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DISTRIBUTION OF PRIVATE RESOURCES

(General Studies II – Polity section – Indian Constitution—Historical Underpinnings, Evolution, Features, Amendments, Significant Provisions and Basic Structure.)

  • The Supreme Court’s recent nine-judge bench verdict on Article 39(b) of the Indian Constitution marks a pivotal moment in the interpretation of the Directive Principles of State Policy (DPSP).
  • This decision addresses the extent to which the state can intervene in the distribution of private resources to serve the common good, balancing socialist ideals with individual property rights.
Articles 39(b) and 39(c)

Articles 39(b) and 39(c), part of the Directive Principles of State Policy (DPSPs), hold a special status within the constitutional framework due to their emphasis on socio-economic justice. These provisions direct the state to:

  • 39(b): Ensure equitable distribution of material resources to serve the common good.
  • 39(c): Prevent the concentration of wealth and means of production to the detriment of society.
The Supreme Court’s Verdict on Article 39(b)

The recent judgment refines the interpretation of DPSPs, particularly Article 39(b), which mandates the state to distribute “material resources of the community” for the common good.

  1. Majority View
    • Not all private resources fall under “material resources of the community.” The Court emphasized evaluating state action based on the:
      • Nature and characteristics of the resource.
      • Necessity of acquisition for community welfare.
      • Scarcity of the resource.
      • Impact of private concentration.
    • Example: Land acquisition, governed by the principle of eminent domain, must demonstrate clear public interest to justify state intervention.
  2. Dissenting Opinion
    • Justice Sudhanshu Dhulia highlighted societal inequalities and advocated leaving the interpretation of “material resources” to legislative wisdom, enabling broader state action to address socio-economic disparities.
Evolution of Position on Articles 39(b) and 39(c)
Implications of the Recent Verdict for Policy and Governance
  1. Economic Policy: The verdict underscores the need for a balanced approach, where state intervention in private property aligns with public interest and constitutional justification.
  2. Judicial Precedents: The nationalization of banks in 1969 was justified under DPSPs, while recent cases like the allocation of natural resources (Coal Block Allocation Case, 2014) demand fairness and transparency in processes.
  3. Legislative Actions: Laws redistributing private resources, such as land acquisition statutes, must adhere to the principles outlined by the Court to withstand judicial scrutiny.
Directive Principles vs. Fundamental Rights in context of Right to Property

The interpretation of Articles 39(b) and (c) has evolved through judicial scrutiny and constitutional amendments, reflecting India’s socio-economic needs and constitutional ethos. While early conflicts between DPSPs and FRs highlighted judicial restraint, landmark rulings like Kesavananda Bharati and Minerva Mills established a balanced framework. The recent Supreme Court verdict reaffirms this balance, ensuring that socio-economic justice aligns with constitutional values without undermining individual rights.

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