CONSTITUTIONAL LAW-II

Abbreviations
AIR:AllIndiaReporter
ARC:AdministrativeReformCommission
ISC:InterStateCouncil
NGO:NonGovernmentOrganization
SCC:SupremeCourtCases
SCR:supremeCourtReporter
UT:UninonTerritory

CONSTITUTIONAL PROVISIONS Although in federal system, each state or unit has complete sovereignty in their territorial limits
but these states or units can never remain in isolation from each other, so it is necessary to lay
down certain rules of comity which units or states are required to observe and follow while
contacting with each other. The following constitutional provisions ensure this:
Article131:OriginaljurisdictionoftheSupremeCourt
OriginaljurisdictionoftheSupremeCourtSubjecttotheprovisionsofthisConstitution,the
SupremeCourtshall,totheexclusionofanyothercourt,haveoriginaljurisdictioninanydispute
(a)BetweentheGovernmentofIndiaandoneormoreStates;or
(b)BetweentheGovernmentofIndiaandanyStateorStatesononesideandoneormoreother
Statesontheother;or
(c)BetweentwoormoreStates,ifandinsofarasthedisputeinvolvesanyquestion(whetherof
laworfact)onwhichtheexistenceorextentofalegalrightdepends
Article 261: Recognition of Public Acts, Records, and Judicial Proceedings
As power and jurisdiction of each state is limited to its territory, the acts and records of one state
may not get recognition in other state without any binding provision to do so. So Constitution
provides that Full faith and credit shall be given throughout the territory of India to public acts,
records and judicial proceedings of the Union and of every State. 1So laws or statutes of one
state get similar recognition in other states. The Parliament has power to lay down manner and
conditions to enforce above provision. Similarly, final judgments or orders delivered or passed
by civil courts in any part of the territory of India shall be capable of execution anywhere within
that territory according to law.
Article 262: Adjudication of disputes relating to waters of inter-state rivers or river valleys
1Article261oftheIndianconstitution

Article 262 states that Parliament may by law provide for the adjudication of any dispute or
complaint with respect to the use, distribution or control of the waters of, or in, any Inter State
river or river valley. Notwithstanding anything in this Constitution, Parliament may by law
provide that neither the Supreme Court nor any other court shall exercise jurisdiction in respect
of any such Inter State water dispute or complaint.
Article 263: Provisions with respect to an inter-state council
Article263oftheConstitutionstatesthatIfatanytimeitappearstothePresidentthatthe
publicinterestswouldbeservedbytheestablishmentofaInterStateCouncilchargedwiththe
duty of inquiring into and advising upon disputes which may have arisen between States;
investigatinganddiscussingsubjectsinwhichsomeoralloftheStates,ortheUnionandoneor
moreoftheStates,haveacommoninterest;makingrecommendationsuponanysuchsubject
and,inparticular,recommendationsforthebettercoordinationofpolicyandactionwithrespect
tothatsubject,itshallbelawfulforthePresidentbyordertoestablishsuchInterStateCouncil,
andtodefinethenatureofthedutiestobeperformedbyitanditsorganisationandprocedure.
Article301307:InterstateTrade,CommerceandIntercourse
Article301:Freedomoftrade,Commerceandintercourse:
Article301oftheConstitutionstatesthatnorestrictionscanbeimposedontrade,commerceand
intercoursethroughouttheterritoryofIndia(i.e.b/wtwostatesorUTsascasemaybe)except
followingrestrictionsthatareincludedunderArticle302to305:
1.Article302:Parliamentcanimposenondiscriminatoryorfairorunbiasedrestrictions(i.e.
givingpreferencetoonestateoverother)onInterStatetradeorcommerceinPublicinterest.
SuchastheEssentialCommoditiesAct(1956)tocontroltheproduction,supplyordistribution
ofcoal,steel,cotton,ironandpetroleum.
2.Article303:EvenunfairorbiasedrestrictionscanbeimposedbyParliamentincaseof
scarcityofgoodsinanypartofIndia.
3.Article304:TheStateLegislaturemay,bylaw,imposereasonablerestrictionsonfreedomof
InterStatetradeorcommerceinPublicInterestbutsuchlaworamendshallbemovedonlywith
priorsanctionofthePresident.
4.Article305:TheStateLegislaturemay,bylaw,imposeanytaxonimportedgoodsfromother
states,whichsimilartogoodsproducedinthatstate,butnottodiscriminatebetweengoodsso
importedandgoodssoproduced.

