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Supreme Court of India

ANURAG KRISHNA SINHAversusSTATE OF BIHAR & ANR.

Citation
2026 INSC 219
Decided
10 March 2026
Disposal
Appeal(s) allowed

Holding

The 2015 Act is manifestly arbitrary, violates Articles 14 and 300A, and is therefore unconstitutional.

Summary

The appellant, a descendant and trustee of the Srimati Radhika Sinha Institute and Sachchidanand Sinha Library, challenged the Bihar State Legislature's 2015 Act that compulsorily acquired the Institute and dissolved its trust. The High Court had upheld the Act, but the Supreme Court examined whether the legislation was manifestly arbitrary and violative of Articles 14 and 300A of the Constitution. The Court held that the Act extinguished long‑standing trust rights, provided only a nominal compensation of up to one rupee, and was enacted without any inquiry, justification or proportionality to the stated objective of better management. Relying on a line of precedents establishing arbitrariness as a ground to strike down legislation, the Court found the Act to be unreasonable, excessive and confiscatory. Consequently, the Act was declared unconstitutional, the High Court order set aside, and the trust restored to its pre‑Act position.

Issues considered

  • Whether the Srimati Radhika Sinha Institute and Sachchidanand Sinha Library (Requisition & Management) Act, 2015 is manifestly arbitrary and violative of Article 14 of the Constitution of India.
  • Whether the Act effects compulsory acquisition and extinguishment of rights in a confiscatory manner, thereby offending Article 300A read with Article 14 of the Constitution of India.

Legislation cited

Headnote

Issue for Consideration i) Whether the Smt. Radhika Sinha Institute and Sachchidanand Sinha Library (Requisition & Management) Act, 2015 is manifestly arbitrary and violative of Article 14 of the Constitution of India; ii) Whether the impugned Act effects compulsory acquisition and thereby offending Article 300A read with Article 14 of the Constitution of India. Headnotes† Constitution of India – Art.14 – Validity of Srimati Radhika Sinha Institute and Sachchidanand Sinha Library (Requisition & Management) Act, 2015 (impugned Act) – The

Subjects

TrustPublic trustCompulsory acquisitionTakeoverArbitraryFairnessArt.300A of the Constitution of IndiaArt.14 of the Constitution of IndiaLegislative enactmentExtinguishment of rightsDeprivation of propertyRights of management and administrationLaw must be fair, reasonable and non-confiscatory

Judgment

                 [2026] 3 S.C.R. 465 : 2026 INSC 219

                          Anurag Krishna Sinha
                                     v.
                           State of Bihar & Anr.
                      (Civil Appeal No. 13581 of 2025)
                                10 March 2026
              [Vikram Nath* and Sandeep Mehta, JJ.]


                           Issue for Consideration
       i) Whether the Smt. Radhika Sinha Institute and Sachchidanand
       Sinha Library (Requisition & Management) Act, 2015 is manifestly
       arbitrary and violative of Article 14 of the Constitution of India;
       ii) Whether the impugned Act effects compulsory acquisition and
       extinguishment of rights in a confiscatory manner, thereby offending
       Article 300A read with Article 14 of the Constitution of India.

                                  Headnotes†
       Constitution of India – Art.14 – Validity of Srimati Radhika
       Sinha Institute and Sachchidanand Sinha Library (Requisition &
       Management) Act, 2015 (impugned Act) – The Institute & Library
       were established in the year 1924 – A formal Deed of Trust was
       executed on 10.03.1926 – On 24.11.1955, an agreement was
       entered into between the Government of Bihar and the Trust,
       whereby the Institute & Library were accorded the status of
       a State Central Library – It was expressly agreed that control
       and management of the institution and its property would
       continue to vest in the trustees, while the State Government
       would provide financial assistance – The State promulgated the
       Smt. Radhika Sinha Institute and Sachichidanand Sinha Library
       (Acquisition and Management) Ordinance, 1983, by which the
       Trust was sought to be acquired and vested in the State – Writ
       petition – The Ordinance was challenged – Ordinances lapsed –
       The High Court rejected the writ petition – The Bihar State
       Legislature enacted the impugned Act – Again, writ petition
       was filed before the High Court, which was dismissed and the
       validity of the Act was upheld – Correctness:
       Held: The impugned Act authorises the State to take over
       the Institute & Library in its entirety, dissolving existing legal
       arrangements and divesting long-standing rights, without any

* Author
466                                                               [2026] 3 S.C.R.

                            Supreme Court Reports


       demonstrated necessity, objective criteria, or prior inquiry – The
       manner in which this power is exercised is excessive, unreasoned
       and disproportionate to the stated object of “better management
       and development” – This Court is of the view that Srimati Radhika
       Sinha Institute and Sachchidanand Sinha Library (Requisition &
       Management) Act, 2015 is manifestly arbitrary and violative of
       Art.14 of the Constitution of India – Further, the scheme of the
       Act permits deprivation of property without adherence to basic
       requirements of fairness and due process – The absence of any
       principled or meaningful framework for compensation underscores
       the arbitrary character of the legislative measure – While Art.300A
       permits deprivation of property by authority of law, such law must
       be fair, reasonable and non-confiscatory – The impugned Act
       fails to meet this standard – The Srimati Radhika Sinha Institute
       and Sachchidanand Sinha Library (Requisition & Management)
       Act, 2015 is unconstitutional and is accordingly struck down –
       Accordingly, the Trust governing the Institute & Library, together
       with its rights of management and administration, shall stand
       restored to its pre-existing legal position prior to the enactment of
       the impugned Act – This shall not preclude the State Government
       from providing financial assistance, administrative support or
       regulatory oversight in accordance with law. [Paras 50-53]

       Trust – Public Trust – Determination of legal character:
       Held: The fact that an institution is intended to serve a public
       purpose or is open to public use does not, by itself, conclusively
       determine that the trust is a public trust in law – The legal character
       of a trust depends on several factors, including the manner in
       which the dedication is made, the structure of the trust, the nature
       of control and management, and the rights reserved by the Settlor
       and his successors under the trust deed – A public-facing object,
       standing alone, is not determinative. [Para 19]
       Constitution of India – Art.14 – Principle of equality – Evolution
       of – Discussed. [Paras 23-34]

       Constitution of India – Art.14 – Equality before the law is not
       a mere formal concept:
       Held: The guarantee by Art.14 strikes at arbitrariness in State action
       and ensures that the exercise of legislative power is informed by
       reason, fairness and non-discrimination – Equality before the law
       is not a mere formal concept; it embodies the principle that State
[2026] 3 S.C.R.                                                               467

              Anurag Krishna Sinha v. State of Bihar & Anr.


     action, whether legislative or executive, must be based on rational
     criteria and must not operate in an arbitrary or capricious manner –
     From an early stage, this Court has interpreted this guarantee not
     merely as a prohibition against formal discrimination, but as a
     constitutional injunction against arbitrariness in State action – The
     evolution of this principle is traceable through a consistent line of
     authorities. [Para 23]

     Constitution of India – Art.14 – Arbitrariness – A ground to
     strike down legislation:
     Held: The principle that arbitrariness is antithetical to equality now
     operates as a firm substantive constitutional limitation on legislative
     power – Manifest arbitrariness is a ground available to this Court
     to strike down legislation under the judicial review of Art.14 – It is
     acknowledged that this power must be exercised with care and
     restraint, so as to maintain the constitutional balance between the
     legislature and the judiciary – However, where clear and substantive
     unreasonableness is embedded in a legislative enactment, the
     Court is not only empowered but obliged to intervene. [Para 32]

