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Friday, December 7, 2018

Whether the Central Government while exercising its power of nomination under Section 3(3) of 1963 Act is obliged to consult the Council of Ministers/Chief Minister of Government of Union Territory of Puducherry and the nomination by Central Government can only be made with the concurrence of the Government of Puducherry? - No - Apex court held that we are of the clear opinion that nomination in the Legislative Assembly of Puducherry is not the Business of the Government of Puducherry. It is a business of Central Government as per Section 3(3) of Act, 1963 which is to be carried out in accordance with the Government of India (Allocation of Business) Rules, 1961 and Government of India (Transaction of Business) Rules, 1961.Further, specific authority to nominate in the Legislative Council has been conferred by law i.e. under Section 3 to the Central Government. Thus no breach of federal principles are made out and the submission on the basis of breach of federal principles in nomination by the Central Government is unfounded. Whether the nominated members in the Legislative Assembly shall have no voting right in two matters, i.e., (i) budget and (ii) no­ confidence motion against the Government? - No- Apex court held that the composition of Legislative Assembly itself consists of both persons chosen by direct election and persons nominated by the Central Government. Both elected and nominated persons are part of Legislative Assembly. The expression “every member of the Legislative Assembly of the Union territory” shall include both elected and nominated members.Section 12(1) provides that all questions at any sitting of the Legislative Assembly of the Union territory shall be determined by a majority of votes of the members present and voting other than the Speaker or person acting as such. When provision of sub­section(1) clearly provides no voting by Speaker, if intention of Legislature was to exclude the votes of nominated members, the said expression was bound to find included in the sub­section(1). The conclusion is inescapable that all members including the nominated members are entitled to vote in the sitting of the Legislative Assembly and the submission of Shri Sibal that nominated members cannot exercise vote in budget and no confidence motion has to be rejected.

Justice Ashok Bhushan.jpg
Justice Ashok Bhushan

Whether the Central Government while exercising its power   of   nomination   under   Section   3(3)   of   1963   Act   is obliged to consult the Council of Ministers/Chief Minister of   Government   of   Union   Territory   of   Puducherry   and   the nomination by Central Government can only be made with the concurrence of the Government of Puducherry? - No -

Apex court held that  we are of the clear opinion   that   nomination   in   the   Legislative   Assembly   of Puducherry   is   not   the   Business   of   the   Government   of Puducherry.   It   is   a   business   of   Central   Government   as   per Section   3(3)   of   Act,   1963   which   is   to   be   carried   out   in accordance   with   the   Government   of   India   (Allocation   of Business) Rules, 1961 and Government of India (Transaction of Business) Rules, 1961.Further, specific authority to nominate in the Legislative Council has been conferred by
law i.e. under Section 3 to the Central Government. Thus no breach of federal principles are made out and the submission on the basis of breach of federal principles in nomination by the Central Government is unfounded.  

Whether   the   nominated   members   in   the   Legislative Assembly shall have no voting right in two matters, i.e., (i)   budget   and   (ii)   no­   confidence   motion   against   the Government? - No-
Apex court held that   the   composition   of   Legislative Assembly   itself   consists   of   both   persons   chosen   by   direct election   and   persons   nominated   by   the   Central   Government.
Both   elected   and   nominated   persons   are   part   of   Legislative Assembly.  The expression “every member of   the   Legislative   Assembly   of   the   Union   territory”   shall include   both   elected   and   nominated   members.Section 12(1) provides that all questions at any sitting
of the Legislative Assembly of the Union territory shall be determined by a majority of votes of the members  present and voting other than the Speaker or person acting as such. When provision of sub­section(1) clearly   provides   no   voting     by   Speaker,       if   intention   of Legislature was to exclude the votes of nominated members, the said   expression   was   bound   to   find   included   in   the sub­section(1).     The   conclusion   is   inescapable   that   all members including the nominated members are entitled to vote in the sitting of the Legislative Assembly and the submission of Shri Sibal that nominated members cannot exercise vote in budget  and  no  confidence  motion has to  be  rejected.
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REPORTABLE
  IN     THE     SUPREME     COURT   OF INDIA
    CIVIL     APPELLATE JURISDICTION
    CIVIL     APPEAL     NO.11887    Of 2018
(arising out of SLP (C) No. 8249 of 2018)
K. LAKSHMINARAYANAN           ...APPELLANT(S)
VERSUS
UNION OF INDIA & ANR.    ...RESPONDENT(S)
WITH
    CIVIL     APPEAL     NO.11888     Of 2018
(arising out of SLP (C) No. 8224 of 2018)
S. DHANALAKSHMI    ...APPELLANT(S)
VERSUS
UNION OF INDIA & ORS.    ...RESPONDENT(S)
J U D G M E N T
    ASHOK BHUSHAN,J.
Leave granted.
These   two   appeals   have   been   filed   against   the   common
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judgment of Madras High Court dated 22.03.2018 by which the
writ   petitions   filed   by   the   appellants   questioning   the
nominations   made   by   the   Central   Government   in   exercise   of
power   under   Section   3(3)   of   the   Government   of   Union
Territories   Act,   1963   (hereinafter   referred   to   as   “Act,
1963”),   to   the   Legislative   Assembly   of   Union   Territory   of
Puducherry has been dismissed. 
2. The   background   facts   leading   to   filing   of   the   writ
petitions giving rise to these appeals are as follows:­
2.1 Part VIII of the Constitution of India dealing with
the   Union   Territories   was   amended   by   Constitution
(Fourteenth   Amendment)   Act,   1962   by   inserting
Article 239A, which provides for “creation of local
Legislatures   or   Council   of   Ministers   or   both   for
certain   Union   Territories.”     Article   239A   provided
that   Parliament,   may   by   law,   create   for   the   Union
Territory of Pondicherry, a body, whether elected or
partly nominated and partly elected, to function as
a Legislature for the Union Territory, or a Council
of Ministers, or both with such constitution, powers
and functions, in each case, as may be specified in
the  law.    After  the  above  Constitutional  amendment
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inserting   Article   239A,   the   Parliament   enacted
Government of Union Territories Act, 1963 to provide
for   Legislative   Assembly   and   Council   of   Ministers
for certain Union Territories and for certain other
matters. 
2.2 At the time of commencement of Act, 1963, there were
large number of Union Territories, which were to be
governed by the Act, 1963.  Gradually, several Union
Territories were upgraded to the status of a State
and as on date, the definition of Union Territories
under Section 2(h) defines “Union Territory” as the
Union   Territory   of   Puducherry.     Section   3   of   the
Act,   1963   provides   for   Legislative   Assemblies   for
Union territories and their composition.   According
to   Section   3(2),   the   total   number   of   seats   in   the
Legislative   Assembly   of   the   Union   territory   to   be
filled by persons chosen by direct election shall be
thirty   and   as   per   Section   3(3),   the   Central
Government may nominate not more than three persons,
not being persons in the service of Government, to
be members of the Legislative Assembly of the Union
territory. 
2.3 Election for filling thirty seats in the Legislative
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Assembly   of   Puducherry was   held   in   the   year   2016.
Indian National Congress, who bagged fifteen out of
thirty seats with support of DMK and one independent
candidate   has   formed   the   Government   in   Puducherry.
Writ   Petition   (C)   No.   16275   of   2017   as   K.
Lakshminarayanan Vs. Union of India & Anr. was filed
in   the   Madras   High   Court   praying   for   a   writ   of
mandamus   forbearing   the   respondents   from   in   any
manner   nominating  or  filing  up   the  nominated  seats
of   Members   for   the   Puducherry   Legislative   Assembly
except   with   the   consultation   and   choice   of   the
elected Council of Ministers.  The writ petition was
filed   on   27.06.2017.     The   Government   of   India,
Ministry  of  Home  Affairs   had  issued  a  notification
on   23.06.2017   nominating   Shri   V.   Saminathan,   Shri
K.G.  Shankar   and  Shri  S.  Selvaganabathy  as   members
of   the  Legislative   Assembly  of   the  Union  Territory
of   Puducherry.   An   application   for   amendment   was
filed in the writ petition praying for quashing the
notification   dated   23.06.2017.     Another   Writ
Petition (C) No. 18788 of 2017 – S. Dhanalakshmi Vs.
Union of India & Ors. Was filed in the Madras High
Court praying for following reliefs:­
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“Writ of Certiorarified Mandamus calling for
the   records   on   the   file   of   the   third
respondent   relating   to   the   impugned
Notification   bearing   Ref.   No.
F.No.U­11012/1/2014­UTL dated 23­06­2017  and
quash   the   same   and   consequently   direct   the
respondents 1 to 3 to nominate the members to
the Puducherry Legislative Assembly only with
the   consultation   and   choice   of   the   elected
Council of Ministers and pass such further or
other orders and thus render justice”.
2.4 On   13.11.2017,   the   Secretary   of   Puducherry
Legislative   Assembly   communicated   the   decision   of
the   Speaker   of   the   Legislative   Assembly   that   the
nominated members could not be recognised as members
of   the   Assembly,   having   been   appointed   in
contravention of the Constitution and the Act, 1963.
The communication dated 13.11.2017 was challenged by
three   nominated   members   by   filing   three   separate
writ petitions being Writ Petition Nos. 29591, 29592
and   29593   of   2017.     All   the   writ   petitions,   i.e.
Writ Petition No. 16275 of 2017, Writ Petition No.
18788   of   2017   and   Writ   Petitions   No.   29591,   29592
and 29593 of 2017 were heard and decided by Division
Bench of Madras High Court vide its judgment dated
22.03.2018.     The   Writ   Petition   Nos.   16275   of   2017
and 18788 of 2017 challenging the notification dated
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23.06.2017   has   been   dismissed,   whereas   the   Writ
Petition   Nos.   29591,   29592   and   29593   have   been
allowed.  Two separate but concurring judgments have
been   delivered   by   Division   Bench   of   Madras   High
Court.   Operative portion of the judgment delivered
by   Justice   M.   Sundar,   with   which   judgment,   Chief
Justice   expressed   absolute   agreement,   was   to   the
following effect:­
“W.P. No. 16275 of 2017 filed by the Whip and
W.P.   No.   18788   of   2017   filed   by   PIL
petitioner   are   dismissed.     Writ   petitions,
being W.P. Nos. 29591 to 29593 of 2017 filed
by nominated MLAs are allowed.   Considering
the nature of the matter and in the light of
the   trajectory   this   litigation   has   taken,
there   shall   be   no   order   as   to   costs.
