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  • Article 39(b) of the Constitution
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Citation Codes
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citation codes
Case Number
Disposition
Judges
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  • Article 39(b) of the Constitution
Smart Summary

Factual and Procedural Background

A five-Judge Bench had earlier referred these matters to a seven-Judge Bench to revisit the interpretation of Article 39(b) of the Constitution. During the present hearing, the seven-Judge Bench concluded that the question warrants consideration by an even larger Bench. Consequently, it has decided to refer the cases to a Bench of nine Judges, noting their overlap with issues already pending in I.R. Coelho v. State of Tamil Nadu.

Legal Issues Presented

  1. Whether the phrase “material resources of the community” in Article 39(b) of the Constitution includes privately owned resources in addition to publicly owned resources.

Arguments of the Parties

Union of India & State of Maharashtra (represented by the Solicitor General)

  • Relied on the nine-Judge decision in Mafatlal Industries Ltd. v. Union of India (1997) 5 SCC 536, where Jeevan Reddy, J. observed that the broad interpretation of Article 39(b)—covering both public and private resources—had been “repeatedly affirmed” by the Court.
  • Cited prior affirmations of this broad view in State of Karnataka v. Ranganatha Reddy (1977) 4 SCC 471, Sanjeev Coke Mfg. Co. v. Bharat Coking Coal Ltd. (1983) 1 SCC 147, and State of T.N. v. L. Abu Kavur Bai (1984) 1 SCC 515.

No other parties’ arguments are recorded in the opinion.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sanjeev Coke Mfg. Co. v. Bharat Coking Coal Ltd. (1983) 1 SCC 147 Affirmed the view that “material resources of the community” include private resources. Noted as the decision whose correctness now requires reconsideration.
State of Karnataka v. Ranganatha Reddy (1977) 4 SCC 471; (1978) 1 SCR 641 Krishna Iyer, J.’s opinion took the broad view on Article 39(b); majority withheld opinion. Identified as the origin of the broad interpretation that is under challenge.
Mafatlal Industries Ltd. v. Union of India (1997) 5 SCC 536 Nine-Judge Bench remark that the broad view has been repeatedly affirmed. Cited by Solicitor General to support continuing validity of the broad interpretation.
State of T.N. v. L. Abu Kavur Bai (1984) 1 SCC 515 Another affirmation of the broad view on Article 39(b). Referenced as part of the line of supporting authorities.
I.R. Coelho v. State of T.N. (1999) 7 SCC 580; (2007) 2 SCC 1 Pending nine-Judge reference concerning constitutional issues. Court directed that the present matters be heard immediately after I.R. Coelho because of overlapping constitutional questions.

Court's Reasoning and Analysis

The Bench acknowledged the repeated affirmations of the broad interpretation of Article 39(b) in earlier cases but expressed “some difficulty” in accepting that interpretation. It reasoned that the question—whether privately owned assets constitute “material resources of the community”—raises substantial constitutional issues comparable to those in I.R. Coelho. Because of the magnitude and complexity of the issue, and the existence of contrary judicial opinions, the Bench concluded that only a nine-Judge Bench could authoritatively settle the matter. Accordingly, it ordered that skeleton arguments be filed within eight weeks to facilitate that larger Bench’s hearing.

Holding and Implications

ORDERED: The matters are referred to a Bench of nine Judges; parties must file skeleton arguments within eight weeks, and the papers are to be placed before the Chief Justice for appropriate directions.

Implications: The order does not decide the substantive constitutional question but sets in motion a nine-Judge inquiry that may redefine the scope of Article 39(b). No new precedent is set at this stage; the immediate effect is purely procedural.

    Property Owners' Association And Others v. State Of Maharashtra And Others

    Order

    1. A Bench of five learned Judges has referred to a Bench of seven learned Judges these matters for the reason that it was of the opinion that the view expressed in Sanjeev Coke Mfg. Co. v. Bharat Coking Coal Ltd. (1983) 1 SCC 147 required consideration.

    2. Put shortly, the question is as to the interpretation of Article 39(b) of the Constitution which speaks of the distribution for the public good of the ownership and control of the material resources of the community. In State of Karnataka v. Ranganatha Reddy (1977) 4 SCC 471, (1978) 1 SCR 641 two judgments were delivered. In the judgment delivered by Krishna Iyer, J., speaking for himself and two other Judges, the view was taken that material resources of the community covered all resources, natural and man-made, publicly and privately owned. The other judgment, delivered by Untwalia, J., on behalf of himself and three other Judges, did not consider it necessary to express any opinion with regard to Article 39(b); it was, however, made clear in this majority judgment that the learned Judges did not subscribe to the view taken in respect of Article 39(b) by Krishna Iyer, J.

    3. The view taken by Krishna Iyer, J. in Ranganatha Reddy (1977) 4 SCC 471, (1978) 1 SCR 641 was affirmed by a Constitution Bench in Sanjeev Coke (1983) 1 SCC 147.

    4. Now, in the course of the argument before us, the learned Solicitor General appearing for the Union of India and the State of Maharashtra, has drawn our attention to the judgment of a Bench of nine learned Judges in Mafatlal Industries Ltd. v. Union of India (1997) 5 SCC 536. Speaking for himself and four other Judges, Jeevan Reddy, J. said:

    “[t]hat ‘the material resources of the community’ are not confined to public resources but include all resources, natural and man-made, public and private owned' is repeatedly affirmed by this Court”,

    and reference was made to the cases of Ranganatha Reddy (1977) 4 SCC 471, (1978) 1 SCR 641, Sanjeev Coke (1983) 1 SCC 147 and State of T.N v. L. Abu Kavur Bai (1984) 1 SCC 515.

    5. Having given due consideration, we are of the opinion that this interpretation of Article 39(b) requires to be reconsidered by a Bench of nine learned Judges: we have some difficulty in sharing the broad view that material resources of the community under Article 39(b) covers what is privately owned.

    6. Given that there is some similarity in the issues here involved and in I.R Coelho v. State of T.N (1999) 7 SCC 580. Ed., (2007) 2 SCC 1 which already stands referred to a larger Bench, preferably of nine learned Judges, we are of the view that these matters should be heard by a Bench of nine learned Judges immediately following the hearing in I.R Coelho (1999) 7 SCC 580. Ed., (2007) 2 SCC 1.

    7. Given the importance of the matter and the fact that constitutional issues are involved in I.R Coelho (1999) 7 SCC 580. Ed., (2007) 2 SCC 1 as also in this case, we direct that the parties shall file skeleton arguments within eight weeks.

    8. The papers shall be placed before the Hon'ble the Chief Justice for appropriate directions.

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    Property Owners' Association And Others v. State Of Maharashtra And Others
    (Feb 20, 2002)