Unit 4 Constitutional Law II Notes 1

MMP

PARLIAMENTARY LEGISLATION IN THE STATE FIELD

1. ART. 249
Rajya Sabha
Resolution supported by two thirds of the members present and voting
that it is necessary or expedient in the national interest that Parliament should
make laws with respect to a matter in the State List specified in the resolution
it becomes lawful for Parliament to make laws
Such a resolution may remain in force for such period as is mentioned therein but
not exceeding one year;
it can be renewed as many times as may be necessary but not exceeding a year at a
time.
The law made by Parliament in the State List under this provision would cease to
have effect six months after the resolution passed by Rajya Sabha comes to an end.

2. Emergency

National Emergency
While a proclamation of emergency is in operation in the country under Art. 352,
Parliament is empowered under Art. 250 to legislate with respect to any matter in the
State List.
Article 250 does not restrict the power of a State Legislature to make a law.
However, because of Art.251, in case of repugnancy between a State law and a
Parliamentary law enacted under Art. 250, the latter is to prevail and the State law, to
the extent of repugnancy, and so long as the Parliamentary law continues, is to be
inoperative.

State Emergency

Parliament becomes empowered to make laws with respect to any matter in the State
List in relation to the State whose administration is taken over by the Centre under
Art. 356.

3. Delegation of legislative power

Article 252(1) provides for delegation of powers by two or more States to Parliament
so as to enable it to legislate with respect to a matter in the State List in relation to such
States.
If it appears to two or more State Legislatures to be desirable that any matter in the
State List should be regulated in such States by Parliament by law, and if resolutions to
that effect are passed by the Houses of those State Legislatures, Parliament can then
pass an Act for regulating that matter so far as those States are concerned.
A State can adopt the Central law, after it has been enacted, under Art. 252(2), even if
it had not passed the resolution originally under Art. 252(1).
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MMP

In the context of Art. 252(1), the term State Legislature means only the House or
Houses of the Legislature without including the Governor. Therefore, Governors
assent is not necessary to the resolution passed by the House or Houses.

Position of SL after delegation

When the State Legislature passes a resolution under Art. 252(1), Parliament becomes
entitled to legislate, and the State Legislature ceases to share the power to make law,
with respect to that matter.
The resolution operates as abdication or surrender of the State power with respect
to that matter which is the subject matter of the resolution, and it is placed solely in
the hands of Parliament which alone can then legislate with respect to it.
It is as if such matter is lifted out of List II and placed in List I of the Seventh
Schedule to the Constitution.

4. IMPLEMENTATION OF A TREATY
Article 253 confers on Parliament the capacity to legislate, irrespective of the scheme of
distribution of powers, to implement a treaty or a decision made at an international conference.

5. EXPANSIVE NATURE OF SOME UNION ENTRIES

Lastly, it may also be noted that certain entries, viz., 7, 23, 27, 52, 53, 54, 56, 62, 63, 67 in the
Union List are so worded as to make their ambit expansive.
For example, under entry 52, Parliament can take any industry under Central control by declaring
that its control by the Union is expedient in the public interest. This is a flexible provision
because an industry can stay in the State sphere until need is felt to bring it under Central
control.
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Financial Relations
Coffee Board v. C.T.O., AIR 1971 SC 870
All the taxes and duties levied by the Union do not form part of the CFI but many of
these taxes and duties are distributed among states and form part of CFSs.
The resources of the Union are not meant exclusively for the benefit of the Union
activities
Grants-in-aid
Finance Commission

Exemption of Union and State Properties from mutual taxation

Art.285(1) Union exempted from state tax

Art.289(1) State exempted from Union tax
Exception:
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MMP

If state enters into trade or business not declared as incidental to ordinary business
of govt by Parl. Then state shall not be exempt from Union taxation. [Art.289(2)]

Distribution of Proceeds of Taxes

Tax belonging to the Union exclusively

Tax belonging to the States exclusively
Duties levied by the Union but collected and appropriated by the states
Taxes levied as well as collected by the Union, but assigned to the states within which they
are leviable
Taxes levied and collected by the Union and distributed between Union and the States
Non-Tax revenues

Grants-in-aid [Art.275]

Finance Commission

Art.280 r/w the Finance Commission (Misc. Provisions) Act, 1951

President Every 5 yrs Chairman + 4 Members
Distribution of Financial Resources between the Union and States (Municipalities and
Panchayats)

Borrowing Powers of Union and States

Union Art.292 Unlimited Within or Outside

State Art.293
Constitutional Limitations
It cant borrow outside India
GoI, 1935 provides with consent of Union but denied in constitution,1950
Fiscal Federalism

Administrative Relations

Directions by the Union to State Governments

Unique feature of Indian Constitution
Borrowed from GOI, 1935
Art.365
Sanction for enforcement of Directions
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MMP

Delegation of Executive functions

President may entrust to the state government executive functions of the Union relating to
any matter [Art. 258(1)]
Parliament may delegate powers to the State governments and their officers [Art.258(2)]
SG can confer its administrative functions to Union (With the consent of GoI) [Art.258A]

All India Services [Art.312]

Inter-State Council

Art.263
Inquiring into and advising upon disputes which may have arisen between states
To investigate and discuss subjects of common interests between U&Ss or between
2 or more states.
Composition of Council
PM as Chairman
6 Union Cabinet Ministers
CM of all States
CM of UT or Administrator of UT (in case of no legislative assembly)

Inter-State Commerce Commission [Art.307]

Extra- Constitutional Agencies

Planning Commission
National Development Council
National Integration Council
NITI Aayog