     Constitution of India – Art.14 – Arbitrariness is not confined
     to discriminatory classification:
     Held: As the jurisprudence u/Art.14 makes clear, arbitrariness
     is not confined to discriminatory classification – A law which
     proceeds on unreasoned assumptions, adopts excessive means,
     or operates without adequate determining principles equally attracts
     constitutional censure – The impugned Act, by extinguishing long-
     standing rights and arrangements without cogent justification,
     departs from the discipline of reason that Art.14 mandates. [Para 43]

     Constitution of India – Art.300A – Deprivation of property by
     authority of law cannot be arbitrary:
     Held: While Art.300A of the Constitution permits deprivation of
     property by authority of law, such law must nevertheless be just,
     fair and reasonable, and not arbitrary or confiscatory in effect –
     A statutory provision that enables acquisition of property while
     reducing compensation to a token amount lacks the basic attributes
     of fairness – The confiscatory nature of the vesting contemplated
     under the impugned Act therefore reinforces the conclusion that the
     enactment is manifestly arbitrary and fails constitutional scrutiny.
     [Para 45]
468                                                          [2026] 3 S.C.R.

                           Supreme Court Reports



                               Case Law Cited
       S.G. Jaisinghani v. Union of India [1967] 2 SCR 703 : AIR 1967
       SC 1427; Maneka Gandhi v. Union of India [1978] 2 SCR 621 :
       (1978) 1 SCC 248; Ajay Hasia v. Khalid Mujib Sehravardi [1981] 2
       SCR 79 : (1981)1 SCC 722; Shayara Bano v. Union of India [2017]
       9 SCR 797 : (2017) 9 SCC 1; Mithu v. State of Punjab [1983] 2
       SCR 690 : (1983) 2 SCC 277; Sunil Batra v. Delhi Administration
       [1979] 1 SCR 392 : (1978) 4 SCC 494; Joseph Shine v. Union
       of India [2018] 11 SCR 765 : AIR 2018 SC 4898; Association for
       Democratic Reforms v. Union of India, 2024 INSC 113 : [2024]
       2 SCR 420; E.P. Royappa v. State of Tamil Nadu [1974] 2 SCR
       34 : (1974) 4 SCC 3 – followed.
       Tika Ramji v. State of U.P. [1956] 1 SCR 393 : AIR 1956 SC 676;
       Innoventive Industries Ltd. v. ICICI Bank [2017] 8 SCR 33 : (2018)
       1 SCC 407; In Re: Expeditious Trial of cases under Section 138
       of the N.I.Act, 1881 [2021] 4 SCR 257 : (2021) 16 SCC 116;
       Saregama (India) Ltd v. Next Radio Ltd. [2021] 9 SCR 137 :
       (2022) 1 SCC 701; Bachhaj Nahar v. Nilima Mandal [2008] 14
       SCR 621 : (2008) 17 SCC 491; Deoki Nandan v. Murlidhar [1956]
       1 SCR 756 : AIR 1957 SC 133; State of Mysore v. S.R. Jayaram
       [1968] 1 SCR 349; Indian Express Newspapers (Bombay) Pvt.
       Ltd. v. Union of India [1985] 2 SCR 287 : (1985) 1 SCC 641; K.R.
       Lakshmanan v. State of Tamil Nadu [1996] 1 SCR 395 : (1996)
       2 SCC 226; A.P. Dairy Development Corporation Federation v. B.
       Narasimha Reddy [2011] 14 SCR 1 : (2011) 9 SCC 286; State of
       Andhra Pradesh v. McDowell & Co. [1996] 3 SCR 721 : (1996) 3
       SCC 709 – referred to.

                                 List of Acts
       Constitution of India; Srimati Radhika Sinha Institute and
       Sachchidanand Sinha Library (Requisition & Management) Act,
       2015; Trust Act, 1882.

                              List of Keywords
       Trust; Public trust; Compulsory acquisition; Takeover; Arbitrary;
       Fairness; Art.300A of Constitution of India; Art.14 of the
       Constitution of India; Legislative enactment; Extinguishment
       of rights; Deprivation of property; Rights of management and
       administration; Law must be fair, reasonable and non-confiscatory;
[2026] 3 S.C.R.                                                                          469

                    Anurag Krishna Sinha v. State of Bihar & Anr.


       Legal character of a trust; Principle of equality; Smt. Radhika
       Sinha Institute and Sachichidanand Sinha Library (Acquisition and
       Management) Ordinance, 1983; Srimati Radhika Sinha Institute
       and Sachchidanand Sinha Library (Requisition & Management)
       Act, 2015.

                                           Case Arising From
       C I V I L A P P E L L AT E J U R I S D I C T I O N : C i v i l A p p e a l N o .
       13581 of 2025
       From the Judgment and Order dated 29.02.2024 of the High Court
       of Judicature at Patna in CWJC No. 7940 of 2015

                                     Appearances for Parties
       Advs. for the Appellant(s):
       Sunil Kumar, Sr. Adv., Ms. Rohini Prasad, Ms. Ashika Ranjan.
       Advs. for the Respondent(s):
       Ranjit Kumar, Sr. Adv., Manish Kumar, Divyansh Mishra, Kumar
       Saurav, Akash Dikshit, Mrigank Prabhakar, Siddharth Sahu, Ms.
       Astha Singh, N.R. Shwetabh.

                        Judgment / Order of the Supreme Court

                                              Judgment
       Vikram Nath, J.
1.     The present appeal challenges the final judgment and order dated 29th
       February 2024 passed by the High Court of Judicature at Patna in
       Civil Writ Jurisdiction Case No.7940 of 2015 whereby the appellant’s
       writ petition has been dismissed by the High Court while upholding
       the validity of the Srimati Radhika Sinha Institute and Sachchidanand
       Sinha Library (Requisition & Management) Act, 20151.

       A.      Background
2.     The case before us concerns the Smt. Radhika Sinha Institute
       and Sachchidanand Sinha Library2, an institution that has been in



1    Hereinafter, “The Act”.
2    Hereinafter, “Institute & Library”.
470                                                         [2026] 3 S.C.R.

