Rustom Cavasjee Cooper v. Union of India

3 S.C.R. 530 (1970)

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Rustom Cavasjee Cooper v. Union of India

India Supreme Court
3 S.C.R. 530 (1970)

Facts

The Indian government (defendant) enacted Act 22 of 1969, which provided that the government prohibited 14 existing banks from conducting banking business after July 1969. The government then created several new national banks to spur economic development. Upon the creation of these banks, the government transferred property belonging to the 14 existing banks to the newly created banks. Shareholders (plaintiffs) in the 14 existing banks filed suit against the government to challenge the creation of the new banks. The shareholders challenged the constitutionality of the new banks, arguing that the transfer of the property to the new banks violated their property rights guaranteed under the Constitution of India. The shareholders also argued the government had impermissibly enacted the act to serve its political ends rather than to promote economic development.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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