CONSTITUTIONAL LAW II: ADMINISTRATIVE

RELATIONS

TABLE OF CONTENTS
PARTICULARS Page no.
Table of Cases 4
Relation between Union & The States 5
Administrative Relations 6
Control of Union Over states 7
(A)Direction by the Centre to the State
(B)Inter-governmental delegation Power
(C)All India Services
(D)Grants-in-aid
Jurisdiction over territories outside India 18
Full faith and credit clause 18
Disputes relating to water 19
Co-operative federalism 21
Inter-State Council 21
National Development Council 26
Conclusion 28
Bibliography 29

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RELATIONS BETWEEN UNION & THE STATES

The distribution of powers is an essential feature of federalism. The object for

which a federal State is formed involves a division of authority between the
National Government and the separate States. A Federal Constitution establishes
the dual polity with the Union at the Centre and the States at a periphery, each
endowed with sovereign powers to be exercised in the field assigned to them
respectively by the Constitution.1

The basic principle of federation is that the legislative, executive and financial
authority is divided between the Centre and State not by any law passed by the
Centre but by Constitution itself. 2 The Indian Constitution provides for a new kind
of federalism to meet India's peculiar needs. Federalism is held to be one of the
basic pillars of the Constitution. India is said to have adopted a loose federal
structure. It is an indestructible union of destructive units. This is what Indian
Constitution does. The distribution of legislative heads between the Centre and the
States reflects the bias of the Founding Fathers, towards the Centre. The Apex
Court in State of W.B. v. K. Industries Ltd.3, accepted that the Centre had
been given more powers. However, the Court observed:

The Constitution is an organic living document. Its outlook and expressions as

perceived and expressed by the interpreters of the Constitution must be dynamic
and keep pace with the changing times.

1
A.V. Dicey- The Law of Constitution
2
Constitutional Law of India, Dr. J.N. Pandey, 51 edition
3
AIR 2004 SC 1647
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ADMINISTRATIVE RELATIONS

In order to ensure smooth and proper functioning of the administrative machinery

at the two levels, the Constitution embodies provisions for meeting all types of
eventualities resulting from the working of the federal system and also for
protecting and maintaining peace and order in the country. 4 The Constitution
provides for a flexible, permissive and not rigid, scheme of allocation of
administrative responsibilities between the Centre and the States.5 The Scheme of
allocating the administrative responsibilities is drawn for the purpose of:

(i) the administration of law

(ii) achieving co-ordination between the Centre and the States

(iii) the settlement of disputes between the Centre and States and between the
States inter se

(iv) for the purposes of Article 355

4
Constitutional law of India, Narender Kumar 10th edition.
5
Ibid
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Control of Union over States

Subject to a few exceptions, the general principle followed in this connection is

that the executive power is coextensive with legislative power. The scope and
extent of the executive power of the Centre extends—

(1) to the exercise of rights, authority and jurisdiction available to the Government
of India under a treaty or agreement; and

(2) to the matters with respect to which Parliament has power to make laws,
subject to this exception, however, that it does not extend in a State with respect to
matters regarding which the State Legislature also has power to make laws save
when expressly provided in the Constitution or a law made by Parliament.6

This means that the executive power with respect to the matters in the Concurrent
List ordinarily remains with the States unless the Constitution or Parliament by law
expressly provides otherwise. The executive power of a State extends to matters
with respect to which the State Legislature has power to make laws, provided that
in a matter with respect to which both Parliament and State Legislature have power
to make laws, the executive power of a State is subject to, and limited by, the
executive power expressly conferred by the Constitution, or by any law made by
Parliament, upon the Union or its authorities. 7

The proviso refers to the Concurrent area. From the above constitutional
provisions, the following propositions emerge:

(1) The executive power of the Centre extends to the whole of India in respect of
matters in List I

6
Read Article 73
7
Read Article 162

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(2) However, the Centre is not obligated to administer by itself all matters in its
exclusive domain. It can, if it so desires, entrust administrative responsibility in
any matter to the States [Art.154(2)(b)]

(3) A State’s executive power extends to its territory in respect of matters in List II

(4) In respect of matters in which both the Centre and the States have legislative
powers (which means List III and List II in cases falling under Arts. 249, 250, 252,
353 and 356), ordinarily, the executive power rests with the States except when
either the Constitution, or a law of Parliament, expressly confers it on the Centre.

