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Constitutional Developments in
India 1600-1955
M. RAMASWAMYq
II
With the grant of the Dewani by the Moghul Emperor Shah
Alam in I765,' which furnished a de jure basis for the exercise
of British authority in Bengal, Bihar and Orissa, the second period
(1765-1858) of our historical survey begins. The Company, which
for a century and a half after it commenced its career in India
maintained its original character as a commercial institution,
began by about the middle of the eighteenth century to assume
the responsibilities and acquire the attributes of a territorial power.
For many years Parliament took no active interest in the fortunes
of the East India Company. But when the Company began to
acquire large territories, and the problems of government in those
areas became immense, Parliament was forced to intervene in
Indian affairs. The famous Regulating Act of 1773,4 which is
associated with the name of Lord North, made detailed provisions
2. 1 HuwrjN, A HisrOny or BRrmsH IhD 250 (1899).
3. 1 BA=ERjEE, IDIAN CONSTITUTIONAL DocumEsmS 6 (2d ed. 1948).
4. 13 GEo. 3, c. 63.
STANFORD LAW REVIEW [Vol. 8: Page 326
which were the Indian Councils Acts of 1874" and 1892,6 en-
larging the size of the legislatures and widening the range of their
functions. In the year 186i, the Indian High Courts Act' 7 was
passed by Parliament authorizing the Crown to constitute by letters
patent high courts of judicature at Calcutta, Bombay and Madras.
Following the establishment of these courts, the old chartered su-
preme courts and the Sadr Adalat courts were abolished and their
powers vested in the new high courts.
IV
A. The Montagu-Chelmsford Reforms
The Government of India Act, 1919, was based upon the fa-
mous declaration of British policy toward India made by the then
Secretary of State for India, The Right Honorable Edwin Mon-
tagu, inthe House of Commons on August 2o, 1917. He said the
British Government aimed at "the increasing association of Indians
in every branch of the administration, and the gradual develop-
ment of self-governing institutions, with a view to the progressive
realisation of responsible government in India as an integral part
of the British Empire."" These reforms are associated with the
names of Mr. Montagu and Lord Chelmsford, the Viceroy at the
time. The fourth period of survey commences in i92o-when the
system of dyarchy, the features of which are described below,
was brought into operation in the provinces-and closes with the
inauguration of provincial autonomy in 1937 under the terms of
the Government of India Act, i935."
While the Moniford" Reforms introduced no change in the
autocratic set-up of the central government, it was provided that
in the administration of a governor's province, a certain number
of subjects called the "transferred subjects" would be administered
by the governor acting in conjunction with the ministers." These
ministers were to be selected by the governor and to hold office
during his discretion. No minister could hold office for more than
six months unless he was or became an elected member of the
15. 37 & 38 Viar., c. 91.
16. 55 & 56 Viar., c. 14.
17. 24 & 25 Viar., c. 104.
18. 97 H.C. DEB. (5th ser.) 1695 (1917).
19. 26 Gao. 5, c. 2.
20. A popular term formed by taking the first syllable from Montagu and the last
syllable from Chenlmsford.
21. Giuprris, Tam BamsH IMPAcr N INDI 319 (1952).
STANFORD LAW REVIEW [Vol. 8: Page 326
It may be pointed out in this context that the act of 1919 provided
that at least seventy percent of the members of a provincial legis-
lative council should be elected members and not more than
twenty percent official members. 8 Under the new act, the gov-
ernor was required, in relation to the transferred subjects, to be
guided by the ministers unless he saw sufficient cause to dissent
from their opinions and act in his discretion2 The important
transferred subjects in all the provinces were education, local gov-
ernment, public health and sanitation, medical administration,
agriculture, fisheries and regulation of alcoholic beverages and
excises thereon. Forestry was a transferred subject in some prov-
inces and not in others. The reserved subjects were administered
by the governor with the help of an executive council whose
members consisted either of officials drawn mostly from the ranks
of the Indian civil service or nonofficials specially appointed. This
scheme of the provincial governments working in two sections,
brought into operation by the Montford Reforms, was known as
dyarchy. Though the act made no provision for joint deliberation
by the two halves of government, the Joint Parliamentary Com-
mittee attached considerable importance to joint meetings of the
two in regard to "a large category of business of the character
which would naturally be the subject of Cabinet consultation."'"