CONSTITUTIONALBODIES/LEGALBODIES
Simply endorsing a law is not a solution; execution has a major role to play. mind our
constitutionprovidesforcreationofbodiestoresolvethedisputesamongthestates,constituted
aspertheneedofthehour.

1.InterStateCouncil:
TheInterStateCouncilwassetupbythepresidentunderart.263oftheIndianConstitutionin
1990.PMistheheadofISCandthecompositionincludes:2

SixministersofcabinetrankintheUnionCOMtobenominatedbythePM
TwoministersofcabinetrankintheUnionCOMtobenominatedbythePMas
permanentinvitees.
CMofallstates
CmofUTshavingLegislativeAssemblies
AdministratorsofUTsnothavingLegislativeAssemblies.
GovernorsofstatesunderPresidentsrule.

DutiesOfInterStateCouncil:

TheCouncilisarecommendatorybodywiththefollowingduties:

a)Investigatinganddiscussingsuchsubjects,inwhichsomeoralloftheStatesorthe
UnionandoneormoreoftheStateshaveacommoninterest,asmaybebroughtupbeforeit;

b)Makingrecommendationsuponanysuchsubjectandinparticularrecommendations
forthebettercoordinationofpolicyandactionwithrespecttothatsubject;and

c)DeliberatinguponsuchothermattersofgeneralinteresttotheStatesasmaybe
referredbytheChairmantotheCouncil.

SpecialCouncilsformed:
1.Centralcouncilofhealth.(Bythepresident)
2.Centralcounciloflocalgovernmentandurbandevelopment.(Bythepresident)
3.RegionalcouncilsforsalestaxforNEWSzones.(Bythepresident)
4.CentralcouncilforIndianmedicine.(Byanactofparliament)
5.CentralcouncilofHomeopathy.(Byanactofparliament)
2http://dgftcom.nic.in/exim/2000/interstate.htm

2.InterStateWaterDisputeTribunal:
TheWaterDisputesAct,1956,providesforthereferenceofaninterStateriverdisputefor
arbitrationbyaWaterDisputesTribunal,whoseawardshouldbefinalaccordingtoArt.262
(2A).

3.RiverBoard

:
TheRiverBoardsAct,1956,providesfortheestablishmentofaRiverBoardforthepurposeof
advisingtheGovernmentsinterestedinrelationtotheregulationordevelopmentofaninterState
riverorrivervalley.

4.ZonalCouncils:
ThecouncilisanadvisorybodyestablishedundertheStatesReorganizationsAct1956. Each
ZonalCouncilconsistsoftheChiefMinisterandtwootherMinistersofeachoftheStatesinthe
ZoneandtheAdministratorinthecaseofaUnionTerritory.Thereisalsoprovisionforholding
jointmeetingsoftwoormoreZonalCouncils.TheUnionHomeMinisterhasbeennominatedto
be thecommonchairmanofallthe Zonal Councils. TheZonalCouncils discuss matters of
commonconcerntotheStatesandTerritoriescomprisingtoeachZone,suchas,economicand
socialplanning,borderdisputes,interStatetransport,mattersarisingoutofthereorganizationof
StatesandthelikeandgiveadvicetotheGovernmentsoftheStatesconcernedaswellasthe
GovernmentofIndia.

S.NO.
1.

2.

3.

NAME
NORTHERNZC

MEMBERS
J&K,HimachalPradesh,Haryana,
Punjab,Rajasthan,Delhi,Chandigarh

CENTRALZC

UttarPradesh,Chhattisgarh,Madhya
Pradesh

EASTERNZC

Bihar,Jharkhand,WestBengal,Orissa

HEADQUARTERS

NewDelhi

Allahabad

Kolkata

4.

WESTERNZC

5.

