KIIT LAW SCHOOL

KIIT UNIVERSITY

Bhubaneswar-751024

Federalism as an aspect of Constitutionalism

SUBMITTED TO Ms kyvalya Garikapati

Ms Aditi Singh

BY,

AKANKSHAVARMA

1583005

BALLB

4th semester

ACKNOWLEDGMENT

This is to state that, I AKANKSHA VARMA of Roll no. 1583005 completed

my semester (fourth) project work for Interpretation of statutes on the topic

Federalism as an aspect of Constitutionalism

I hereby thank my teachers for supporting me throughout the work and

my friends for extending their support.

Contents

1. Introduction2. Federal Features of the Indian Constitution3.Relations between The Union and The States

3.1 Legislative Powers – Distribution b/w Union andStates.

A) Article 245 : Doctrine of Territorial Nexus

B) Article 246

4. Principles of Interpretations of the lists

A) Doctrine of Colorable LegislationB) Principle of Pith and SubstanceC) Principle of Harmonious Construction

5. Article 254 : Doctrine of Repungancy

6. Extraordinary legislative power of the Parliament

7 Executive powers between The Union and The States

8. Financial powers between The Union and The States

INTRODUCTION

Constitutionalism is "a complex of ideas elaborating the principle that the

authority of government derives from and is limited by a body of fundamentallaw". A political organization is constitutional to the extent that it "containsinstitutionalized mechanisms of power control for the protection of the interestsand liberties of the citizenry, including those that may be in the minority.

Constitutionalism’1means limited government or limitation on government. Itis antithesis of arbitrary powers. Constitutionalism recognizes the need for

government with powers but at the same time insists that limitation be placedon those powers. The antithesis of constitutionalism is despotism. A

government which goes beyond its limits loses its authority and legitimacy.Therefore, to preserve the basic freedoms of the individual, and to maintain his

dignity and personality, the Constitution should be permeated with

‘Constitutionalism’; it should have some inbuilt restrictions on the powers

conferred by it on governmental organs.

Federalism is the mixed or compound mode of government, combining a

general government (the central or 'federal' government) with regional

governments (provincial, state, territorial or other sub/ unit governments) in a

single political system. Its distinctive feature, exemplified in the founding

example of modern federalism of the United States of America .

1 http://www.legalservicesindia.com/article/article/constitutionalism-1699-1.html

Article 12 of the constitution declares that India, that is Bharat, shall be a Unionof States. Part XI of the Indian constitution defines the power distribution

between the federal government (the Centre or union) and

the States in India. This part is divided between legislative, administrative and

executive powers. The legislative section is divided into three lists: Union list,States list and Concurrent list.

The constitutional powers devolved to each state are not the same. The state ofJammu and Kashmir was accorded higher degree of federalism under Article370 read with Appendix I {The Constitution (Application to Jammu and Kashmir)Order, 1954} of the Indian constitution.The Union Territories

of Delhi and Puducherry are accorded lesser degree of federalism under Article239A and 239AA respectively and these territories are not included in the list of

states in Schedule I of the constitution. The other union territories are directlygoverned by the union government.

2 https://en.wikipedia.org/wiki/Federalism_in_India

Federal Features of the Indian Constitution

The main federal features of the Indian Constitution are as follows:

1. Written Constitution:

The Indian Constitution is a written document containing 395 Articles and 12schedules, and therefore, fulfils this basic requirement of a federal government.In fact, the Indian Constitution is the most elaborate Constitution of the world.

2. Supremacy of the Constitution:

India’s Constitution is also supreme and not the hand/ made of either the

Centre or of the States. If for any reason any organ of the State dares to violate

any provision of the Constitution, the courts of laws are there to ensure that

dignity of the Constitution is upheld at all costs.

3. Rigid Constitution:

The Indian Constitution is largely a rigid Constitution. All the provisions of theConstitution concerning Union/ State relations can be amended only by the

joint actions of the State Legislatures and the Union Parliament. Such provisionscan be amended only if the amendment is passed by a two/ thirds majority of

the members present and voting in the Parliament (which must also constitute

the absolute majority of the total membership) and ratified by at least one/ half

of the States.

