ILAHIA COLLEGE OF ENGINEERING AND TECHNOLOGY, MULAVOOR

MODULE V

 Relations between the Union and the States

 Legislative Relation
 Administrative Relation
 Financial Relations
 Inter State Council
 Finance Commission
 Emergency Provision
 Freedom Of Trade, Commerce And Intercourse
 Comptroller And Auditor General Of India
 Public Services – Public Service Commission
 Administrative Tribunals
 Official Language
 Elections
 Special Provisions Relating To Certain Classes
 Amendment Of The Constitution

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Relation Between The Union And States

The Constitution of India provides a dual policy with a clear division of powers
between the Union and the States, each being supreme within the sphere allotted to it. The
Indian federation is not eh result of an agreement between independent units and the units of
Indian federation cannot leave the federation. Thus the constitution contains elaborate
provisions to regulate the various dimensions of the relations between the centre and the
states.
The relations between centre and state are divided as
1. Legislative Relations (Article 245 - 255)
2. Administrative Relations (Article 256 – 263)
3. Finance Relations (Article 268 – 293)

Legislative Relations
Articles 245 to 255 in Part XI of the Constitution deal with the legislative relations
between the Centre and the State.
1) With respect to Territorial Jurisdiction
(a) The Parliament can make laws for the whole or any part of the territory of India.
Territory of India includes the states, UTs and any other area for the time being
included in the territory of India. Whereas, the state legislature can make laws for the
whole or any part of the State.
(b) The Parliament can alone make ‘extra territorial legislation’ thus the laws of the
Parliament are applicable to the Indian citizens and their property in any part of the
world.
2) Subject-matter of laws made by Parliament and by the Legislation of States
The Constitution divides legislative authority between the Union and the States in three
liststhe Union List, the State List and the Concurrent List.
The Union list consists of 99 items. The Union Parliament has exclusive authority to
frame laws on subjects enumerated in the list. These include foreign affairs, defence, armed
forces, communications, posts and telegraph, foreign trade etc.
The State list consists of 61 subjects on which ordinarily the States alone can make
laws. These include public order, police, administration of justice, prison, local governments,
agriculture etc.
The Concurrent list comprises 52 items including criminal and civil procedure,
marriage and divorce, economic and special planning trade unions, electricity, newspapers,
books, education, population control and family planning etc. Both the Parliament and the
State legislatures can make laws on subjects given in the Concurrent list, but the Centre has a
prior and supreme claim to legislate on current subjects. In case of conflict between the law
of the State and Union law on a subject in the Concurrent list, the law of the Parliament
prevails.
3) When Parliament can legislate with respect in the State List or Concurrent List
i) Residuary powers of legislation (Article 248)
The Constitution also vests the residuary powers (subjects not enumerated in
any of the three Lists) with the Union Parliament. The residuary powers have been granted to
the Union. However, in case of any conflict, whether a particular matter falls under the
residuary power or not is to be decided by the court.
ii) In the National Interest (Art.249)
If the Rajya Sabha declares by a resolution supported by not less than 2/3 of
its members present and voting, that it is necessary in the national interest that the Parliament
should make laws with respect to any matter enumerated in the State List (Art.249). After such
a resolution is passed, Parliament can make laws for the whole or any part of the territory of
India. Such a resolution remains in force for a period of 1 year and can be further extended by
one year by means of a subsequent resolution.
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iii) Under Proclamation of National Emergency (Art.250)

Parliament can legislate on the subjects mentioned in the State List when the
Proclamation of National Emergency is in operation. However, the laws made by the
Parliament under this provision shall cease within a period of six months after the
Proclamation has ceased to operate, except as respects things done or omitted to be done
before the expiry of the said period.
iv) By Agreement between States (Art. 252)
The Parliament can also legislate on a State subject if the legislatures of two or more
states resolve that it is lawful of Parliament to make laws with respect to any matter
enumerated in the State List relating to those States. Thereafter, any act passed by the
Parliament shall apply to such states and to any other state which passes such a resolution.
The Parliament also reserves the right to amend or repeal any such act.
v) To Implement Treaties (Art. 253)
The Parliament can make law for the whole or any part of the territory of India for
implementing any treaty, international agreement or convention with any other country or
countries or any decision made at any international conference, association or other body.
Any law passed by the Parliament for this purpose cannot be invalidated on the ground that it
relates to the subject mentioned in the State list.

