THE CONSTITUTION (TWENTY-FIFTH AMENDMENT) ACT, 1971

THE CONSTITUTION (TWENTY-FIFTH AMENDMENT) ACT, 1971

Statement of Objects and Reasons appended to the Constitution
(Twenty-fifth Amendment) Bill, 1971 which was enacted as the
Constitution (Twenty-fifth Amendment) Act, 1971

STATEMENT OF OBJECTS AND REASONS

Article 31 of the Constitution as it stands specifically provides that
no law providing for the compulsory acquisition or requisitioning of
property which either fixes the amount of compensation or specifies
the principles on which and the manner in which the compensation is to
be determined and given shall be called in question in any court on
the ground that the compensation provided by that law is not adequate.
In the Bank Nationalization case [1970, 3 S.C.R. 530), the Supreme
Court has held that the Constitution guarantees right to compensation,
that is, the equivalent in money of the property compulsorily
acquired. Thus in effect the adequacy of compensation and the
relevancy of the principles laid down by the Legislature for
determining the amount of compensation have virtuality become
justiciable inasmuch as the Court can go into the question whether the
amount paid to the owner of the property is what may be regarded
reasonably as compensation for loss of property. In the same case,
the Court has also held that a law which seeks to acquire or
requisition property for a public purpose should also satisfy the
requirements of article 19 (1) (f).

2. The Bill seeks to surmount the difficulties placed in the way of
giving effect to the Directive Principles of State Policy by the
aforesaid interpretation. The word "compensation" is sought to be
omitted from article 31(2) and replaced by the word "amount". It is
being clarified that the said amount may be given otherwise than in
cash. It is also proposed to provide that article 19(1)(f) shall not
apply to any law relating to the acquisition or requisitioning of
property for a public purpose.

3. The Bill further seeks to introduce a new article 31C which
provides that if any law is passed to give effect to the Directive
Principles contained in clauses (b) and (c) of article 39 and contains
a declaration to that effect, such law shall not be deemed to be void
on the ground that it takes away or abridges any of the rights
contained in article 14, 19 or 31 and shall not be questioned on the
ground that it does not give effect to those principles. For this
provision to apply in the case of laws made by State Legislatures, it
is necessary that the relevant Bill should be reserved for the
consideration of the President and receive his assent.

NEW DELHI; H. R. GOKHALE.

The 22nd July, 1971.

THE CONSTITUTION (TWENTY-FIFTH AMENDMENT) ACT, 1971

[20th April, 1972.]

An Act further to amend the Constitution of India.

BE it enacted by Parliament in the Twenty-second Year of the Republic
of India as follow:-

1. Short title.-This Act may be called the Constitution (Twenty-fifth
Amendment) Act, 1971.

2. Amendment of article 31.-In article 31 of the Constitution,-

(a) for clause (2), the following clause shall be substituted,
namely:-

"(2) No property shall be compulsorily acquired or requisitioned save
for a public purpose and save by authority of a law which provides for
acquisition or requisitioning of the property for an amount which may
be fixed by such law or which may be determined in accordance with
such principles and given in such manner as may be specified in such
law; and no such law shall be called in question in any court on the
ground that the amount so fixed or determined is not adequate or that
the whole or any part of such amount is to be given otherwise than in
cash:

Provided that in making any law providing for the compulsory
acquisition of any property of an educational institution established
and administered by a minority, referred to in clause (1) of article
30, the State shall ensure that the amount fixed by or determined
under such law for the acquisition of such property is such as would
not restrict or abrogate the right guaranteed under that clause.";

(b) after clause (2A), the following clause shall be inserted,
namely:-

"(2B) Nothing in sub-clause (f) of clause (1) of article 19 shall
affect any such law as is referred to in clause (2).".

3. Insertion of new article 31C.-After article 31B of the
Constitution, the following article shall be inserted, namely:-

"31C. Saving of laws giving effect to certain directive principles.-
Notwithstanding anything contained in article 13, no law giving effect
to the policy of the State towards securing the principles specified
in clause (b) or clause (c) of article 39 shall be deemed to be void
on the ground that it is inconsistent with, or takes away or abridges
any of the rights conferred by article 14, article 19 or article 31;
and no law containing a declaration that it is for giving effect to
such policy shall be called in question in any court on the ground
that it does not give effect to such policy:

Provided that where such law is made by the Legislature of a State,
the provisions of this article shall not apply thereto unless such
law, having been reserved for the consideration of the President, has
received his assent.".