4. Division of Powers:

In a federation, there should be clear division of powers so that the units and

the centre are required to enact and legislate within their sphere of activity andnone violates its limits and tries to encroach upon the functions of others. Thisrequisite is evident in the Indian Constitution.

The Seventh Schedule contains three Legislative Lists which enumerate subjectsof administration, viz., Union, State and Concurrent Legislative Lists. The UnionList consisted of 97 subjects, the more important of which are defence, foreignaffairs, railways, posts and telegraphs, currency, etc.

The State List consisted of 66 subjects, including, inter/ alia public order, police,administration of justice, public health, education, agriculture etc. TheConcurrent List embraced 47 subjects including criminal law, marriage, divorce,bankruptcy, trade unions, electricity, economic and social planning, etc.

The Union Government enjoys exclusive power to legislate on the subjectsmentioned in the Union List. The State Governments have full authority to

legislate on the subjects of the State List under normal circumstances. And both

the Centre and the State can’t legislate on the subjects mentioned in theConcurrent List, The residuary powers have been vested in the Central

Government.

5. Independent Judiciary:

In India, the Constitution has provided for a Supreme Court and every effort has

been made to see that the judiciary in India is independent and supreme. TheSupreme Court of India can declare a law as unconstitutional or ultra Vires, if itcontravenes any provisions of the Constitution. In order to ensure the

impartiality of the judiciary, our judges are not removable by the Executive and

their salaries cannot be curtailed by Parliament.

6. Bicameral Legislature:

A bicameral system is considered essential in a federation because it is in theUpper House alone that the units can be given equal representation. TheConstitution of India also provides for a bicameral Legislature at the Centreconsisting of Lok Sabha and Rajya Sabha.

Relations between The Union and The States

A. Legislative powers

The power of the states and the Centre are defined by the constitution and thelegislative powers are divided into three lists.

Union List3

Union List consists of 100 items. For ex : defence, armed forces, arms and

ammunition, atomic energy, foreign affairs, war and peace, citizenship,extradition, railways, shipping and navigation, airways, posts and telegraphs,telephones, wireless and broadcasting, currency, foreign trade, inter/ state

trade and commerce, banking, insurance, control of industries, regulation and

development of mines, elections, audit of Government accounts, constitutionand organisation of the Supreme Court, High Courts and union public service

commission, income tax, custom duties and export duties, duties of excise,corporation tax, taxes on capital value of assets, estate duty.

State List

State List consists of 61 items. For ex maintaining law and order, police forces,healthcare, transport, land policies, electricity in state, village administration,etc. The state legislature has exclusive power to make laws on these subjects.But in certain circumstances, the parliament can also make laws on subjects

3 https://en.wikipedia.org/wiki/Federalism_in_India

mentioned in the State list, then the Council of States (Rajya Sabha) has to pass

a resolution with 2/3rd majority that it is expedient to legislate on this state list

in the national interest.

Though states have exclusive powers to legislate with regards to items on theState list, articles 249, 250, 252, and 253 state situations in which the federal

government can legislate on these items.

Concurrent List

Concurrent List consists of 52 items. Uniformity is desirable but not essential

on items in this list: Marriage and divorce, transfer of property other than

agricultural land, education, contracts, bankruptcy and insolvency, trustees andtrusts, civil procedure, contempt of court, adulteration of foodstuffs, drugs andpoisons, economic and social planning, trade unions, labour welfare, electricity,newspapers, books and printing press, stamp duties.

Residuary Subjects

The subjects that are not mentioned in any of the three lists are known asresiduary subjects. However, there are many provisions made in the

constitution out side these lists permitting parliament or state legislativeassembly to legislate. Excluding the provisions of the constitution out side these

lists per Article 245, the power to legislate on residuary subjects (not mentioned

any where in the constitution), rests with the parliament exclusively per Article

248. Parliament shall legislate on residuary subjects following the procedure per

Article 368 as constitutional amendments.