Consequently,   connected   miscellaneous
petitions are closed.”
2.5 Against   the   aforesaid   Division   Bench   judgment   of
Madras High Court dated 22.03.2018, only two appeals
have   been   filed,   one   by   K.   Lakshminarayanan   and
other by S. Dhanalakshmi challenging the judgment of
Division Bench by which Writ Petition No. 16275 of
2017 has been dismissed and another appeal has been
filed against the judgment of Division Bench in Writ
Petition   No.   18788   of   2017   by   which   writ   petition
was   dismissed.     In   so   far   as   judgment   of   Division
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Bench in Writ Petitions Nos. 29591, 29592 and 29593
of   2017   filed   by   three   nominated   MLAs,   by   which
their   writ   petitions   were   allowed   quashing   the
decision of the Speaker dated 23.11.2017, no appeals
have been filed.
           
3. We have heard Shri Kapil Sibal and Shri Salman Khurshid,
learned senior counsel appearing for the appellants.  We have
heard Shri K.K. Venugopal, learned Attorney General for the
Union of India.  Shri Ranjit Kumar, learned senior counsel has
been heard for the respondents.
4. Shri Kapil Sibal challenging the nominations made by the
Central Government has raised various submissions.  Shri Sibal
submits that the Government of Puducherry has vital interest
in   the   constitution   of   the   Assembly,   since   it   enjoys   the
confidence   of   Legislative   Assembly   and   accountable   to   the
people.  The Government of Puducherry cannot be a stranger in
the   nominations   made   to   the   Assembly.     He   submits   that
nominations of the members of the Assembly must emanate from
the Government of Puducherry and should have concurrence of
the Government.    It was open  for  the  Central  Government to
adopt   any   fair   procedure   for   nominating   the   members.     The
nominees   could   have   been   originated   from   Government   of
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Puducherry.  The President could have asked the names from the
Government   of   Puducherry.     He   submits   that   let   this   Court
decide   on   a   valid   procedure,   which   is   to   be   adopted   while
making   nominations   by   Central   Government   in   the   Legislative
Assembly   of   Puducherry.     He   further   submits   that   there   has
been   at   least   six   occasions   when   elected   Government   of
Puducherry was consulted before nominating the members in the
Legislative Assembly by the Central Government.   In the year
2001,   when   Lieutenant   Governor   without   consulting   the
Government of Puducherry forwarded the names for nomination to
the   Assembly,   objection   was   raised   by   the   Government   of
Puducherry   and   the   proposed   list   of   nominated   members   was
referred   back   to   the   Lieutenant   Governor   for   lack   of
consultation   with   the   elected   Government.     He   submits   that
earlier   incidents   when   the   Government   of   Puducherry   was
consulted   before   nomination   has   taken   shape   of   a
constitutional   convention,   which   is   nothing   but   a
constitutional   law   to   be   followed   by   all   concerned.     He
submits that while making nominations vide notification dated
23.06.2017, the above constitutional convention has not been
followed,   which   renders   the   nomination   illegal   and
unsustainable.     He   further   submits   that   in   the   counter
affidavit filed by the Union of India before the High Court,
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it   was   stated   that   Lieutenant   Governor   has   not   sent   any
nominations to the Central Government and Central Government
on its own has made nominations under Section 3(3) of the Act,
1963.   Shri Kapil Sibal submits that the expression “Central
Government” as occurring in Section 3(3) of the Act, 1963 has
not been correctly understood by the High Court.   He submits
that according to the definition given under Section 3(8) of
the General Clauses Act, 1897, the Central Government means
the President and include in relation to the administration of
a Union Territory, the administrator thereof.  It is submitted
that   the   President   has   framed   Rules   of   Business   of   the
Government   of   Puducherry,   1963,   Rule   4   of   which   Rules   is
relevant for the present case.   It is submitted that as per
the Business Rules, it is the administrator, who was required
to make nominations that too after consultation of Council of
Ministers.  Shri Sibal refers to Rule 4(2) and Rule 48 of the
Business Rules to buttress his submission.   It is submitted
that the nomination to Legislative Assembly is fully covered
by   expression   “remaining   business   of   the   Government”   as
occurring   in   Rule   4(2).     Therefore,   Rule   4(2)   read   with
Chapter IV of the Rules of Business, cover the entire gamut of
executive power exercisable by the President under Article 239
of   the   Constitution.     Since   Section   3(3)   of   the   Act,   1963
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refers to “Central Government”, thereby indicating exercise of
power in terms of Article 239 of the Constitution, Rule 4(2)
read   with   Chapter   IV   of   the   Rules   of   Business   of   the
Government of Puducherry would apply.  Therefore, the power to
nominate members under Section 3(3) of the Act, 1963 has to
necessarily   involve   the   administrator   acting   in   accordance
with Chapter IV.
5. Shri Sibal further submits that in event interpretation
is accepted that the Government of Puducherry has no role to
play in the nominations of members to Legislative Assembly, it
is   de­establishing   cooperative   federalism.     It   is   submitted
that federalism has been recognised as a basic feature of the
Constitution   and   it   is   Government,   which   is   democratically
formed and reflect the will of the people and responsible to
the Legislature, who has to initiate and concur in the members
to   be   nominated   in   the   Legislative   Assembly.     In   the
representative democracy, the Government is not a stranger to
the process of nomination. One more submission which has been
pressed by Shri Sibal is that even though nominated members
may have right to vote in the proceedings of Assembly there
are two exceptions to such right of vote, i.e., (i) voting on
budget, and (ii) voting on no­confidence motion against the
Government. He submits that nominated members shall have no
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right   to   vote   in   above   two   subjects.   Shri   Kapil   Sibal   has
further very candidly in his submission, stated that he is not
pursuing the challenge to Section 3(3) of the Act, 1963 nor he
is carrying further the submission made before the High Court
on   the   ground   of   eligibility   of   members,   who   have   been
nominated in the Legislative Assembly.  Shri Sibal has placed
reliance on various judgments of this Court, which shall be
referred to while considering the submissions in detail.
6. Shri K. K. Venugopal, learned Attorney General replying
the submissions of Shri Sibal submits that the Union Territory
is   a   Territory   of   a   Union   in   which   Central   Government   can
nominate   unless   the   Constitution   or   law   provides   for   any
consultation   of   Government   of   Puducherry.     According   to
Article 239, it is the President, who has to administer Union
Territory.     Lieutenant   Governor,   who   is   an   administrator
appointed by the President to administer the Union Territory
of Puducherry, govern the Union Territory as per instructions
and directions of the President.  Neither Lieutenant Governor
nor   Legislative   Assembly   can   assert   themselves   in   governing
the   Union   Territory.     The   Act,   1963   is   a   law   framed   by
Parliament   in   exercise   of   power   under   Article   239A   of   the
constitution.   The   powers   and   functions   of   the   Legislative
Assembly   are   such   as   specified   in   the   Act,   1963.     The
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provision empowering nominations in the Legislative Assembly
by the Central Government in no manner affect the principle of
federalism or cooperative federalism.   The Act, 1963 or any
Constitutional provision does not provide for any consultation
of   Government   of   Puducherry   for   making   nomination   in   the
Legislative   Assembly   by   the   Central   Government.     There   are
large number of Constitutional provisions, which provide for
consultation, whereas no Constitutional provision provide for
consultation of Government of Puducherry in making nomination
by Central Government nor any such right of consultation, is
decipherable   from   the   Act,   1963.     Reading   consultation   in
nomination shall upset the Constitutional balance.  Appellants
want to read the word “consultation” in Section 3(3) of Act,
1963,   which   has   been   consciously   withheld.     When   the
provisions   of   Act,   1963   indicate   a   primacy   of   Central
Government, the submission that nomination should be made with
the   concurrence   of   Government   of   Puducherry   is   wholly
unfounded.     The   Union   Territory   of   Puducherry   is   wholly
subservient to the President.
7. Shri K.K.  Venugopal   further   submits   that   Council   of
Ministers of Government of Puducherry is a Agency devised by
President   of   India.   Section   50   of   Act,   1963   gives   absolute
power   to   the   President   to   issue   any   direction   to   the
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Administrator and his Council of Ministers. It is submitted
that there is no kind of any limit in the extent of power as
envisaged under Section 50. Shri Venugopal referred to various
other   statutes   where   provisions   envisaged   for   issuing
directions   by   Central   Government   or   other   authorities.   He
submits that in various statutory provisions, directions are
hedged   by   several   conditions   and   in   some   of   the   statutes
consultation is also envisaged.
8. Shri Ranjit Kumar, learned senior counsel appearing for
nominated MLAs submits that the Constitution itself provides
that   Legislative   Assembly   of   Union   Territory   of   Puducherry
shall be partly elected and partly nominated and Parliament
enacted   Act,   1963,   for   both   the   elected   and   non­elected
members. He further submits that Section 14 of the Act, 1963
which   deals   with   disqualification   of   members,   does   not
contemplate that if nomination is made without consultation of
Legislative Assembly, the members will be disqualified. Hence,
non­consultation   with   Council   of   Ministers   of   Legislative
Assembly cannot be treated to be as any disqualification.
9. Shri   Ranjit   Kumar   further   submits   that   Section   33
provides that the Legislative Assembly of the Union territory
may   make   rules   for   regulating   and   conducting   its   business.
14
Similarly, Section 46 provides that the President shall make
the rules for allocation of business to the Ministers and for
the more convenient transaction of business. He submits that
both the rules framed under Act, 1963 as well as Section 36,
there  is   no  rule  providing consultation  of the Council of
Ministers or Chief Minister before making any nomination   in
the Legislative Assembly by the Central Government.
10. He further submits that Legislative Assembly has no power
to   make   any   law   to   regulate   nomination   to   be   made   in   the
Assembly. It is only the Parliament who is empowered to make
law   under   Article   239A   regulating   constitution   of   the
Legislative Assembly. When the legislative power is not there
with the Union Territory of Puducherry, no executive power can
be exercised by the Legislative Assembly of the Puducherry. He
further submits that power of nomination which shall flow from
law   making   power   unless   Article   239A   and   legislative   power
will be co­extensive with the executive power.