Administrative Relations
The administrative jurisdiction of the Union and the State Governments extends to the
subjects in the Union list and State list respectively. The administrative relations between the
Union and States can be broadly classified into seven.
(i) Directions to the state government
The executive powers of the state are to be exercised in such a manner that it
complies with the laws made by the parliament or any other existing laws which are
applicable in the state and also it does not hamper or prejudice the exercise of the executive
powers of the centre.
(ii) Delegation of union functions
The President, with the permission of the Governor of the state, can entrust the
state government officers to perform function which are related to any matter which is
included in the limit of the executive power of the union
(iii) All India Services
Apart from union public services, there is an “All India Service” common to
the Union and the States for the purpose of appointment of persons to any service. The
objective of having an integrated All India Services is to manage important and crucial
sectors of administration in the country. Their recruitment, training, promotion and
disciplinary matters are determined by the central government.
(iv) Grants in Aid
The union is empowered to make grants in aid to states. The parliament has
the power to make such grants as it may feel necessary to give financial assistance toa ny
state which is in need of such assistance. The Union government may impose conditions and
authorized to withdraw the grants. By means of this the union can correct inter state
disparities in financial resources and can exercise control and co ordination over the welfare
schemes of the states on a national scale. The union government also provides for specific
grants for welfare of scheduled tribes and development of tribal areas.
(v) Full Faith and Credit Clause
Full Faith and Credit must be given to all the public acts, records and
judicial\ proceedings of the union and every state throughout the territory of India.
(vi) Disputes relating to water
The Parliament may formulate laws to provide for the adjudication of any
dispute or complaint with reference to the use, distribution or control of waters of, or in any
interstate river or inter state river valley. If the water disputes cannot be settled by
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negotiations then the central government establishes a water disputes tribunal for the
adjudication of such disputes. When the matter is referred to tribunal, neither supreme court
nor any other court shall have jurisdiction. The decision of the tribunal is final and binding.
(vii) Inter state Council
The inter state council is appointed by the President of India to promote
coordination between the states in matters relating to public interest. Article 263
contemplates the establishment of an inter state council. The president defines the nature of
duties to be performed by the council, its organization and the procedure to be followed.
Functions:
 Enquiring into and advising upon disputes which may arise between states.
 Investigating and discussing subjects in which the states or the centre and the
states have a common interest.
 Making recommendations upon any such subject and particularly for the better
coordination of policy and action on it.

Financial Relations
Without adequate money no government can function and undertake obligations to
improve the ply of the people. Since in a federal polity two sets of governments operate, and
it is necessary that each of them has sufficient funds. The scheme of distribution of sources of
revenue between the centre and the states is based on the scheme laid down in the
Government of India Act 1935.
Taxation and the Law
Constitution of India provides that no tax can be collected except by the authority of
valid law.
No double taxation is allowed.
The executive authority cannot impose tax by an executive order.
Scheme of distribution of tax revenue between the Union and the States
The states possess exclusive jurisdiction over taxes enumerated in the state list.
The union is entitled to collect the taxes in the union list
The concurrent list includes no taxes.
However, it is to noted that while the proceeds of taxes with the state lists are entirely
retained by the states, proceeds of some of the taxes in the union list may be allowed wholly
or partially to the states. For example,
(i) Duties levied by the union but collected and appropriated by the states (Eg: stamp duties
on bills of exchange, excise duties on medicinal preparations containing alcohol etc.)
(ii) Taxes levied and collected by union but assigned to states (Eg: duties in respect of
succession to property other than agricultural land, estate duty, terminal taxes on goods or
passengers carried by railway, air or sea, taxes on stock exchange other than stamp duties etc)
(iii) Taxes levied and collected by the union and distributed between the union and the states.
(iv) Taxes for the purpose of the union.
Grants in Aid
Even though, the union government assigns to the state governments, a share of the
central taxes, but the resources of all the states may not be adequate to discharge functions
properly. The constitution, therefore, provides that grant in aid. The constitution has given the
parliament the power to make such grants as it may deem necessary to give financial
assistance to any state which is in need of such assistance.