In this area, therefore, there are several alternatives available. If the Centre makes
no law, the executive power rests with the States. When the Centre makes a law, it
can adopt any of the following alternatives regarding executive power under that
law—

(a) it can leave it with the States, or

(b) it may take over the entire administrative power itself by making an express
provision in the law to this effect.

(c) it may create a concurrent area by taking a part of the executive power itself
and leaving the rest to the States.

Articles 256 to 263 provide for Union control over States even in normal times
through following ways:

(a) Direction by the Union to the State Governments.

(b) Inter-governmental delegation of administrative powers.
(c) All-India Services.
(d) Grants-in-aid.

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(A) Direction by the Centre to the States

"The idea of Union giving direction to the States is foreign and repugnant to a rule
of federal system. But this idea was taken by the framers of our Constitution from
the Government of India Act 1935, in view of the peculiar conditions of this
country and particular circumstances out of which the federation emerged."8
Article 256 provides that the executive power of the State shall be so exercised as
to ensure compliance with the laws made by Parliament and the executive power of
the Union shall also extend to the giving of such directions to a State as it may
deem essential for the purpose.

It is clear from the phraseology of Art. 256 that the existence of a law made by
Parliament is a condition precedent which must be satisfied for the issuance of a
direction under it. No direction can be issued under Art. 256 where no enforcement
of a law made by Parliament is involved. 9

Article 256 comes into operation if the Government of India feels that the
executive power of the State is being exercised in a manner which may amount to
impediment to enforcement of the Central laws. 10

The Calcutta High Court observed in Jay Engineering Works v. State of

West Bengal11 “The authority and the jurisdiction of the State Government to
issue administrative directions are limited, firstly by the Constitution and secondly,
by the laws of the land. There is no law which authorises the State Government to
issue directives to officers in charge of maintenance of law and order not to

8
D.D. Basu- Introduction of India, p. 263
9
Sharma Transport v. Govt. of A.P., AIR 2002 SC 322 : (2002) 2 SCC 188.
10
MP Jain, Constitution of India, 2019 edition
11
Jay Engineering Works v. State of West Bengal, AIR 1968 Cal 407.

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enforce the law of the land upon certain conditions being fulfilled and complied
with. The provisions in Article 256 of the Constitution…. are mandatory in nature”

Article 257 enacts that the States must exercise their executive power in such a
way so as not to impede or prejudice the exercise of the executive power of the
Union in the State. For this purpose the Central Government can give directions to
a State as to in which way the State should exercise its executive power. The
powers of the Central Government also extend to giving directions to a State in
two specific matters:-

Art. 257(2)- the construction and maintenance of means of communication

which are declared to be of national or military importance
This power of giving direction does not in any way affect the power of the
Parliament to declare highways or waterways to be National Highways and
waterways and to construct and maintain means of communication as part of
its functions with respect to naval, military or airforce works.12
Art. 257(3)- measures to be taken for the protection of the railway within the
States.
‘Railways’ is a Central subject13 but ‘Police’ is a State subject14 and,
consequently, the protection of railway property lies within the field of the
State Government. It may be that in a particular situation the Centre may
desire that the railway property be protected by taking special measurers by
the State and for that purpose the Centre has power to give directions to the
States.

12
JN Pandey, Constitutional Law of India, 51st Edition
13
Entry 22, List I
14
Entry 2, List II

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If in carrying out the directions of the Union Government given under Art. 257(2)
the State incurs additional costs the Union Government under Art. 257(4) shall pay
to the State Government such sum as may be agreed. If the Centre and States
cannot come to an agreement regarding the compensation to be paid by the former
to the latter, the matter is to be referred to the arbitrator to be appointed by the
Chief Justice of India.