11. Shri Kapil Sibal in his rejoinder submission replying the
submissions of learned Attorney General as well as Shri Ranjit
Kumar,   submits   that   the   appellants   are   questioning   the
procedure   adopted   by   Central   Government   for   nomination.   He
further reiterates that Central Government under Section 3(3)
15
of Act, 1963 is  to mean the President who in turn delegated
his   power   to   its   Administrator,   thus,   nomination   has   to
emanate from Administrator who is to Act on the advise of the
Council of Ministers. He submits that the Rules of Business
framed   by   the   President   are   Rules   of   Business   both   under
Article 239 as well as under Section 44 and under Section 46
of   the   Act,   1963,   hence,   the   Rules   of   Business   relate   to
entire executive functions of the Government of Puducherry.
12. Learned   counsel   for   the   parties   in   support   of   their
respective   submissions   have   relied   on   various   judgments   of
this Court which shall be referred to while considering the
submission in detail.
13. From   the   submissions   raised   by   the   learned   for   the
parties   and   the   materials   on   record   following   are   the   main
issues which arise for consideration in these appeals:
(1) Whether   the   expression   “Central   Government”   as
occurring   in   Section   3(3)   of   the   1963   Act   means   the
Administrator, hence, it is the Administrator who has to
exercise the power of nomination that too on the aid and
advise of the Council of Ministers of the Union Territory
of Puducherry?
(2) Whether the nomination in the Legislative Assembly of
the Puducherry is the business of the Government which has
16
to be transacted in accordance with Rule 4 sub­Rule (2)
read   with   Rule   48   of   the   Rules   of   Business   of   the
Government   of   Puducherry,   1963.   As   per   which   Rule   the
Administrator   was   required   to   consult   either   Council   of
Ministers   or   Chief   Minister   before   discharging   his
functions under Rule 4(2)?
(3) Whether   nomination   of   Central   Government   in   the
Legislative Assembly without concurrence of Government of
Union   Territory   of   Puducherry   violates   principles   of
Federalism and co­operative Federalism?
(4) Whether   there   is   a   constitutional   convention   to
consult   the   Government   of   Puducherry   before   making   any
nomination   by   the   Central   Government   on   the   strength   of
the   fact   that   on   six   earlier   occasions   when   the
nominations   were   made,   the   Central   Government   has
consulted   the   Government   of   Puducherry   before   making
nominations?
(5) Whether the Central Government while exercising its
power   of   nomination   under   Section   3(3)   of   1963   Act   is
obliged to consult the Council of Ministers/Chief Minister
of   Government   of   Union   Territory   of   Puducherry   and   the
nomination by Central Government can only be made with the
concurrence of the Government of Puducherry?
17
(6) Whether recommendations made by the Madras High Court
in so far as recommendations made in paragraph 5(iv) of
the impugned judgment is concerned, are unsustainable and
not in accordance with law?
(7) Whether   the   nominated   members   in   the   Legislative
Assembly shall have no voting right in two matters, i.e.,
(i)   budget   and   (ii)   no­   confidence   motion   against   the
Government?
Issue No.1
14. The submission made by Shri Sibal is that the expression
“Central Government” used under Section 3(3) of the Act, 1963
means the administrator.  In consequence, he contends that the
power of nomination in the Legislative Assembly of Puducherry
is to be exercised by the administrator on the aid and advise
of the Council of Ministers of Union Territory of Puducherry.
The   Act,   1963   does   not   define   the   expression   “Central
Government”.   The provision of General Clauses Act, 1897 had
to be looked into to find out the definition of the expression
“Central   Government”.     Section   3(8)   of   the   General   Clauses
Act, 1897 defines the expression “Central Government”.   The
18
relevant portion of Section 3(8) is as follows:­
“3(8) “Central Government” shall,­­
(a) …………
(b) in   relation   to   anything   done   or   to   be   done
after the commencement of the Constitution, mean the
President; and shall include,­­
(i)  ……………
(ii) ……………
(iii) in relation to the administration of a
Union   territory,   the   administrator   thereof
acting within scope of the authority given to
him under article 239 of the Constitution;
15. In Section 3(8)(b) Central Government has been defined as
to   “mean   the   President”.     The   next   phrase   used   after   the
semi­colon is “and shall include”. The definition of Central
Government   given   in   Section   3(8)   is   a   restrictive   and
exhaustive   definition.     When   the   definition   uses   the   word
“mean   the   President”,   the   clear   intention   is   that   Central
Government   is   the   President,   the   next   phrase   “and   shall
include   in   relation   to   the   administration   of   a   Union
territory, the administrator thereof acting within the scope
of   the   authority   given   to   him   under   article   239   of   the
Constitution”   has   been   added   with   a   purpose   and   object.
Article 239 of the Constitution provide that save as otherwise
provided by Parliament by law, every Union territory shall be
19
administered   by   the   President   acting,   to   such   extent   as   he
thinks fit, through and administrator to be appointed by him
with such designation as he may specify.  As per definition of
Section   3(8)(b)(iii)   administrator   shall   include   in   the
definition   of   Central   Government   when   in   relation   to   the
administration of a Union territory, the administrator thereof
acting within the scope of the authority given to him under
article 239 of the Constitution.  Thus, the administrator will
be  Central  Government  when  he  acts  within  the  scope of  the
authority given to him under article 239.  Under Article 239,
Rules of Business have been framed as noticed above, which has
been brought on record as Annexure P1 to Civil Appeal of K.
Lakshminarayanan.  Executive functions of the administrator as
contemplated by Rule 4(2) read with Rule 48 shall include a
variety of the executive functions, which he is authorised to
discharge.     The   executive   functions   may   include:   (i)   the
business of executive functions in relation to the subjects on
which   Legislative   Assembly   of   the   Union   Territory   of
Puducherry   is   entitled   to   make   law;   (ii)   the   executive
functions   entrusted   to   the   Government   of   Puducherry,   to   be
exercised   in   the   name   of   the   administrator,
entrusted/delegated   under   any   Parliamentary   law;   (iii)
functions to be discharged by administrator under any special
20
or   general   order   issued   by   the   President   of   India;   (iv)
functions   to   be   discharged   by   administrator   under   the
instructions   issued   by   the   Central   Government   from   time   to
time.   A perusal of the Rules of Business, which have been
framed under Article 239 as well as Section 46 of the Act,
1963 does not expressly indicate that in so far as power of
nomination   to   be   exercised   by   the   Central   government   under
Section   3(3),   the   administrator   or   Government   of   Puducherry
has   been   authorised   or   delegated   any   function   in   the   above
regard.   No order of the President or Central Government has
been brought on the record on the basis of which it can be
concluded   that   with   regard   to   right   of   a   nomination   to   be
exercised by the Central Government under Section 3(3) of Act,
1963,   any   function   has   been   delegated,   authorised   or
instructed to the administrator.   The definition of Central
Government   given   under   Section   3(8)(b)(iii),   which   mean   the
President   cannot   be   given   a   go   bye   to   rely   on   the   next
expression “shall include” the administrator.  The context of
subject has to be looked into while finding out as to whether
in context of Section 3(3), the Central government shall mean
the President or the administrator.
16. This   Court   had   occasion   to   interpret   the   definition
clause   in  Jagir   Singh   and   Others   Vs.   State   of   Bihar   and
21
Others, (1976) 2 SCC 942.   In the above case, the Court was
considering the definition of expression   “owner” as defined
in Bihar Taxation on Passengers and Goods (Carried by Public
Service   Motor   Vehicles)   Act,   1961.     In   para   11   of   the
judgment, the definition has been extracted, which is to the
following effect:­
“11.  The expression “owner” is defined in the Bihar
Act in Section 2(d) thereof as follows:
“   ‘Owner’   means   the   owner   of   a   public
service   motor   vehicle   in   respect   of   which   a
permit has been granted by a Regional or State
Transport   Authority   under   the   provisions   of
the Motor Vehicles Act, 1939 and includes the
holder   of   a   permit   under   the   said   Act   in
respect of a public service motor vehicle or
any   person   for   the   time   being   in   charge   of
such vehicle or responsible for the management
of the place of business of such owner.”
17. The definition of owner in the Bihar Act also used two
expression, first ‘Owner’ means the owner of a public service
motor vehicle and second and includes the holder of a permit
under   the   said   Act   in   respect   of   a   public   service   motor
vehicle or any person for the time being in charge of such
vehicle   or   responsible   for   the   management   of   the   place   of
business of such owner.  The provisions of Maharashtra Tax on
Goods  (Carried  by  Road) Act,  1962  and  other Acts  were  also
under consideration.  In Maharashtra Act, the “operator” means
22
any person whose name is entered in the permit as the permit
holder or any person having the possession or control of such
vehicle.  It was contended before the Court that words “or any
person for the time being in charge of such vehicle” in the
definition of “owner” indicate that the transport or booking
agencies which would take the public service motor vehicle on
hire would be owners within the definition of the word without
being permit holders in respect of these public service motor
vehicles.   The   contention   to   read   definition   in   particular
manner was rejected by this Court.  In paragraph Nos. 19 and
21, following has been held:­
“19.  The   definition   of   “owner”   repels   the
interpretation submitted by the petitioners that the
definition means not only the owner who is the permit
holder   but   also   a   booking   agency   which   may   be   in
charge of the vehicle without being a permit holder.
The entire accent in the definition of owner is on
the   holder   of   a   permit   in   respect   of   the   public
service   motor   vehicle.   It   is   the   permit   which
entitles the holder to ply the vehicle. It is because
the   vehicle   is   being   plied   that   the   passengers   and
consignors   of   goods   carried   by   that   vehicle   become
liable to pay not only fare and freight to the owner
but also tax thereon to the owner. The words “or any
person for the time being in charge of such vehicle
or   responsible   for   the   management   of   the   place   of
business   of   such   owner”   indicate   that   the   permit
holder will include any person who is in charge of
such vehicle of the permit holder or any person who
is   responsible   for   the   management   of   the   place   of
business of such owner. The owner cannot escape the
liability by stating that any person is for the time
being   in   charge   of   such   vehicles,   and,   therefore,
such person is the owner and not the permit holder.