In actual working, however, the practice was not uniform in all
the provinces. Although the dyarchical form of government, even
as conceived by its authors, involved joint deliberation, there was
no question of joint responsibility for the decisions taken by the
22. Report of the Indian Statutory Commision, vol. 1, p. 152 (1930).
23. 9 & 10 GEo. 5, c. 101, § 7(2).
24. Id. § 4(3).
25. Report from the Joint Select Committee of the House of Lords and the House of
Commons Appointed to Consider the Government of India Bill, d. 6 (Nov. 17, 1919).
May 1956 ] INDIAN CONSTITUTION
Muslim and Hindu areas for incorporation into Pakistan and India
respectively, and also the inclusion of the Sylhet district, which
formed part of Assam, into the eastern wing of Pakistan with East
Bengal. The Indian Independence Act, 1947, which created the
two independent Dominions of India and Pakistan, provided for
the division of the personnel of the Constituent Assembly; the
members representing the areas included in the Dominion of
Pakistan were to be formed into a separate Constituent Assembly
for that country, while the remaining members were to function
as members of the Constituent Assembly of the Dominion of
India." It was this Indian Constituent Assembly, a statutory body
enjoying sovereign powers, that framed the Constitution of India.
While it is a fact that the legal source of authority for the func-
tioning of the Constituent Assembly of India is to be found in an
act of the British Parliament, the actual ordaining of the Consti-
tution was an exercise of the inherent rights of a sovereign people
to determine the shape and content of their new charter of gov-
ernment. With the enactment of the Indian Independence Act,
1947, and the coming into existence of the Dominions of India
and Pakistan on August 15, 1947, the final chapter of British rule
in India was closed.
VI
A. The Integration of the Indian States into the Democratic
Pattern
On the eve of independence, India consisted of two segments,
one comprising the territories of the more than 500 Indian States
ruled by autocratic Indian princes, and the other consisting of the
former British Indian provinces which from April i, 1937, had
been democratically governed by the people themselves. The as-
similation of these autocratic Indian States into the over-all demo-
cratic pattern was one of the difficult problems which confronted
India on the morrow of its independence. The story of the peace-
ful and orderly integration of these Indian States into the web of
Indian life, within a period of less than two and one-half years
from the time India got its independence-thanks to the dynamic
leadership of the then Deputy Prime Minister of India, the late
Sardar Vallabhbhai Patel-is a fascinating one. Some of its details
are narrated in Section B of this Article.
40. 10 & 11 GEo. 6, c. 30, S 8(1), (2) (a).
AMay 19561 INDIAN CONSTITUTION
I
On the 26th of January, i95o, India joined and greeted the
family of free nations as a sovereign democratic republic. It was
a day memorable in the annals of mankind, because on that day
an ancient country, which from the very dawn of history has been
in the vanguard of civilization, re-entered the world stage after a
temporary eclipse and resumed its onward march.
In the process of building a sound constitutional foundation
upon which to construct the future life of the nation, its architects
had to solve many difficult initial problems. With the country
broken up into two segments, one under the autocratic rule of
hereditary princes and the other under the democratic rule of the
people themselves, there would have been little hope of rearing
an enduring democratic fabric in the land. On August 15, 1947,
when the Indian Independence Act came into force, there were
May 1956] INDIAN CONSTITUTION
within the frontiers of the new Dominion of India not only nine
Governors' Provinces, which had been under democratic rule ever
since 1937, but also some 56o Indian States, which were under the
autocratic rule of hereditary princes. The British Government re-
fused to transfer its paramountcy rights over the Indian States to
the new successor state of the Dominion of India, and section 7
of the Indian Independence Act, 1947, terminated the suzerainty
rights of the British Crown, thereby causing all treaties and engage-
ments in force at the time between the British Crown and the
rulers of Indian States to lapse. This at one bound not only con-
ferred upon these states the theoretical rights to be independent
but also made them islands of territory cut off from the rest of
India. Their new relationship with the Indian Dominion was
left to be determined by future negotiation and adjustment. When
it is remembered that the territories of these principalities were scat-
tered throughout the length and breadth of India and equaled
roughly two-thirds of the area of the Governors' Provinces, their
integration into the web of Indian life became a matter of extreme
urgency. Moreover, it would have been extremely incongruous if
the people of these Indian States, who numbered nearly a third of
the population of the Governors' Provinces, had been allowed to
continue under the despotic rule of the princes, isolated from the
national upsurge that had brought the country its cherished free-
dom.