                          Supreme Court Reports


       existence for nearly a century. To appreciate the controversy, it is
       necessary to briefly trace the history of the Institute & Library and
       the circumstances in which it was established.
3.     The Institute & Library were established in the year 1924 by Shri
       Sachichidanand Sinha3, a distinguished public figure of his time
       and a prominent son of the State of Bihar, who served as the first
       President of the Constituent Assembly for an interim period. The
       Institute & Library was founded in memory of his wife, Smt. Radhika
       Sinha. For this purpose, Shri Sachichidanand Sinha addressed a
       letter to the then Governor of Bihar and Orissa, offering a sum of
       ₹50,000 from the sale proceeds of ancestral property belonging to
       Smt. Radhika Sinha. The offer was accepted, and the foundation
       stone was laid on 28th March 1922. The construction of the buildings
       for the Institute and Library was completed using the said amount.
4.     Shri Sachichidanand Sinha also donated a substantial collection of
       books, numbering approximately 10,000 volumes, to the Library. On
       9th February 1924, the Institute & Library were formally declared open
       by the Governor. Dr. Sinha made an oral declaration constituting a
       trust, appointed trustees, and assumed the role of Trustee, Honorary
       Secretary and Chief Executive Officer. An additional sum of ₹50,000
       was also provided for the maintenance and upkeep of the institution.
5.     A formal Deed of Trust was executed on 10th March 1926 and signed
       by all the trustees, including the then Chief Justice of the Patna
       High Court as an ex officio trustee. The Trust Deed provided that
       the eldest male member of the family would serve as the Honorary
       Secretary and Chief Executive Officer, and further stipulated that,
       in the event of failure of the Trust, the entire trust property would
       revert to the family members of the Settlor.
6.     The appellant before this Court is the great-grandson of Shri
       Sachichidanand Sinha and Smt. Radhika Sinha, and presently serves
       as the Trustee, Honorary Secretary and Chief Executive Officer of
       the Institute.
7.     On 24 November 1955, an agreement was entered into between
       the Government of Bihar and the Trust, whereby the Institute &
       Library were accorded the status of a State Central Library. It was


3    The “Settlor”.
[2026] 3 S.C.R.                                                          471

              Anurag Krishna Sinha v. State of Bihar & Anr.


     expressly agreed that control and management of the institution and
     its property would continue to vest in the trustees, while the State
     Government would provide financial assistance to meet its expenses
     in accordance with budgetary allocations.
8.   Notably, in 1983, the State Government promulgated the Smt. Radhika
     Sinha Institute and Sachichidanand Sinha Library (Acquisition and
     Management) Ordinance, 1983, by which the Trust was sought to
     be acquired and vested in the State. This was communicated to
     Shri Gopal Krishna Sinha, the then Honorary Secretary of the Trust
     and father of the present appellant, by a letter dated 21 May 1983
     issued by the Education Department. The ordinance was challenged
     before the Patna High Court in C.W.J.C. No.2458 of 1983, wherein
     an interim stay was granted. The ordinance was to lapse on 14
     August 1983, but a second ordinance promulgated on 12 August
     1983 sought to validate actions taken under the first. The second
     ordinance also lapsed thereafter. The High Court ultimately rejected
     the writ petition, upholding the letters and orders vide which the trust
     stood acquired by the State and held that despite the ordinances
     lapsing, their effect must continue. However, this Court, in Civil Appeal
     No.2208 of 1984, by order dated 20 February 1996, held that the
     lapsing of the ordinances rendered all actions thereunder non est,
     and allowed the appeal.
9.   More than three decades later, the Bihar State Legislature enacted
     the impugned Act. The Act was published in the Bihar Gazette on
     6th May 2015 and provided for the takeover of the Institute & Library
     by the State Government.
10. The appellant challenged the Act by filing C.W.J.C. No.7940 of 2015
    before the Patna High Court. By an interim order dated 22nd May
    2015, the operation of the Act was stayed. A special leave petition
    filed by the State against the interim order was dismissed by this
    Court on 13th July 2015.
11. The High Court heard the matter and passed the present impugned
    order dated 29th February 2024. The High Court was of the view
    that the Trust governing the Institute & Library was in fact not a
    private Trust, observing that the dedication made by the settlor
    was in favour of the public of Patna and its neighbourhood being
    the general public. Therefore, there is no application of the Indian
472                                                             [2026] 3 S.C.R.

                                Supreme Court Reports


       Trust Act, 18824. The public interest was found to be clear from the
       recitals ‘for better management and development’ in the preamble
       of the enactment. It was held that for all purposes, the Institute &
       Library was financed by the State Government and the State Librarian
       was acting as the ex-officio Chief Librarian of the Library who was
       entrusted with the responsibility of general supervision of the working
       and administration of the Institute & Library subject to the general
       direction of the Trustees.
12. The High Court ultimately dismissed the writ petition and upheld the
    validity of the Act, while observing that the State Government was
    obliged to carry on the objects of the Trust.
13. Aggrieved by the decision of the High Court, the appellant is before us.

       B.     Issues
14. The present appeal gives rise to the following issues:
       i.     Whether the Smt. Radhika Sinha Institute and Sachchidanand
              Sinha Library (Requisition & Management) Act, 2015 is manifestly
              arbitrary and violative of Article 14 of the Constitution of India.
       ii.    Whether the impugned Act effects compulsory acquisition and
              extinguishment of rights in a confiscatory manner, thereby
              offending Article 300A read with Article 14 of the Constitution
              of India.

       C.     Submissions
       I.     Appellant’s submissions
15. Learned senior advocate, Mr. Sunil Kumar made the following
    submissions:
       i.     On Legislative Competence: The impugned Act is an exercise
              of legislative power by the State Legislature in respect of a
              Private Trust which had the overall control over management
              and administration of the said Institute & Library as defined
              under Section 2(a) and (b) of the Act.



4   Hereinafter, “Trust Act”.
[2026] 3 S.C.R.                                                              473

                 Anurag Krishna Sinha v. State of Bihar & Anr.


            a)     The Deed of Trust, the Deed of Agreement, the Deed of
                   Lease of Land, the Trust and all its committees and sub-
                   committees stand dissolved under Section 4(2) of the Act.
            b)     The right, title and interest of the Trustees in the Institute
                   & Library stands transferred to and vested in the State
                   Government from the commencement of the said Act
                   under Section 3 thereof.
            c)     The Trustees including the appellant are put under a
                   duty to hand over possession of all assets and furnish
                   complete particulars, agreements and other instruments
                   of the Institute & Library to the State Government under
                   Section 5 and 6 of the said Act.
            d)     The impugned Act relates to Trust and Trustees i.e. Entry
                   10 of List III of the VIIth Schedule to the Constitution of
                   India, which is a field occupied by a Federal Legislation,
                   namely, the Indian Trusts Act,1882. The Preamble of the
                   Indian Trusts Act makes it abundantly clear that the object
                   is to codify the law regarding Trusts and to occupy the
                   entire field of legislation. Hence, the Trusts Act shall prevail
                   and the impugned State Act whose subject matter directly
                   relates to the Trust and its Trustees would be void under
                   Article 254(1) of the Constitution of India.
            e)     The provisions of the impugned Act are in conflict with the
                   provisions of the Trusts Act. One cannot be obeyed without
                   disobeying the other. Therefore, the impugned State Act
                   is repugnant to the Federal Legislation.
            f)     In this regard, reliance was placed on Tika Ramji vs.
                   State of U.P5 wherein it was reiterated by this Court in the
                   case of Innoventive Industries Ltd vs. ICICI Bank6 that
                   repugnancy may be in three ways – (1) Where the Federal
                   Legislation expressly or implicitly evinces its intention to
                   cover the whole field, (2) even in absence of intention,
                   where the Federal Legislation and State Legislation seek
                   to exercise their powers over the same subject matter,