23
21. The definition of the term “owner” is exhaustive
and   intended   to   extend   the   meaning   of   the   term   by
including within its sweep bailee of a public carrier
vehicle or any manager acting on behalf of the owner.
The   intention   of   the   legislature   to   extend   the
meaning   of   the   term   by   the   definition   given   by   it
will   be   frustrated   if   what   is   intended   to   be
inclusive   is   interpreted   to   exclude   the   actual
owner.”
18. It is further relevant to notice that definition clause
in Section 3 of the General Clauses Act, 1897 begins with the
expression   “In   this   Act,   and   in   all   Central   Acts   and
Regulations made after the commencement of this Act, unless
there is anything repugnant in the subject or context”. Thus,
all   definitions   given   under   Section   3   are   subject   “unless
there is anything repugnant in the subject or context”.  Thus,
the   subject   or   context   has   to   be   looked   into   to   apply   the
definition   given   in   Section   3(8)(b).     This   Court   in  Jagir
Singh   (supra)  has   also   held   that   while   interpreting   the
definition clause, the context, the collocation and the object
of words relating to such matter has to be kept in mind while
interpreting the meaning intended to be conveyed by the use of
the word under a circumstance.  In paragraph No. 20 following
has been laid down:­
“20. The general rule of construction is not only to
look   at   the   words   but   to   look   at   the   context,   the
collocation and the object of such words relating to
such   matter   and   interpret   the   meaning   according   to
24
what would appear to be the meaning intended to be
conveyed   by   the   use   of   the   words   under   the
circumstances.   Sometimes   definition   clauses   create
qualification by expressions like “unless the context
otherwise   requires”;   or   “unless   the   contrary
intention appears”; or “if not inconsistent with the
context   or   subject­matter”.   “Parliament   would
legislate to little purpose,” said Lord Macnaghten in
Netherseal Co.  v.  Bourne (1889) 14 AC 228, “if the
objects of its care might supplement or undo the work
of legislation by making a definition clause of their
own.   People   cannot   escape  from   the   obligation  of   a
statute   by   putting   a   private   interpretation   on   its
language.”   The   courts   will   always   examine   the   real
nature of the transaction by which it is sought to
evade the tax.”
19. Another judgment of this Court in Black Diamond Beverages
and   Another   Vs.   Commercial   Tax   Officer,   Central   Section,
Assessment Wing, Calcutta and Others, (1998) 1 SCC 458 is also
relevant   in   the   present   context.     In   the   above   case,   this
Court had occasion to consider the definition of “Sale price”
as  occurring  in Section 2(d)  of West  Bengal Sales  Tax  Act,
1954.  The definition has been quoted in paragraph No.5 of the
judgment, which is to the following effect:­
“5.  The   1954   Act   generally   provides   for   levy   of   a
single­point   tax   at   the   first   stage   on   commodities
notified under Section 25 of that Act. On the other
hand, the 1941 Act is a general statute providing for
multipoint   levy   of   sales   tax   on   commodities   not
covered by the 1954 Act. Sub­clause (d) of Section 2
of the 1954 Act reads as follows:
“2.   (d)   ‘sale­price’   used   in   relation   to   a
dealer  means  the   amount   of   the  money
consideration  for   the   sale   of   notified
commodities manufactured, made or processed by
25
him   in   West   Bengal,   or   brought   by   him   into
West   Bengal   from   any   place   outside   West
Bengal,   for   the   purpose   of   sale   in   West
Bengal, less any sum allowed as cash discount
according to trade practice, but includes any
sum charged for containers or other materials
for the packaging of notified commodities;”
20. The   above   definition   also   contain   two   expression   means
and include.   The  first part  of the definition  defines  the
meaning of the word ‘sale­price’ as the amount of the  money
consideration  for   the   sale.     This   Court   held   that
interpretation of the first part of the definition is in no
way control or  affect  the  other part  of the definition  and
include other part.  In paragraph Nos. 7 and 8, following has
been laid down:­
“7.  It is clear that the definition of “sale price”
in   Section   2(d)   uses   the   words   “means”   and
“includes”. The first part of the definition defines
the meaning of the word “sale price” and must, in our
view,   be   given   its   ordinary,   popular   or   natural
meaning.   The   interpretation   thereof   is   in   no   way
controlled   or   affected   by   the   second   part   which
“includes”   certain   other   things   in   the   definition.
This   is   a   well­settled   principle   of   construction.
Craies on Statute Law (7th Edn., 1.214) says:
“An   interpretation   clause   which   extends   the
meaning   of   a   word   does   not   take   away   its
ordinary   meaning….   Lord   Selborne   said   in
Robinson v. Barton­Eccles Local Board AC at p.
801:
‘An interpretation clause of this kind
is  not   meant   to   prevent  the   word
26
receiving   its   ordinary,   popular,   and
natural   sense   whenever   that   would   be
properly applicable, but to enable the
word   as   used   in   the   Act   …   to   be
applied to something to which it would
not ordinarily be applicable.’ ”
(emphasis supplied)
Therefore,   the   inclusive   part   of   the   definition
cannot prevent the main provision from receiving its
natural meaning.
8.  In  view   of  the  above   principle  of   construction,
the   first   part   of   the   definition   of   sale   price   in
Section 2(d) of the 1954 Act must be given its own
meaning   and   the   respondent’s   counsel   is   therefore
right in urging that the first part of Section 2(d)
which is similar to the first part of Section 2(p) in
the Rajasthan Sales Tax Act, 1954, must be given the
same   meaning   given   to   similar   words   in  Hindustan
Sugar Mills v. State of Rajasthan, (1978) 4 SCC 271.
What   the   said   meaning   is   we   shall   consider
separately.   If,   therefore,   by   virtue   of  Hindustan
Sugar Mills case the first part is to be interpreted
as bringing within its natural meaning the “freight
charges” then the contention for the appellants that
like “packaging charges” these “freight charges” must
have also been specifically included in Section 2(d)
cannot be accepted.”
21. Thus,   it   is   clear   that   the   definition   of   Central
Government, which means the President is not controlled by the
second expression “and shall include the administrator”.  The
ordinary   or   popular   meaning   of   the   word   “the   President”
occurring in Section 3(8)(b) has to be given and the second
part of the definition shall not in any way control or affect
the first part of the definition as observed above.   In the
27
definition   of   Central   Government,   an   administrator   shall   be
read   when   he   has   been   authorised   or   delegated   a   particular
function   under   the   circumstances   as   indicated   above.   No
statutory   rules   or   any   delegation   has   been   referred   to   or
brought on record under which the administrator is entitled or
authorised to make nomination in the Legislative Assembly of
the Union Territory of Puducherry.  Thus, in the present case,
the definition of Central Government, as occurring in Section
3(3) of the Act, 1963 has to be read as to mean the President
and not the administrator.  The issue is answered accordingly.
Issue No.2
22. Relying   on   Rule   4(2)   of   the   Rules   of   Business   of   the
Government   of   Puducherry,   1963   (hereinafter   referred   to   as
“Rules of Business”) read with Rule 48 it is contended that
business of Government in the nominations in the Legislative
Assembly   is   covered   by   Rule   4(2),   hence,   Administrator   is
required to consult Council of Ministers or the Chief Minister
before taking any decision. The Rules of Business have been
framed by the President in exercise of the powers conferred by
Article   239   and   the   proviso   to   Article   309   of   the
Constitution, Section 46 of the Act, 1963 and all other powers
28
enabling   the   President   in   this   regard.   In   the   Rules   of
Business,   Rule   2(f)   means:   “the   Government   of   Puducherry”.
Rule 3 provides that the business of the Government shall be
transacted   in   accordance   with   these   Rules.   Rule   4   on   which
reliance has been placed by  Kapil Sibal is to the following
effect:
“4. (1) The business of the Government in relation to
matters with respect to which the Council is required
under   section   44   of   the   Act   to   aid   and   advise   the
Administrator in the exercise of his functions shall
be   transacted   and   disposed   in   accordance   with   the
provisions of Chapter III.
(2) The remaining business of the Government shall be
transacted   and   disposed   of   in   accordance   with   the
provisions of Chapter IV.
(3)   Notwithstanding   anything   contained   in   sub­rule
(1) and sub­rule (2), prior reference in respect of
the matters specified in chapter V shall be made to
the   Central   Government   in   accordance   with   the
provisions of that Chapter.”
23. Rule   4(1)   refers   to   the   business   of   the   Government   in
relation   to   matters   with   respect   to   which   the   Council   is
required under Section 44 of the Act to aid and advise the
Administrator in exercise of his functions. Section 44(1) of
the Act, 1963 is as follows:
“44.  Council   of   Ministers. (1)   There   shall   be   a ―
Council of Ministers in each Union territory with the
Chief   Minister   at   the   head   to   aid   and   advise   the
Administrator   in   the   exercise   of   his   functions   in
relation   to   matters   with   respect   to   which   the
Legislative Assembly of the Union territory has power
to make laws except in so far as he is required by or
29
under   this   Act   to   act   in   his   discretion   or   by   or
under   any   law   to   exercise   any   judicial   or
quasi­judicial functions:
Provided that, in case of difference of opinion
between   the   Administrator   and   his   Ministers   on   any
matter,   the   Administrator   shall   refer   it   to   the
President   for   decision   and   act   according   to   the
decision given thereon by the President, and pending
such   decision   it   shall   be   competent   for   the
Administrator in any case where the matter is in his
opinion   so   urgent   that   it   is   necessary   for   him   to
take immediate action, to take such action or to give
such direction in the matter as he deems necessary.
a[ x x x x]
b[ x x x x]”
24. Section   44(1)   relates   to   functions   “in   relation   to
matters with respect to which the Legislative Assembly of the
Union  Territory has power  to  make  laws. There  may  be  other
functions of the Government of Puducherry which do not pertain
to   functions   in   relation   to   matters   with   respect   to   which
Legislative Assembly of Puducherry has power to make laws. For
example,   under   any   Parliamentary   law   with   respect   to   which
Legislative Assembly of Union Territory has no power to make
laws,   any   power   delegated   to   the   State   Government   is
authorised   or   delegated   under   the   Parliamentary   laws   to
exercise any function.