Contingency Fund Of India

The contingency fund of India is the fund maintained for a specific purpose. The fund
is held by the Finance Secretary (Department of Economic Affairs) on behalf of the President
of India and it can be operated by executive action. The Contingency fund of India exists for
disasters and related unforeseen expenditures.
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Approval of the Parliament of India is needed for spending from Contingency fund.
Also equivalent amount taken from contingency fund will be withdrawn from the
Consolidated Fund to ensure that the Contingency Fund remains intact.
Similarly, Contingency fund of each state government is established under Article
267(2). Legislature should approve for such expenditure from contingency fund and
equivalent amount is taken from the consolidated fund to regain the fund.
Financial Commission
The finance commission is constituted to give its recommendations on distribution of
tax revenues between the Union and the States and amongst the states themselves. For
example, the percentage of the net proceeds of income tax which should be assigned by the
Union to the States and the manner in which the share to be assigned shall be distributed
among the states.
Functions of Financial Commission
 It make recommendations to the President as to the distribution between the Union
and
States of the net proceeds of taxes which are to be or may be divided between them under
this chapter and the allocation between the states of the respective shares of such
proceeds.
 It makes recommendations on the principles which should govern the grants in aid of
the revenues of the states out of the consolidated fund of India.
 It recommends the measures needed to augment the consolidated fund of a state to
supplement the resources of the Panchayats in the states.
 It recommends how much allocation of taxes to municipalities.
 And also it is the financial commission to whom the President ask advices about the
finance of the Indian Government.
Emergency Provisions
Types Of Emergency In The Indian Constitution
The Indian constitution gives President the authority to declare three types of
emergencies. Emergency provisions in India are borrowed from Weimar Constitution of
Germany.
Article 352 to Article 360 of the Indian Constitution allows for emergency
arrangements. These provisions enable the central government to meet any abnormal
situation effectively and to safeguard the sovereignty, unity, integrity and security of the
country, the democratic political system and the constitution.
During an emergency, the central government becomes all powerful and the states go
into the total control of the centre.
 National emergency (Article 352) – An emergency due to war, external aggression
or armed rebellion.
 State emergency (Article 356) – An emergency due to the failure of the
constitutional machinery in the states. This is popularly known as President’s
Rule. It is also known as constitutional emergency.
 Financial emergency (Article 360) – An emergency due to a threat to the financial
stability.

National Emergency
• Under Article 352, if the president is satisfied that there exists a grave situation,
wherein the security of the country is threatened on the grounds of wars, external
aggression or armed rebellion, he can proclaim emergency to that effect.
• Emergency can be declared over the complete territory of India or any part thereof.
• President can declare emergency only on the written advice of the cabinet.
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• A special majority in Parliament is required to approve an emergency resolution.