5   AIR 1956 SC 676
6   (2018) 1 SCC 407
474                                                            [2026] 3 S.C.R.

                           Supreme Court Reports


                  and (c) where there is a direct conflict between two or
                  more provisions of the competing Statutes. In any of these
                  situations, the Federal Legislation prevails and the State
                  Legislation would be void to the extent of repugnancy.
       ii.   On the High Court’s Findings on Legislative Competency:
             a)   The High Court decided the question of repugnancy in
                  paragraph 17 of the impugned judgment. It acknowledged
                  that the impugned Act and the Trusts Act, both relate to
                  Entries in List III of the VIIth Schedule of the Constitution
                  of India, however, by applying the doctrine of pith and
                  substance, the High Court has gone on to hold that the
                  impugned Act “does not even incidentally trench upon the
                  Indian Trusts Act”.
             b)   As was held by this Court in Tika Ramji (supra) and
                  reiterated in the case of Innoventive Industries (supra),
                  the doctrine of pith and substance cannot be referred to
                  while determining questions of repugnancy, once it is found
                  that both the Federal Legislation and State Legislation are
                  referable to the Concurrent list.
             c)   The impugned Act clearly states in its Preamble that the
                  aim is for the better management of the said Institute
                  & Library and one of the consequences of vesting as
                  contemplated under Section 4(2) of the Act is that the
                  Trust would be deemed to be dissolved from the date of
                  the commencement of the Act. However, the High Court
                  holds in paragraph 18 of the impugned order that even
                  if there was acquisition of the property, as in the present
                  case, it was for better administration of the Trust. Further,
                  the High Court holds in paragraph 36 that the impugned
                  Act was to vest the Trust and its properties in the State
                  Government for better functioning and for furtherance of
                  the objects of the Trust.
             d)   The impugned Act clearly lays down in Section 3 that
                  what vests is the right, title and interest of the Institute &
                  Library. The definition of Trust in Section 3 of the Trusts
                  Act is that it is an obligation annexed to the ownership of
                  property, and arising out of a confidence reposed in and
                  accepted by the owner. The High Court holds in paragraph
[2026] 3 S.C.R.                                                           475

                 Anurag Krishna Sinha v. State of Bihar & Anr.


                   18 of the impugned judgment that the obligation travels
                   with the ownership of the property. However, the High
                   Court omitted to consider that the obligation has to arise
                   out of a confidence reposed by the Settlor which cannot
                   be transferred to anyone. Neither the impugned Act nor
                   the Trusts Act, even remotely talk about any obligation
                   dealing with the acquisition of the property.
            e)     This Court in In Re: Expeditious Trial of cases under
                   Section 138 of the N.I.Act, 18817 as quoted and followed
                   in Saregama (India) Ltd vs. Next Radio Ltd.8 has held that
                   “…Conferring power on the court by reading certain words
                   into provisions is impermissible. A judge must not rewrite
                   a statute, neither to enlarge nor to contract it. Whatever
                   temptations the statesmanship of policy-making might
                   wisely suggest, construction must eschew interpolation
                   and evisceration. He must not read in by way of creation.
                   The Judge’s duty is to interpret and apply the law, not to
                   change it to meet the Judge’s idea of what justice requires.
                   The court cannot add words to a statute or read words
                   into it which are not there.”
     iii.   On “Public Trust”: the parties before the High Court were ad idem
            that the Trust in question was a Private Trust and arguments
            were advanced accordingly.
            a)     In the impugned judgment, the High Court records in
                   paragraph 17 that “…The arguments were addressed on
                   an assumption that the institution which is a Trust is a
                   private trust governed by the Indian Trust Act. We have
                   our own reservations about such assumption, looking at
                   the deed of Trust authored by the Settlor…” Thereafter,
                   the High Court went on to make out a third case that the
                   Trust in question was a Public Trust.
            b)     In the present appeal, specific grounds are raised by the
                   appellant regarding the High Court dismissing the writ
                   petition on facts and grounds neither pleaded nor argued



7   (2021) 16 SCC 116
8   (2022) 1 SCC 701
476                                                             [2026] 3 S.C.R.

                            Supreme Court Reports


                   before it, thereby denying the appellant the opportunity to
                   rebut the same and hence being a nullity in the eyes of the
                   law as it is impermissible for the High Court in exercise of
                   its power of judicial review to make out a case which was
                   not the stand taken by the State in their Counter Affidavit,
                   has not been adverted to by the Respondent-State, much
                   less denied by them.
             c)    This Court in the case of Bachhaj Nahar vs. Nilima
                   Mandal9 has held that when neither party puts forth a
                   contention, the Court cannot make out such a case not
                   pleaded, suo moto.
             d)    In the present case, neither parties pleaded nor was it
                   argued that the Trust in question was a Public Trust. In
                   these circumstances, the High Court could not have made
                   out a third case that the Trust in question was a Public Trust.
       iv.   The main point of distinction between a Private Trust and a
             Public Trust is; a Private Trust may fail but a Public Trust does
             not fail. In the instant case, the Trust Deed itself visualised that
             the Trust may fail and also spelled out the consequences of
             such a failing.
       v.    On the impugned Act being confiscatory and violative of Article
             300A of the Constitution of India: Section 7 of the impugned
             Act states that if any question arises for compensation for the
             acquisition, the State Government may pay only maximin one
             rupee after examining the claims.
             a)    Acquisition of property which has devolved on the appellant
                   by inheritance, without payment of just and adequate
                   compensation renders the impugned Act confiscatory and
                   violative of Article 300A of the Constitution of India.
       vi.   On manifest arbitrariness: for more than a hundred years, the
             Trustees, including the appellant and his ancestors as the Chief
             Executive Officer and Secretary, have controlled and managed
             the Institute & Library which has continued to be open, except
             during the Covid pandemic, to the public who have been
             permitted reasonable use and enjoyment thereof.


9   (2008) 17 SCC 491.
[2026] 3 S.C.R.                                                               477

                  Anurag Krishna Sinha v. State of Bihar & Anr.


             a)     There was no allegation of any mismanagement against the
                    Trustees in any correspondence by the State Government
                    or in the pleadings before the High Court, or during the
                    course of arguments before the High Court.
             b)     The rank arbitrariness of the impugned Act manifests when
                    one considers the latest Survey of Libraries in the State of
                    Bihar which shows that there were 540 public libraries in
                    the State in the 1960’s, out of which only 51 now survive,
                    and that too in poor condition.
             c)     The impugned Act is liable to be invalidated on the sole
                    ground of violation of Article 14 of the Constitution of India.

      II.    Respondent-State of Bihar’s submissions:
16. Learned senior advocate, Mr. Ranjit Kumar made the following
    submissions:
      i.     The impugned Act: The preamble of the Act expressly notes that
             its object is to provide for the acquisition, transfer and better
             management of the Act.
      ii.    As per the petition, the appellant is the legal heir of the Settlor
             of the Trust, member-secretary of the Board of Trustees and
             its Chief Executive Officer. The Trust itself has not challenged
             the impugned Act. The appellant has no locus or authority to
             act on behalf of the Trust.
      iii.   The Trust is a Public Trust and not a Private Trust: The
             appellant has argued before this Court that the High Court
             erred by recording a finding that the Trust is public in nature
             when the State did not contest this in its pleadings. However,
             the appellant specifically argued before the High Court that the
             Trust is a Private Trust governed by the Trusts Act. In such
             circumstances, it was open to the High Court to hold that the
             appellant’s contentions were not correct in law and facts. It is
             a settled position as held by this Court in Deoki Nandan vs.
             Murlidhar10 and relied upon by the High Court that whether a
             Trust is a public or private trust is a mixed question of law and



