Overview
The Supreme Court on 10 March 2026 declared the 2015 Bihar legislation that permitted the state to acquire the historic library for a token compensation of **₹1** as unconstitutional. The Court held that the provision was “confiscatory” and violated the constitutional guarantee that deprivation of property must be "just, fair and reasonable" under Article 300A.
Key Developments
- Bench of Justices Vikram Nath and Justice Sandeep Mehta set aside the Patna High Court judgment that had upheld the law.
- The Act was found arbitrary on two grounds: (a) it dissolved a private trust without any finding of abandonment, mis‑management or failure of purpose; (b) Section 7 limited compensation to a maximum of **₹1**, without any criteria or procedural safeguards.
- The Court restored the pre‑existing legal position of the trust, reinstating its management and administration.
Important Facts
- Year of Act: 2015 – Bihar Act.
- Founders of the Library: Sachchidanand Sinha, first temporary President of the Constituent Assembly, and his wife Radhika Sinha.
- Legal Challenge: Petitioners contested the Act in the Patna High Court; after the High Court upheld it, they appealed to the Supreme Court.
- Compensation Clause: Section 7 authorised payment "if any" up to **₹1**, without any guiding principles.
- Constitutional Test Applied: The law must be "just, fair and reasonable"; token compensation was deemed confiscatory and arbitrary.
Exam Relevance
This judgment illustrates several core concepts tested in the Civil Services Examination:
- Interpretation of p