It is true that in the wake of the independence that came to the
country in August 1947, the peoples of a few of these Indian States,
who had built up democratic organizations over many years in their
territories, were able to wrest power from the hands of their rulers.
But in most states the people had neither the resources nor the
training required to throw off the yoke of their autocratic masters.
Apart from the need of salvaging these states from the morass of
feudal rule, it was necessary to reduce their number very con-
siderably, because most of them were not only small but also lacked
the resources required to sustain efficient administrations. The
problem of the successful integration of these states into the struc-
ture of India bristled with difficulties. But thanks to the vision
and statesmanship of the Deputy Prime Minister of India, Sardar
Vallabhbhai Patel, this rather intractable problem was solved in a
most admirable fashion. A large number of the Indian States were
merged into the territories of the adjacent Governors' Provinces.
STANFORD LAW REVIEW [Vol. 8: Page 326
III
A. The Preamble
The Constitution opens with a preamble.
WE, THE PEOPLE OF INDIA, having solemnly resolved to con-
stitute India into a SOVEREIGN DEMOCRATIC REPUBLIC and to
secure to all its citizens: JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship; EQUAL-
ITY of status and of opportunity; and to promote among them all FRA-
TERNITY assuring the dignity of the individual and the unity of the
Nation; IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day
of November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO
OURSELVES THIS CONSTITUTION.
C. Citizenship
The provisions on citizenship contained in articles 5 to 1o
do not comprise anything in the nature of a complete code on this
difficult subject. The problems to be solved in framing a satisfac-
tory law on citizenship are so many and so very complex that an
adequate law on the subject would require a whole host of pro-
visions. The new Canadian Citizenship Act, 1946, ' which has
been regarded as a model of its kind, contains no less than forty-
seven sections. The six articles in the Indian Constitution were
framed with the limited objective of defining what classes of indi-
viduals would be regarded as citizens of India from the outset;
Parliament was given authority to make "any provision with re-
spect to the acquisition and termination of citizenship and all other
matters relating to citizenship."8 The general effect of the pro-
visions on citizenship may be summarized as follows:
74. See notes 42, 43, 47, 49 supra.
75. INDxW CONsr. sched. 1, pt.D.
76. Id. art. 1(3).
77. Id. art. 2.
78. Id. art. 3.
79. 10 Gao. 6, c. 15 (Canada).
80. INDIAN CONST. art. 11.
May 1956 ] INDIAN CONSTITUTION
IV
A. FundamentalRights
Both the Simon Commission and the Joint Select Committee
had examined the proposal of incorporating safeguards for the
fundamental rights of the individual and had rejected it as im-
practicable. The Joint Select Committee in its report had observed:
But there are also strong practical arguments against the proposal,
which may be put in the form of a dilemma: for either the declaration
of rights is of so abstract a nature that it has no legal effect of any kind,
or its legal effect will be to impose an embarrassing restriction on the
powers of the Legislature and to create a grave risk that a large number
of laws may be declared invalid by the Courts because inconsistent with
one or other of the rights so declared. 4
V
A. The Union Executive
Although the Constitution provides for an elected President of
India in whom the executive power of the Union is vested,"' the
real executive that carries the burden of conducting the union
administration is the Council of Ministers, with the Prime Min-
ister at its head, which aids and advises the President in the exer-
cise of his functions. 1 ' The relationship that subsists between the
President and his Council of Ministers is analogous to the relation-
ship the Queen in England bears to the British Cabinet. The Con-
stitution expressly provides that the Prime Minister shall be ap-
pointed by the President, and the other ministers by the President
98. The idea of embodying a code of "Directive Principles of State Policy" was evi-
dently borrowed from the Irish Constitution of 1937.
99. See Ramaswamy, The Constitution of the Indian Republic, 28 CAN. B. REv. 1,
14 (1950).
100. INDIA r CONST. arts. 53(1), 54.
101. ld. art. 74.