The sanction behind the Central directives to the States:-

Article 356 read along with Article 365 provides that if the State has failed to
comply with or to give effect to any directions given by the Central Government
then the President is empowered to declare an emergency to the effect that the
State Government cannot be carried on in accordance with the provisions of the
Constitution and assume himself all functions of the State. 15

So far, there has been no occasion for the Centre to invoke Art. 365.

(B) Inter-governmental delegation powers

i) Delegation by agreement:- Under A rticle 258 the Parliament may, with

the consent of the State Government, entrust either conditionally or
unconditionally to that Government or to its officers functions relating to any
matter falling within the executive powers of the Union. Under clause (2) of Art.
258 Parliament is also empowered to use State machinery for the enforcement of
Union Laws and for this purpose may confer power or impose duties upon the

15
Ibid

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State or its officers or authorities thereof in respect of these matters to see that the
laws are made applicable to the State.

The most important case on Art. 258(1) is Jayantilal Amrat Lal v. F.N.
Rana.16 Under the Land Acquisition Act, 1894, the Central Government is
competent to acquire land for the purposes of the Union. The Central Government
by a notification under Art. 258(1) entrusted this power to the Commissioners in
the State of Bombay who were to exercise the power subject to the control of the
State Government. Thereafter, the State of Gujarat was carved out of the Bombay
State, and a Commissioner in Gujarat, acting under the original entrustment of
power, took proceedings to acquire certain land for the Union purposes. S. 87 of
the States Re-organisation Act kept alive all laws prevailing in the State before re-
organisation. When the Commissioner’s power to acquire land was challenged, the
Supreme Court by a majority developed the view that the Presidential notification
under Art. 258(1) had the force of law and so was kept alive by S. 87. The
Commissioner in Gujarat could thus exercise the functions of the Central
Government under the Land Acquisition Act without a fresh notification having
been issued.

Two interesting points mentioned in the Court’s opinion may be noted. First, a
distinction has been drawn between

(i) functions vested in the Union and exercisable by the President on behalf of the
Union, and

(ii) functions entrusted to the President by express provisions of the Constitution.

Only the former functions, but not the latter, can be entrusted to the States
under Art. 258(1).

16
AIR 1964 SC 648 : (1964) 5 SCR 294.

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In Anwar Vs State of Jammu & Kashmir17, The Government of J&K

made an order of deportation on the petitioner under the Foreigners Act, 1946. The
petitioner challenged the order on the ground that it could be made only by the
Central Government. The Supreme Court rejected the contention saying that the
President had under Art. 258(1) lawfully entrusted inter alia to the Government of
Jammu & Kashmir the function of the Central Government under the Foreigners
Act.

ii) Delegation by Legislation:- It is to be noted that while under Art.

258(1) the delegation of power is made with the consent of the State the consent of
the State is not necessary under clause (2) and delegation can be made by
Parliament by law. If a law is passed delegating powers and imposing duties, it
would be the duty of the officers of the State to implement the law. Thus,
Parliament can interfere in internal administration of the States even without the
consent of the State. This constitutes a great encroachment on the autonomy of the
State, and reduces the States as mere agents of the Centre.

Under the Mines and Minerals (Development and Regulation) Act, 1957, the
Centre has taken under its control the regulation of mines and development of all
minerals and then has left to the States the task of regulating minor minerals by
making rules. In Quarry Owners’ Association v. State of Bihar18, the
rule-making power conferred on the States by the Centre under the Mines and
Minerals (Development and Regulation) Act has been held to be valid by the
Supreme Court.

17
Anwar v. State of Jammu & Kashmir, AIR 1971 SC 337 : (1971) 3 SCC 104.
18
Quarry Owners’ Association v. State of Bihar, (2000) 8 SCC 655: AIR 2000 SC 2870

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An interesting point to note here is that reading entries 54 in List I, and entry 23 in
List II, a mineral not centrally controlled lies within the State purview. 19 Therefore,
the Centre could have taken under its control only the major minerals and the
minor minerals could then have been regulated by the States under their own
constitutional powers. But, instead, the States now regulate the minor minerals as
delegates of the Centre. Further, an interesting administrative pattern has been
created under the Mining Concession Rules, 1949, promulgated under the Mines
and Minerals Act. The initial power to grant a mining licence for a major mineral
rests with the States, but then an appeal can be taken to the Central Government
against an order of the State Government. The State power is thus ultimately
subject to the Central power.