In case the above lists are to be expanded or amended, the legislation should bedone by the Parliament under its constituent power per Article 368 with

ratification by the majority of the states. Federalism is part of the basic structure

of the Indian constitution which cannot be altered or destroyed through

constitutional amendments under the constituent powers of the Parliamentwithout undergoing judicial review by the Supreme Court.

Legislative Powers – Distribution b/w Union

and States

The Federal system means division of power b/w Centre and States. TheConstitution being federal divides all powers (Legislative Powers, Financial andExecutive) b/w centre and states except judicial powers due to independence of

judiciary.

Article 245- Doctrine of Territorial Nexus

Article 2454/ Extent of laws made by parliament and by the legislatures of

states/1) Subject to the provisions of this constitution, Parliament may make laws for

the whole or any part of the territory of India,and the legislature of a state may

make laws for the whole or any part of the state.2) No law made by parliament shall be deemed to be invalid on the ground that

it would have extra/ territorial operation.

Subject to the provisions of this constitution,this phrase means that the power

enjoyed by the parliament to make laws for the whole or any part of theterritory of India will be read in subject to other provisions of the constitution.In

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other words, this power is not absolute. Other provisions like the distribution of

powers, fundamental rights and other provisions of the constitution as

interpreted by the courts.“Extra/ territorial operation” – Law made to operate outside territorial limits

of India.State laws would be void if it has extra territorial operation i.e., takes effect

outside the state. However,there is one exception to this general rule. A state

law of extra- territorial operation will be valid if there is sufficient nexus

between the object and the state. This is clarified by the case State of Bombay vs.R.M.D.C.

The Doctrine of Territorial nexus can be invoked under the followingcircumstances-1. Whether a particular state has extra territorial operation.2. If there is a territorial nexus between the subject matter of the Act and the

state making the law.

It signifies that the object to which the law applies need not be physicallylocated within the territorial boundaries of the state,but must have a sufficient

territorial connection with the state.A state may levy a tax on a person, property ,object or transaction not only

when it is situated within its territorial limits,but also when it has a sufficient

and real territorial connection with it.

Parliament is empowered to make laws for extra territorial operation. It means

legislation or legal protection for any Indian resident and their propertyanywhere in the world.

Cases:1. State of Bombay v. RMDC5

FACTS :-The Respondent was not residing in Bombay but he conducted

Competitions with prize money through a newspaper printed and publishedfrom Banglore having a wide circulation in Bombay. All the essential activities

like filling up of the forms, entry fees etc for the competition took place in

Bombay. The state govt. sought to levy tax the respondent for carrying on

business in the state.

ISSUE :/ Whether respondent i.e the organizer of the competition, who was

outside the state of Bombay, could be validly taxed under the Act.

Judgement :- It was held that there existed a sufficient territorial nexus to

enable the Bombay Legislature to tax the respondent as all the activities whichthe competitor is ordinarily expected to undertake took place mostly withinBombay.

2. Case: Tata Iron & Steel Company vs. Bihar State6

The State of Bihar passed a Sales Tax Act for levy of sales tax.

ISSUE :/ whether the sale was concluded within the state or outside if the

goods were produced, found and manufactured in the state .

5 AIR 1957 SC 699

6 AIR 1958 SC 482

Judgement : The court held there was sufficient territorial nexus and upheld

the Act as valid. Whether there is sufficient nexus between the law and the

object sought to be taxed will depend upon the facts and circumstances of aparticular case.

It was pointed out that sufficiency of the territorial connection involved aconsideration of two elements/

a) the connection must be real and not illusory

b) the liability sought to be imposed must be pertinent to that

Connection.

Article 2467 : Subject-matter of laws made by parliament

and by the legislatures of states.

• Union List( list 1)/ Parliament has exclusive power to legislate with respect to

any of the matters enumerated in list 1 notwithstanding anything contained in

clauses (2) and (3).• State list( list II)/ The state legislature has exclusive power to make laws with

respect to any of the matter enumerated in list II.( subject to clause 1 and II).• Concurrent list (list III)/ Both parliament and the state legislature have

concurrent powers of legislation with respect to any of the matters enumeratedin this list.

