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The Revival of the Right to Property in India

Published online by Cambridge University Press:  20 August 2015

Tom ALLEN*
Affiliation:
Durham University, United Kingdomthomas.allen@durham.ac.uk
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Abstract

Over the last six decades, the Supreme Court of India has created and re-created a right to property from very weak textual sources, despite constitutional declarations calling for social revolution, numerous amendments to reverse key judgments, and even, in 1978, the repeal of the core constitutional provisions guaranteeing a right to property. This article challenges the usual account of these developments. The primary contention is that the 1978 repeal is much less significant than it appears, due to the Court’s creative interpretation of other constitutional provisions. The Supreme Court has consistently advanced liberal models of constitutionalism and property, despite the influence of other models on the original constitutional design and later amendments. This article also examines whether the Court’s liberalism is compatible with the egalitarian values of the Constitution, and how its position will affect attempts to address social issues relating to the distribution of property in India.

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Articles
Copyright
© National University of Singapore, 2015 

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Footnotes

*

B.A. (Queen’s University, Canada); LL.B. (Dalhousie Law School); LL.M. (SOAS). Professor, Durham Law School, UK. I would like to thank Professor Lorna Fox-O’Mahony, University of Essex, for her advice and comments on an earlier draft; all errors remain mine.

References

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38. E.g. Rajya Sabha, 8 November 1976, col. 119 (Indradeep Sinha), col. 130 (Maqsood Ali Khan), and col. 182 (Saraswati Pradhan).

39. Ibid., 28 August 1978, col. 54.

40. Ibid.

41. Ibid., col. 55.

42. Ibid., 28 August 1978, col. 54.

43. Constitution, supra note 17, art. 13(2).

44. Ibid., art. 32.

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48. Constitution, supra note 17, arts. 30(1A) and 30A(1) were also relevant, as they contained guarantees of compensation for takings in specific circumstances.

49. Maneka Gandhi v. Union of India, 1978 SCR (2) 621.

50. See MATE, Manoj, “The Origins of Due Process in India: The Role of Borrowing in Personal Liberty and Preventive Detention Cases” (2012) 28 Berkeley Journal of International Law 216Google Scholar.

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52. See generally e.g. ibid.

53. Minerva Mills v. Union of India, 1981 SCR (1) 206.

54. Sick Textile Undertakings (Nationalisation) Act, 1974, No. 57 of 1974.

55. Minerva Mills v. Union of India, 1986 SCR (3) 718.

56. Constitution (Forty-Second Amendment) Act, 1976, s. 4.

57. SEERVAI, M., Constitutional Law of India, 4th ed (Bombay: NM Tripathi, 1991-1993) vol. 2 at 1354-1427Google Scholar; see also JAIN, H.M., “The Forty Fourth Amendment and the Right to Property” (1979) 13 Journal of Constitutional and Parliamentary Studies 23Google Scholar.

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59. Basu, supra note 58 at 868; see also 872.

60. Ibid. at 873 (Basu was critical of the repeal, but felt that the language was clear.)

61. Vora Saiyedbhai Kadarbhai v. Saiyed Intajam Hussen Sedumiya, (1981) 22 GLR 596 at para. 53.

62. Mutha Parasmal Jain v. Union of India, AIR 1981 Raj 139.

63. Basantibai Fakirchand Khetan v. State of Maharashtra, AIR 1984 Bom 366 at para. 19.

64. Ibid. at para. 19.

65. Ibid. at para. 22.

66. Ibid. at para. 24.

67. State of Maharashtra v. Basantibai Mohanlal Khetan, 1986 SCR (1) 707 at 729. The legislation is the Maharashtra Housing and Development Act, 1976, No. 28 of 1977.

68. Ibid. at 726.

69. Ibid. at 729.

70. See also State of Karnataka v. Ranganatha Reddy, 1978 SCR (1) 641; Sanjeev Coke Manufacturing Co. v. Bharat Coking Coal Ltd., 1983 SCR (1) 1000; Waman Rao v. Union of India, 1981 SCR (2) 1.

71. Bhim Singh v. Union of India 1985 SCR Supl (1) 862 [Bhim Singh]. Krishna Iyer J. delivered a concurring judgment, but in the short judgment for the majority, Chandrachud C.J. expressed agreement with Iyer J.’s reasons.

72. Ibid. at 881; the cap was under the Urban Land (Ceiling and Regulation) Act, 1976, No. 33 of 1976. As the claim was filed before the Amendment, the Court decided it against the prior law.