10   AIR 1957 SC 133
478                                                              [2026] 3 S.C.R.

                             Supreme Court Reports


              fact. The factual foundation for the findings of the High Court
              were the admitted facts discernible from the Lease Deed.
       iv.    The appellant has relied on Clause 12 of the Trust Deed, i.e,
              the reversal of property to the Settlor in the event the Trust fails,
              to contend that the Trust is private. However, that contention
              is without merit and it is not the appellant’s case that the Trust
              has failed. The Trust Deed clearly envisages the creation of a
              Public Trust.
       v.     The appellant’s challenge to legislative competence is wholly
              misconceived. Since the Trust is a Public Trust and Public
              Trusts are expressly excluded from the application of the Trusts
              Act; consequently, no conflict can arise between the impugned
              Act and the Indian Trusts Act. Even on a contrary assumption,
              there is no repugnancy because the Trusts Act governs the
              creation, administration, duties, rights and revocation of trusts
              but does not regulate or prohibit the acquisition of trust property
              by the State, which is the subject matter of the impugned Act.
              A legislation whose pith and substance is the acquisition of
              property is traceable to Entry 42 of List III and the impugned
              Act squarely falls within this entry, furnishing an independent
              constitutional source of legislative power.
       vi.    The proposal for nationalisation of the Institute & Library
              arose only due to the persistent and undeniable failure of the
              Trust to discharges its responsibilities, despite substantial aid,
              support and oversight extended by the State Government
              over several decades. The State Legislature, in the exercise
              of its legislative wisdom and in furtherance of public interest,
              deemed it appropriate and necessary to acquire the Institute
              & Library and ensure its proper administration, development
              and preservation.
       vii.   The appellant has alleged that the impugned Act is in
              contravention of Article 14 of the Constitution of India. This
              contention is ex facie untenable. The Institute & Library
              constitutes a class by itself. It is the appellant’s own case that
              the Settlor was an instrumental figure in the State’s history
              and the Institute & Library embody his vision and legacy. The
              State Government is equally interested in the preservation and
              advancement of the legacy of Shri Sachichidananda Sinha. The
[2026] 3 S.C.R.                                                           479

              Anurag Krishna Sinha v. State of Bihar & Anr.


           impugned Act was enacted to revitalise the Library, safeguard
           and honour the Settlor’s legacy and ensure the provision of
           improved facilities to the public. The Act, therefore, validly
           singles out the Institute & Library as a distinct class and the
           classification bears a rational nexus to the object sought to be
           achieved.
     viii. Therefore, the Impugned Act, being constitutionally sound in
           its object, scheme and source of legislative power, warrants
           no interference.

     D.    Analysis
17. Before adverting to the rival submissions, it is necessary to recall
    the genesis and founding purpose of the Institute & Library. The
    Smt. Radhika Sinha Institute and Sachchidanand Sinha Library was
    conceived not as a commercial or administrative enterprise, but as
    a voluntary act of public beneficence by Shri Sachchidanand Sinha,
    a distinguished public figure of his time and a prominent son of the
    State of Bihar. Established in the memory of his wife, Smt. Radhika
    Sinha, the Institute & Library was founded through the personal
    contribution of the Settlor’s property and his own extensive collection
    of books, with the avowed object of promoting learning, scholarship
    and public access to knowledge. For nearly a century thereafter,
    the Institute & Library has continued to function in furtherance of
    this founding vision, preserving both a cultural legacy and a public
    institution of learning. It is this historical context, and the continuity
    of purpose with which the Institute & Library has been managed, that
    must inform the constitutional scrutiny of the impugned enactment.
18. Before examining the challenge under Article 14, it is necessary to
    briefly address the premise on which the High Court proceeded,
    namely the characterisation of the Trust governing the Institute &
    Library as a public trust. The High Court has held that the Trust
    governing the Institute & Library is a public trust, relying primarily
    on the language used in the Deed of Trust executed by the Settlor.
    The Deed records the wish of Smt. Radhika Sinha to establish an
    institution for “providing the public of Patna and its neighbourhood
    with a place for intellectual and social intercourse,” including a library,
    reading room and facilities for public meetings. On this basis, the
    High Court concluded that the dedication was in favour of the general
    public and that the Trust must therefore be treated as a public trust.
480                                                           [2026] 3 S.C.R.

                          Supreme Court Reports


19. In our view, this approach is flawed. The fact that an institution is
    intended to serve a public purpose or is open to public use does
    not, by itself, conclusively determine that the trust is a public trust
    in law. The legal character of a trust depends on several factors,
    including the manner in which the dedication is made, the structure
    of the trust, the nature of control and management, and the rights
    reserved by the Settlor and his successors under the trust deed. A
    public-facing object, standing alone, is not determinative.
20. Section 3 of the Indian Trusts Act defines a trust as “an obligation
    attached to the ownership of property, arising from a confidence
    reposed by the Settlor and accepted by the trustee”. In the present
    case, Shri Sachchidanand Sinha clearly reposed such confidence
    in identified trustees through a formal Deed of Trust. The Deed also
    provided for succession to the office of Honorary Secretary and Chief
    Executive Officer, and for reversion of the trust property in the event
    of failure of the Trust. These provisions are material and cannot be
    disregarded merely because the Institute & Library was intended to
    benefit the public.
21. It is also significant that neither party before the High Court pleaded
    or argued that the Trust was a public trust. The case was argued on
    the common assumption that the Trust was a private trust governed
    by the Indian Trusts Act. In such circumstances, the High Court could
    not have proceeded to decide the case on an entirely different basis
    without affording an opportunity to address that issue.
22. In any event, even if it were assumed that the Trust has a public
    character, that fact alone does not legitimise the State’s action
    in acquiring the Institute & Library or dissolving the existing trust
    arrangements. Whether the Trust is public or private, any legislative
    measure resulting in compulsory acquisition and vesting must
    satisfy constitutional requirements, particularly those flowing from
    Article 14. The question of public or private character, therefore, is
    not determinative of the validity of the impugned Act.

       Issues I & II
23. Article 14 of the Constitution of India mandates that “the State shall not
    deny to any person equality before the law or the equal protection of the
    laws within the territory of India.” This guarantee strikes at arbitrariness
    in State action and ensures that the exercise of legislative power is
[2026] 3 S.C.R.                                                             481

                 Anurag Krishna Sinha v. State of Bihar & Anr.


      informed by reason, fairness and non-discrimination. Equality before
      the law is not a mere formal concept; it embodies the principle that
      State action, whether legislative or executive, must be based on rational
      criteria and must not operate in an arbitrary or capricious manner. From
      an early stage, this Court has interpreted this guarantee not merely
      as a prohibition against formal discrimination, but as a constitutional
      injunction against arbitrariness in State action. The evolution of this
      principle is traceable through a consistent line of authorities.
24. In S.G. Jaisinghani v. Union of India,11 a Constitution Bench of
    this Court emphasised the centrality of non-arbitrariness to the rule
    of law. In paragraph 14 of the judgment, the Court observed:
             “14.In this context it is important to emphasise that the
             absence of arbitrary power is the first essential of the
             rule of law upon which our whole constitutional system is
             based. In a system governed by rule of law, discretion,
             when conferred upon executive authorities, must be
             confined within clearly defined limits. The rule of law from
             this point of view means that decisions should be made
             by the application of known principles and rules and, in
             general, such decisions should be predictable and the
             citizen should know where he is. If a decision is taken
             without any principle or without any rule it is unpredictable
             and such a decision is the antithesis of a decision taken
             in accordance with the rule of law.”
      Therefore, this description makes it clear that arbitrariness is
      fundamentally incompatible with constitutional governance, as it
      replaces reasoned decision-making with uncertainty and unfettered
      discretion. The absence of arbitrary power was thus recognised as
      the first essential of the rule of law upon which the constitutional
      system rests.
25. In State of Mysore v. S.R. Jayaram,12 Rule 9(2) of the Mysore
    Recruitment of Gazetted Probationers’ Rules, 1959 was challenged
    and struck down by a Constitution Bench as violative of Article 14
    read with Article 16(1), on the ground that it conferred arbitrary and
    uncanalised power on the government without any guiding principles.


