The Supreme Court has reiterated that the right to property is a constitutional right, emphasizing that no individual can be deprived of their property without receiving adequate compensation as per the law.
A bench comprising Justices B.R. Gavai and K.V. Viswanathan clarified that while the right to property ceased to be a fundamental right following the Constitution (Forty-Fourth Amendment) Act, 1978, it remains a human right in a welfare state and is safeguarded under Article 300-A of the Constitution.
Article 300-A explicitly provides that no person shall be deprived of their property except through the authority of law.
The apex court's observations came during its judgment on an appeal against a November 2022 decision by the Karnataka High Court concerning land acquisition for the Bengaluru-Mysuru Infrastructure Corridor Project (BMICP). Delivering its verdict on Thursday, the court upheld the constitutional mandate for adequate compensation in property-related disputes.
"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 Supreme Court highlighted that the appellants, who are landowners, had to approach the courts repeatedly over 22 years, having been deprived of their property without receiving any compensation.
The court observed that the delay in awarding compensation was not due to any fault of the appellants but stemmed from the "lethargic attitude" of officials from the State and the Karnataka Industrial Areas Development Board (KIADB).
It noted that the Special Land Acquisition Officer (SLAO) determined the compensation on April 22, 2019, only after contempt proceedings were initiated, using guideline values from 2011 to calculate the market value of the acquired land.
The bench emphasized that awarding compensation based on the market value of 2003 would result in a gross injustice and undermine the constitutional protections guaranteed under Article 300-A.
Invoking its powers under Article 142 of the Constitution, the court deemed it appropriate to adjust the date for determining the market value of the appellants' land to ensure justice.
"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 underscored the critical importance of promptly determining and disbursing compensation in cases of land acquisition. It emphasized that delays in such processes not only cause undue hardship to landowners but also undermine the principles of justice and fairness.