25. Rule 4(2) obviously refers to “the remaining business of
the Government”, which is not covered by Rule 4(1). Rule 48 of
the Rules of Business refers to sub­(2) of Rule 4. Rule 48 is
as follows:
30
“48. In regard to any matter referred to in sub­rule
(2)   of   rule   4   and   in   respect   of   which   no   specific
provisions  has   been  made  in  the  foregoing  rules  in
this Chapter, the Administrator may, if he deems fit
either   consult   his   Council   or   the   Chief   Minister,
before   exercising   his   powers   or   discharging   his
functions in respect of that matter.”
26. As   per   Rule   48   with   regard   to   matters   referred   to   in
sub­rule  (2)  of Rule  4, the Administrator  may,  if  he  deems
fit, either consult his Council or the Chief Minister, before
exercising   of   his   powers   or   discharging   his   functions   in
respect of  that matter. But the question  which  needs  to be
answered for the present case is as to whether the nomination
of   a   member   in   the   Legislative   Assembly   of   Puducherry   is
covered by expression “remaining business of the Government”.
The   Government   has   been   defined   in   Rule   2(f)   as   “the
Government   of   Puducherry”.   The   Government   occurring   in   Rule
4(2)   cannot   be   stretched   to   be   Central   Government.   When
Section 3(3) of Act, 1963 empowers the Central Government to
nominate   not   more   than   three   persons   to   the   Legislative
Assembly  of the Union  Territory,  it is  the  business of  the
Central   Government   to   make   nominations   as   per   Parliamentary
law.
27. The business of the Government as occurring in Rule 4 has
to be business which under any law is to be performed by the
31
Government   of   Puducherry.   Article   239A   of   the   Constitution
provides   that   Parliament   may   by   law   create   a   body,   whether
elected or partly nominated and partly elected, to function as
a Legislature for the Union Territory or Council of Ministers
or both with such Constitution, powers and functions, in each
case, as may be specified in the law.
28. The   expression   'law'   used   in   Article   239A(1)   is   a
Parliamentary   law.   When   the   Constitution   expressly   provides
that   it   is   the   Parliament   which   may   provide   by   law,
constitution of Legislature for the Union Territory, it is the
Parliament   alone   which   can   provide   for   constitution   of
Legislative Assembly for Union Territory under the Act, 1963.
Section   3   does   provide   for   constitution   of   Legislative
Assembly for Union Territory with thirty members to be elected
members   and   three   members   to   be   nominated   by   the   Central
Government.   When   the   Parliamentary   law       as   envisaged   by
Article   239A   provides   for   the   constitution   of   Legislative
Assembly   of   the   Union   Territory   which   also   includes
nomination,   the   said   constitution   which   also   includes
nomination   can   not   be   the   business   of   the   Government   of
Puducherry. The nominations of the members to the Legislative
Assembly of Puducherry thus can never be covered by expression
'remaining business of the Government' as occurring in Rule
32
4(2). When Rule 4(2) itself is not attracted in reference to
the   nomination   in   the   Legislative   Assembly,   there   is   no
occasion of applicability of Rule 48 that is consultation with
the   Council   of   Ministers   or   the   Chief   Minister   by   the
Administrator.   We,   thus,   do   not   find   any   substance   in   the
submission   of   Shri   Kapil   Sibal   that   nomination   in   the
Legislative Assembly in the Puducherry is the business of the
Government of Puducherry and is to be exercised in accordance
with   Rule   4(2)   read   with   Rule   48.   The   nomination   in   the
Legislative Assembly in the Puducherry is to be made by the
Central Government by virtue of Article 239A read with Section
3(3) of the Act, 1963.
29. Article   77   of   the   Constitution   deals   with   “conduct   of
business of the Government of India”. Article 77 sub­clause
(3) provides that “The President shall make rules for the more
convenient transaction of the business of the Government of
India,   and   for   the   allocation   among   Ministers   of   the   said
business”. In exercise of the power under Article 77(3) the
President   has   made   Government   of   India   (Allocation   of
Business) Rules, 1961 and the Government of India (Transaction
of Business) Rules, 1961. Rule 2 and Rule 3 sub­rule (1) of
Allocation of Business Rules which are relevant for this case
are to the following effect:
33
"2. Allocation   of   Business   –   The   business   of   the
Government   of   India   shall   be   transacted   in   the
Ministries,   Departments,   Secretaries   and   Officers
specified in the First Schedule to these rules (all
of   which   are   hereinafter   referred   to   as
“departments”).
3. Distribution of Subjects ­
(1)The   distribution   of   subjects   among   the
departments shall be as specified in the Second
Schedule to these Rules  and   shall   include   all
attached  and  subordinate   offices   or   other
organisations   including   Public   Sector
Undertakings concerned with their  subjects
and Sub­rules (2), (3) and (4) of this Rule.
xxx xxx xxx xxx
xxx xxx xxx xxx
xxx xxx xxx xxx
xxx xxx xxx xxx.”
30. The   Second   Schedule   includes   “Ministry   of   Home   Affairs
(Grih Mantralaya), which has several departments from A to E.
B is “Department of States (Rajya Vibhag). Under heading (III)
Union Territories have been mentioned. Under Para 7 sub­clause
(b) Union of Territory of Pondicherry is mentioned. Relevant
extract of Second Schedule under the Ministry of Home Affairs,
Department of States is as follows:
"(III) Union Territories
7. Union of Territories with legislature:
(a) xxx xxx xxx xxx
(b) Union Territory of Pondicherry:
All matters falling within  the  purview  of  the
34
Central Government in terms of provisions contained
in Part VIII of the Constitution in so far as these
relate to the Union Territory of Pondicherry and the
Government of Union Territories Act, 1963 except all
such   matters   as   have   been   under   these   rules
specifically been assigned to any other Ministry or
Department of the Government of India.”
31. Para   7(b)   expressly   provides   that   all   matters   falling
within   the   purview   of   the   Central   Government   in   terms   of
provisions contained in Part VIII of the Constitution in so
far as these relate to the Union Territory of Puducherry and
the Government of Union Territories Act, 1963 are assigned to
the   Department   of   States.     Thus,   under   the   Act,   1963   all
matters falling within the purview of the Central Government
including power of nomination given to the Central Government
under   Section   3(3)   are   assigned   under   the   Allocation   of
Business Rules by the President of India to Ministry of Home
Affairs, Department of States. Thus, power under Section 3(3)
of   Act,   1963   has   to   be   transacted   in   the   Ministry   of   Home
Affairs,   Department   of   States.   For   Transaction   of   Business,
the President has framed Government of India (Transaction of
Business)   Rules,   1961.   Rule   3   of   (Transaction   of   Business)
Rules, 1961 which is relevant is as follows:
"3. Disposal   of   Business   by   Ministries.   ­   Subject
to   the   provisions   of   these   Rules   in   regard   to
consultation with other departments and submission of
cases   to   the   Prime   Minister,   the   Cabinet   and   its
Committees and the President, all business allotted
to   a   department   under   the   Government   of   India
35
(Allocation   of   Business)   Rules,   1961,   shall   be
disposed   of   by,   or   under   the   general   or   special
directions of, the Minister­in­charge.”
32. Thus, as per Transaction of Business Rules, the matter of
nomination in the Legislative Assembly of Puducherry not being
a matter in regard to consultation with other departments and
submission of the cases to the Prime Minister, the Cabinet and
its Committees and the President, the above business is to be
disposed of by or under the general or special orders or the
directions of the Minister­in­charge that is Home Minister.
33. In view of the foregoing discussion, we are of the clear
opinion   that   nomination   in   the   Legislative   Assembly   of
Puducherry   is   not   the   Business   of   the   Government   of
Puducherry.   It   is   a   business   of   Central   Government   as   per
Section   3(3)   of   Act,   1963   which   is   to   be   carried   out   in
accordance   with   the   Government   of   India   (Allocation   of
Business) Rules, 1961 and Government of India (Transaction of
Business) Rules, 1961. The issue is answered accordingly.
Issue No. 3
Whether Principles of Federalism or Cooperative Federalism has
been violated in the present case?
34. The   Constitution   of   India   is   a   written   Constitution,
which came into being after long deliberations by the men of
eminence   representing   the   aspirations   and   culture   of   our
36
ancient   nation.     Before   Constitution   makers,   various
Constitutions   of   the   world   were   there   to   be   looked   into,
incorporated   and   relied   on.     Our   Constitution   makers   have
taken   best   part   of   the   Constitution   of   different   countries
including USA, Australia, Germany, Canada and Others.   When
the draft Constitution was being debated in the Constituent
Assembly,   one   of   the   relevant   issue   to   be   deliberated,
pondered   upon   and   decided   was   the   nature   of   Indian
Constitution.   Whether Constitution should be one, which is
being followed in Federal countries like USA or it should be a
Unitary Constitution, was deliberated and pondered.  Dr. B.R.
Ambedkar,   Chairman   of   the   Drafting   Committee   after   noticing
the   characteristics   of   Unitary   Constitution   and   Federal
Constitution categorically stated that draft Constitution is a
Federal Constitution.  In the deliberation of 04.11.1948, Vol.
VII Page 33, following was said by Dr. B.R. Ambedkar;­
“Two principal forms of the Constitution are known to
history   ­   one   is   called   Unitary   and   the   other
Federal.   The   two   essential   characteristics   of   a
Unitary   Constitution   are:(1)   the   supremacy   of   the
Central   Polity   and   (2)   the   absence   of   subsidiary
Sovereign   polities.   Contrariwise,   a   Federal
Constitution   is   marked:   (1)   by   the   existence   of   a
Central polity and subsidiary polities side by side,
and (2) by each being sovereign in the field assigned
to   it.   In   other   words.   Federation   means   the
establishment   of   a   Dual   Polity.   The   Draft
Constitution is, Federal Constitution inasmuch as it
establishes   what   may   be   called   a  Dual  Polity.  This
Dual   Polity   under   the   proposed   Constitution   will
consist of the Union at the Centre and the States at
37
the periphery each endowed with sovereign powers to
be   exercised   in   the   field   assigned   to   them
respectively by the Constitution………..”