11   AIR 1967 SC 1427
12   [1968] 1 SCR 349.
482                                                          [2026] 3 S.C.R.

                           Supreme Court Reports


26. A landmark development in this line of jurisprudence came with
    E.P. Royappa v. State of Tamil Nadu,13 where arbitrariness was
    recognised as a distinct and independent facet of Article 14, alongside
    unjustness and unfairness; establishing three standards against which
    State action may be tested when assailed on the touchstone of Article
    14. The Constitution Bench categorically stated in paragraph 85:
             “85 … From a positivistic point of view, equality
             is antithetic to arbitrariness. In fact equality and
             arbitrariness are sworn enemies; one belongs to the
             rule of law in a republic while the other, to the whim
             and caprice of an absolute monarch. Where an act
             is arbitrary, it is implicit in it that it is unequal both
             according to political logic and constitutional law and
             is therefore violative of Article 14, and if it effects any
             matter relating to public employment, it is also violative
             of Article 16. Articles 14 and 16 strike at arbitrariness in
             State action and ensure fairness and equality of treatment.
             They require that State action must be based on valid
             relevant principles applicable alike to all similarly
             situate and it must not be guided by any extraneous
             or irrelevant considerations because that would be
             denial of equality. Where the operative reason for
             State action, as distinguished from motive inducing
             from the antechamber of the mind, is not legitimate
             and relevant but is extraneous and outside the area of
             permissible considerations, it would amount to mala
             fide exercise of power and that is hit by Articles 14
             and 16. Mala fide exercise of power and arbitrariness
             are different lethal radiations emanating from the same
             vice: in fact the latter comprehends the former. Both
             are inhibited by Articles 14 and 16.”
                                                   (emphasis supplied)

27. This ratio was followed by a larger Seven-Judge Bench in Maneka
    Gandhi v. Union of India,14 where the Court, while testing provisions



13   (1974) 4 SCC 3
14   (1978) 1 SCC 248
[2026] 3 S.C.R.                                                                483

                 Anurag Krishna Sinha v. State of Bihar & Anr.


      of the Passports Act, reaffirmed that equality and arbitrariness
      are antithetical, and that Article 14 infuses the requirement of
      reasonableness across all State action. It was observed:
             “equality is antithetical to arbitrariness…… Article 14 strikes
             at arbitrariness in State action and ensures fairness and
             equality of treatment. The principle of reasonableness,
             which legally as well as philosophically, is an essential
             element of equality or non-arbitrariness pervades Article
             14 like a brooding omnipresence and the procedure
             contemplated by Article 21 must answer the test of
             reasonableness in order to be in conformity with Article 14.
             It must be “right and just and fair” and not arbitrary, fanciful
             or oppressive; otherwise, it .would be no procedure at all
             and the requirement of Article 21 would not be satisfied.”
28. Thereafter, in Ajay Hasia v. Khalid Mujib Sehravardi,15 a Constitution
    Bench of this Court affirmed and consolidated the above line of
    decisions. In paragraph 16, this Court held:
             “16… Wherever therefore there is arbitrariness in State
             action whether it be of the legislature or of the executive
             or of an ‘authority’ under Article 12, Article 14 immediately
             springs into action and strikes down such State action. In
             fact, the concept of reasonableness and non-arbitrariness
             pervades the entire constitutional scheme and is a golden
             thread which runs through the whole of the fabric of the
             Constitution.”
      The significance of Ajay Hasia lies in its explicit clarification that the
      doctrine of arbitrariness operates as a check on legislative action no
      less than on executive action and that Article 14 springs into action
      wherever arbitrariness is found.
29. In Indian Express Newspapers (Bombay) Pvt. Ltd. v. Union of
    India,16 the constitutionality of import duty imposed on newsprint
    imported from abroad under sections of the Custom Act, 1962,
    Customs Tariff Act, 1975 and levy of auxiliary duty under the Finance
    Act, 1981 as modified by notifications issued under Section 25 of


15   (1981) 1 SCC 722.
16   (1985) 1 SCC 641
484                                                               [2026] 3 S.C.R.

                            Supreme Court Reports


       the Customs Act, 1962 was tested. In this decision, the Court further
       propounded the test of manifest arbitrariness. The Court observed:
             “75. In India arbitrariness is not a separate ground
             since it will come within the embargo of Article 14 of the
             Constitution. In India any enquiry into the vires of delegated
             legislation must be confined to the grounds on which
             plenary legislation may be questioned, to the ground that
             it is contrary to the statute under which it is made, to the
             ground that it is contrary to other statutory provisions or
             that it is so arbitrary that it could not be said to be in
             conformity with the statute or that it offends Article
             14 of the Constitution.”
                                                       (emphasis supplied)

30. In K.R. Lakshmanan v. State of Tamil Nadu,17 the Court struck down
    the Tamil Nadu Act, 1986 on the ground of arbitrariness, holding that
    the vice of arbitrariness was writ large on the face of the statutory
    provisions of the said Act.
31. The application of this doctrine to legislative action was reiterated in
    A.P. Dairy Development Corporation Federation v. B. Narasimha
    Reddy.18 In paragraph 29, this Court observed:
              “29.It is a settled legal proposition that Article 14 of the
             Constitution strikes at arbitrariness because an action that
             is arbitrary, must necessarily involve negation of equality.
             This doctrine of arbitrariness is not restricted only to
             executive actions, but also applies to the legislature. Thus,
             a party has to satisfy that the action was reasonable, not
             done in unreasonable manner or capriciously or at pleasure
             without adequate determining principle, rational, and has
             been done according to reason or judgment, and certainly
             does not depend on the will alone. However, the action of
             the legislature, violative of Article 14 of the Constitution,
             should ordinarily be manifestly arbitrary. There must be a
             case of substantive unreasonableness in the statute itself
             for declaring the act ultra vires Article 14 of the Constitution.”


17   (1996) 2 SCC 226
18   (2011) 9 SCC 286
[2026] 3 S.C.R.                                                           485

                 Anurag Krishna Sinha v. State of Bihar & Anr.