Census is another example. Census takes place once in ten years. It is not
practicable for the Centre to create an entirely new machinery for the purpose
every ten years and then to disband the same after the census is over. Therefore,
the Centre has to depend on the co-operation of the States for purposes of census.20

Under Art. 258(3), where powers and duties are entrusted by the Centre to the
States or their officers, the Centre is to recoup the States in respect of any extra
costs of administration incurred by the States in connection with those powers and
duties. The Centre and the States may agree as to the sums payable in this
connection, or, in default of agreement, the amount may be determined by an
arbitrator appointed by the Chief Justice of India. 21

What payment is to be made by the Centre to the State in this connection is

entirely a matter between the two governments and no third person can challenge
19
MP Jain, Constitution of India, 2019 edition
20
Ibid
21
MP Jain, Constitution of India, 2019 edition

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the entrustment or delegation of powers and duties on the ground of absence of

such payment. An agreement as to such payments is not a pre-requisite for
entrustment of powers by the Centre to the States.22

iii) Entrustment of power to centre:- According to A rt. 258A, a State

Government may, with the consent of the Government of India, entrust either
conditionally or unconditionally to the Central Government or to its officers,
functions in relation to any matter to which the executive power of the State
extends.23

This Article was inserted in the Constitution in 1956 by the Constitution (Seventh
Amendment) Act, as a corresponding provision to Art. 258(1). The lack of a
provision enabling a State to entrust its functions to the Centre was found to be of
practical consequence in connection with the execution of certain development
works in the States.

The complicated arrangements existing between the Government of India and the
Orissa Government in respect of the Hirakud Dam, a State enterprise, can be seen

from the details given in N.B. Singh v. Duryodhan.24 In this case the
appellant entered into a contract with the Union (President of India) in an
independent contract for the construction of the Hirakud Dam where the Centre
was entering into the contract on behalf of the State of Orissa as per the powers
under Art.258A. The High Court of Orissa observed that the relationship arising by
virtue of Art.258A between the centre and the state cannot be said to pertain to the
law of agency but is only a constitutional statutory entrustment in relation to the
exercise of the executive power which is a sovereign power. And by virtue of this

22
Mulchand v. State of Bihar, AIR 1974 Pat. 380
23
MP Jain, Constitution of India, 2019 edition
24
AIR 1959 Ori. 48, 65.

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executive power of the Union, the President through an authorised officer entered
into a contract with the appellant with regard to the digging of the canal. As such
even if the Hirakud Dam Project was held to be undertaken by the Government of
Orissa, yet the work regarding which the contract was entered into was one of the
works of the construction project undertaken by the Union Government by virtue
of the entrustment of the function in relation to the Hirakud Dam Project to the
Government of the Union.25

(c) All-India Services

Beside the separate services for the Union and the States the Constitution provides
for the creation of an additional "All-India Service" common to the Union and the
States. According to Article 312 if the Rajya Sabha passes a resolution supported
by not less than two-thirds of the members present and voting that it is necessary or
expedient in the nation's interest to do so. Parliament may by law provide for the
creation of one or more All-India Services (including an all-India Judicial Service)
and regulate recruitment and conditions of service for it. 26 The all-India Judicial
Service is not to include any post inferior to that of a district judge.
These services give cohesion to the federal structure and help in achieving greater
efficiency in the administration of the Union and the States. The all-India basis of
recruitment attracts the best available talent in the country to these services. The
two main All-India Services are the Indian Administrative Service (IAS) and the
Indian Police Service (IPS). The raison d’eter of creating All-India Services is that

25
V.N. Shukla’s CONSTITUTION OF INDIA, Mahendra Pal Singh, 13th edition
26
D.S. Garewal v. State of Punjab, AIR 1959 SC 512 : 1959 Supp (1) SCR 792.