May 1956 ] INDIAN CONSTITUTION
on the advice of the Prime Minister, and further that the Council
of Ministers shall be collectively responsible to the House of the
People 0 The principle upon which the British cabinet form of
government works, that the cabinet functions as a team and holds
office only so long as it enjoys the confidence of the legislature, is
therefore fully applicable to the Union Council of Ministers. The
ministers hold office during the pleasure of the President'0 and a
minister who for a period of six consecutive months is not a mem-
ber of either House of Parliament ceases to be a minister 0
The President of the Union is elected by an electoral college
consisting of the elected members of both Houses of the Union
Parliament and the elected members of the legislative assemblies
of the states.0"' In order to secure uniformity in the scale of repre-
sentation of the different states inter sese at the election, and equal-
ity between the states as a whole and the Union, an arrangement
of weighted votes has been adopted 0 The President, who holds
office for the term of five years,' is vested with the supreme com-
mand of the Defense Forces, the exercise of which is to be regulated
by law.' He can be removed from office by impeachment for vio-
lation of the Constitution, under the special machinery that has
been devised for that purpose. 9
The Vice-President of India is the ex-officio Chairman of the
Council of States."0 He is elected by the members of both Houses
of Parliament assembled at a joint meeting and holds office for a
term of five years."'
with the Chief Justice of India, the governor of the state and the
chief justice of the High Courte" A judge of the High Court,
who holds office until he attains the age of sixty,"' can be removed
from his position only by the President, on an address by each
House of the Union Parliament supported by a two-thirds ma-
jority, as in the case of a judge of the Supreme Court."' Each
High Court has superintendence over all courts and tribunals
throughout the territory in which it exercises jurisdiction."' Every
High Court has power in relation to its territory to issue direc-
tions, orders or writs, including writs in the nature of habeas
corpus, mandamus, prohibition, quo warranto and certiorari, for
the enforcement of the Fundamental Rights mentioned in part III
of the Constitution and for any other purpose."'
VII
The problem of distribution of legislative powers between the
Centre and the constituent units of a federal polity is always a
matter of great difficulty. Under the Constitution of India, an
almost exhaustive enumeration of all topics of legislation, including
151. Id.art. 217(1).
152. Ibid.
153. Id.art. 217(1)(b).
154. Id. art. 227(1).
155. Id. art. 226(1).
156. Id. art. 238.
157. ld. art. 238(1).
158. Id. art. 238(7).
159. Seep. 341 supra.
May X956 ] INDIAN CONSTITUTION
taxation, has been made, these being arranged under three sepa-
rate lists in the seventh schedule to the Constitution. In list I,
known as the Union List, are enumerated no less than ninety-seven
subjects that come within the exclusive powers of the Union Parlia-
ment. In list II, called the State List, are mentioned sixty-six sub-
jects that come within the exclusive competence of the state legis-
latures. List III, called the Concurrent List, includes forty-seven
items, in respect of which both the union and state legislatures
have powers of legislation, provision being made for a union law
in the concurrent field overriding a state law in the event of a
conflict.
The Union List includes subjects such as defense; foreign af-
fairs; citizenship, including naturalization and aliens; railways,
airways, aircraft and air navigation, posts and telegraphs, tele-
phones, wireless and broadcasting; currency, coinage and legal
tender; banking; foreign and interstate trade and commerce; in-
dustries whose control by the Union is declared by Parliament to
be expedient in the public interest; census; taxes on income other
than agricultural income; customs and export duties; corporation
tax; taxes on the capital value of the assets, exclusive of agricultural
land, of individuals and companies; and taxes on the capital of
companies.
The State List includes subjects like public order, police and ad-
ministration of justice; public health and sanitation, hospitals and
dispensaries; education in general, including universities; agricul-
ture; land and land revenue; forests; water storage; taxes on agri-
cultural income; estate duty on agricultural land; taxes on the con-
sumption or sale of electricity; and taxes on the sale or purchase of
goods other than newspapers.
In the Concurrent List we find such subjects as criminal law;
criminal and civil procedure; marriage and divorce; contracts;
transfer of property; torts; bankruptcy and insolvency; trade
unions; industrial and labor disputes; price control; factories and
electricity.
Many of the subjects in the Concurrent List were put there with
the idea of building up throughout the federal union a uniform
texture of laws on important subjects like contracts, civil and crim-
inal procedure, property rights and marriage and divorce. In fact,
we had already achieved uniformity in such matters under the
British regime. Some of the great Indian Law Codes that have been
STANFORD LAW REVIEW [Vol. 8: Page 326
in force in the whole of British India, like the Indian Penal Code,
the Civil and Criminal Procedure Codes, the Transfer of Prop-
erty Act, the Contract Act and the Evidence Act, are magnificent
pieces of constructive legislation. The Indian States had practically
copied the various Indian law codes into their own statute books.
