States Not Empowered to Take Over All Private Properties for Distribution to Serve Common Good: SC

New Delhi: In a majority 7:2 ruling, Supreme Court on Tuesday held that states are t empowered under Constitution to take over all privately-owned resources for distribution to serve "common good".

A nine-judge bench headed by Chief Justice DY Chandrachud, however, said states can stake claim over private properties in certain cases.

majority verdict prounced by CJI overruled Justice Krishna Iyer's previous ruling that all privately owned resources can be acquired by State for distribution under Article 39(b) of Constitution.

CJI wrote for himself and six or judges on bench which decided vexed legal question on wher private properties can be considered "material resources of community" under Article 39(b) and taken over by State authorities for distribution to subserve "common good".

It overturned several verdicts that had adopted socialist me and ruled that states can take over all private properties for common good.

Justice BV Nagarathna partially disagreed with majority judgement penned by CJI, while Justice Sudhanshu Dhulia dissented on all aspects.

prouncement of judgements is underway.

top court had, in Minerva Mills case of 1980, declared two provisions of 42nd Amendment, which prevented any constitutional amendment from being "called in question in any court on any ground" and accorded precedence to Directive Principles of State Policy over fundamental rights of individuals, as unconstitutional.

Article 31C protects a law made under Articles 39(b) and (c) empowering State to take over material resources of community, including private properties, for distribution to subserve common good.

top court had heard 16 petitions, including lead petition filed by Mumbai-based Property Owners' Association (POA) in 1992.

POA has opposed Chapter VIII-A of Maharashtra Housing and Area Development Authority (MHADA) Act. Inserted in 1986, chapter empowers State authorities to acquire cessed buildings and land on which those are built if 70 per cent of occupants make such a request for restoration purposes.

MHADA Act was enacted in pursuance of Article 39(b), which is part of Directive Principles of State Policy and makes it obligatory for State to create a policy towards securing "that ownership and control of material resources of community are so distributed as best to subserve common good".