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officers on whom the brunt of the responsibility for administration will inevitably
fall, may develop a wide and all-India outlook.27

The object of this provision is to ensure greater inter-State co-ordination and

implementation of the policies of the Central Government through these officers.
This also enables the Central Government to exercise a control over State in
matters of execution of Union laws.

(d) Grants in-aid28

Under the Constitution the financial resources of the State are very limited though
they have to do many works of social uplift under directive principles. In order to
cope with their ever-expanding needs, the Central Government makes grants-in-aid
to the States. Grant-in-aid to States thus serve two purposes:-

(1) Central Government exercises a strict control over the States because grants are
granted subject to certain conditions. If any State does not agree to the condition
the Central Government may withdraw the grant

(2) Generates a Centre-State co-ordination and co-operation if State wants to

develop its welfare schemes for the people of the State it may ask for financial help
from the Centre.

27
STATES REORGANIZATION COMMISSION REPORT, 232 (1955).
28
Constitutional Law of India, Dr. J.N. Pandey, 51st edition

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Jurisdiction over Territories Outside India

Article 260 enables the Government of India to undertake any executive,
legislative or judicial functions in respect of any territory not being part of the
territory of India. It may be done under an agreement with the Government of such
territory and only such functions may be undertaken as are vested in that
Government. Such an agreement, however, shall be subject to and governed by any
law relating to the exercise of foreign jurisdiction.

The Foreign Jurisdiction Act, 1947 provides for the exercise of jurisdiction by the
Government of India over territories outside India in respect of which the
Government of India has acquired jurisdiction by treaty, agreement or other lawful
means.

Full faith and credit clause

Article 261 (1) provides that "full faith and credit shall be given throughout the
territory of India to public acts, records and judicial proceedings of the Union and
of every State". As per Art. 261 (2) Parliament, by law, is empowered to lay down
the manner in which and the conditions under which such acts, records and
proceedings shall be proved and the effect thereof determined.

Clause (3) of Article 261 declares that the final judgments or orders delivered or
passed by civil Courts in any part of India shall be capable of execution anywhere
within the territory of India, according to law.

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The Punjab Haryana High Court in Firm Gauri Lal Gurdev Das Vs Jugal
Kishore Sharma29 said that- The provisions of Article 261 (1) and 261 (2) is
collectively called full faith and credit clause. Article 261(1) merely establishes a
rule of evidence and does not deal with jurisdiction. Sub-clause (2) empowers the
Parliament to lay down the rule of evidence and also the effect of the acts, records
and judicial proceedings by legislation. It appears id me that this clause is not an
absolute and unqualified constitutional command. It authorises the Parliament to
legislate on the subject.

It is argued that under this clause it is the bounden duty of every court situated
within the territory of India to execute every decree according to its tenor passed
by any court in India. If this were so then every legislative enactment of any
particular State would also be equally enforceable in every State within India.

Disputes Relating to Water

Article 262 authorizes the Parliament to provide by law for adjudication of any
dispute or complaint with respect to the uses, distribution or control of the waters
of any inter-State rivers and river valleys. Under clause (2) of this Article,
Parliament may by law provide that neither the Supreme Court nor any other Court
shall have any jurisdiction in respect of such disputes and complaints relating to
water of inter-State rivers and river valleys.

29
Firm Gauri Lal Gurdev Das vs Jugal Kishore Sharma And Anr AIR 1959 P H 265

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In T.N. Cauvery Sangam v. Union of India30, the Supreme Court held

that if the Central Government had failed to make a reference of the dispute, the
Court could, on an application under Article 32 by an aggrieved party, issue
mandamus to the Central Government to carry out its statutory obligation.

Under Article 262 Parliament has passed the River Board Act, 1956 and the Inter-
State Water Disputes Act, 1956. The River Board Act is meant for the regulation
and development of inter-State rivers and river valleys. This is established on the
request of the State Government to advise the Government. The Water Disputes
Act empowers the Central Government to set up a Tribunal for the adjudication of
such disputes. The decision of the Tribunal shall be final and binding on the parties
to the dispute. Neither the Supreme Court nor any other Court shall have
jurisdiction in respect of any water dispute which may be referred to such a
Tribunal under that Act.