The inclusion of the topics dealt with by these great codes in the
Concurrent List helps to preserve and strengthen the great frame-
work of uniform laws built up under the British regime.
I may also mention that the Union Parliament is given the
residuary power to make laws with respect to any matter, includ-
ing taxation, not enumerated in the Concurrent or State List.',"
There has been criticism in some quarters in India that the allo-
cation of powers under the Constitution has resulted in over-central-
ization of authority which, in a vast country like India, cannot be
in the best interests of the country. Considerations of space prevent
me from examining this criticism fully. I do realize the danger of
excessive concentration of powers, which might produce apoplexy
at the Centre and anemia at the circumference. I shall give some
reasons to show that the argument that there is over-centralization
under the Constitution cannot be sustained. The states, even under
the present scheme of allocation of powers, have control over many
important subjects like land; education; public health; hospitals
and dispensaries; law and order; water, and agriculture. In the con-
ditions that existed in India when so many centrifugal forces threat-
ening to disrupt our national life were in operation, it was abso-
lutely necessary to strengthen the hand of the Centre by arming it
with sufficient authority to counter them.
Moreover, it is well to remember that under modern industrial
conditions it was necessary to provide for control from the Centre
of the many economic forces that operate across state lines. Many
subjects allocated to the Centre under the plan of distribution of
powers written into the new Constitution were so allocated with
the primary intent of maintaining effective control over these
forces. In the United States, the commerce clause has not only
acted as a brake upon state action calculated to impede the free
flow of commerce across state lines but has also functioned as a
source of motive power for the construction of powerful federal
instruments for controlling, in the larger interests of the country,
the manifold activities that take place in the sphere of foreign and
160. Id. art. 248.
May 1956 ] INDIAN CONSTITUTION
VIII
I propose here to call attention to a few of the more important
features of the financial structure erected by the new Constitution.
I may point out, in this context, that this structure in its essential
features resembles the one that had been embodied in the Govern-
ment of India Act, i935y 2
The Union List contains a list of the taxes and duties that may
be levied under the authority of the Union Parliament.7 But it
167. Id. art. 253.
168. AuTRALIA CoNsr. § 81.
169. 71 C.L.R. 237 (1945).
170. Latham, C.J., while holding that the act was invalid as in substance a public
health measure and not incidental to an appropriation, expressed the view that the Com-
monwealth appropriation power extended to the appropriation of money for any national
purpose. See United States v. Butler, 297 U.S. 1 (1936); Massachusetts v. Mellon, 262 U.S.
447 (1923).
171. INDIAN CoNsT. art. 282.
172. 26 Gao. 5, c. 2, arts. 136-60. See also INDIAN CONsr. pt. XII.
173. Id. sched. 7, list 1(82)-(92).
Alay 1956 ] INDIAN CONSTITUTION
should not be supposed that the proceeds of all these taxes and
duties will inure to the benefit of the federal exchequer alone.
Stamp duties on certain classes of documents like negotiable instru-
ments, policies of insurance and bills of lading, and excises on me-
dicinal and toilet preparations containing alcohol, opium or other
narcotic drugs, are levied by the Government of India but collected
and the proceeds retained by the states within which they are lev-
ied. 7' There are a group of duties, chief among which are estate
duties or inheritance taxes on property other than agricultural land,
and terminal taxes on goods or passengers carried by railway, sea
or air, that are levied and collected by the Government of India but
assigned to the states and distributed among them in accordance
with such principles as Parliament may formulate. 75
The arrangement that had hitherto prevailed under the Gov-
ernment of India Act, 1935, by which the proceeds of taxes on in-
come, other than agricultural income, were treated as a divisible
head of revenue to be shared between the Centre and the units,
continues under the Constitution. Under the Government of India
Act, 1935, an Order in Council based on an award given by Sir Otto
Niemeyer regulated the percentage of the income tax proceeds
assigned to the provinces, and its allocation among them.'76 Under
the Constitution, this matter is regulated by the President with the
advice of the Finance Commission."'
