RAM NATH & ORS. vs UNION OF INDIA

The Supreme Court upheld the validity of the two provisos to sub-clause (e) of sub-section (1) of Section 7 of the Resettlement of Displaced Persons (Land Acquisition) Act, 1948, affirming that they do not violate Section 299(2) of the Government of India Act, 1935, which guarantees fair compensation. The Court reasoned that the choice of September 1, 1939, as a reference date for compensation calculation has a legitimate connection to the Act's objectives and is not arbitrary. The appeals challenging the arbitrator's award were dismissed, confirming the compensation methodology established under the Act.