R.C. Cooper v Union of India(1970): Nationalisation of banks impaired the right to compensation under Article 31(2) of the Constitution of India and consequently was struck down.

CaseRustom Cavasjee Cooper v. Union of India along with T.M.Gurubuxani v. Union of India, AIR 1970 SC 564
CourtBefore Supreme Court of India
BenchA.N.Grover, A.N.Ray, C.A. Vaidialingam, G.K.Mitter, I.D.Dua, J.C.Shah, J.M.Shelat, K.S.Hegde, P. Jagmohan Reddy, S.M. Sikri and Vashishtha Bhargava, JJ.
Author of the judgementJ.C. Shah, A.N.Ray, JJ.
Decided On10.02.1970
Advocate for the petitionersNani Palkhivala, M.C.Chagla, A.J.Raja, N.N.Palkhivala and R.N.Bannerjee.
Advocate for the respondentsNiren De, Attorney General, Jagdish Swarup, Solicitor General, M.C.Setalvad, C.K.Daphtary, and R.H.Dhebar.
Abstract

This is a landmark judgment of 11 judges where the Constitutional Validity of bank nationalisation by the Indira Gandhi Government was challenged. While declaring the nationalisation to be invalid, SC by a majority of 10:1 observed that the nationalisation of banks impaired the right to compensation under Article 31(2) of the Constitution of India and consequently was struck down primarily on the ground of violation of Article 31(2). However, A.N.Ray, while writing a dissenting judgment upheld the validity of Nationalisation.

Author of the briefDarshan Patankar
KeywordsBanking Law, Privatisation, Ordinance, Constitution of India, Constitutional validity, Legislative Competence, Freedom of Trade.

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