Union excise duties on tobacco and other goods manufactured
in India-except alcoholic beverages, Indian hemp, opium and
other narcotics, in regard to which the states have been given the
exclusive power to levy excises--are levied and collected by the
Government of India. 7" But, if Parliament so provides, there shall
be paid out of the Consolidated Fund of India to those states to
which the law imposing the duty extends, sums equivalent to the
whole or any part of the net proceeds of the duty" Those sums
are divided among the eligible states in accordance with the terms
of the act. Customs duties and corporation taxes not only are levied
and collected by the union government but also are at its complete
disposal.'
Among the important taxes, duties and revenues coming within
the exclusive legislative competence of the states are taxes on agri-
cultural income; taxes on lands and buildings; duties of excise on
alcoholic beverages, Indian hemp, opium and other narcotic drugs;
taxes on the consumption or sale of electricity; taxes on the sale or
purchase of goods other than newspapers; taxes on luxuries, includ-
ing entertainments, amusements and gambling; tolls; taxes on pro-
fessions; land revenue 8
The President is directed by the Constitution to constitute a
Finance Commission, consisting of a chairman and four other
members for a term of five years or less.' 3 The Commission will
make recommendations to the President on, inter alia, (a) the dis-
tribution between the Union and states of the net proceeds of taxes
that are to be, or may be, divided between them under chapter I of
part XII, and the allocation between the states of the respective
shares of such proceeds; (b) the principles that should govern the
grants-in-aid of the revenues of the states out of the consolidated
fund of India, and (c) any other matter referred to the Commission
by the President in the interests of sound finance.'
IX
The importance of ensuring that there shall be no barriers to
the free flow of commerce and to free intercourse across state lines
in the new Indian federation was fully realized by our constitution-
builders. Every fully developed federation has seen to it that there
are no impediments to free intercourse and trade among the con-
stituent units. In James v. The Commonwealth of Australia,'
Lord Wright, delivering the judgment of the Privy Council, ob-
served:
The idea starts with the admitted fact that federation in Australia was
intended (inter alia) to abolish the frontiers between the different States
and create one Australia. The conception involved freedom from cus-
toms, duties, imposts, border prohibitions and restrictions of every kind:
the people of Australia were to be free to trade with each other, and to
181. Id. sched. 7, list 1(85). This does not include income tax distribution to the
states. Id. art. 270(4) (a).
182. Id. sched. 7, list II(46)-(63).
183. Id. art. 280(1).
184. Id. art. 280(3).
185. [1936] A.C. 578 (P.C.).
M ay IE956 ] INDIAN CONSTITUTION
pass to and fro among the States, without any burden, hindrance or res-
triction based merely on the fact that they were not members of the same
State.'
lidity of its order was sought from article 46, which provides that
"the State shall promote with special care the educational and 2 2
economic interests of the weaker sections of the people .... 0
This was a provision contained in chapter IV of the Constitution,
headed "Directive Principles of State Policy." ' 3 However, article
37 itself declares that the provisions contained in that chapter "shall
not be enforceable by any Court" although "the principles therein
laid down are ... fundamental in the governance of the country
.... ,,,' The Supreme Court in the Champakam case rejected the
Madras government's argument on this basis.
The directive principles of the State policy, which ... are expressly
made unenforceable by a Court, cannot override the provisions found in
Part III [the provisions in the Fundamental Rights chapter] which,
notwithstanding other provisions, are expressly made enforceable by
appropriate Writs, Orders or directions under article 32. The chapter on
Fundamental Rights is sacrosanct and not liable to be abridged by any
Legislative or Executive Act or order, except to the extent provided in
the appropriate article in Part III. The directive principles of State
policy have to conform to and run as subsidiary to the Chapter of Funda-
2 05
mental Rights.
that a person could with impunity incite through the press to mur-
der or other cognizable offense was completely wrong. 13 It was
considered at the time of the adoption of the first amendment,
which preceded the ShailabdaDevi decision, that the mention of
"incitement to an offence" as an additional ground for restricting
freedom of expression would help combat antisocial utterances of
a more serious character and, therefore, should be added to clause
(2) of article 19.