35. Dr.   Ambedkar  further   said   that   there   are   marked
differences   with   the   American   Federation.   He   said   that   all
federal systems including the American are placed in a tight
mould of federalism.  It cannot change its form and shape no
matter what are the circumstances.  Our draft Constitution can
be   both   Unitary   as   well   as   Federal   according   to   time   and
circumstances.  Dealing with the essential characteristics of
the Federal Constitution, Dr. Ambedkar Said:­
“………………….   A   Federal   Constitution   cannot   but   be   a
written Constitution and a written Constitution must
necessarily   be   a   rigid   Constitution.   A   Federal
Constitution means division of Sovereignty by no less
a sanction than that of the law of the Constitution
between the Federal Government and the States, with
two necessary consequences (1) that any invasion by
the Federal Government in the field assigned to the
States and vice versa is a breach of the Constitution
and   (2)   such   breach   is   a   justiciable   matter   to   be
determined by the Judiciary only………………….”
36. It is also relevant to notice that before the Constituent
Assembly, complaint was raised by the members that there is
too much of centralisation in the Union.   Replying the above
complaint,  Dr.   Ambedkar  clarified   that   legislative   and
executive authority, is partitioned between the Centre and the
States.
37. Dr. Ambedkar  in deliberations dated 25.11.1949, Vol. XI
38
Page 976 said:­
“There is only one point of constitutional import to
which   I   propose   to   make   a   reference.   A   serious
complaint   is   made   on   the   ground   that   there   is   too
much of centralization and that the States have been
reduced to Municipalities. It is clear that this view
is not only an exaggeration, but is also founded on a
misunderstanding   of   what   exactly   the   Constitution
contrives   to   do.   As   to   the   relation   between   the
Centre   and   the   States,   it   is   necessary   to   bear   in
mind the fundamental principle on which it rests. The
basic principle of Federalism is that the Legislative
and   Executive   authority   is   partitioned   between   the
Centre and the States not by any law to be made by
the   Centre   but   by  the  Constitution   itself.   This   is
what   Constitution   does.   The   States   under   our
Constitution are in no way dependent upon the Centre
for   their   legislative   or   executive   authority.   The
Centre and the States are co­equal in this matter. It
is difficult to see how such a Constitution can be
called   centralism.   It   may   be   that   the   Constitution
assigns   to   the   Centre   too   large field   for   the
operation of its legislative and executive authority
than   is   to   be   found   in   any   other   federal
Constitution. It may be that the residuary powers are
given to the Centre and not to the States. But these
features do not form the essence of federalism. The
chief   mark   of   federalism   as   I   said   lies   in   the
partition of the legislative and executive authority
between the Centre and the Units by the Constitution.
This is the principle embodied in our constitution.
There can be no mistake about it.
38. The   nature   and   character   of   the   Constitution   came   for
consideration   before   this   Court   in   several   Constitution
Benches, where this Court noted the fundamental feature of the
Constitution of India.   A seven­Judge Constitution Bench of
this Court in Special Reference No.1 of 1964, AIR 1965 SC 745
held   that   essential   characteristics   of   federalism   is   the
39
distribution   of   executive,   legislative   and   judicial
authorities among bodies, which are independent of each other.
In paragraph 39, following has been laid down:­
“39.  Our   legislatures   have   undoubtedly   plenary
powers, but these powers are controlled by the basic
concepts of the written Constitution itself and can
be exercised within the legislative fields allotted
to   their   jurisdiction  by   the   three   Lists   under   the
Seventh   Schedule;   but   beyond   the   Lists,   the
legislatures   cannot   travel.   They   can   no   doubt
exercise   their   plenary   legislative   authority   and
discharge   their   legislative   functions   by   virtue   of
the   powers   conferred   on   them   by   the   relevant
provisions of the Constitution; but the basis of the
power   is   the   Constitution   itself.   Besides,   the
legislative   supremacy   of   our   legislatures   including
the   Parliament   is   normally   controlled   by   the
provisions contained in Part III of the Constitution.
If   the   legislatures   step   beyond   the   legislative
fields   assigned   to   them,   or   acting   within   their
respective fields, they trespass on the fundamental
rights of the citizens in a manner not justified by
the   relevant   articles   dealing   with   the   said
fundamental   rights,   their   legislative   actions   are
liable   to   be   struck   down   by   courts   in   India.
Therefore,   it   is   necessary   to   remember   that   though
our legislatures have plenary powers, they function
within   the   limits   prescribed   by   the   material   and
relevant provisions of the Constitution.”
39. In   the   landmark   judgment   of   this   Court   in  Kesavananda
Bharati v. State of Kerala, (1973) 4 SCC 225 a new dimension
was   given   to   the   constitutional   principles.   This   Court   by
majority   judgment   declared   that   the   basic   feature   of   the
Constitution   could   not   be   amended   by   a   constitutional
amendment. Sikri, C.J. while delivering the majority judgment
had held that federal character of the Constitution is one of
40
the basic structures of the Constitution.
40. Shelat   and   Grover,   JJ.   while   delivering   concurring
opinion   had   also   stated   that   our   Constitution   has   all
essential elements of federal structure. In para 486 following
was stated: (Kesavananda Bharati case, SCC pp. 408­09)
“486. The Constitution has all the essential elements
of   a   federal   structure   as   was   the   case   in   the
Government   of   India   Act,   1935,   the   essence   of
federalism being the distribution of powers between
the   federation   or   the   Union   and   the   States   or   the
provinces. All the legislatures have plenary powers
but these are controlled by the basic concepts of the
Constitution   itself   and   they   function   within   the
limits laid down in it (Per Gajendragadkar, C.J. in
Special   Reference   No.   1   of   196435).   All   the
functionaries,   be   they   legislators,   members   of   the
executive or the judiciary take oath of allegiance to
the   Constitution   and   derive   their   authority   and
jurisdiction   from   its   provisions.   The   Constitution
has entrusted to the judicature in this country the
task of construing the provisions of the Constitution
and of safeguarding the fundamental rights (SCR at p.
446). It is a written and controlled Constitution.”
41. Again a seven­Judge Bench in State of Rajasthan v. Union
of India, (1977) 3 SCC 592  had an occasion to consider the
nature   of   the   Indian   Constitution.   M.H.   Beg,   C.J.,   while
delivering majority decision, in para 57  states: (SCC p. 622)
“57.   The   two   conditions   Dicey   postulated   for   the
existence   of   federalism   were:   firstly,   ‘a   body   of
countries   such   as   the   Cantons   of   Switzerland,   the
Colonies of America, or the Provinces of Canada, so
closely connected by locality, by history, by race,
or the like, as to be capable of bearing, in the eyes
of   their   inhabitants,   an   impress   of   common
nationality’; and, secondly, absolutely essential to
the founding of a federal system is the ‘existence of
a   very   peculiar   state   of   sentiment   among   the
41
inhabitants of the countries’. He pointed out that,
without the desire to unite there could be no basis
for federalism. But, if the desire to unite goes to
the   extent   of   forming   an   integrated   whole   in   all
substantial   matters   of   Government,   it   produces   a
unitary rather than a federal Constitution. Hence, he
said,   a   federal   State   “is   a   political   contrivance
intended   to   reconcile   national   unity   with   the
maintenance of State rights”. The degree to which the
State rights are separately preserved and safeguarded
gives the extent to which expression is given to one
of   the   two   contradictory   urges   so   that   there   is   a
union without a unity in matters of Government. In a
sense, therefore, the Indian union is federal. But,
the   extent   of   federalism   in   it   is   largely   watered
down by the needs of progress and development of a
country   which   has   to   be   nationally   integrated,
politically   and   economically   coordinated,   and
socially, intellectually and spiritually uplifted. In
such a system, the States cannot stand in the way of
legitimate and comprehensively planned development of
the   country   in   the   manner   directed   by   the   Central
Government.”
42. Further in para 60 referring to Dr Ambedkar following was
stated: (State of Rajasthan case, SCC p. 623)
“60.   Although   Dr   Ambedkar   thought   that   our
Constitution is federal “inasmuch as it establishes
what may be called a Dual Polity”, he also said, in
the   Constituent   Assembly,   that   our
Constitution­makers had avoided the “tight mould of
federalism”   in   which   the   American   Constitution   was
forged. Dr Ambedkar, one of the principal architects
of our Constitution, considered our Constitution to
be ‘both unitary as well as federal according to the
requirements of time and circumstances’.”
43. A nine­Judge Bench had occasion to elaborately consider
the   nature   of   the   Constitution   of   India   in  S.R.   Bommai   v.
Union   of   India,  (1994)   3   SCC   1,   Ahmadi,   J.   referring   to
42
federal character of the Constitution in para 14 following was
stated: (SCC pp. 68­69)
“14. In order to understand whether our Constitution
is truly federal, it is essential to know the true
concept   of   federalism.   Dicey   calls   it   a   political
contrivance for a body of States which desire Union
but   not   unity.   Federalism   is,   therefore,   a   concept
which   unites   separate   States   into   a   Union   without
sacrificing   their   own   fundamental   political
integrity.   Separate   States,   therefore,   desire   to
unite   so   that   all   the   member   States   may   share   in
formulation of the basic policies applicable to all
and participate in the execution of decisions made in
pursuance of such basic policies. Thus the essence of
a federation is the existence of the Union and the
States and the distribution of powers between them.
Federalism,   therefore,   essentially   implies
demarcation of powers in a federal compact.”
Ahmadi, J. further stated that the Constitution of India
is   differently   described,   more   appropriately   as
“quasi­federal”   because   it   is   a   mixture   of   the   federal   and
unitary elements, leaning more towards the latter.