SOUTHERNZC

Gujarat,Maharashtra,Goa,Dadarand
NagarHaveli

AndhraPradesh,Karnataka,Tamil
Nadu,Kerala,Pondicherry

Mumbai

Chennai

5.NorthEasternCouncil:
ThecouncilisestablishedunderNorthEasternCouncilAct1971.Thememberstatesinthis
councilare:Assam,Manipur,Meghalaya,AndhraPradesh,Mizoram,Tripura,andSikkim.The
mainfunctionsofthecouncilaretocoordinateregionalplanningandmaintenanceofsecurity
andpublicorder.

6.InterStateTradeCouncil:
TheinterstatetradecouncilisanadvisorybodymainlytoadvisetheGovernmentonmeasures
forprovidinganinternationaltradeenablingenvironmentintheStatesandtocreateaframework
formakingStatespartnersinIndiasinternationaltradeandexportefforttoachievetheobjective
ofboostingIndiasexports.3
ThecompositionoftheInterStateTradeCouncilisasbelow:

ChairmanoftheCouncilCommerce&IndustryMinister.
ChiefMinistersoftheStatesorStateCabinetMinistersnominatedbyChiefMinisters.
Lt.Governors/orAdministratorsoftheUnionTerritoriesortheirnominees.
SecretariestoGovernmentofIndia.
Chairman,RailwayBoard.
DirectorGeneralofForeignTradeMemberSecretary.

ThetermsofreferenceoftheInterStateTradeCouncilareasfollows:
3 Interstatetradecouncilsetuptimesofindiaeconomictimes

Toidentifyimpedimentsthataffectexportsadversely.
ToevolveuniformpracticesacrossdifferentStatesinrespectoftradefacilitation.
ToidentifyissuesrelatingtoStateGovernmentsinregardtoWTOcapacitybuilding,
infrastructure development and creating an overall supportive Policy and fiscal

environmentforinternationaltrade.
TocreateaframeworkformakingStatespartnersinIndiasexporteffort.
Tocommissionstudiesinfurtheranceoftheaboveobjectives

Anyotherrelatedissue.

PRESENTLEGALFRAMEWORK:
GOODSANDSERVICESTAX
Indiahasintroducedaconstitutionalamendmentbilltoenableimplementationofanational
GoodsandServicesTax(GST).FinanceMinisterArunJaitelytabledthebillonDecember19,
2014,intheLokSabhatheLowerHouseofIndiasParliamentandtheGSTlaunchisnow
expectedbyApril2016. TheimportantgainsfromtheGSTreformarethatitisexpectedto
broadenthetaxbase,reducedistortionsintheeconomythroughamorecomprehensiveinputtax
credit, enhance export competitiveness by comprehensively relieving domestic consumption
taxesonexports,ensuregreaterregionalequitybygettingridofinterstatesalestaxandhavinga
destinationbasedtax,andhelpcreateaseamlessnationalmarketbyremovinginterstatetrade
barriers.Itishopedthatthereformwillsignificantlyreducethecompliancecostfortaxpayersby
simplifyingandharmonizingthetaxstructureandbymakingtheadministrationuniformacross
states.

CENTRALSALESTAXACT,1956
AnActtoformulateprinciplesfordeterminingwhenasaleorpurchaseofgoodstakesplacein
thecourseofinterStatetradeorcommerceoroutsideaStateorinthecourseofimportintoor
exportfromIndia,toprovideforthelevy,collectionanddistributionoftaxesonsalesofgoods
inthecourseofinterStatetradeorcommerceandtodeclarecertaingoodstobeofspecial
importanceininterStatetradeorcommerceandspecifytherestrictionsandconditionstowhich

Statelawsimposingtaxesonthesaleorpurchaseofsuchgoodsofspecialimportanceshallbe
subject.