Another important amendment made by the 1951 act was to
make it possible for the State to make any law relating to "the carry-
ing on by the State or by a corporation owned or controlled by the
State, of any trade, business, industry or service, whether to the
exclusion, complete or partial, of citizens or otherwise." 1 " This
new provision introduced into article 19(6) was deemed neces-
sary in order that government might have the power to nationalize
any trade, business, industry or service when in the public interest
without being forced to justify the reasonableness of such action
before a court. Indeed, the occasion for this amendment was the
decision given by the Allahabad High Court in Moti Lal v. State
of UttarPradesh."' In that case petitions had been filed by certain
private operators of motor vehicles, challenging the constitutional
validity of the cancellation of previously issued permits. The court
ruled that the rights of the private operators could be affected only
if an appropriate enactment had been passed by the legislature and
such enactment was shown to be reasonable.
One of the great problems now being tackled by the various
state legislatures is large-scale agrarian reform. Its primary objec-
tive is the prevention of concentration of big blocks of lands in the
hands of a few landed proprietors, called Zamindars, by distribut-
ing them among the actual cultivators of the holdings. The con-
stitutional validity of a number of state enactments in this field was
challenged by the Zamindars on various grounds, chiefly (i) that
there was no public purpose behind the acquisition of the Zamin-
dari interests; (2) that there was a denial of equal protection of the
law in contravention of the constitutional guarantee contained in
article 14 in that the smaller Zamindars were given higher rates of
compensation on a graduated scale than the bigger ones, and (3)
that the compensation awarded was illusory and a violation of the
213. Id. at 657-60, 15 S.C.J. at 466-67.
214. INDIAN CONsr. art. 19(6), as amended, Constitution (First Amendment) Act
§ 3 (1951).
215. [1951] A.I.R. Allahabad 257.
May 1956 ] INDIAN CONSTITUTION
Now this ruling of the Supreme Court in the Bela Banerjee case
meant that unless the law provided for compensation which com-
prised the full money value or in other words the market value of
the property acquired, the law would be invalid as infringing
article 31(2) of the Constitution. The Government of the day,
deeply concerned about the implementation of its basic policy of
constructing a socialistic pattern of society as envisaged by the
directive principles of state policy contained in part IV of the Con-
stitution, thought that its socialistic program could not be brought
to fruition if the Constitution required it to pay the full market
value of the property acquired for public purposes. It held the view
that while market value as a standard of assessing compensation
for small or moderate individual properties was justifiable enough,
that principle could not be made to work when large social engi-
neering schemes were contemplated. Therefore, an amendment
to article 31(2) was proposed, barring the courts from assailing the
legislative judgment regarding compensation on the ground that
it was inadequate.12 ' The Home Minister, Mr. Govind Ballabh
Pant, was reported 6 to have observed in explaining it to the House
of the People, that it made clear "the intentions of the authors of
224. Id. at 563-64, 17 S.C.J. at 98.
225. IND kN CONsr. art. 31(2), in its amended form reads as follows: "No property
shall be compulsorily acquired or requisitioned save for a public purpose and save by
authority of a law which provides for compensation for the property so acquired or
requisitioned and either fixes the amount of compensation or specifies the principles on
which, and the manner in which, the compensation is to be determined and given; and
no such law shall be called in question in any court on the ground that the compensation
provided by that law is not adequate."
226. The Hindu, Madras, April 14, 1955, p. 7, cols. 1-2 (Dak. ed.).
STANFORD LAW REVIEW [Vol. 8: Page P26
the Constitution and to that extent relieves all the courts of the
embarrassing duty of interpreting laws contrary to their own senti-
ments because of the anomalous ambiguity of the language." The
bill, he said, "tries to make the language precise and clear. While
compensation should be paid whenever property is acquired, courts
could be approached only when the compensation was illusory or
when there had been a fraud on the Constitution." The bill would
not apply to acquisition of petty property for administrative pur-
poses, he assured the legislators, but would apply "only to cases
which come within the compass of what the Prime Minister has
called social engineering." In any social reform of "prodigious
proportions," the Home Minister continued, the Legislature was
the only constituted body which could take into account all rele-
vant factors; in determining the compensation to be paid, various
national and international factors had to be taken into considera-
tion, several of which were beyond the purview of the courts.
Further, a new clause (2A) was added to section 31.
Where a law does not provide for the transfer of the ownership or right
to possession of any property to the State or to a corporation owned or
controlled by the State, it shall not be deemed to provide for the com-
pulsory acquisition or requisitioning 2of7 property, notwithstanding that it
deprives any person of his property.
