets aligns with outdated economic ideologies, not current economic practices.

The decision highlights India’s shift from socialism towards liberalization and market-based reforms.

3) Economic Evolution and Constitutional Principles: The court’s decision reflects India’s economic evolution, with the Constitution framing economic democracy and electoral choices allowing diverse economic policies.

Chief Justice Chandrachud observed that India’s rapid economic growth and resilience are tied to this flexible economic vision, which allows varying approaches rather than strict state control.

4) Article 39(b) and Defining “Material Resources”: Article 39(b) of the Constitution directs the State to ensure that material resources are distributed to serve the community’s welfare.

The court clarified that “resources” under Article 39(b) should be context-dependent.

The term encompasses various resources, but acquisition for community use should be evaluated on factors like resource scarcity, the necessity for public welfare and the effects of concentrated ownership in private hands

5) Significance of the Ruling: This ruling reinforces the need for proper procedures and justifications before the State can acquire private property, safeguarding private ownership within India’s evolving economic landscape.

UPSC Syllabus: Polity and nation