INTERSTATERIVERWATERDISPUTESACT,1956
TheInterstateRiverWaterDisputesAct,1956(IRWDAct)isanActoftheParliamentenacted
underArticle262ofConstitutionofIndiaontheeveofreorganizationofstatesonlinguistic
basistoresolvethewaterdisputesthatwouldariseintheuse,controlanddistributionofan
interstateriverorrivervalley.4Article262oftheIndianConstitutionprovides aroleforthe
Centralgovernmentinadjudicatingconflictssurroundinginterstateriversthatariseamongthe
states/regionalgovernments.[3]ThisActfurtherhasundergoneamendmentssubsequentlyandits
mostrecentamendmenttookplaceintheyear2002.
IRWDAct(section2(c))validatesthepreviousagreements(ifany)amongthebasinstatesto
harnesswaterofaninterstateriver/rivervalley.Riverwatersuse/harnessingisincludedin
statesjurisdiction(entry17ofstatelist,Schedule7ofIndianConstitution).

ISSUES/CHALLENGES
Interstatewaterdisputes:
MostriversofIndiaareplaguedwithinterstatedisputes.Almostallthemajorriversofthe
countryareinterstateriversandtheirwatersaresharedbytwoormorethantwostates.
Afterindependence,demandforwaterhadbeenincreasingatanacceleratedrateduetorapid
growth of population, agricultural development, urbanisation, industrialisation, etc. These
developmentshaveledtoseveralinterstatedisputesaboutsharingofwateroftheserivers.
Followinginterstateriverwaterdisputesareworthmentioning.
(i)CauverywaterdisputebetweenTamilNadu,KarnatakaandKerala.
(ii)TheKrishnawaterdisputebetweenMaharashtra,KarnatakaandAndhraPradesh.
4 "TheInterStateRiverWaterDisputesAct,1956

(iii)TheTungabhadrawaterdisputebetweenAndhraPradeshandKarnataka.
(iv)TheAliyarandBhivaniriverwaterdisputebetweenTamilNaduandKerala.
(v)TheGodavaririverwaterdisputebetweenAndhraPradesh,MadhyaPradesh,Chhattisgarh,
OrissaandKarnataka.
(vi)TheNarmadawaterdisputebetweenGujarat,Maharashtra,MadhyaPradeshandRajasthan.
(vii)TheMahiriverdisputebetweenGujarat,RajasthanandMadhyaPradesh.
(viii) The Ravi and Beas river water dispute between Punjab, Haryana, Himachal Pradesh,
Rajasthan,JammuandKashmirandDelhi.
(ix)TheSatlujYamunaLinkcanaldisputebetweenPunjab,HaryanaandRajasthan.
(x)TheYamunariverwaterdisputebetweenUttarPradesh,Haryana,HimachalPradesh,Punjab,
Rajasthan,MadhyaPradeshandDelhi.
(xi)TheKarmanasariverwaterdisputebetweenUttarPradeshandBihar.
(xii)TheBarakriverwaterdisputebetweenAssamandManipur.
Efforts are made to resolve disputes through negotiations amongst the basin states with the
assistanceoftheCentralGovernment.Manyoftheseinterstateriverwaterdisputeshavebeen
settled on the basis of equitable apportionment which is the universally accepted principle.
Adjudicationthroughappointmentofwaterdisputestribunalsisalsoresortedtoasandwhen
require.

Interstateterritorialdisputes:
Boundaryissueshavecroppedup,forexample,KarnatakaandMaharashtrabothlayclaimto
Belgaum,andeverynowandthenthemattercomesup.
TheBelgaumborderdisputeisadisputeinvolvingtheIndianstatesofMaharashtraand
Karnataka.Belgaum,currentlyapartofKarnatakaandearliertheerstwhileMysoreState,is
claimedbyMaharashtraonlinguisticgrounds.TheGovernmentofIndiaconstitutedMahajan
CommitteeonJune5,1960tolookintothecase.ThefourmemberCommitteeconsistedoftwo
representativesfromtheMaharashtraGovernment,andtwofromtheMysorestateGovernment.
Butitfailedtoreachanagreement.

Migrationasanissue
Therehavebeenviolentagitationsinsomestatesovermigrants andjobseekersfromother
states.Thisisbecausetheexistentresourcesandtheemploymentopportunitiesarenotenoughto
meet the needs of the growing population. The sons of the soil concept for preference in
employmentinthestatesconcernedtendstodestroytherootsofahealthyfederalism.

