The Union and The

States Relations
Legislative relations : Arts. 245 to 255
Administrative relations : Arts. 256 to 263
Financial relations : Arts. 264 to 293

Distribution of Legislative powers:

--The Constitution provides for two fold distribution.

--With respect to territory and subject matter.
Territorial Jurisdiction: Art.245(1)

--Parliament may make laws for the whole or any

part of the territory of India.
--The Legislature of a State may make laws for the
whole or any part of the State.

 According to Art. 245(2) a Parliamentary law shall

not become invalid on the ground it has extraterritorial operation.

Thus Legislative power of the Centre and the States

is subject to :
Fundamental Rights
Seventh Schedule
Restriction as to imposition of tax on sale or
purchase of goods by states, Art. 286(1)
Freedom of trade commerce and inter course,
Arts. 301& 302

Theory of Territorial Nexus:

--A law of parliament has extra-territorial operation.

Ex: In Wallace brothers and Co. Vs CIT. Bombay 1948
PC. A British company became a partner in a firm of
British India .
Held territorial nexus applies for levy of tax for income
derived from India.
Similarly in A.H.Wadia Vs CIT 1949 FC
Gwalior Govt. loaned at Gwalior to a company in
British India.
Tax by British India was upheld by applying theory
of territorial nexus.

Nexus test was applied to the state legislations also.

In Bombay Vs RMD Chamarbaugwala(1957) Bombay

Lotteries & Prize Competitions Control & Tax Act 1948

News paper Sporting Star printed & published from Bangalore
Wide circulation in Bombay
Imposition of tax on income derived held valid.

 State legislature not a delegate of the Union Parliament

Both derive power from the Constitution.
Legislatures are competent to make retrospective laws

Subject to Art. 20(1).

Legislatures are competent to over ride judicial

decisions- Make a validating Act.

The Legislature cannot delegate its essential legislative

functions.

Distribution of Legislative Powers: Subject matter

The GIA 1935 has introduced three fold

enumeration.
The Constitution has adopted the same.

U/A 246(1) Parliament has exclusive legislative

power to make laws on matters in the Union List of
Seventh Schedule 97/100.

A State Legislature has exclusive legislative power

on matters enumerated in the State List 66/61.

Both parliament & State Legislatures have power to

legislate on matters enumerated in Concurrent List47/52.

The Residuary Powers: Art 248 R/W Entry 97 of UL
-----The Parliament has exclusive legislative power
on residuary matters
----In USA, Switzerland and Australia States exercise
legislative power on residuary matters.

Principles of Interpretation of Lists

The Centre and the States cannot make laws outside

their allotted subjects .The S/C has evolved certain

principles to resolve the difficulty.
Plenary power of the legislature.
Power to alter the existing laws retrospectively and
prospectively - has power to pass validating Acts.
In State of Mysore Vs D Achiah Chetty (1969)
proceedings for acquisition of land of the respondent
taken under Mysore Land Acquisition Act 1894 instead
of Bangalore Improvement Act 1945B Act is more
favorable to respondent than M Act. Challenged as
discriminatory of Art.14Retrospective validating Act
was passed held valid

Predominance of Union power-

The Union List prevails over the State &

Concurrent Lists in case of over lapping
The Concurrent List prevails over that of the
State List.
Each Entry to be interpreted broadly
Avoidance of conflict & harmonious
construction
Widest possible & most liberal interpretation
should be given to language of each Entry.

In Gujarat University Vs Krishna 1963

--Guj.Uni.Act 1949 Gujarati prescribed as exclusive

medium of instruction & examination
Entry 11 of State List now Entry 25 of Concurrent List
empowered to Legislate in respect of education including
universities
Subject to Entries63 to 66of Union List co ordination and
determination of standards in institutions of higher learning
As the two Entries over lap the rule of Harmony is
required
The Guj Uni Act was struck down to the extent of
overlapping
The State Legislature has no power U/E 11 of State List in
prescribing exclusive medium of instruction.

In International Tourism Corp Vs Haryana 1981

-The S/C held that the residuary power cannot be given

expansive interpretation to cut short State Legislative
Power
- The resort to residuary power should be the last
refuge.
- S/3 Haryana Passenger and Goods Act 1952
- Tourism Corp. challenged States power of imposing
road tax on passengers & goods carried on national
highways
- Held valid U/ Entry 56 of State List as such taxes are
regulatory & compensatory
-Parliaments power U/E 97 of Union List was rejected.

Pith and Substance/Characterization

Union & State Legislatures are supreme within their

respective fields.
They should not encroach/ trespass into the field
reserved to the other.
If a law passed by one trespasses upon the field
assigned to the otherthe Court by applying Pith &
Substance doctrine, resolve the difficulty &declare
whether the legislature concerned was competent to
make the law.

If the pith & substance of law( i.e. the true object of

the legislation) relates to a matter within the

competence of the legislature which enacted it ,it
should be held intra viresthough the legislature
might incidentally trespass into matters not within its
competence.
The true character of the legislation can be

ascertained by having regardto the enactment as

a whole -- to its object to the scope and effect of its
provisions.