44. B.P.   Jeevan   Reddy,   J.   held   that   the   Founding   Fathers
wished to establish a strong Centre. In the light of the past
history of this Sub­Continent, this was probably a natural and
necessary decision. In paras 275 and 276 following was stated:
(S.R. Bommai case, SCC pp. 215­17)
“275. A review of the provisions of the Constitution
shows unmistakably that while creating a federation,
the   Founding   Fathers   wished   to   establish   a   strong
Centre.   In   the   light   of   the   past   history   of   this
sub­continent,   this   was   probably   a   natural   and
necessary decision. In a land as varied as India is,
a   strong   Centre   is   perhaps   a   necessity.   This   bias
towards   Centre   is   reflected   in   the   distribution   of
legislative heads between the Centre and States. All
43
the more important heads of legislation are placed in
List I. Even among the legislative heads mentioned in
List II, several of them, e.g., Entries 2, 13, 17,
23,   24,   26,   27,   32,   33,   50,   57   and   63   are   either
limited by or made subject to certain entries in List
I to some or the other extent. Even in the Concurrent
List (List III), the parliamentary enactment is given
the   primacy,   irrespective   of   the   fact   whether   such
enactment is earlier or later in point of time to a
State enactment on the same subject­matter. Residuary
powers   are   with   the   Centre.   By   the   42nd   Amendment,
quite a few of the entries in List II were omitted
and/or transferred to other lists. Above all, Article
3   empowers   Parliament   to   form   new   States   out   of
existing States either by merger or division as also
to increase, diminish or alter the boundaries of the
States. …
276.   The   fact   that   under   the   scheme   of   our
Constitution,   greater   power   is   conferred   upon   the
Centre vis­à­vis the States does not mean that States
are mere appendages of the Centre. Within the sphere
allotted   to   them,   States   are   supreme.   The   Centre
cannot tamper with their powers. More particularly,
the   courts   should   not   adopt   an   approach,   an
interpretation, which has the effect of or tends to
have the effect of whittling down the powers reserved
to   the   States.   It   is   a   matter   of   common   knowledge
that   over   the   last   several   decades,   the   trend   the
world   over   is   towards   strengthening   of   Central
Governments   —   be   it   the   result   of   advances   in
technological/scientific   fields   or   otherwise,   and
that   even   in   USA   the   Centre   has   become   far   more
powerful   notwithstanding   the   obvious   bias   in   that
Constitution in favour of the States. All this must
put   the   court   on   guard   against   any   conscious
whittling down of the powers of the States. Let it be
said that the federalism in the Indian Constitution
is   not   a   matter   of   administrative   convenience,   but
one of principle — the outcome of our own historical
process   and   a   recognition   of   the   ground   realities.
This aspect has been dealt with elaborately by Shri
M.C. Setalvad in his Tagore Law Lectures “Union and
State   Relations   under   the   Indian   Constitution”
(Eastern   Law   House,   Calcutta,   1974).   The   nature   of
the   Indian   federation   with   reference   to   its
44
historical   background,   the   distribution   of
legislative   powers,   financial   and   administrative
relations, powers of taxation, provisions relating to
trade,   commerce   and   industry,   have   all   been   dealt
with   analytically.   It   is   not   possible   —   nor   is   it
necessary   —   for   the   present   purposes   to   refer   to
them. It is enough to note that our Constitution has
certainly a bias towards Centre vis­à­vis the States
[Automobile   Transport   (Rajasthan)   Ltd.   v.   State   of
Rajasthan3, SCR p. 540]. It is equally necessary to
emphasise that courts should be careful not to upset
the   delicately­crafted   constitutional   scheme   by   a
process of interpretation.”
45. A Constitution Bench in  Kuldip Nayar v. Union of India,
(2006) 7 SCC 1, held that India is not a federal State in the
traditional sense of the term and it is not a true federation
formed   by   agreement   between   various   States   and   it   has   been
described as quasi­federation and similar other concepts.
46. A   nine­Judge   Constitution   Bench   in  Jindal   Stainless
Limited and Another Vs. State of Haryana and Others, (2017) 12
SCC 1 had occasion to consider the nature of federalism in the
Indian   Constitution   while   considering   the   relations   between
Union   and   States   in   reference   to   part   XIII   of   the
Constitution.  Dr. T.S. Thakur, Chief Justice of India, as he
then   was,   speaking   for   the   Court   noticed   the   nature   of
federalism   as   ingrained   in   the   Constitution.     Constitution
Bench   held   that   even   though   our   Constitution   may   not   be
strictly federal in its character but the significant features
of federal Constitution are found in the Indian Constitution.
45
In Paragraph 32, Constitution Bench laid down as follows:­
“32.  Whether   or   not   the   Constitution   provides   a
federal structure for the governance of the country
has   been   the   subject­matter   of   a   long   line   of
decisions  of   this  Court,   reference   to  all  of   which
may be unnecessary but the legal position appears to
be fairly well settled that the Constitution provides
for   a   quasi­federal   character   with   a   strong   bias
towards the Centre. The pronouncements recognised the
proposition that even when the Constitution may not
be   strictly   federal   in   its   character   as   the   United
States   of   America,   where   sovereign   States   came
together   to   constitute   a   federal   Union,   where   each
State enjoins a privilege of having a Constitution of
its   own,   the   significant   features   of   a   federal
Constitution   are   found   in   the   Indian   Constitution
which makes it a quasi­federal Constitution, if not
truly   federal   in   character   and   in   stricto   sensu
federal.   The   two   decisions   which   stand   out   in   the
long   line   of   pronouncements   of   this   Court   on   the
subject may, at this stage, be briefly mentioned. The
first  of   these   cases   is   the   celebrated   decision   of
this Court in Kesavananda Bharati case15, wherein a
thirteen­Judge Bench of this Court, Sikri, C.J. (as
his Lordship then was), being one of them talks about
whether   the   Constitution   of   India   was   federal   in
character and if so whether federal character of the
Constitution   formed   the   basic   feature   of   the
Constitution. Sikri, C.J. summed up the basic feature
of the Constitution in the following words: (SCC p.
366, paras 292­94)
“292.   …   The   true   position   is   that   every
provision of the Constitution can be amended
provided   in   the   result   the   basic   foundation
and structure of the Constitution remains the
same.   The   basic   structure   may   be   said   to
consist of the following features:
(1) Supremacy of the Constitution;
(2)   Republican   and   Democratic   form   of
Government;
(3) Secular character of the Constitution;
46
(4)   Separation   of   powers   between   the
legislature, the executive and the judiciary;
(5) Federal character of the Constitution.
293. The above structure is built on the basic
foundation i.e. the dignity and freedom of the
individual.   This   is   of   supreme   importance.
This   cannot   by   any   form   of   amendment   be
destroyed.
294. The above foundation and the above basic
features are easily discernible not only from
the   Preamble   but   the   whole   scheme   of   the
Constitution, which I have already discussed.”
To   the   same   effect   are   the   views   expressed   by
Shelat and Grover, JJ. who declared that the federal
character of the Constitution is a part of its basic
structure.”
47. In  Jindal   Stainless   Ltd.   (supra),   one   of   us   (Ashok
Bhusha,J) has also expressed views on the form of the Indian
Constitution,   which   was   the   same   as   expressed   by   majority
opinion.  In Paragraph 944, following was held:­
“944.  The law declared by this Court as noted above
clearly   indicates   that   the   Indian   Constitution   is
basically federal in form and has marked traditional
characteristics   of   a   federal   system,   namely,
supremacy   of   the   Constitution,   division   of   power
between the Union and the States and existence of an
independent judiciary. Federalism is one of the basic
features   of   the   Indian   Constitution.   However,   the
history of Constitution including the debates in the
Constituent   Assembly   indicate   that   the   distribution
of   powers   was   given   shape   with   creating   a   strong
Centre   with   the   object   of   unity   and   integrity   of
India.   The   States   are   sovereign   in   the   allotted
fields.   The   Indian   Constitution   cannot   be   put   in
traditional   mould   of   federalism.   The   traditional
concept of federalism has been adopted with necessary
modification in the framework of the Constitution to
suit the country’s necessity and requirement. The sum
47
total of above discussion is that federalism in the
Constitution   is   limited   and   controlled   by   the
Constitution and the exercise of powers of both the
States   and   the   Centre   are   controlled   by   express
provisions of the Constitution.”
48. A recent Constitution Bench judgment, which needs to be
noticed is a judgment of this Court in  State (NCT of Delhi)
Vs. Union of India & Another, (2018) 8 SCC 501.  Chief Justice
Dipak   Misra,   as   he   then   was,   speaking   for   the   Constitution
Bench   elaborately   considered   the   concept   of   federal
Constitution and laid down following in Paragraph Nos. 95, 96
and 108:­
“95.  In   common   parlance,   federalism   is   a   type   of
governance   in   which   the   political   power   is   divided
into various units. These units are the Centre/Union,
States   and   Municipalities.   Traditional   jurists   like
Prof.   K.C.   Wheare   lay   emphasis   on   the   independent
functioning of different governing units and, thus,
define “federalism” as a method of dividing powers so
that the general/Central and regional governments are
each within a sphere coordinate and independent. As
per Prof. Wheare:
“the   systems   of   Government   embody
predominantly   on   division   of   powers   between
Centre and regional authority each of which in
its own sphere is coordinating with the other
independent   as   of   them,   and   if   so,   is   that
Government federal?”
96. However, modern jurists lay emphasis on the idea
of interdependence and define federalism as a form of
Government   in   which   there   is   division   of   powers
between   one   general/central   and   several   regional
authorities,   each   within   its   sphere   interdependent
and coordinate with each other.
108.  From  the  foregoing   discussion,   it   is  clear   as
day   that   both   the   concepts,   namely,   democracy   i.e.
48
rule by the people and federalism are firmly imbibed
in our constitutional ethos. Whatever be the nature
of   federalism   present   in   the   Indian   Constitution,
whether absolutely federal or quasi­federal, the fact
of   the   matter   is   that   federalism   is   a   part   of   the
basic structure of our Constitution as every State is
a constituent unit which has an exclusive Legislature
and   Executive   elected   and   constituted   by   the   same
process as in the case of the Union Government. The
resultant   effect   is   that   one   can   perceive   the
distinct   aim   to   preserve   and   protect   the   unity   and
the territorial integrity of India. This is a special
feature of our constitutional federalism.”
49. Constitution   Bench   also   noticed   the   concept   of
cooperative federalism and referring to an earlier judgment of
this Court in State of Rajasthan Vs. Union of India, (1977) 3
SCC 592 laid down following in paragraph No. 121 and 122:­
“121.  In State of Rajasthan v. Union of India, the
Court took cognizance of the concept of cooperative
federalism as perceived by G. Austin and A.H. Birch
when it observed: (SCC p. 622, para 58)
“58. Mr Austin thought that our system, if it
could be called federal, could be described as
“cooperative   federalism”.   This   term  was  used
by   another   author,   Mr   A.H.   Birch   (see
Federalism, Finance and Social Legislation in
Canada,   Australia   and   the   United   States,   p.