The object of this provision was to restrict the wide meaning given
by the Supreme Court to the word "deprivation" of property in
State of West Bengal v. Subodh Gopal Bose.2 8 The court had in-
cluded in that term any substantial abridgment of the right of the
owner to use or enjoy his property. Mr. Chief Justice Patanjali
Sastri observed:
No cut and dried test can be formulated as to whether in a given case the
owner is "deprived" of his property within the meaning of article 31;
each case must be decided as it arises on its own facts. Broadly speaking
it may be said that an abridgement would be so substantial as to amount
to a deprivation within the meaning of article 31, if, in effect, it with-
held the property from the possession and enjoyment of the owner, or
seriously impaired its use and enjoyment by him, or materially reduced
229
its value.
227. INDIA CoNs'r. art. 31(2) (A), added by Constitution (Fourth Amendment) Act
§ 2 (1955).
228. [1954] S.C.R. 587, 17 S.C.J. 127.
229. Id. at 618, 17 S.C.J. at 144.
May 1956 ] INDIAN CONSTITUTION
230. In fact, as noted already, arts. 31A and 31B were added to the Constitution in
order to prevent Zamindari abolition laws from being held up by litigation. See p. 000
supra.
231. [1954] S.C.R. 674, 17 S.C.J. 175.
STANFORD LAW REVIEW (Vol. 8: Page 326
II
The map of India is being redrawn once again. On the date of
inauguration of the Constitution, there were nine part A states,
232. [1950] S.C.R. 869, 14 S.C.J. 29.
233. The suit was dismissed in the trial court. On appeal, the Bombay High Court
affirmed. Dwarkadas Shrinivas v. Sholapur Spinning & Weaving Co., [1951] A.1LR.
Bombay 86.
234. Dwarkadas Shrinivas v. Sholapur Spinning & Weaving Co., [19541 S.C.R. 674,
17 s.CJ. 175.
May 1956] INDIAN CONSTITUTION
A. FundamentalRights
The Supreme Court of India has already done very good work
239. The Hindu, Madras, Oct. 10, 1955, p. 5, cols. 1-2 (Dak ed.).
240. See The Hindu, Madras, Oct. 25, 1955, p. 7, cols. 1-2, p. 9, col. 2 (Dak ed.).
241. See p. 340 supra.
May 1956] INDIAN CONSTITUTION
cial courts. Chief among these were the elimination of the com-
mittal procedure for sessions cases and the substitution of the pro-
cedure laid down in the Code for trial of warrant cases by a magis-
trate, trial without jury and assessors, restriction of the court's
power in granting adjournments and the elimination of a com-
plete new trial when a case was transferred from one special court
to another.
The respondents had been tried and convicted by a special court
established under the impugned act for serious offenses committed
in the course of an armed raid on a factory, and sentenced to various
terms of imprisonment. The High Court of Calcutta on appeal
set aside their convictions and ordered a retrial on the ground that
their trial under the provisions of the West Bengal Special Courts
Act had deprived them of the equal protection of the laws guar-
anteed by the Constitution. 5' The State of West Bengal thereupon
appealed the High Court decision to the Supreme Court. The
Supreme Court held the act unconstitutional in giving arbitrary
powers to the government to select which cases to refer to the spe-
cial courts, in completely ignoring the principles of classification
laid down by the Code of Criminal Procedure and in setting up a
new procedure without any attempt to particularize or classify the
offenses or cases to which it was to apply. 52
articles 301 to 304 and article 286. Article 286(I) and (2) read as
follows:
(i) No law of a State shall impose, or authorize the imposition of, a
tax on the sale or purchase of goods where such sale or purchase takes
Place-
(a) outside the State; or
(b) in the course of the import of the goods into, or export of the
goods out of, the territory of India.
Explanation-For the purposes of sub-clause (a), a sale or purchase
shall be deemed to have taken place in the State in which the goods have
actually been delivered as a direct result of such sale or purchase for the
purpose of consumption in that State, notwithstanding the fact that un-
der the general law relating to sale of goods the property in the goods
has by reason of such sale or purchase passed in another State.
(2) Except insofar as Parliament may by law otherwise provide, no
law of a State shall impose, or authorize the imposition of, a tax on the
sale or purchase of any goods where such sale or purchase takes place in
the course of inter-State trade or commerce: ... 260