Parliament has power to make laws with respect to any matter for any part ofthe territory of India not included in a State notwithstanding that such matter isa matter enumerated in the State List.

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Explanation:

Notwithstanding anything contained…. ( the non obstante clause in art.246(1)provides for predominance or supremacy of Union Legislature.This power is notencumbered by anything contained in clauses 2 and 3 for these clauses

themselves are expressly limited and made subject to the non obstante clausein art.246(1)

The words “notwithstanding anything contained in clauses 2 and 3, in article

246(1) and the words “subject to clause 1 and 2 in article 246(3) lay down the

principle of federal supremacy which means that in case of inevitable conflictbetween Union and state powers, The Union Power as enumerated in list I shallprevail over the State power as enumerated in lists II and III.And in case of

overlapping between lists II and III ,the former shall prevail.

PRINCIPLES OF INTERPRETATION OF

LISTS

A. Principle of Colourable Legislation

The doctrine of colourability is the idea that when the legislature wants todo something that it cannot do within the constraints of the constitution, itcolours the law with a substitute purpose which will still allow it to accomplishits original goal.

Maxim: “Quando aliquid prohibetur ex directo, prohibetur et per obliqum”which means what cannot be done directly cannot also be done indirectly.

The rule relates to the question of legislative competency to enact a law.Colourable Legislation does not involve the question of bonafides or malfides. Alegislative transgression may be patent, manifest or direct or may be disguised,covert or indirect. It is also applied to the fraud of Constitution.

In India‘the doctrine of colorable legislation’ signifies only a limitationof the law making power of the legislature. It comes into picture while the

legislature purporting to act within its power but in reality it has transgressedthose powers. So the doctrine becomes applicable whenever legislation seeks to

do in an indirect manner what it cannot do directly. If the impugned legislation

falls within the competence of legislature, the question of doing something

indirectly which cannot be done directly does not arise.In our Constitution, this doctrine is usually applied to Article 246 which

has demarcated the Legislative competence of the Parliament and the State

Legislative Assemblies by outlining the different subjects under list I for theUnion, List II for the States and List III for the both as mentioned in the seventh

schedule.This doctrine comes into play when a legislature does not possess the

power to make law upon a particular subject but nonetheless indirectly makesone. By applying this principle the fate of the Impugned Legislation is decided.

Important Case Laws

Case 1: KC Gajapati v. State of Orissa8

Facts: The petitioners were the owners of estates. The Orissa state Legislature

enacted the “Orissa State Estates Abolition Act, 1952” whose primarily

purpose of the Act is to abolish all zamindary and other proprietary estates andinterests in the State of Orissa and after eliminating all the intermediaries, tobring riots or the actual occupants of the lands in direct contact with the StateGovernment the compensation would be calculated at a certain number ofyears purchase of the net annual income of the estate during the previousagricultural year, that is to say, the year immediately preceding that in which the

date of vesting falls. The other sum payable as income/ tax in respect of any

other kind of income derived from the estate would also be included in thedeductions. The amount of compensation thus determined is payable in 30annual equated installments commencing from the date of vesting and anopinion is given to the State Government to make full payment at any time.IssueWhether “Orissa State Estates Abolition Act”, 1952 is a piece of colourable

legislation?Legal Proposition

That the doctrine of colourable legislation does not involve any questionof bonafides or malafides on the part of the legislature. The whole doctrine

resolves itself into the question of competency of a particular legislature to

8 AIR 1953 SC 375

enact a particular law. If the legislature is competent to pass a particular law,the motives which impelled it to act are really irrelevant9. On the other hand, ifthe legislature lacks competency, the question of motive does not arise at all.Whether a statute is constitutional or not is thus always a question of power“Malice or motive is beside the point, and it is not permissible to suggest

parliamentary incompetence on the score of malafides. A distinction, however,exists between a legislature which is legally important like the British Parliamentand the laws promulgated by which could not be challenged on the ground ofincompetency, and a legislature which enjoys only a limited or a qualified

jurisdiction.Judgment

The validity of this provision has been challenged on the ground that it isa piece of colourable legislation which comes within the principle enunciated bythe majority of this court in the Bihar case10. It is difficult to appreciate this

