Right to property a constitutional right, says Supreme Court

New Delhi: The Supreme Court has said that the right to property is a constitutional right and an individual cannot be deprived of his property without him being paid adequate compensation in accordance with the law.

A bench of justices B R Gavai and K V Viswanathan said the right to property ceased to be a fundamental right due to the Constitution (Forty-Fourth Amendment) Act, 1978, however, it continues to be a human right in a welfare state and a constitutional right under Article 300-A of the Constitution.

Article 300-A of the Constitution provides that no person shall be deprived of his property, save by authority of law.

The apex court delivered its verdict on Thursday on an appeal challenging a November 2022 judgement of the Karnataka High Court in a matter pertaining to land acquisition for the Bengaluru-Mysuru Infrastructure Corridor Project (BMICP).

"As discussed hereinabove, though the right to property is no more a fundamental right, in view of the provisions of Article 300-A of the Constitution of India, it is a constitutional right," the bench said.

"A person cannot be deprived of his property without him being paid adequate compensation in accordance with law for the same," it said in its verdict on the compensation related to the infrastructure corridor project.

The bench noted that in January 2003, a preliminary notification was issued by the Karnataka Industrial Areas Development Board (KIADB) for acquiring lands for the project and in November 2005, the possession of land of the appellants was taken over.

The top court said the land owners, who were appellants before it, were required to knock at the doors of the courts on a number of occasions during the last 22 years and they have been deprived of their property without any compensation for the same.

It noted there was no delay which could be attributed to the appellants in not getting compensation, but it was on account of the "lethargic attitude" of the officers of the State/KIADB that the appellants were deprived of compensation.

The bench said that only after notices were issued in contempt proceedings, the compensation was determined by the Special Land Acquisition Officer (SLAO) on April 22, 2019, taking guideline values prevailing in 2011 for determining the market value of the acquired land.

It said if the compensation to be awarded at the market value as of 2003 was permitted, it would amount to permitting a travesty of justice and making the constitutional provisions under Article 300-A a mockery.

It was a fit case for the apex court to exercise its powers under Article 142 of the Constitution and direct the shifting of the date for determination of the market value of the land of the appellants.

"We, therefore, in exercise of power of this court under Article 142 of the Constitution of India, find it appropriate in the interest of justice that the SLAO be directed to determine the compensation to be awarded to the appellants herein on the basis of the market value prevailing as on April 22, 2019," the bench said.

The top court directed that the SLAO shall pass a fresh award taking the market value prevailing as on April 22, 2019 within two months after hearing the parties.

"The rights of parties to challenge the award in reference, if they are aggrieved by it, shall remain open," the bench said.

It noted the appellants have been deprived of their legitimate dues for almost 22 years.

"It can also not be controverted that money is what money buys. The value of money is based on the idea that money can be invested to earn a return, and that the purchasing power of money decreases over time due to inflation," it said.

The bench said it was of utmost importance that the determination of award and disbursal of compensation in case of acquisition of land should be made with promptitude.