THE STATE OF WEST BENGAL vs MRS. BELA BANERJEE AND OTHERS

The Supreme Court ruled that provisions of Section 8 of the West Bengal Land Development and Planning Act, 1948, which declare the government's determination of public purpose as conclusive and limit compensation to the market value as of December 31, 1946, are ultra vires the Constitution and void. The Court emphasized that Article 31(2) requires an objective establishment of public purpose and that compensation must reflect the current market value at the time of acquisition. The Act's failure to comply with these constitutional requirements renders it invalid.