Union-State Relations:

Legislative, Administrative
And Financial Relations
Dr.E.Prema
Introduction
• The basic principle of federations is that the legislative and executive
authority is partitioned between the centre and the states not by any law to
be made by the centre, but by the constitution itself.... The states are in no
way dependent upon the centre for their legislature or executive authority.
The states and the centre are coequal in this matter” - Dr. B.R. Ambedkar
• The above statement makes it quite clear that the Indian Constitution
introduces a federal system as the basic structure of government of the
country. The union and the states derive their authority from the constitution
which divided all powers - legislative, executive and financial as between
them. The result is that the states are not delegates of the union, but they are
autonomous within their own spheres as allotted by the constitution.
• “The union and the states are also equally subjected to the limitations
imposed by the constitution”, for instance, the exercise of legislative powers
being limited by fundamental rights, if any of these constitutional
limitations are violated, the law of the legislature concerned is liable to be
declared invalid by the courts.
Legislative Relations
• Chapter I of Part XI (Article 245-254) of the Indian Constitution specified two-
fold division of Legislative powers between the Union and the States. (1) with
respect of territory (2) with respect of subject matter

• (1) Territorial Jurisdiction As regards territory, Article 245 (1) provides that
subject to the provisions of this constitution, a State Legislature may make laws
for the whole or any part of the state to which it belongs. It is not possible for a
State Legislature to enlarge its territorial jurisdiction under any circumstances
except when the boundaries of the state itself are widened by an act of Parliament.
Parliament has, on the other hand, the power to legislate for ‘the whole or any part
of the territory of India, which includes not only the states but also the union
territory of India [Art. 246 (1).
• It also possess the power of ‘extra-territorial legislation [Art. 245 (2), which no
state legislature possesses. This means that laws made by parliament will govern
not only persons and property within the territory of India but also Indian subjects
resident and this property situated anywhere in the world.
 Distribution of Legislative Powers
(subject matter)
• a federal system postulates a distribution of powers between the centre
and the states. The nature of distribution varies according to the local
and political background in each country.
• As regards the subjects of legislation, the constitution adopts from the
Government of India Act, 1935 and divides the powers between the
Union and the States under three lists. They are as follows: (i) The
Union list (ii) The State List and (iii) The Concurrent List.
Cont..
• The Union List: At present the Union List consists of 99 Subjects over
which the Union shall have exclusive power of legislation. The Subjects
mentioned in the Union List are of national importance, for example,
defence and foreign affairs etc..
• The State List: The State List comprises of 61 Subjects over which the
states have exclusive power to make laws. The Subjects mentioned in the
State List are of local or regional importance, such as public order, police
and public health etc..
• Concurrent List: The Concurrent List includes 52 subjects and both the
union and the states can make laws on this list but in case of conflict
between the Central Law and the State Law, the Central Law will prevail
over the State law. The purpose of adding the List to the constitution was to
secure uniformity in the main principles of law throughout the country
Union List State List Concurrent List
Defence, Foreign affairs, Public order and police, Criminal law and Civil
Banking, Procedure, Local Government, Public Procedure, Marriage
Insurance, Currency, and Health and Sanitation, Contracts, Torts, Trusts,
coinage, Union duties and Agriculture, Forests, Welfare of Labour.
Taxes Railways, Highways, Fisheries. State taxes and Economic and Social
Shipping, Airways, Posts Duties, State Public Planning and Education
and Telegraphs, Foreign Services, Land Revenue, Forests, Adulteration of
loans, Reserve Bank of Taxes on Agricultural Foodstuffs. Trade Unions,
India, Lotteries Income, Electricity, Newspapers,
International Trade and Estate Duty, Taxes on Land Books and Printing presses
Commerce, Corporation Tax and Buildings, Alcoholic and others.
and others. liquors for Human
consumption, Taxes on the
sale of Electricity and
others.
Residuary Powers
• It is quite interesting to note that the residuary powers are vested in the
union, while in the United States of America and Australia, these
powers are given to the states. Article 248 says that, Parliament has
exclusive power to make any law with respect to any matter not
enumerated in any one of the three lists. This reflects the leanings of
the Constitution-makers towards a strong centre. Another notable
thing regarding to residuary powers is that “the final determination as
to whether a particular matter falls under the residuary power or not is
that of the courts.’’
Predominance of the Parliament
• In spite of a clear demarcation in the law-making power of Parliament
and State Legislatures, Parliament was assigned a predominant
position in the general Legislative field. If a matter happened to be
included in the Union list and the State List, and if there was ever a
conflict between them the Union List prevailed.
• Similarly, if there was an overlapping between the Union and
concurrent lists, the Union list was paramount, and the concurrent
list had priority over the State List. Clause (4) of Article 246 of the
Indian Constitution further provided that, Parliament has power to
make laws with respect to any matter for any such part of the territory
of India as had not been included in a State, notwithstanding that such
matter was a matter enumerated in the State List.
1. Power of Parliament to legislate in the National Interest

