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The position of industries after the Tika Ramji case may be explained as follows:
as regards the industries falling with the State Spheres the State have a comprehensive
regularity power covering all aspects of any such Industry. The States can regulate raw
materials for such industries under Entry 27, List II as ‘goods’ and also the finished
products of the same. As regard the centrally controlled industries, the process of
manufacture falls within the Central domain under Entry 52, List I; control over finished
products of these industries also falls under Central jurisdiction under Entry 22 in List III.
As regards the raw materials of these industries power lies mainly with the States under
Entry 27, List II, except in so far as the commodities specified in Entry 33, List III, which
the Centre may regulate. Regulatory power regarding centrally controlled industry would
thus appear to be somewhat fragmented in so far as some raw materials pertaining to
these industries may fall outside the Centre State co-ordination. Failure by a State to
ensure adequate supply of raw materials to an industry may hamper the same and the
Centre may be unable to take any corrective measures.
The Gujrat University4 case was quoted with approval by the Supreme Court in D.A.V.
College, Bhatinda V. State of Punjab. 5 In this case the Supreme Court struck down the
provisions of the Punjab University Act, 1961, prescribing Punjabi as the sole medium of
instruction on the ground that this aspect of education is covered under Entry 66, List I,
therefore the State was not competent to legislate in respect of medium of instruction in
the colleges and universities imparting higher education.
4
AIR 1963 SC 703
5
(1971) 2 SCC 261
The rationale of Gujrat University case appears to have been limited by the
Supreme Court in Chitralekha v. State of Mysore. 6 The question before the Court was
whether prescribing of higher percentage of marks for extracurricular activities for
admission to medical and engineering colleges lowered the standard of the education and
affected the power of the Centre under Entry 66, List I. It was ruled by the Supreme
Court that if the impact of the State law is so heavy or devastating as to wipe out or
appreciably abridge the Centre field, it might be struck down. But it could not be decided
on speculative or hypothetical reasoning: that was a question of fact to be ascertained in
each case. It is not possible to hold that if a State legislature made a law prescribing
higher percentage of marks for extra curricular activities in the matter of admission to
colleges, it would be directly encroaching on the field covered by Entry 66 of List I.
The rule of avoidance between the two Entries in the two Lists is also applicable
in case of a conflict between two Entries in the Same List. Entry 3, List II of the
Constitution relates to ‘Administration of Justice, Constitution of Courts, while Entry 65
deals with jurisdiction and powers of…Courts’. The Supreme Court had an opportunity
to interpret these two entries in State of Bombay v. Narottam Das Jethabhai. 7 The
Supreme Court read the two Entries together and held that while Entry 3 of List II
conferred power on the State Legislature to provide general jurisdictions to court, Entry
65 conferred the special jurisdiction with regard to the matters included in List II, while
enacting a law in respect of those matters. To put in another words, the words
“Administration of Justice, Constitution of Courts must be construed restrictively
excluding from their scope ‘jurisdiction and powers of courts.’ The harmonious
construction prevents Entry 65, List II from being futile and meaningless.
6
AIR 1964 SC 1823
7
AIR 1951 SC 69