Case: State Of Madhya Pradesh Vs. Ranojirao Shinde &amp; Anr

The respondents in these appeals were entitled to receive cash grants from the Government of Madhya Pradesh. The impugned Act abolished such grants but provided for the payment of certain compensation to the grantees. The respondents challenged the vires of the Act before the High Court of Madhya Pradesh in Miscellaneous Petitions Nos. 21 and 22 of 1963, on various grounds. The High Court rejected all the contentions advanced on behalf of the respondents excepting one, namely that the Act is ultra vires of Art. 19(1) (f) of the Constitution and is not saved by sub-Art. (5) thereof. After obtaining from the High Court Certificates under Art. 133(1)(c), the State of Madhya Pradesh has filed these appeals. The State is challenging the correctness of the decision of the High Court to the extent it went against it. The respondents on their part, in addition to supporting the findings of the High Court which are in their favour, relied also on the other pleas taken by them before the High Court. As we are of the opinion that the impugned Act is either violative of Art. 31(2) or, in the alternative, Art. 19(1) (f) of the Constitution, we have not thought it necessary to go into the other contentions taken on behalf of the respondents.

Court's reasoning:
n of a cash grant is wide enough to include cash grants sanctioned by ex-Rulers in lieu of Jagirs or other properties resumed or even, en payments agreed to be made in lieu of loans given to the Rulers. Different considerations may arise if the grants abolished are Gratuitous payments, grants in lieu of services to be rendered or other resumable grants. But as mentioned earlier, the definition of cash grants in s. 2(1) does not make, any distinction between the various types of cash grants. Hence, the said definition will have to stand or fall as a whole, there being no basis for severing some out of the several grants included therein. It is impermissible for this Court to rewrite that clause and confine the definition only to such of the cash grants which the legislature might be competent todoctrine of severability is applicable only if it is possible to separate the legal from the unconstitutional portion of the Provision. If it is not possible to do so, the entire provision has to be struck down as unconstitutional. see Kameshivar Prasad v. State of Bihar( A.I.R. 1962 S.C.High Court has come to the conclusion that a "cash grants is property within the meaning of that expression in Articles 19(1)(f) and 31. This conclusion was not challenged before us. It is obvious that a right to a sum of money isArticle 19(5) is interpreted to mean that State can take by authority of law anyones property for the. purpose of increasing its assets or revenues, the guarantee given by Art. 19(1)(f) would become illusory, a proposition to which this Court cannot subscribe.For the reasons mentioned above we are unable to uphold the validity of Madhya Pradesh Abolition of Cash Grants Act.