• Once approved, emergency shall operate for a maximum period of not more than six
months.
• The emergency must be revoked if the Lok Sabha passes a resolution by a simple
majority disapproving its continuation.
In India, the first proclamation of National Emergency was issued in October
1962 on account of Chinese aggression in the NEFA (North East Frontier Agency)
now known as Arunachal Pradesh and was in force till January 1968.
The second proclamation of National Emergency was made in December 1971
in the wake of the attack by Pakistan.
The third emergency has been proclaimed due to internal unrest and this is
India’s most contentious emergency in June 1975. In 1978, by 44 th amendment of
constitution, it is said that emergency cannot be declared on internal disturbance
Impact of National Emergency
The Union gets more extra ordinary power during National Emergency.
 President can give directions to any state the manner in which its executive
power is exercised.
 Parliament can extend the normal tenure of Lok Sabha by one year at a time.
 President can modify pattern of distribution of financial resources between
Union and States.
 Parliament is empowered to legislate on subjects in state list.
Effect on fundamental rights:
Articles 358 and 359 describes the effect of a National Emergency on the
Fundamental Rights. These two provisions are explained below:
Suspension of Fundamental rights under Article 19 (Right to six freedom): According
to Article 358, when a proclamation of National Emergency is made, the six fundamental
rights under article 19 are automatically suspended. Article 19 is automatically revived after
the expiry of the emergency.
The 44th Amendment Act laid out that Article 19 can only be suspended when the
National Emergency is laid on the grounds of war or external aggression and not in the
case of armed rebellion. On withdrawal of emergency, these suspended right will be
automatically restored.
Suspension of other Fundamental Rights: Under Article 359, the President is authorised
to suspend, by order, the right to move any court for the enforcement of Fundamental
Rights during a National Emergency. Thus, remedial measures are suspended and not
the Fundamental Rights.
The suspension of enforcement relates to only those Fundamental Rights that are specified
in the Presidential Order.
The suspension could be for the period during the operation of emergency or for a shorter
period.
The Order should be laid before each House of Parliament for approval.
But, the 44 Amendment Act mandates that the President cannot suspend the right to
move the court for the enforcement of Fundamental Rights guaranteed by Article 20 and
21.

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State Emergency (President’s Rule)

As per Article 355, it shall be the duty of the Union to protect every State against external
aggression and internal disturbance and to ensure that the Government of every State is carried on
in accordance with the provisions of this Constitution.
Under Article 356, if President is satisfied on the report of Governor or otherwise that
there exist a great emergency where the administration of the state cannot be continued in
accordance with the provisions of constitution, by invoking Article 355, any person can dismiss
State Government and take over the state administration on to himself and declare that Parliament
will enact law on behalf of State Legislature. This is popularly known as President’s Rule.
State emergency is declared when
 No party/coalition party in state legislative assembly get majority in elections
 State government loses majority
 State government functions in a manner subversive of constitution.
 State government does not comply with directions issued by central
Government.
 There is a threat for the security of the State due to widespread law and
order breakdown.
Parliamentary approval and duration
A proclamation imposing president’s rule must be approved by both the houses of
parliament within two months from the date of its issue.
However, if the proclamation of President’s rule is issued at a time when the Lok
Sabha has been dissolved or the dissolution of the Lok Sabha takes place during the
period of two months without approving the proclamation, then the proclamation
survives until 30 days from the first sitting of the Lok Sabha after its reconstitution,
provided that the Rajya Sabha approves it in the meantime.
An announcement so authorized immediately stops to act at the end of a six-month cycle
following the date of the announcement, until withdrawn. Without revocation, its life can
be prolonged by six months, most times but not after three years. Afterward, the reign of
the President has to be finished and the State has to restore regular legislative machinery.
A new clause was added in the 44th Amendment, which restricted Parliament’s
jurisdiction to the degree of an announcement made after 1 year under Article 356.
At the time of State Emergency,
 the President acquires extra ordinary powers.He can assign himself all or any of
the functions of the State Government and all or any of the powers vested in the
Governor or any body or authority int eh state.
 He can declare that the powers of the state legislature shall be exercisable by or
under the authority of the Parliament.
 He can authorise when the Lok Sabha is not session. He can also bring the
expenditure from the consolidated fund of the state under his control provided the
Parliament sanctions it.
 He can promulgate ordinances for the administration of the state when the
Parliament is not in session with the approval of Parliament.
During State emergency, State Governor on behalf of the President carries
on the state administration with the help of advisors appointed by the President or the
Chief Secretary of the State.
Again during this time, the constitution status, position, power and functions of
High Court are not affected. The President cannot interfere with High Court jurisdiction.