73. Bhim Singh, supra note 71 at 884.

74. Ibid. at 883.

75. Ibid. at 889.

76. Ibid. at 890.

77. Olga Tellis v. Bombay Municipal Council, 1985 SCR Supl (2) 51 [Tellis v. Bombay]; see HOHMANN, Jessie H., “Visions of Social Transformation and the Invocation of Housing Rights in Mumbai: The Struggle for the Right to Housing” (2010) 13 Yale Human Rights and Development Law Journal 135Google Scholar.

78. Tellis v. Bombay, ibid. at 79.

79. Ibid. at 87.

80. See Ambika Prasad Mishra v. State of Uttar Pradesh, 1980 SCR (3) 1159 at 1168 (Iyer J) (“The dichotomy between personal liberty, in Article 21, and proprietary status, in Articles 31 and 19 is plain, whatever philosophical justification or pragmatic realisation it may possess in political or juristic theory.”). See also State of Maharashtra v. Basantibai Mohanlal Khetan, 1986 SCR (1) at 730.

81. Jilubhai Nanbhai Khachar v. State Of Gujarat, AIR 1995 SC 142; 1994 Supp(1) SCR 807 [Jilubhai Nanbhai Khachar]. See AGARWAL, Diwakar and RAGHAVAN, Vikram, “Jilubhai Nanbhai Khachar v State Of Gujarat, AIR 1995 SC 142: A Review” (1996) 9 Central India Law Quarterly 96Google Scholar (supporting the revival of a right to property); Singh, , supra note 58 at 318Google Scholar.

82. Jilubhai Nanbhai Khachar, supra note 81 at para. 19.

83. Ibid. at para. 33; see also para. 51.

84. Bombay Land Revenue Code and Land Tenure Abolition Laws (Gujarat Amendment) Act, 1982, No. 8 of 1982.

85. State of Tamil Nadu v. Ananthi Ammal, 1995 AIR 2114.

86. Ibid. at para. 17.

87. Hindustan Petroleum Corpn Ltd v. Darius Shapur Chenai, (2005) 7 SCC 627, at para. 6 [Hindustan Petroleum].

88. State Of Bihar v. Project Uchcha Vidya, 2006 (2) SCC 545 at para. 65 [Bihar v. PUV].

89. Chairman, Indore Vikas v. M/S Pure Industrial Cock & Chem., (2007) 8 SCC 705, at para. 47 [Chairman, IV].

90. M/S Entertainment Network v. M/S Super Cassette Industries Ltd., 2008 (9) SCALE 69, at para. 77 [M/S Entertainment].

91. Hindustan Petroleum, supra note 87; Bihar v. PUV, supra note 88; Chairman IV, supra note 89; M/S Entertainment, supra note 90. It is interesting to note that the National Commission to Review the Working of the Constitution, which included a number of retired senior judges, recommended that Article 300-A be amended to the following: “300-A (1) Deprivation or acquisition of property shall be by authority of law and only for a public purpose. (2) There shall be no arbitrary deprivation or acquisition of property …” (Further provisions would have covered Scheduled Castes and Scheduled Tribes.) National Commission to Review the Working of the Constitution, Report of the National Commission to Review the Working of the Constitution (Ministry of Justice, 2002) at para. 3.16.2. The Commission did not explain why it made its recommendation, but it is worth noting that the proposed paragraph (2) seems to introduce the same substantive standard as found in Article 14.

92. K.T. Plantation Pvt. Ltd. v. State of Karnataka, [2011] 13 (ADDL) SCR 636 [KT Plantation].

93. S.H. Kapadia, Mukundakam Sharma, K.S. Radhakrishnan, Swatanter Kumar, Anil R. Dave, JJ.

94. Subject to the specific exceptions in Articles 30(1A) (property of educational institutions established by minorities) and 31A(1) (certain smallholdings under personal cultivation) of the Constitution, supra note 17.

95. K.T. Plantation, supra note 92 at para. 115.

96. Ibid. at para. 115; see also para. 121: “the right to claim compensation or the obligation to pay, though not expressly included in Article 300A, it can be inferred in that Article and it is for the State to justify its stand on justifiable grounds which may depend upon the legislative policy, object and purpose of the statute and host of other factors.”