In profullakumar Mukherjee Vs Bank of Khulna (1942)

the PC applied pith & substance doctrineS. 100 GIAct

1935 is similar to Art .246 of the Constitution.
The Bengal Money Lenders Act 1940 provided for
limiting the amount and the rate of interest recoverable
by any money lender on any loan.
Challenged that the Bengal Legislature has no
legislative competence. The H/C held the Act intra
vires .But the F/C held it ultra vires. On appeal the P/C
reversed and held that Bengal Act in pith & substance is
within the provincial legislative field.
Money lending in Entry 27 List two. Promissory Notes in
Entry 28 List one. The interference was incidental.

In State of Bombay Vs F N Balsara 1951

Bombay Prohibition Act,1949 prohibited sale

& possession of liquors in the State
Challenged as voilative of Imports & Exports of

liquors a Central subject.

Held the Act in pith & substance fell under Entry 8 of

State List and not under Entry 41 of Union List.

Colourable Legislation
Maxim: What cannot be done directly cannot

also be done indirectly

The rule relates to the question of legislative
competency to enact a law
C L does not involve the question of
bonafides or malfides.
A legislative transgression may be patent,
manifest or direct or may be disguised, covert
or indirect.

C L is applied to the latter cases.

It is also described as fraud on constitution.
In Bihar Vs Kameswar Singh (1952)- Bihar

Land Reforms Act ,1950 was struck down as a

C L as it did not provide in fact for any
compensation
In K T Moopil Nair Vs Kerala (1961)-Travancore
Cochin Land Tax Act,1955 struck down as
violated - Arts.14 &19(1) (f)income derived
Rs3100 where as tax levied was 54000. The
Act was held to be confiscatory

Repugnancy
Art. 254(1) declares that if a provision of a State law is

repugnant to a provision of Central law made on the

same subject in the concurrent list ,then central law or
pre existing law as the case may be prevails over such
State law.
In such a case it does not matter which law is first.
Rule of repugnancy applies : when there is a direct
conflict between the two provisions.one says do and
the other says do notboth occupy the same field.
Though no direct conflict parliament intends its law to
be complete and exhaustive on the subject.
Both laws occupy the same field.-Doctrine of occupied
field.
Such law becomes void to the extent of repugnancy.
Exception: Art. 245(2) a State law receiving the assent
of the president prevails not with standing its
repugnancy over Central law.

Proviso to Art 254(2) gives parliament ultimate

power to repeal or amend a repugnant State law

though it received presidents assent.
Zaverbhai Vs Bombay 1954 Essential Supplies Act
1946
M Karunanidhi Vs UOI 1974 T N Public Men
(Criminal Misconduct)Act 1974.
Parliaments power to Legislate on State Subjects:
--In the National interest : Art.249 in 1950 due to
Korean warin 1986 though RS passed a
resolution parliament did not respond.
--During Emergency: Art. 250States power to
legislate .
--With the consent of two or more States :Art 252
Implementation of a Treaty: Art.253

Administrative Relati0ns :

--Constitution contains elaborate provisions.

--They are flexible and permissive and not
rigid.
--Executive power is co extensive with
legislative power
-- ULSLCL it is states responsibility though
law is made by the parliament.
--Ex. Electricity(supply) Act 1956 E 38 C La
Central legislation but under State
administration.
--Industrial Disputes Act 1947 E 22 C L
under both
--Forest(Conservation) Act1980 E 17A CL

A lot of centralization of legislative powers

but a lot of decentralization of administrative

powers.
Union and States obligations (Art .256)
Unions directions to the States(Art.257) The
States must exercise executive power no to
impede or prejudice executive power of the
Union .
The centre can give directions as to how the
States should exercise their executive power .
Power of central direction extends to
1. construction and maintenance of
communications
of National or Military importance.

Central Govt. will reimburse the expenditure incurred

by the States.
Non- compliance will attract Art.356
Delegation of Unions functions to States Art.258
1. President with the consent of States either
conditionally or unconditionally entrust union
executive powers. Jayanthilal Vs F.N.Rana 64Land Acquisition Act 1984
2. Parliament can also use State machinery for execution of Union
Laws consent not necessary.
State Governments with the consent of the central Govt. can entrust
their executive powers - By order of the Governor.

Delegated Legislation

-Meaning : D L is used in two senses.

-1.Exercise of legislative power by a
subordinate authority delegated to it by
the Legislature.
-11.The subsidiary rules made by such
subordinate authority . Ex. Rules,
Orders , Regulations , Bye laws ,
Notifications etc.

Reasons for delegation:

a. The concept of welfare State

b. Pressure on Parliamentary time
c. Technicality
d. Flexibility
e. Experiment
f. Emergency

 Permissible delegation:

- Commencement ; Supplying details ;

Inclusion ; Exclusion ; Suspension ;
Modification ; Application of existing laws ;
Impermissible delegation :
- Essential legislative functions Ex. Repeal
of law ; Modification ; Exemption ;
Removal of difficulties ; Retrospective
operation ;

Future Acts ; Imposition of tax ;

Offences and penalty etc.
--In Re Delhi Laws Act (1951)
--Edward Mills Vs Ajmer (1955)
--Gwalior Rayon Silk Mfg. Co. Vs Asst.
Commr Sales Tax (1974)
--Hamadard Dawakhana Vs UOI (1960)