argument of the learned counsel. It is not a legislation on something which is

non/ existent or unrelated to facts. It cannot also be seriously contended that

what section 37 provides for, is not giving of compensation but of negativing the

right to compensation as the learned counsel seems to suggest. There is no

substance in this contention and we have no hesitation in overruling it. Theresult is that all the points raised by the learned counsel for the appellants failand the appeals are dismissed. Having regard to some important constitutional

questions involved in these cases which needed clearing up, we direct that eachparty should bear his own costs in these appeals. Appeal dismissed.

9 MP Jain, Indian Constitutional Law, Wadwa Nagpur, 5th Ed., 53710 State of Bihar vs. Maharaja Kameshwar Singh & ors, 1955 SCR 889

B. Principle of pith and substance

Pith means ‘true nature’ or essence of something and substance means‘the most important or essential part of something’. The basic purpose of

this doctrine is to determine under which head of power or field i.e. underwhich list (given in the seventh schedule) a given piece of legislation falls.

Union & State Legislatures are supreme within their respective fields.They should not encroach into the field reserved to the other. If a law passed by

one trespasses upon the field assigned to the other—the Court by applying Pith& Substance doctrine, resolve the difficulty &declare whether the legislature

concerned was competent to make the law.If the pith & substance of law (i.e. the true object of the legislation)

relates to a matter within the competence of the legislature which enactedit ,it should be held intra vires though the legislature might incidentally

trespass into matters not within its competence. The true character of the

legislation can be ascertained by having regard—to the enactment as a whole/ / to its object – to the scope and effect of its provisions.Case: State of Bombay vs. FN Balsara11

Bombay Prohibition Act, 1949 which prohibited sale & possession of liquors

in the State, was challenged on the ground that it incidentally encroached upon

Imports & Exports of liquors across custom frontier a Central subject. It wascontended that the prohibition, purchase, use, possession and sale of liquor will

affect its import. The court held that act valid because the pith & substance fell

under Entry 8 of State List and not under Entry 41 of Union List.

11 AIR 1951 SC 318

C. Principle of Harmonious Construction

The doctrine or the rule of harmonious construction is adopted when there is aconflict between two or more statues or between the parts or provisions of thestatues. As per this doctrine the courts try to avoid conflicts between the

provisions of the statutes. The doctrine follows a very simple rule that every

statute has made for a purpose and specific intent as per law and it should beread as a whole and interpreted accordingly. Thus the provisions are so

interpreted that the conflict between the two statues or its provisions is avoidedand each of them is given effect. For this purpose, the scope and meaning of

one may be restricted so as to give meaning also to the other. So, The aim of the

courts are:/

i) An interpretation which makes the enactment consistent.ii) A construction which avoids inconsistency or repugnancy between the

various sections or parts of the statute. However, in the case in which it shall be

impossible to harmonize both the provisions, the court’s decision shall prevail.

The Supreme Court laid down five principles of rule of Harmonious Constructionin the landmark case of Commissioner12 Of Income Tax vs M/S Hindustan BulkCarriers on 17 December, 2000

1.The courts must avoid a head on clash of seemingly contradicting provisions

and they must construe the contradictory provisions so as to harmonize them.

2.The provision of one section cannot be used to defeat the provision contained

in another unless the court, despite all its effort, is unable to find a way to

reconcile their differences.

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3.When it is impossible to completely reconcile the differences in contradictory

provisions, the courts must interpret them in such as way so that effect is given

to both the provisions as much as possible.

4.Courts must also keep in mind that interpretation that reduces one provision

to a useless number or a dead lumbar, is not harmonious construction.

5. To harmonize is not to destroy any statutory provision or to render it

ineffective.

ARTICLE 254 : Doctrine of Repungancy

It is Article 254 of the Constitution of India that firmly entrenches the Doctrine

of Repugnancy in India. According to Black’s Law Dictionary, Repugnancycould be defined as “an inconsistency or contradiction between two or moreparts of a legal instrument (such as a statute or a contract)”.