• The predominance of Parliament in the sphere of lawmaking was

established by several Articles of the Indian Constitution. Article 249,
provided that, if Rajya Sabha declared by a resolution supported by
not less than two-thirds of the members present and voting that it was
necessary or expedient, in the national interest that Parliament should
make laws with respect to any matter enumerated in the State List
specified in the resolution, it becomes lawful for Parliament to make
laws for the whole or any part of the territory of India with respect
with that matter during the period the resolution remained in force.
• Such a resolution remained in force for such period, not exceeding one
year, as might be specified therein. The Rajya Sabha, however, could
extend the period of such a resolution for a further period of one year
from the date on which it would otherwise have ceased to operate.
2. During Proclamation of Emergency
• Article 250 says that, the Parliament shall have the power to make a
law on any item of the State List in case, a proclamation of emergency
is in operation. Such a law shall apply to the whole country or any part
thereof in the case of National Emergency (under Article 352) and to
any state under President’s Rule (under Art. 356) or Financial
Emergency (under Art. 360).
• The laws of the state or states shall remain inoperative during this
period to the extent of being repugnant to the law of the centre (Art.
251).
3. Agreement between States
• Art. 252 makes a provision for legislation by invitation. In case, the
Legislatures of two or more states pass a resolution and request the
centre to make a law on a certain item of the state List, then it shall be
lawful for the Parliament to make a law.
• Firstly, such a law shall apply to the states which made such a request,
though any other State may adopt it by passing such a resolution
subsequently.
• Secondly, such a law can be amended or repealed only by the
Parliament.
4. For giving effect to International agreements
• Parliament shall have the power to legislate with respect to any subject
for the purpose of implementing treaties or International agreements
and conventions. In otherwords, the normal distribution of powers will
not stand in the way of Parliament to enact legislation for carrying out
its International obligations, even through such legislation may be
necessary in relation to a state subject (Art. 253).
5. Avoiding inconsistency
• When a law of the State Legislature is inconsistent with any law of the
Parliament, the law of Parliament prevails over the law of the State.
• 6. Accession of new States
• Parliament by law can accede new States into the Indian Union. It can
also make laws to this effect.
 7. In case of failure of Constitutional machinery
in the States
• The predominance of Parliament was further established by Article
356 and 357 of the Indian Constitution. Article 356 stipulated that, if
the President was satisfied that a situation had arisen in which the
government of a state could not be carried on in accordance with the
provisions of the Constitution, he might declare that the powers of the
Legislature of that state would be exercisable by or under the authority
of Parliament.
• Parliament might, Article 357 provided, delegate the law-making
power to the President.
• The effect of Article 356 would be that the Legislature of the state in
question would stand dissolved or suspended and the law-making
power would vest in Parliament during the period the proclamation of
Emergency remained in force.