VIJ RESINS PVT. LTD. & ANR. ETC. versus STATE OF JAMMU & KASHMIR & ORS.

VIJ RESINS PVT. LTD. & ANR. ETC. versus STATE OF JAMMU & KASHMIR & ORS.

Sections 3 and 4 of the Jammu & Kashmir Extraction of Resin Act, 1986 are ultra vires the Constitution as they extinguish private rights in property without provision for compensation, contravening Article 31(2) and the continuing fundamental right to property in Jammu & Kashmir. The statutory scheme creates a monopoly in favour of the government or government company and vests private rights in them; hence, compensation is required before property can be taken.

Parties
Petitioner: VIJ Resins Pvt. Ltd.; Petitioner: ANR.; Respondent: State of Jammu & Kashmir; Respondent: Jammu & Kashmir Industries Limited; Respondent: Other respondents
Jurisdiction
India
Judgment Date
12 May 1989
Procedural Posture
Writ Petition / Final Judgment
Outcome
Petition allowed; provisions of sections 3 and 4 declared ultra vires and the entire Act struck down.
Legal Topics
Right to Property, Compulsory Acquisition, Monopoly, Ultra Vires Acts, Compensation
Constitutional Law Property Law Right to Property Compulsory Acquisition Monopoly Ultra Vires Acts Compensation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

VIJ Resins Pvt. Ltd.

Petitioner

ANR.

Petitioner

State of Jammu & Kashmir

Respondent

Jammu & Kashmir Industries Limited

Respondent

Other respondents

Respondent

Procedural Posture

Writ Petition / Final Judgment

Legal Issues

  1. 1 Whether the provisions of Jammu & Kashmir Extraction of Resin Act, 1986, specifically sections 3, 4 and 5, are constitutionally valid.
  2. 2 Whether government orders and contracts granting rights to exploit or utilize resin constitute 'property' under the Constitution.
  3. 3 Whether compensation is payable before property or rights can be taken by the State.

Ratio Decidendi

Sections 3 and 4 of the Jammu & Kashmir Extraction of Resin Act, 1986 are ultra vires the Constitution as they extinguish private rights in property without provision for compensation, contravening Article 31(2) and the continuing fundamental right to property in Jammu & Kashmir. The statutory scheme creates a monopoly in favour of the government or government company and vests private rights in them; hence, compensation is required before property can be taken.

Court Disposition

Petition allowed; provisions of sections 3 and 4 declared ultra vires and the entire Act struck down.

Orders

  • Provisions of sections 3 and 4 of the Act declared ultra vires the Constitution.
  • The entire Jammu & Kashmir Extraction of Resin Act, 1986 struck down as inoperative.