Supreme Court’s Interpretation of Doctrine of Repugnancy

Article 254 has been beautifully summarized by the Supreme Court in M.Karunanidhi v. Union of India13. The court said that:

“1. Where the provisions of a Central Act and a State Act in the Concurrent List

are fully inconsistent and are absolutely irreconcilable, the Central Act will

prevail and the State Act will become void in view of the repugnancy.

2. Where however a law passed by the State comes into collision with a law

passed by Parliament on an Entry in the Concurrent List, the State Act shall

prevail to the extent of the repugnancy and the provisions of the Central Actwould become void provided the State Act has been passed in accordance withclause (2) of Article 254.

3. Where a law passed by the State Legislature while being substantially within

the scope of the entries in the State List entrenches upon any of the Entries inthe Central List, the constitutionality of the law may be upheld by invoking the

doctrine of pith and substance if on an analysis of the provisions of the Act itappears that by and large the law falls within the four corners of the State Listand entrenchment, if any, is purely incidental or inconsequential.

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4. Where, however, a law made by the State Legislature on a subject covered by

the Concurrent List is inconsistent with and repugnant to a previous law madeby Parliament, then such a law can be protected by obtaining the assent of the

President under Article 254(2) of the Constitution. The result of obtaining theassent of the President would be that so far as the State Act is concerned, it willprevail in the State and overrule the provisions of the Central Act in theirapplicability to the State only.

Such a state of affairs will exist only until Parliament may at any time make a lawadding to, or amending, varying or repealing the law made by the State

Legislature under the proviso to Article 254.

Now, the conditions which must be satisfied before any repugnancy could arise

are as follows:

1. That there is a clear and direct inconsistency between the Central Act and the

State Act.2. That such an inconsistency is absolutely irreconcilable.3. That the inconsistency between the provisions of the two Acts is of such

nature as to bring the two Acts into direct collision with each other and asituation is reached where it is impossible to obey the one without disobeyingthe other.”

Thereafter, the court laid down following propositions in this respect:

“1. That in order to decide the question of repugnancy it must be shown that

the two enactments contain inconsistent and irreconcilable provisions, so that

they cannot stand together or operate in the same field.

2. That there can be no repeal by implication unless the inconsistency appears

on the face of the two statutes.

3. That where the two statutes occupy a particular field, but there is room or

possibility of both the statutes operating in the same field without coming intocollision with each other, no repugnancy results.

4. That where there is no inconsistency but a statute occupying the same field

seeks to create distinct and separate offences, no question of repugnancy arises

and both the statutes continue to operate in the same field.”

Further in the case of Govt. of A.P. v. J.B. Educational Society14, the court held

that:

“1. There is no doubt that both Parliament and the State Legislature are

supreme in their respective assigned fields. It is the duty of the court to

interpret the legislations made by Parliament and the State Legislature in such amanner as to avoid any conflict. However, if the conflict is unavoidable, and the

two enactments are irreconcilable, then by the force of the non obstante clause

in clause (1) of Article 246, the parliamentary legislation would prevail

notwithstanding the exclusive power of the State Legislature to make a law withrespect to a matter enumerated in the State List.

2. With respect to matters enumerated in List III (Concurrent List), both

Parliament and the State Legislature have equal competence to legislate. Hereagain, the courts are charged with the duty of interpreting the enactments of

Parliament and the State Legislature in such manner as to avoid a conflict. If theconflict becomes unavoidable, then Article 245 indicates the manner of

resolution of such a conflict.”

The Court also said that:

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1. Where the legislations, though enacted with respect to matters in their

allotted sphere, overlap and conflict. Second, where the two legislations are

with respect to matters in the Concurrent List and there is a conflict. In both thesituations, parliamentary legislation will predominate, in the first, by virtue ofthe non obstante clause in Article 246(1), in the second, by reason of Article

254(1).

2. Clause (2) of Article 254 deals with a situation where the State legislation

having been reserved and having obtained President's assent, prevails in that

State; this again is subject to the proviso that Parliament can again bring a

legislation to override even such State legislation.