97. Ibid. at paras. 84-91.

98. Ibid.

99. Ibid. at paras. 84-85.

100. I.R. Coelho v. State of Tamil Nadu, 2007 AIR 861, 2007 (1) SCR 706, 2007 (2) SCC 1 [IR Coelho].

101. Glanrock Estate Ltd v. The State of Tamil Nadu, (2010) 10 SCC 96 [Glanrock Estate].

102. See, ibid. at para. 8.

103. Kameshwar Singh, supra note 47, is an example.

104. K.T. Plantation, supra note 92 at para. 134.

105. See Ashoka Kumar Thakur v. Union Of India, (2008) 6 SCC 1 at para. 191: “legislation cannot be challenged simply on the ground of unreasonableness because that by itself does not constitute a ground.”

106. K.T. Plantation, supra note 92 at para. 122.

107. See the material cited supra note 1.

108. Supra note 71.

109. Ibid. at paras. 121 and 122.

110. Constituent Assembly Debates, vol. IX, 1194 (10 September 1949).

111. Ibid., 1196.

112. Ibid., 1194.

113. E.g. Karnataka State Financial Corporation v. N. Narasimhaiah, (2008) 5 SCC 176 at para. 30 (“Right of property, although no longer a fundamental right, is still a constitutional right. It is also human right.”); State of Haryana v. Mukesh Kumar, [2011] 14 (ADDL) SCR 211, 230-31; N. Padmamma v. S. Ramakrishna Reddy, (2008) 15 SCC 517, at para. 17; Rajendra Nagar Adarsh Grah Nirman Sahkari Samiti Ltd v. State Of Rajasthan, [2013] 7 SCR 192, at 213-14; Chandigarh Housing Board v. Devinder Singh, (2007) 9 SCC 67, at para.11; Hemaji Waghaji Jat v. Bhikhabhai Khengarbhai Harijan, AIR 2009 SC 103, at para. 26; Lachhman Dass v. Jagat Ram, (2007) 2 SCR 980, at para. 16; P. T. Munichikkanna Reddy v. Revamma, (2007) 6 SCC 59 at para. 51; Chairman, Indore Vikas, supra note 89 at paras. 54, 56.

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130. Ibid. at 257-281.

131. See e.g. Haig v. Aitken, [2000] 3 WLR 1117.

132. See the cases cited supra note 80.

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134. See supra note 51 and accompanying text.

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160. Supra note 123 and accompanying text.

161. Sircar, supra note 149. The Foreign Education Institutions (Regulation of Entry and Operations) Bill, 2010 is unlikely to be enacted, as the same ends are likely to be achieved by ministerial order: see MISHRA, Alya, “Access for Foreign Campuses as Legislation ‘Abandoned’” 287 University World News (12 September 2013), online: University World News <http://www.universityworldnews.com/article.php?story=20130912115621960>>Google Scholar.

162. LI, Tania Murray, “To Make Live or Let Die? Rural Dispossession and the Protection of Surplus Populations” (2010) 41 Antipode Issue Supplement 66Google Scholar; GONSALVES, Colin, “Judicial Failure on Land Acquisition for Corporations” (2010) 45(32) Economic and Political Weekly 37Google Scholar.

163. On the estimates, see PARASURAMAN, S., UPADHYAYA, Himanshu, BALASUBRAMANIAN, and Gomathy, “Sardar Sarovar Project: The War of Attrition” (2010) 45(5) Economic and Political Weekly 39 at 41Google Scholar; PETERSON, M.J., “Narmada Dams Controversy – Case Summary” (2010) International Dimensions of Ethics Education in Science and Engineering Case Study Series at 22, online: UMass Amherst <http://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1015&context=edethicsinscience>>Google Scholar; and see RAJAGOPAL, Balakrishnan, “The Role of Law in Counter-Hegemonic Globalization and Global Legal Pluralism: Lessons from the Narmada Valley Struggle in India” (2006) 18 Leiden Journal of International Law 345CrossRefGoogle Scholar; NARULA, Smita, “The Story of Narmada Bachao Andolan: Human Rights in the Global Economy and the Struggle Against the World Bank” in Deena R. HURWITZ, Margaret L. SATTERTHWAITE, and Douglas B. FORD, eds., Human Rights Advocacy Stories (New York: Foundation Press, 2009), 351Google Scholar.

164. Ministry of Environment and Forests, Government of India, No. 7-16/2002-FC, 3 May 2002.

165. SPRINGATE-BAGINSKI, Oliver, SARIN, Madhu, and M. Gopinath REDDY, “Resisting Rights: Forest Bureaucracy and the Tenure Transition in India” (2013) 12 Small-Scale Forestry 107 at 111Google Scholar (discussing reports that hundreds of thousands of forest dwellers were evicted).