32. The doctrine of arbitrariness as a facet of Article 14, capable of being
    used to test and strike down legislation, received its most authoritative
    affirmation in Shayara Bano v. Union of India.19A Constitution Bench
    of this Court held that Triple Talaq was manifestly arbitrary, and in
    doing so, brought to rest any remaining divergence or controversy
    about whether manifest arbitrariness is a valid ground to invalidate
    legislation. In paragraph 84, the Court observed:
             “84…Arbitrariness in legislation is very much a facet of
             unreasonableness in Articles 19(2) to (6), as has been laid
             down in several judgements of this Court…therefore, there
             is no reason why arbitrariness cannot be used in aforesaid
             sense to strike down legislation under Article 14 as well”
      In paragraph 101, the Court further held:
             “101…Manifest arbitrariness, therefore, must be something
             done by the legislature capriciously, irrationally and/
             or without adequate determining principle. Also, when
             something is done which is excessive and disproportionate,
             such legislation would be manifestly arbitrary. We are,
             therefore, of the view that arbitrariness in the sense of
             manifest arbitrariness as pointed out by us above would
             apply to negate legislation as well under Article 14.”
      Shayara Bano relied on the Constitution Bench judgments in Mithu v.
      State of Punjab20 and Sunil Batra v. Delhi Administration21, which
      were both cases where statutes were struck down on grounds
      of arbitrariness and unreasonableness and which drew upon the
      sustained line of authority traced above. Significantly, Shayara Bano
      (supra) held that State of Andhra Pradesh v. McDowell & Co.22,
      which had taken the position that arbitrariness is not a ground on
      which plenary legislation may be struck down, to be per incuriam
      and bad in law, on the ground that it had failed to consider at least
      two binding precedents; a Constitution Bench decision in Ajay
      Hasia (supra), a three-Judge decision in K.R. Lakshmanan (supra).
      Further, it did not acknowledge another Constitution Bench decision
      in Maneka Gandhi (supra).


19   (2017) 9 SCC 1
20   (1983) 2 SCC 277
21   (1978) 4 SCC 494
22   (1996) 3 SCC 709
486                                                              [2026] 3 S.C.R.

                            Supreme Court Reports


       Hence, it was affirmed that the principle that arbitrariness is antithetical
       to equality now operates as a firm substantive constitutional limitation
       on legislative power.
33. Post Shayara Bano (supra), the doctrine was applied in Joseph
    Shine v. Union of India,23 by a Constitution Bench of this Court where
    Section 497 of the Indian Penal Code, 1860 was challenged and
    struck down as being manifestly arbitrary. The relevant observation
    reads thus:
             “103…What is clear, therefore, is that this archaic law has
             long outlived its purpose and does not square with today’s
             constitutional morality, in that the very object with which it
             was made has since become manifestly arbitrary, having
             lost its rationale long ago and having become in today’s
             day and age, utterly irrational. On this basis alone, the law
             deserves to be struck down, for with the passage of time,
             Article 14 springs into action and interdicts such law
             as being manifestly arbitrary. That legislation can be
             struck down on the ground of manifest arbitrariness
             is no longer open to any doubt, as had been held by
             this Court in Shayara Bano v. Union of India [Shayara
             Bano v. Union of India, (2017) 9 SCC 1 : (2017) 4 SCC
             (Civ) 277].”
                                                      (emphasis supplied)

34. Most recently, in Association for Democratic Reforms v. Union
    of India,24 the validity of the Electoral Bond Scheme and provisions
    of the Finance Act, 2017 were challenged. A Constitution Bench of
    this Court held them to be unconstitutional and struck them down,
    reaffirming that manifest arbitrariness remains a ground available to
    Courts to invalidate legislation under Article 14.
35. It is therefore well settled that manifest arbitrariness is a ground
    available to this Court to strike down legislation under the judicial
    review of Article 14. It is acknowledged that this power must be
    exercised with care and restraint, so as to maintain the constitutional



23   AIR 2018 SC 4898
24   2024 INSC 113
[2026] 3 S.C.R.                                                          487

              Anurag Krishna Sinha v. State of Bihar & Anr.


     balance between the legislature and the judiciary. However, where
     clear and substantive unreasonableness is embedded in a legislative
     enactment, the Court is not only empowered but obliged to intervene.
36. The arc traced through these decisions, from Jaisinghani (supra) to
    Shayara Bano (supra) and beyond, reflects a coherent and settled
    constitutional principle being that State action, whether executive or
    legislative, must be structured by reason, guided by discernible and
    adequate determining principles, and proportionate in its operation
    and effect. Arbitrariness, in whatever form it manifests, whether in
    the conferral of uncanalised power, the adoption of excessive means,
    the absence of rational nexus, or the imposition of consequences
    wholly disproportionate to the stated object, is antithetical to the
    constitutional guarantee of equality and invites the intervention of
    this Court. A law which departs from these requirements attracts
    the vice of manifest arbitrariness and is liable to be struck down
    as violative of Article 14. These are not abstract propositions; they
    are the tested and authoritative foundations on which the present
    challenge falls to be adjudicated.
37. Tested against these settled principles, the impugned Act discloses
    multiple features of manifest arbitrariness. While the stated object
    of the Act is “better management and development” of the Institute
    & Library, the means adopted by the legislature bear no rational or
    proportionate nexus to that object.
38. Section 3 of the impugned Act effects a complete vesting of the
    Institute & Library, together with all rights, title and interest therein,
    in the State Government. Section 4(2) simultaneously dissolves the
    Deed of Trust, the Agreement, the Lease of land, and all committees
    and sub-committees constituted thereunder. The cumulative effect of
    these provisions is not regulatory supervision, but total displacement
    of a legal and institutional framework that has governed the Institute
    & Library for nearly a century.
39. Such a drastic assumption of control represents the most intrusive
    form of State intervention. Yet, the record before this Court discloses
    no finding of abandonment, failure of purpose, or established
    mismanagement of the Institute & Library. No inquiry appears to
    have preceded the enactment. No contemporaneous material has
    been placed to demonstrate that the objectives of the Trust were
    being defeated or that lesser measures were inadequate. In the
488                                                           [2026] 3 S.C.R.

                          Supreme Court Reports


       absence of demonstrated necessity, compulsory acquisition coupled
       with dissolution of trust arrangements is plainly disproportionate.
40. This Court, in the course of hearing the present appeal, summoned
    the original records pertaining to the impugned Act. These records,
    which included the correspondence exchanged between the State
    Government and the Trust, were produced and examined by this
    Court. The examination reveals a significant and telling gap as
    there is not a single communication from the State Government to
    the Trust or its Trustees bringing to their notice any allegation of
    mismanagement, financial irregularity, neglect, or failure to discharge
    the objects of the Trust. The record contains no correspondence to
    the effect that the Institute & Library was non-functional, that its affairs
    were being conducted improperly, or that the funds of the Trust were
    being misused. Before the passing of the impugned Act, the State
    Government neither intimated the Trust of any such concern, nor
    afforded it any opportunity to respond or to take corrective steps,
    nor furnished any reasons for the proposed acquisition. A measure
    of such sweeping consequence including complete divestiture of an
    institution that has functioned for nearly a century, cannot rest on
    assumptions that were never put to the very persons sought to be
    displaced. This itself is a powerful indicator of the arbitrary character
    of the legislative action.
41. There is a further circumstance which bears directly on the State’s
    claim of mismanagement. Under the arrangement governing the
    Institute & Library, the State Librarian functioned as the ex-officio
    Chief Librarian of the Library and was entrusted with the responsibility
    of general supervision over its working and administration, subject
    to the overall direction of the Trustees. The day-to-day management
    of the Institute & Library thus fell squarely within the domain of a
    government-appointed functionary. It necessarily follows that any
    mismanagement in the functioning of the Institute & Library, which
    the State now invokes as the justification for a complete legislative
    takeover, would, at least in part, have fallen within the supervisory
    responsibility of this very official. Yet, the record does not disclose
    that any notice was ever issued to the State Librarian, that any
    inquiry was ever initiated against him, or that any action of any kind
    was taken in respect of discharge of duties, by the said official. The
    State, therefore, is not in a position to rely on mismanagement as
    the basis for the acquisition when it failed to act against its own
[2026] 3 S.C.R.                                                         489