Extraordinary Legislative Powers of Parliament

1. National Interest – If Rajya Sabha passed a resolution by a majority of not less

than 2/3rd present and voting that it is necessary in national interest to make

law on any matter enumerated in State List then Parliament can pass a law onthat subject. Such resolution remains in effect for 1yr but can be renewed. Thelaw cease to have effect on expiration of 6months after such resolution ceased

to be in force.2. National Emergency – In case of Proclamation of Emergency, the Parliament can

extend its legislative powers to make laws on state subjects but such laws cease tohave effect on expiration of 6months after proclamation cease to operate. Either innational interest or emergency, if any provision of a law made by legislature is in

repugnancy or in conflict with Parliament law then latter shall prevail till itsexistence.3. On Request of State Legislatures – If any resolution passed by all legislatures of

two or more states by declaring that it shall be lawful for the Parliament to pass anact on any matter included in state list for those state then such act passed byparliament shall apply to those state or any other state which passed resolutioneven after enactment of that act. But such law can be amended or repealed by the

Parliament only and not by concerned states.4. International Agreements – The Parliament has legislative power to make any law

for execution of any treaty or agreement with other countries or at anyinternational conference or association.5. President Rule – On failure of constitutional machinery, the President rule can be

imposed and under it Parliament is empowered to make laws on any matter inState List. Such laws shall remain in force even after the President Rule but can be

repealed or amended by state legislature.

EXECUTIVE POWERS between The Union and

The States

The 15Union and states have independent executive staffs fully controlled by

their respective governments and executive power of the states and the Centreare extended on issues they are empowered to legislate. As in legislative

matters, in administrative matters also, the Central government can not

overrule the constitutional rights/powers of a state governments except when

president rule is promulgated in a state. It is the duty of the Union to ensure

that the government of every State is carried on in accordance with theprovisions of the Constitution per Article 355. Article 256 of the Constitution has

made it clear that the State governments cannot go against the Central laws inadministrative matters. When a State has failed to work according to the

Constitution, President’s rule is imposed under Article 356 and President takes

over its (the State’s) administration with post facto consent of the Parliament

per Article 357.

15 https://en.wikipedia.org/wiki/Federalism_in_India

FINANCIAL POWERS between The Union and

The States

Article 282 accords financial autonomy in spending the financial resources

available with the states for public purpose. Article 293 gives liberty to states to

borrow without any limit to its ability for its requirements within the territory ofIndia without any consent from the union government. However union

government can insist for compliance of its loan terms when a state hasoutstanding loan charged to the consolidated fund of India or an outstandingloan in respect of which a guarantee has been given by the Government of Indiaunder the liability of consolidated fund of India.

President constitutes a Finance Commission after every five years torecommend the modality for devolving union government revenues betweencentral and state governments.

Under Article 360 of the constitution, President can proclaim a financial

emergency when the financial stability or credit of the nation or of any part ofits territory is threatened. However, until now no guidelines defining the

situation of financial emergency in the entire country or a state or a unionterritory or a panchayat or a municipality or a corporation have been framedeither by the finance commission or by the central government.

Such an emergency must be approved by the Parliament within two months bysimple majority. It has never been declared. A state of financial emergency

remains in force indefinitely until revoked by the President. The President can

reduce the salaries of all government officials, including judges of the SupremeCourt and High Courts, in cases of a financial emergency. All money bills passed

by the State legislatures are submitted to the President for approval. He can

direct the state to observe certain principles (economy measures) relating to

financial matters.

CONCLUSION

At last I would like to conclude that “ Federalism is an aspect ofConstitutionalism “. As Constitutionalism means limited government or

limitations on government. In federalism is a philosophy which says power

should be divided between the governments and there shall be no monopoly ofpower, and in India power is divided between The Union and The States.

But according to Article 254 i.e Doctrine of Repungancy which says thatin case of conflict between the sub matters of the lists ( union list, state list,concurrent list ), the union prevails over the state.But the interpretations of the lists as said by supreme court is done by keepingin mind these principles :/A. Doctrine of colorable legislationB. Principle of pith and substanceC. Principles of harmonious construction