UNION OF INDIA vs THE METAL CORPORATION OF INDIA LTD. & ANR.

The Supreme Court declared the Metal Corporation of India (Acquisition of Undertaking) Act, 1965, void for contravening Article 31(2) of the Constitution, which mandates that no property shall be acquired without just compensation. The Court held that the principles for compensation outlined in the Act were irrelevant to the actual value of the property at the time of acquisition, rendering the compensation illusory. The judgment emphasized that laws must provide for a 'just equivalent' for acquired property, failing which they cannot withstand constitutional scrutiny.