              Anurag Krishna Sinha v. State of Bihar & Anr.


     appointee, who was charged with the general administration of the
     very institution whose management it now seeks to impugn. This
     inconsistency further reinforces that the stated rationale of the Act
     does not withstand scrutiny.
42. The State has placed on record that, following the enactment of the
    impugned Act, a sum of Rs. 72,89,88,640/- (Rupees Seventy-Two
    Crores Eighty-Nine Lakhs Eighty-Eight Thousand Six-Hundred and
    Forty only) has been sanctioned towards construction, renovation
    and infrastructure enhancement of the Institute & Library, of which
    an amount of Rs. 16,24,12,840/- (Rupees Sixteen-Crores Twenty-
    Four Lakhs Twelve-Thousand Eight-Hundred and Forty only) has
    already been released; that dedicated funds have been sanctioned
    for the rejuvenation of the heritage building; that modern technology
    and digital tools have been introduced; and that approval has been
    granted for the construction of a new multi-storeyed library building.
    This Court does not doubt that such investment reflects a genuine
    commitment to the preservation and development of a historically
    significant institution. However, the question that this Court must
    ask is whether a complete legislative acquisition of the Institute &
    Library by dissolving its Trust, extinguishing long-standing rights, and
    displacing a century-old institutional framework, was a necessary
    precondition for such investment. The answer is in the negative. The
    State is well equipped, through constitutional and statutory means,
    to extend financial assistance to trust institutions and to ensure that
    such assistance is applied to its intended purpose, without resorting
    to outright acquisition. Grant-in-aid, conditional funding, statutory
    audit, and supervisory oversight are all established mechanisms
    that serve this purpose without displacing existing management. The
    scale of post-takeover investment does not validate the takeover; it
    demonstrates, if anything, that the State’s objective could have been
    achieved through far less drastic means. That the legislature chose
    the most extreme measure available, when less invasive alternatives
    were plainly at hand, is itself a manifestation of the arbitrariness that
    the impugned Act discloses.
43. As the jurisprudence under Article 14 makes clear, arbitrariness is
    not confined to discriminatory classification. A law which proceeds
    on unreasoned assumptions, adopts excessive means, or operates
    without adequate determining principles equally attracts constitutional
    censure. The impugned Act, by extinguishing long-standing rights and
490                                                         [2026] 3 S.C.R.

                          Supreme Court Reports


       arrangements without cogent justification, departs from the discipline
       of reason that Article 14 mandates.
44. The arbitrariness of the statutory scheme is further aggravated by
    the compensation provision contained in Section 7. The provision
    authorises the State Government to pay compensation, if any, up to
    a maximum of one rupee, after examining claims, without prescribing
    any principles, criteria, or procedural safeguards. Such a scheme
    vests unguided discretion in the legislature and reduces compensation
    to a nominal and illusory figure.
45. While Article 300A of the Constitution permits deprivation of property
    by authority of law, such law must nevertheless be just, fair and
    reasonable, and not arbitrary or confiscatory in effect. A statutory
    provision that enables acquisition of property while reducing
    compensation to a token amount lacks the basic attributes of fairness.
    The confiscatory nature of the vesting contemplated under the
    impugned Act therefore reinforces the conclusion that the enactment
    is manifestly arbitrary and fails constitutional scrutiny.
46. The legislative history preceding the impugned enactment also bears
    relevance. An earlier attempt by the State to take over the Institute
    & Library through ordinances in 1983 did not pass muster of judicial
    scrutiny, and the consequences of those ordinances were set aside
    by this Court in 1996 upon their lapse, restoring the Trust to its prior
    legal position. The legislature is, of course, competent to enact a fresh
    law. However, the impugned Act, enacted more than three decades
    later, seeks to achieve substantially the same outcome as the failed
    ordinance of 1983, without any intervening change in circumstances
    and without any fresh material justifying acquisition being placed on
    record. The mere passage of time does not supply any justification.
    When a legislature re-enacts substantially the same measure that
    has previously failed, without placing any new or cogent material
    before the Court to justify the same, the legislative history becomes
    a relevant consideration. Viewed in light of this, the history of this
    enactment reinforces the findings of manifest arbitrariness in the
    impugned Act.
47. It is also material that the impugned Act targets a single institution
    for complete takeover, without disclosing any intelligible basis for
    such exclusive treatment. The State’s own material indicates that
    several public libraries in the State have ceased to function or are in
[2026] 3 S.C.R.                                                          491

              Anurag Krishna Sinha v. State of Bihar & Anr.


     a state of disrepair. The selective application of an extreme legislative
     measure to a functioning institution, without objective criteria, further
     underscores the absence of a rational and principled approach.
48. Viewed cumulatively, the scheme of the impugned Act reveals a
    pattern of arbitrariness: complete vesting of property in the State,
    dissolution of long-standing trust arrangements, absence of any
    finding of necessity or mismanagement, provision for illusory
    compensation, and lack of guiding principles or safeguards. Each of
    these features, taken individually, raise serious constitutional concern;
    taken together, they render the enactment manifestly arbitrary in its
    conception and operation.
49. In light of the settled jurisprudence under Article 14, as traced in
    the decisions of this Court referred to above, the impugned Act
    cannot be sustained. The legislation fails the test of reasonableness,
    proportionality and non-arbitrariness, and consequently violates
    Article 14 of the Constitution of India. In view of this conclusion, it
    is unnecessary to examine the remaining contentions relating to
    legislative competence and repugnancy in further detail.

     E.    Conclusion
50. The impugned Act authorises the State to take over the Institute
    & Library in its entirety, dissolving existing legal arrangements and
    divesting long-standing rights, without any demonstrated necessity,
    objective criteria, or prior inquiry. The manner in which this power is
    exercised is excessive, unreasoned and disproportionate to the stated
    object of “better management and development”. We are therefore
    satisfied that the Srimati Radhika Sinha Institute and Sachchidanand
    Sinha Library (Requisition & Management) Act, 2015 is manifestly
    arbitrary and violative of Article 14 of the Constitution of India.
51. Further, the scheme of the Act permits deprivation of property without
    adherence to basic requirements of fairness and due process. The
    absence of any principled or meaningful framework for compensation
    underscores the arbitrary character of the legislative measure. While
    Article 300A permits deprivation of property by authority of law, such
    law must be fair, reasonable and non-confiscatory. The impugned
    Act fails to meet this standard.
52. In view of the above, the judgment and order dated 29th February
    2024 passed by the High Court of Judicature at Patna in Civil Writ
492                                                        [2026] 3 S.C.R.

                              Supreme Court Reports


       Jurisdiction Case No.7940 of 2015 is set aside. The Srimati Radhika
       Sinha Institute and Sachchidanand Sinha Library (Requisition &
       Management) Act, 2015 is declared unconstitutional and is accordingly
       struck down.
53. Accordingly, the Trust governing the Institute & Library, together with
    its rights of management and administration, shall stand restored to
    its pre-existing legal position prior to the enactment of the impugned
    Act. This shall not preclude the State Government from providing
    financial assistance, administrative support or regulatory oversight
    in accordance with law.
54. The appeal is accordingly allowed.
55. Pending application(s), if any, shall stand disposed of.

       Result of the case: Appeal allowed.




       †
           Headnotes prepared by: Ankit Gyan


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