The Supreme Court, however, could determine the jurisdiction of the Tribunal and
also direct the Tribunal to decide on the merits whether any party was entitled to
any interim relief on the facts of the case.

In State of Andhra Pradesh v. State of Karnataka31," the Supreme

Court held that a dispute between riparian States located in inter-State river basin,
relating to non-implementation of binding award of Water Disputes Tribunal,
constituted under the Inter-State Water Disputes Act, 1956, was not a water dispute
within the meaning of Section 2(c) of the Act, 1956. 32 It being so, the jurisdiction
of the Supreme Court under Article 131 was not ousted and the suit could not be

30
AIR 1990 SC 1316.
31
AIR 2001 SC 1560
32
Section 2(c) of the Inter-State Water Disputes Act, 1956 defines the term "water dispute,"

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held to be barred under Article 262 of the Constitution read with Section 11 of the
Act, 1956.

The Court explained that the present dispute had raised a question of execution and
implementation of an already adjudicated water dispute, which dispute would be
determinable by the Apex Court in the exercise of its original jurisdiction under
Article 131 of the Constitution.33

CO-OPERATIVE FEDERALISM

Though a Federal Constitution involves the sovereignty of the units within their
respective territorial limits it is not possible for them to remain in complete
isolation from each other and the very exercise of internal sovereignty by the units
require its recognition by and co-ordination of other units of the federation. Federal
Constitutions therefore generally provide certain rules for co-operation which the
units are expected to take into consideration while dealing with each other. This
co-ordination between the States and the Centre is called co-operative federalism.

Inter-State Council

Article 263 provides for the establishment of an Inter-State effect co-ordination

between States. The Inter-State Council is appointed by the President if it appears
to him that the public interest would be served by its establishment. The Inter-State
Council is generally charged with the duty of-

33
Narendra Kumar, Constitutional Law of India, 10th edition

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(a) inquiring into and advising upon disputes which may arise between States

(b) investigating and discussing subjects in which some or all of the States of the
Union and one or more of States have common interest;

(c) making recommendation on any subject and for the better co-ordination of the
policy and action with respect to that subject.

Though the Council can deal with legal or non-legal matters but its function is
merely advisory.

The Inter-State Council may be established by the President by order if it appears

to the President that public interest would be served by the establishment of the
Council. The President may further define the nature of the duties to be performed
by the Council. The organisation of the Council and the procedure to be followed
by it, is also to be determined by the President

Reading Article 263, it appears that the Council is envisaged to be an advisory

body having no authority to enforce its decisions.

The President has constituted the Central Council of Health and the Central
Council of Local Self-Government in the exercise of his power under Article 263.

Five Zonal Councils were set-up under the State Re-Organisation Act, 1956. These
are, Northern Council, Eastern Council, Western Council, Southern Council, and
the Central Council: Each Zonal Council consists of the Union Home Minister, the
Chief Ministers of the member States and two other Ministers nominated by the
Governor of the States concerned. The Union Home Minister acts as the ex officio
Chairman of each of these Councils. These Councils have been set up as an
instrument of inter-governmental consultation and cooperation mainly in socio-

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economic fields and also to arrest the growth of controversies and particularistic
tendencies among the States."

The setting up of the Inter-State Council as envisaged by Article 263 was

suggested in many quarters including the Administrative Reforms Commission, the
Rajamannar Committee."

Establishment of Inter-State Council The President of India in exercise

of the powers under Art. 263 has constituted the Inter-State Council on May 28,
1990. It consists of the following members:

(i) Prime Minister

(ii) Chief Ministers of all the States and the Union Territories having a
Legislative Assembly

(iii) the administrators of the Union Territories not having a legislative assembly

(iv) Six Ministers of Cabinet rank in the Union Council of Ministers to be

nominated by the Prime Minister. The Minister of State, having independent
charge in the Union Government may be invited when any item concerning
their ministry is to be discussed in the Council.

The Prime Minister shall be the Chairman of the Inter-State Council and preside
over its meeting. In his absence he may nominate any Union Minister of Cabinet
Rank to preside over the meeting.

