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.".