Bank nationalization case and the constitution

The Bank Nationalisation Case is probably the only case decided by the Full Court of eleven Judges in which a large number of con stitutional issues of great importance have been considered, decided or left open by the Supreme Court. Though the Golak Nath Case is also a case decided by the Full Court of eleven Judges, that case did not involve so many important constitutional issues as the Bank Nationalisation Case did. In view thereof the decision in the said Case will have far-reaching consequences on the effect of the various pro visions of the Constitution, specially the provisions contained in articles 14, 19(1)(f), 19(5), 31(1) and 31 (2) of the Constitution, and these provisions have been exhaustively and critically examined at appro priate places in the book.

Twelve important questions arising from the decision of the Supreme Court have been considered in this book, namely, (i) consti tutional validity of the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969, repealed by the impugned Act, (ii) legislative competence of Parliament to enact the impugned Act acquiring the undertaking of the named banks, (iii) power of Parlia ment to make laws with respect to acquisition of property under entry 42 of the Concurrent List for the purpose of the Union, (iv) meaning of banking in entry 45 of List I and the subject-matter of legislation to which the impugned Act was relatable, (v) relationship between articles 19(1)(f), 19(5), 31(1) and 31(2), (vi) prohibition of the named banks from carrying on the business of banking from the point of article 19(1)(g), (vii) hostile discrimination in respect of the named banks under article 14, (vili) guarantee under article 31(2) and com pensation for acquisition of property, (ix) guarantee under article 31(2) and the principles of compensation contained in the impugned Act, (x) validity of the retrospective operation given to the impugned Act by section 1(2) and section 26 thereof, (xi) validity of section 11 of the impugned Act empowering the Central Government to give direc tions to the corresponding new banks, and (xii) validity of section 26 of the impugned Act empowering the Central Government to remove difficulties. After summarising the conclusions emerging from the different aspects of the Case the last Chapter, namely, Chapter X, briefly deals with the right to property, the Golak Nath decision and the remedies to meet the said decision and ends with an appeal for mutual accommodation of three branches of the Union.