Centre state relations

Centre state relations made simple

1. Centre State Relations Prepared by Vidya A R BA.LL.M PGDIM

2. Centre State Relations Chapter I of Part XI (Articles 245 to 255) of the Indian Constitution read with 7th Schedule covers the legislative relationship between the Union and the States.  The entire legislative sphere has been divided on the basis of:  a. Territory with respect to which the laws are to be made, and  b. Subject matter on which laws are to be made.  Vidya A R

3. Territorial jurisdiction  Parliament may make laws for the whole of India and the legislature of a state may make laws for the whole or any part of the state.  Parliament in some cases can make laws which are effective even outside India.  Vidya A R

4. Subject matter jurisdiction  On the basis of subject matter jurisdiction is divided in to Union List - This list contains the subject matter in which parliament has power to legislate. In no case state has power to legislate on the given matters. There are 97 entries in this list. The main subjects of the union list are of national interest and importance like defence, foreign affairs, currency and coinage, war and peace, atomic energy, etc.   Vidya A R

5. State list Contains the matters in which state legislature has power to legislate. But at the time of proclamation of emergency the power of the state shifts to the parliament. There were 66 entries in this list initially (currently there  are 61 items). The main subjects of the state list are public order, police, state court  fees, prisons, local government, public health and sanitation, hospitals and dispensaries, etc.  Vidya A R

6. Concurrent List Contains the matters in which both parliament and state legislature can legislate. When there is a conflict between such laws made by centre and state on same subject matter then the law made by parliament shall prevail over the law made by the state legislature. There are 47 entries (though there are 52 items currently) in this list. The main subjects listed in this list are criminal law, criminal procedure, marriage and divorce, transfer of property, etc. Vidya A R

7. Residuary list With respect to all those matters which are not included in any of  the 3 lists, Parliament has the exclusive power to make laws. It is called the residuary legislative power of parliament.  Vidya A R

8. Power of Parliament to make Laws on State List   State Legislatures have the exclusive powers to make laws with respect to the subjects in the State List Exceptions are 1. In the National Interest - whenever parliament feels that it is necessary to legislate on the state list in public interest 2. During a proclamation of emergency , Parliament has power to make laws for the whole or any part of the territory of India These laws will cease to have effect on the expiration of 6 months after the proclamation ceases to operate.  Vidya A R

9. 3. Breakdown of Constitutional Machinery in a State - In case the Governor of a State reports to the President, or he is otherwise satisfied that the Govt of a State cannot be carried on according to the provisions of the Constitution, President) can make a proclamation to that effect.  4. On the request of two or more States - The exercise of such power is conditional upon an agreement between two or more States requesting Parliament to legislate for them on a specified subject. Vidya A R

10. The law so made may be adopted by other States also, by passing resolutions in their legislatures. Once such law has been  ade, the power of those State legislatures which originally requested or which later on adopted such law is curtailed as regards that matter;  Vidya A R

11. 5. Legislation for enforcing international agreements - Parliament has exclusive  power with respect to foreign affairs and entering into treaties and agreements with  foreign countries and implementing of treaties and agreements and conventions with foreign countries and to give effect to the agreement parliament needs to pass a  law on the subject-matter which originally belongs to the state, it can do so.  Vidya A R

12. Interpretation of the Legislative Lists  Plenary Powers: The first and foremost rule is that if legislative power is granted with respect to a subject and there are no limitations imposed on the power, then it is to be given the widest scope that its words are capable of, without, rendering another item nugatory.  A legislature to which a power is granted over a particular subject may make law on any aspect or on all aspects of it; It can make a retrospective law or a prospective law and it can also make law on all matters ancillary to that matter. Vidya A R

13. For example, if power to  collect taxes is granted to a legislature, the power not to collect taxes or the power to remit taxes shall be presumed to be included within the power to collect taxes. Vidya A R

14. Harmonious Construction Different entries in the different lists are to be interpreted  in such a way that a conflict between them is avoided and each of them is given effect. It must be accepted that the Constitution does not want to create conflict and make any entry nugatory.  Vidya A R

15. The rule of pith and substance Means that where a law in reality and substance falls within an item on which the legislature which enacted that law is competent to legislate, then such law shall not become invalid merely because it incidentally touches a matter outside the competence of legislature.  Vidya A R

16. Doctrine of colourable legislation It says that ‘whatever legislature can’t do directly, it cant do indirectly.’ When a legislature seeks to do something in an indirect manner what it cannot do directly, the court struck such law.  Vidya A R

17. Freedom of Trade, Commerce and Intercourse  Art 301 s ays that the trade, commerce and intercourse throughout the territory of India shall be free. Restrictions in the form of taxes can be  imposed. Applies throughout the territory of India. Not only applicable to intra state but also to inter state trade, commerce and intercourse. The intension is to make whole territory of India as one for free flow of trade and commerce.  Vidya A R

18. Articles 302 & 303 Parliament can impose restriction on freedom of trade, commerce and  intercourse in public interest.  Art 303  While imposing restrictions, the parliament should not discriminate between the states.  Discrimination can only be done in case of scarcity of goods.  Vidya A R

19. Articles 304 & 305 Art 304  State legislature can impose taxes on goods which comes into their state from other states if those goods are subject to taxation in their respective states.  Art 305  The laws which create state monopoly in any trade, etc. are valid irrespective of the fact  that they directly impede or restrict the freedom of trade and commerce.  Vidya A R

20. Thank You Vidya A R