166. Almitra H. Patel v. Union of India, AIR 2000 SC 1256 [Patel]. See CHAPLIN, S., “Cities, Sewers and Poverty: India’s Politics of Sanitation” (1999) 11 Environment and Urbanization 145CrossRefGoogle Scholar; BHUSHAN, Prashant, “Misplaced Priorities and Class Bias of the Judiciary” (2009) 44(14) Economic and Political Weekly 32Google Scholar; BHAN, Gautam, “‘This Is No Longer the City I Once Knew’. Evictions, the Urban Poor and the Right to the City in Millennial Delhi” (2009) 21 Environment and Urbanization 127CrossRefGoogle Scholar; SHUKLA, Rakesh, “Rights of the Poor: An Overview of Supreme Court” (2006) 41(35) Economic and Political Weekly 3755Google Scholar.

167. Bhushan, supra note 166 at 35; Chaplin, supra note 166; WILLIAMS, G. and MAWDSLEY, E., “Postcolonial Environmental Justice: Government and Governance in India” (2006) 37 Geoforum 660CrossRefGoogle Scholar; and see the Court’s comments on the precautionary principle in Narmada Bachao Andolan v. Union of India, AIR [2000] SC 3751; 2000 10 SCC 664 at para. 149-151. See also Rajamani and Sengupta, supra note 23 at 89-90: the real issue with these cases is the lack of judicial craft, as judgments on environmental rights are poorly explained and exhibit little more than a “jurisprudence of exasperation”.

168. Compare Patel, supra note 166 at 1258, where the Court stated that “[r]ewarding an encroacher on public land with free alternate site is like giving a reward to a pickpocket”, with the reluctance to evict large corporate enterprises in illegal developments in T.N. Godavarman Thirumulpad v. Union Of India [1997] 2 SCC 267.

169. Walter FERNANDES, “India’s Forced Displacement Policy and Practice: Is Compensation up to Its Functions?” in CERNEA, Michael M. and MATHUR, Hari Moham, eds., Can Compensation Prevent Impoverishment? Reforming Resettlement Through Investment and Benefit-Sharing (Oxford: Oxford University Press, 2008), 181 at 181-207Google Scholar (across India, only about one-third of those displaced by development projects are resettled as part of the project).

170. PEARCE, David W. and SWANSON, Timothy, “The Economic Evaluation of Projects Involving Forced Population Displacements” in Cernea and Mathur, eds., supra note 169, 99 at 111-112Google Scholar.

171. Land Acquisition Act, 1894, No. 1 of 1894, ss. 11 and 23(1).

172. Ibid., ss. 11 and 23(2).

173. Ibid., s. 6.

174. Land Acquisition, Rehabilitation and Resettlement Act, 2013, No. 30 of 2013. See GHATAK, Maitreesh and GHOSH, Parikshit, “The Land Acquisition Bill: A Critique and a Proposal” (2011) 46(41) Economic and Political Weekly 65Google Scholar; SARKAR, Swagato, “The Impossibility of Just Land Acquisition” (2011) 46(41) Economic and Political Weekly 35Google Scholar; PALIT, Amitendu, “The Land Acquisition, Resettlement and Rehabilitation (LARR) Bill 2011: Providing Solutions or Raising Questions?” (2012) 4(7) Journal of Emerging Knowledge on Emerging Markets, online: JEKEM <http://digitalcommons.kennesaw.edu/jekem/vol4/iss1/7/>CrossRefGoogle Scholar; GAHLAUT, Baibhaw, “Land Acquisition and Resettlement and Rehabilitation Bill 2011 – A Bane or Boon?” (2013) 34(2) Statute Law Review 175 at 177Google Scholar.

175. Land Acquisition, Rehabilitation and Resettlement Act, 2013, supra note 174, c. II.

176. Ibid., sched. 1.

177. Ibid., sched. 2.

178. Ibid., s. 2(2)(b)(i); the Act does not define “public private partnership project” (or “public private partnership” or “partnership”).

179. See Gahlaut, supra note 174 at 177.

180. See Pearce and Swanson, supra note 170.

181. Sarkar, supra note 174.

182. Wahi, supra note 3.

183. I. R. Coelho, supra note 100, Glanrock Estates, supra note 101 and K.T. Plantation, supra note 92 all concerned the application of laws imposing ceilings on the size to large estates.