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Financial Emergency
Grounds of declaration:
Article 360 empowers the president to proclaim a Financial Emergency if he is
satisfied that a situation has arisen due to which the financial stability or credit of India or
any part of its territory is threatened.
Parliamentary approval and duration:
A proclamation declaring financial emergency must be approved by both the
Houses of Parliament within two months from the date of its issue. However, if the
proclamation of Financial Emergency is issued at a time when the Lok Sabha has been
dissolved or the dissolution of the Lok Sabha takes place during the period of two months
without approving the proclamation, then the proclamation survives until 30 days from the
first sitting of the Lok Sabha after its reconstitution, provided the Rajya Sabha has in the
meantime approved it. Once approved by both the houses of Parliament, the Financial
Emergency continues indefinitely till it is revoked.
Effects of Financial Emergency
 Extension of the executive authority of the Union over the financial matters of the
States.
 Reduction of salaries and allowances of all or any class of persons serving in the
State.
 Reservation of all money bills or other financial bills for the consideration of the
President after they are passed by the legislature of the State.
 Direction from the President for the reduction of salaries and allowances of all or
any class of persons serving the Union; and the judges of the Supreme Court and the
High Courts.

Freedom Of Trade, Commerce And Intercourse

 India had borrowed this provision from section 92 of the Australian constitution, it
also made sure to include the provision that the free flow of goods is allowed not only
between different states but also within a state as well. 
 Article 302 of the Indian constitution provides that the trade, commerce and
intercourse in the country should be free throughout the country.
 This provision ensures removing the imposition of any restrictions which may be put
up, it ensures the free flow of goods throughout the country.

Comptroller and Auditor General of India (CAG)

 The Constitution of India (Article 148)provides for an independent office of the
Comptroller and Auditor General of India (CAG).
 He is the head of the Indian Audit and Accounts Department.
 His duty is to uphold the Constitution of India and laws of Parliamnet in the field of
financial administration.
Appointment and Term:
 The CAG is appointed by the president of India.
 He holds office for a period of six years or upto the age of 65 years, which ever is
earlier.
Duties And Powers
 He audits the accounts related to all expenditure from the Consolidated Fund of India.
 He audits all trading, manufacturing, profit and loss accounts, balance sheets and
other subsidiary accounts kept by any department of the Central Government and
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State Government.
 He audits the receipts and expenditure of the Centre and each state.
 He audits the receipts and expenditure of all bodies and authorities substantially
finance from the Central or State revenues.
 He audits the accounts of any other authority when requested by the President or
Governor.
 He acts as a guide, friend and philosopher of the Public Accounts Committee of the
Parliament.
Public Services
The public services (Civil services or government services) in India are classified into
three categories
 All India Services
 Central Services
 State Services

All India Services

All India services are those services which are common to both central and state
governments. The members of these services occupy key posts under both the Centre and
the State and serve them by turns. At present, there are three all India services
(i) Indian Administrative Service (IAS)
(ii) Indian Police Service (IPS)
(iii) Indian Forest Services (IFS)

Central Services
 The personnel of central services work under the exclusive jurisdiction of the central government.
They hold specialised (functional and technical) positions in various departments of the Central
Government.
 Services are classified into Group A , Group B, Group C and Group D

State Services
 The personnel of state services work under the exclusive jurisdiction of the state
governments. They hold different positions (general, functional and technical) in the
departments of the State Government.

Union Public Service Commission

 The Union Public Service Commission (UPSC) is the central recruiting agency in India.
 Articles 315 to 323 in Constitution contain elaborate provisions regarding the
composition, appointment and removal of members along with the independence, powers
and functions of the UPSC.
 The UPSC consists of a chairman and other members appointed by the President of India.
Usually, the Commission consists of nine to eleven members including the chairman.
 The chairman and members of the Commission hold office for a term of six years or until
they are of the age 65 years, whichever is earlier.
Functions
 It conducts examinations for appointments to all India services, central services and public
services of the centrally administered territories.
 It serves all or any of the needs of a state on the request of the State Governor and with the
approval of the President of India.
 All matters relating to methods of recruitment to civil service and for civil post.
 Any other matter related to personnel management.

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Administrative Tribunals
 Article 323 A empowers the Parliament to provide for the establishment of administrative
tribunals for the adjudication of disputes relating to recruitment and conditions of service
of persons appointed to public services of the Centre, the States, local bodies, public
corporations and other public authorities.
 The 1985 act authorises the Central Government to establish one Central administrative
tribunal and the state administrative tribunals.