Duties of the Council The Council shall be a recommendatory body and it

shall perform the following duties:

(a) investigate and discuss subjects of common interest

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(b) make recommendations for the better co-ordination of policy and actions on
such subjects

(c) deliberate on such matters of general interest to the States referred by the
Chairman to the Council.

Procedure of the Council: The Presidential Order provides that the Council
shall, in the conduct of its business, observe the following procedure:

(a) the Council shall adopt guidelines for identifying and selecting issues to be
brought before it

(b) the Council may meet at least thrice in every year at such time and place as the
Chairman decides

(c) the meetings of the Council shall be held in camera

(d) the members (including the Chairman) shall form the quorum for a meeting of
the Council

(e) all questions at a meeting of Council shall be decided by consensus

(f) the Council may in the conduct of its business observe such other procedure as
it may with the approval of the Central Government, lay down from time to time.

Secretariate of the Council- The Council shall have a secretariate

consisting of such officers and staff as the Chairman thinks fit to appoint.

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In its fifth meeting held on January 22, 1999 the council empowered itself as an
alternative forum to discuss issues of importance pending before other fora,
including Parliament. It was also agreed that issues of national importance could be
taken up for discussion with the permission of the Chair. The Council also decided
to fix a time limit for the Centre to reply to States issues referred to it by the latter,
which required approval on subjects that fall in List III but under Article 200
should not be reserved for President in a routine manner but when required under
the Constitution.

The issue introduction of safeguards for invoking Article 356, however, eluded the
Council. At the eighth Inter-State Council Meet in New Delhi, on August 31, 2001,
it has been resolved that it would be obligatory for the Centre to consult State
Governments on the appointment of the Governors. The Central Government has
also agreed to suitably amend the Constitution to bring the various
recommendations of the Sarkaria Panel into force.34

The 12th meeting of Standing Committee of Inter-state Council was held in New
Delhi. The purpose of the meeting was to discuss the recommendations of the
Punchhi Commission on Centre-state relations. The meeting was chaired by the
Union Home Minister Rajnath Singh.35

34
See The Hindustan Times, Sept. 2, 2001, 13. In a meeting of the Council, held in Srinagar, a
concensus was reached on using Article 356 only with safeguards, as a measure of "last resort". It was
decided that the Union Government would take steps to ensure that essential features the Bommai
Judgment (see infra, 996-99) were suitably incorporated in the Constitution. See The Tribune, August 29,
2003.
35
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National Development Council

Planning in India has been unified and comprehensive, insofar as, the Plans deal
with both the Central and State subjects. With a view to give a sense of
participation to the States, as well in the planning process, and to achieve an
effective coordination in the implementation of planning decisions, a machinery
for mutual consultation between the Central and State Governments, the Planning
Commission, was established on August 6, 1952, in the shape of the National
Development Council (NDC)."

The NDC aims: (i) to strengthen and mobilize the efforts and resources of the
Nation in support of the plans; (ii) to promote common economic policies in all
vital spheres; and (iii) to ensure the balanced and rapid development of all parts of
the country.

To secure these aims, the NDC is entrusted the functions: (1) to review the
working of the National Plan from time to time; (ii) to consider important
questions of social and economic policy affecting national development; (iii) to
recommend measures for the achievement of the aims and targets set out in the
National Plan; and (iv) to lay down the guidelines for the formulation of the
National Plan."

The membership of the NDC includes the Prime Minister, the Union Cabinet
Ministers, the Chief Ministers of the States, besides the Members of the Planning
Commission.

The NDC is consulted by the Planning Commission (PC) at various stages. The
Commission first prepared a rough draft of the Plan. It is then placed before the

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Council. On the basis of Council's recommendations, the draft is suitably modified

and it is sent to the Union and State Governments. After they submit their plans to
the Planning Commission, the PC integrates the plans into one general and
comprehensive plan for the whole country. The Plan so emerged and approved by
the Union Cabinet is considered by the NDC. It is then submitted to the
Parliament. So approved by the Parliament, the Plan is published to be the Official
Plan.

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