The `rarest of rare` principle in the award of death penalty was first laid down in the judgment of Bachan Singh v. State of Punjab (1980) by the Constitutional Bench of the Supreme Court of India.

Option 1 is the correct answer.

Let`s examine the other options to understand why they are not the correct choice.

Option 2, Gopalanachari v. State of Kerala (1980), does not pertain to the `rarest of rare` principle or the award of death penalty.

Option 3, Dr. Upendra Baxi v. State of UP (1983), also does not relate to the `rarest of rare` principle or the award of death penalty.

Option 4, Tukaram v. State of Maharashtra (1979), predates the correct answer and does not establish the `rarest of rare` principle.

Therefore, the correct answer is option 1, Bachan Singh v. State of Punjab (1980), where the `rarest of rare` principle in the award of death penalty was first laid down.