Central Administrative Tribunal (CAT)

 The CAT was set up in 1985 with the principal bench at Delhi and additional benches in
different states.
 At present, it has 17 regular benches, 15 of which operates at principal seats of high courts
and the remaining two at Jaipur and Lucknow.
 The CAT is a multi member body consisting of chairman and members.
 The CAT exercises original jurisdiction in relation to recruitment and all service matters of
public servants covered by it.
State Administrative Tribunal (CAT)
 The Administrative Tribunal Act of 1985 empowers the Central Government to establish
the State Administrative Tribunals (SATs) on specific request of the concerned State
Governments.
 SATs exercise original jurisdiction in relation to recruitment and all service matters
relating to state government employees.
 The chairman and members of the SATs are appointed by the President after consultation
with the Governor of the state concerned.
 There is also an provision for setting up of joint administrative tribunal (JAT) for two or
more states.

Official Language
 Articles 343 to 351 of the Indian Constitution deals with the official language.
 The provision of official language are divided into four heads.
(i) Language of the Union
(ii) Regional Languages
(iii) Language of the judiciary
(iv) Texts of laws and special directives
(i) Language of the Union
Hindi written in Devanagari script is to be the official language of the Union
along with English.
(ii) Regional Languages
The legislature of a state may adopt any one or more of the languages in use in
the state or Hindi as the official language of that state. In Kerala, Malayalam is the official
language of the state.
(iii) Language of the judiciary and (iv) Texts of laws and special directives
 English language can only be used for all proceedings in the Supreme Court and in
every high court.
 The Governor of a State, with the previous consent of the President, can
authorise the use of Hindi or any other official languages of the state in the proceeding in
the high court of the State.
 State legislature can prescribe the use of any of the language other than
English with respect to bills, act, ordinances, orders, rules, regulations or bye-laws, but a
translation of the same in the English language is to be published.
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Elections
 Articles 324 to 329 of the Indian Constitution explains the electoral system in
our country.
 The Constitution (Article 324) provides for an independent election commission in order
to ensure free and fair elections in the country.
 Election commission consists of a chief election commissioner and two election
commissioners.
 There is to be only one general electoral roll for every territorial constituency for elections
to the Parliament and the state legislature.
 No person is to be ineligible for inclusion in the electoral roll on grounds of religion, race,
caste, sex or any of them.
 Every person who is a citizen of India and who is 18 years of age is entitled to vote at the
election.
 Parliament may make provision with respect to all matters relating to the election to the
Parliament and State legislatures including the preparation of electoral rolls, the
delimitations of constituencies and all other matters necessary for securing their due
constitution.
 Elections for Lok Sabha and every State Legislative Assembly have to take place every
five years unless called earlier.
 Earlier, election were conducted by using paper ballots, but now it is by using EVMs. An
electronic voting machine (EVM) is a simple electronic device used to record votes.

Special Provisions Relating To Certain Classes

 In order to realise the objectives of equality and justice as laid down in the Preamble, the
constitution makes special provisions for the scheduled castes (SC), the scheduled tribes
(ST), backward classes and the Anglo Indians.
 These special provisions are contained from Article 330 to 342A of the constitution.
 Special Provisions are related to the following:
(i) Reservation in Legislatures.
(ii) Special Representation in Legislatures.
(iii) Reservation in Services and Posts.
(iv) Educational Grants
(v) Appointment of National commissions.
(vi) Appointment of Commissions of investigation
Amendment of the Constitution
 Article 368 of the Constitution deals with the powers of Parliament to amend the
Constitution and its procedure.
 The Constitution can be amended in three ways.
(i) Amendment by simple majority of the Parliament.
(ii) Amendment by special majority of the Parliament.
(iii) Amendment by special majority of the Parliament and the ratification of
half of the state legislature.
 Procedure For Amendment
 An amendment of the Constitution can be initiated only by the introduction of a bill
for the purpose in either House of Parliament and not in the State legislatures.
 The bill must be passed in each House by a special majority.
 After duly passed by both the House of Parliament and ratified by the State
Legislature (if necessary).
 The President must give his assent to the bill.
 After the President’s assent, the bill becomes an Act.
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