All private properties not 'community resources; can't be taken over by state for distribution: SC

'Enquiry on whether a resource falls within the ambit of 'material resource of community' must be based on nature, characteristics, impact of resource on well-being of community'

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In a landmark verdict on Tuesday, the Supreme Court in a majority 7:2 ruling, held that not all privately owned properties qualify as community resources and states are not empowered under the Constitution to take over them for distribution to serve the "common good".

A nine-judge bench headed by Chief Justice DY Chandrachud, however, said states can stake claim over private properties in certain cases.

The majority verdict pronounced by the CJI overruled Justice Krishna Iyer's previous ruling that all privately owned resources can be acquired by the State for distribution under Article 39(b) of the Constitution.

The CJI wrote for himself and six other judges on the bench which decided the vexed legal question on whether private properties can be considered "material resources of the community" under Article 39(b) and taken over by State authorities for distribution to subserve the "common good".

It overturned several verdicts that had adopted the socialist theme and ruled that states can take over all private properties for common good.

Justice BV Nagarathna partially disagreed with the majority judgment penned by the CJI, while Justice Sudhanshu Dhulia dissented on all aspects.

The judges on the bench were CJI Chandrachud, Justice Hrishikesh Roy, Justice Nagrathna BV, Justice Sudhanshu Dhulia, Justice J B Pardiwala, Justice Manoj Misra, Justice Rajesh Bindal, Justice SC Sharma, and Justice A G Masih.

The majority judgment did not agree with the view expressed by Justice Krishna Iyer in the case of Ranganatha Reddy of 1978 wherein it was held that private properties could be regarded as community resources.