CONCLUSION:
SincetheStates,ineveryfederation,normallyactasindependentunitsintheexerciseoftheir
internalsovereignty,conflictsofinterestbetweentheunitsaresuretoarise.
Hence,inordertomaintainthestrengthoftheUnion,itisessentialthatthereshouldbean
adequateprovisionforjudicialdeterminationofdisputesbetweentheunitsandforsettlementof
disputesbyextrajudicialbodiesaswellastheirpreventionbyconsultationandjointaction.
The Indian Constitution provides for a number of mechanisms to promote cooperative
federalism.
WhileArt.131providesforthejudicialdeterminationofdisputesbetweenStatesbyvestingthe
SupremeCourtwithexclusivejurisdictioninthematter,Art.262providesfortheadjudicationof
oneclassofsuchdisputebyanextrajudicialtribunal,whileArt.263providesfortheprevention
ofinterStatedisputesbyinvestigationandrecommendationsbyanadministrativebody.
InIndia,settinguptheinterstatecouncilsmayensurecoordinationbetweenstatesoncritical
issues.Zonalcouncilshavebeensetupwhichdiscussmattersofcommonconcerntostatesin
each zonematters relating to social and economic planning, border disputes, interstate
transport,etc.Likewise,interstatetradecouncilsarealsoformedtoresolvetheissuesamong
states.

SUGGESTIONS

Theinterstateboundarydisputesamongnortheasternstatescanberesolvedonlywith
thewillingcooperationofthestategovernmentsconcerned.TheCentreworksonlyasa
facilitatorforamicablesettlementofthedisputesinaspiritofmutualaccommodation
andunderstanding.

IndevelopingcountrylikeIndia,theinterstateriverwaterdisputeshavetoberesolved
quicklyandamicably.Thisismosturgentfortheproperutilisationofwaterresources
andeconomicgrowth.

REFERENCES

Internet
http://www.dgciskol.nic.in/vaanijya/India%20Internal%20Trade.pdf
http://indianexpress.com/article/business/businessothers/centrestatesagreeonfreeflowofgst
creditoninterstatetrade/
http://dgftcom.nic.in/exim/2000/interstate.htm
Interstatetradecouncilsetuptimesofindiaeconomictimes
https://veronetwork.wordpress.com/2013/09/06/interstatedisputeswaterandterritorial
boundaries/
http://iasexamportal.com/civilservices/courses/gsconcepts/indianpolity/inters
http://www.lawteacher.net/freelawessays/indianlaw/positionofinterstatetradeinindia.php
http://lawmin.nic.in/ncrwc/finalreport/v2b22.htm
http://www.prabhaiasips.com/images/pdf/CENTRE%20STATE%20RELATION.pdf
http://indiankanoon.org/doc/786824/
http://www.yourarticlelibrary.com/essay/theinterstaterelationsofindia/24923/
http://www.omabc.com/national/constitutionofindia/federalprovisions/centerstate
relations/interstaterelations/
http://blog.lkadvani.in/bloginenglish/lettheinterstatecouncilmeetearly
http://planningcommission.nic.in/plans/planrel/fiveyr/9th/vol1/v1c61.htm
https://in.news.yahoo.com/interstatecouncilmeetingcrucialstrengtheningcentrestate
160222531.html
https://veronetwork.wordpress.com/2013/09/06/interstatedisputeswaterandterritorial
boundaries/
http://archives.peoplesdemocracy.in/2001/nov25/2001_nov25_cms_meeting.htm

BOOKS
Singh,M.P.,V.N.Shukla'sConstitutionofIndia,EleventhEdn.,EasternBookCompany,
Lucknow,2008.

(apointforcomparativestudy)
One common arrangement found in all federations in this regard, is the division
between the interstate and intrastate trade and commerce. While the regulation of the
former is assigned to the federal authority, the States retain the regulation of the
latter. Some federations have gone further and made interstateTRADE FREE from
regulation both by the federal authority as well as the authority of the
States. Australia is the foremost example of that. India goes one step further than
Australia in so far as it makes flow of interstate as well as intrastate trade free from
regulation by the Union as well as the States. However, unlike Australia, after making
such a general declaration, the Constitution of India gives adequate powers to the
Union and the States, particularly to the former, to regulate trade and commerce.