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Home > Know Your Rights > Right to Property
FAQ's | Landmark Judgements | Legal Frameworks

Landmark Judgments

· In Bank Nationalisation case (R.C. Cooper Vs. Union of India, 1970), the court held that:

“The constitution guarantees the right to compensation which is equivalent in money to the value of the property that has been compulsorily acquired. This is the basic guarantee. The law must therefore provide compensation and for determining compensation relevant principles must be specified: if the principles are not relevant the ultimate value determined is not compensation. The constitution guarantees that the expropriate owner must be given the value of his property (the reasonable compensation for the loss of the property). That reasonable compensation must not be illusionary and not reached by the application of an undertaking as a unit after awarding compensation for some items which go to make up the undertaking and omitting important items amounts to adopting an irrelevant principle in the determination of the value of the undertaking and does not furnish compensation to the expropriated owner.”

·  Soon after the abolition of the Fundamental Right to property, in Bhim Singh Vs. UOI, the Supreme Court realised the worth of the Right to Property as a Fundamental Right.

·  The Supreme Court held in a series of decisions viz. State of West Bengal Vs. Mrs. Bella Banerjee, State of W.B Vs. Subodh Gopal, State of Madras Vs. Namasivaya Muralidar, that Article 31, clauses (1) and (2) provided for the doctrine of eminent domain and under clause (2) a person must be deemed to be deprived of his property if he was substantially dispossessed or his right to use and enjoy the property was seriously impaired by the impugned law.  In these cases, the Apex court through its landmark decision had insisted for payment of compensation in every case of compulsory deprivation of property by the state.

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