305), to describe a system in which:
‘…   the   practice   of   administrative
cooperation   between   general   and
regional   Governments,   the   partial
dependence of the regional Governments
upon   payments   from   the   general
Governments   and   the   fact   that   the
general   governments,   by   the   use   of
conditional grants, frequently promote
developments   in   matters   which   are
constitutionally   assigned   to   the
regions.’”
49
122.  We have dealt with the conceptual essentiality
of   federal   cooperation   as   that   has   an   affirmative
role on the sustenance of constitutional philosophy.
We   may   further   add   that   though   the   authorities
referred to hereinabove pertain to the Union of India
and the State Governments in the constitutional sense
of   the   term   “State”,   yet   the   concept   has
applicability to the NCT of Delhi regard being had to
its special status and language employed in Article
239­AA and other articles.”
50. The concept of Collaborative federalism was also noticed
in paragraph Nos. 110 and 111 in the following words:­
“110.  The   Constituent   Assembly,   while   devising   the
federal   character   of   our   Constitution,   could   have
never   envisaged   that   the   Union   Government   and   the
State   Governments   would   work   in   tangent.   It   could
never have been the Constituent Assembly’s intention
that   under   the   garb   of   quasi­federal   tone   of   our
Constitution, the Union Government would affect the
interest of the States. Similarly, the States under
our constitutional scheme were not carved as separate
islands   each   having   a   distinct   vision   which   would
unnecessarily   open   the   doors   for   a   contrarian
principle   or   gradually   put   a   step   to   invite
anarchism.   Rather,   the   vision   enshrined   in   the
Preamble   to   our   Constitution   i.e.   to   achieve   the
golden   goals   of   justice,   liberty,   equality   and
fraternity, beckons both the Union Government and the
State Governments, alike. The ultimate aim is to have
a holistic structure.
111.  The   aforesaid   idea,   in   turn,   calls   for
coordination   amongst   the   Union   and   the   State
Governments. The Union and the States need to embrace
a collaborative/cooperative federal architecture for
achieving this coordination.”
51. Another concept which was noticed and elaborated was the
concept of Pragmatic federalism.   Following was laid down in
Paragraph 123:­
“123.  In   this   context,   we   may   also   deal   with   an
ancillary   issue,   namely,   pragmatic   federalism.   To
50
appreciate   the   said   concept,   we   are   required   to
analyse   the   nature   of   federalism   that   is   conceived
under   the   Constitution.   Be   it   noted,   the   essential
characteristics   of   federalism   like   duality   of
governments, distribution of powers between the Union
and   the   State   Governments,   supremacy   of   the
Constitution, existence of a written Constitution and
most   importantly,  authority   of   the   courts   as   final
interpreters   of   the   Constitution   are   all   present
under   our   constitutional   scheme.   But   at   the   same
time, the Constitution has certain features which can
very well be perceived as deviations from the federal
character. We may, in brief, indicate some of these
features   to   underscore   the   fact   that   though   our
Constitution broadly has a federal character, yet it
still   has   certain   striking   unitary   features   too.
Under Article 3 of the Constitution, Parliament can
alter or change the areas, boundaries or names of the
States.   During   emergency,   the   Union   Parliament   is
empowered to make laws in relation to matters under
the   State   List,   give   directions   to   the   States   and
empower   Union   officers   to   execute   matters   in   the
State   List.   That   apart,   in   case   of   inconsistency
between the Union and the State laws, the Union Law
shall prevail. Additionally, a Governor of a State is
empowered   to   reserve   the   Bill   passed   by   the   State
Legislature   for   consideration   of   the   President   and
the President is not bound to give his assent to such
a Bill. Further, a State Legislature can be dissolved
and President’s rule can be imposed in a State either
on the report of the Governor or otherwise when there
is   failure   of   the   constitutional   machinery   in   the
State.”
52. It has been laid down by this Court in the above cases,
which is clear from above precedents that Indian Constitution
has adopted federal structure.    Although,  it  is not in  the
strict mould of federalism as understood in theory.  That is
why, different Constitution Benches of this Court have termed
the Indian Constitution as a quasi­federal but the essential
51
characteristics   of   the   federal   system   are   ingrained   in   the
Constitution   and   reflect   in   different   Constitutional
provisions which are (i) the distribution of legislative and
executive   power   between   the   Union   and   the   States,   (ii)   the
distribution of such legislative and executive power is by the
Constitution   itself,   and   (iii)   an   independent   judiciary   to
interpret the Constitutional provisions and lay down validly
in case of any dispute or doubt.     
53. The   concepts   of   cooperative   federalism,   collaborative
federalism and pragmatic federalism as has been noticed by the
Constitution Bench in State (NCT Of Delhi) (supra) essentially
engraft   the   same   concept,   i.e.   faithful   discharge   of   the
functions, both Union and States have to follow Constitutional
principles and not to encroach in the field reserved to other
by the Constitution. 
54. The   principle   of   federalism   as   adopted   in   the
constitution of India are well settled as noticed above.  The
submission, which needs to be answered in the present case is
as   to   whether   the   federal   principles   as   ingrained   in   the
Constitution are in any manner sacrificed in the present case,
i.e.,   by   nominations   made   by   Central   Government   without
concurrence   of   the   Government   of   Union   Territory   of
Puducherry.     Article   239A   by   which   creation   of   local
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Legislatures or Council of Ministers or both for certain Union
Territories   was   provided   by   the   Constitution   (Fourteenth
Amendment)   Act,   1962   empowering   the   Parliament   by   law,   to
create for the Union Territory of Puducherry, a body, whether
elected or partly nominated and partly elected, to function as
a   Legislature   for   the   Union   Territory,   or   a   Council   of
Ministers,   or   both  with   such   constitution,   powers   and
functions, in each case, as may be specified in the law.  The
Constitution,   thus,   by   Article   239A   has   empowered   the
Parliament to create Legislature for the Union Territory by
law   with   such  constitution,   powers   and   functions  as   may   be
specified in the law.   Thus, it is the Constitution itself,
which   is   empowering   Parliament   to   provide   by   law   for
Constitution of Union Territory.  Further, the Legislature as
a body contemplated by Article 239A is a body, whether elected
or   partly   nominated   and   partly   elected.    Thus,   the
Constitution   provision   itself   contemplate   creation   of
Legislature   whether   elected   or   partly   nominated   and   partly
elected.  When the Constitution itself empowers the Parliament
to frame law to create a body, which may be partly nominated
and   partly   elected   and   Section   3   of   the   Act,   1963,   which
provide for thirty seats to be filled up by persons chosen by
direct   election   and   three   seats   by   nominations   made   by   the
53
Central Government, we fail to see that how the law made by
Parliament or nominations made by Central Government breaches
the principles of federalism.  The Constitution of Legislative
body for Union Territory being entrusted to the Parliament by
Constitution   and   there   being   no   indication   in   the
Constitutional provision or provisions of the Act, 1963 that
said nomination has to be made with concurrence of Government
of Union Territory of Puducherry, we fail to see any substance
in the argument of Shri Kapil Sibal that by nominations made
by   Central   Government,   federal   principles   or   principle   of
cooperative   federalism   has   been   violated.     The   concept   of
federalism   itself   envisages   distribution   of   power   between
Union   and   States.     It   is   further   to   be   noticed   that   Union
Territories   are   not   States.   These   Union   Territories,
ordinarily, belong to the Union (i.e. the Central Government)
and therefore they are called 'Union Territories'. That is why
they   are   governed   under   the   administrative   control   of   the
President of India.  That is the clear purport behind Article
239. However,   to a limited extent, the power of the Union is
diluted with respect to Puducherry vide Article 239A. At the
same time, this constitutional provision, i.e. Article 239A.
With   regard   to   the   Union   Territory   of   Puducherry   itself
envisages   the   constitution   of   Legislative   Council   partly   by
54
nomination and partly by election. Further, specific authority
to nominate in the Legislative Council has been conferred by
law i.e. under Section 3 to the Central Government. Thus no
breach of federal principles are made out and the submission
on the basis of breach of federal principles in nomination by
the Central Government is unfounded. 
Issue No.4 and 5
55. Both   the   issues   being   interdependent   are   being   taken
together.  The expression “Constitutional convention” has been
coined by Professor A.V. Dicey.  In 1885, in his introduction
to   the   study   of   the   “Law   of   the   Constitution”,   in   Chapter
dealing with nature of conventions of Constitution, Professor
Dicey States:­
“…………The   conventions   of   the   constitution   are   in
short rules intended to regulate the exercise of the
whole   of   the   remaining   discretionary   powers   of   the
Crown, whether these powers are exercised by the King
himself or by the Ministry…………………..”
56. Elaborating further Prof. Dicey States:­
“……………………The result follows, that the conventions of
the constitution, looked at as a whole, are customs,
or   understandings,   as   to   the   mode   in   which   the
several   members   of   the   sovereign   legislative   body,
which,   as   it   will   be   remembered,   is   the   "Queen   in
Parliament,” should   each   exercise   their
discretionary   authority,   whether   it   be   termed   the
prerogative   of   the   Crown   or   the   privileges   of
Parliament. Since, however, by far the most numerous
and   important   of   our   constitutional   understandings
refer at bottom to the exercise of the prerogative,
it will conduce to brevity and clearness if we treat
the   conventions   of   the   constitution,   as   rules   or
customs   determining   the   mode   in   which   the
discretionary power of the executive, or in technical
55
language the prerogative, ought (i.e. is expected by
the nation) to be employed.”
57. Professor   Dicey   in   his   treatment   of   conventions   of   the
Constitution   has   held   that   conventions   of   the   Constitution
constitutes customs, practices, maxims, and precepts which are
not enforced or recognised by the Courts, make up a body not
of   laws,   but   of   constitutional   or   political   ethics.     The
Dicey’s   statement   that   Constitutional   conventions   are   not   a
body   of   laws   but   constitutional   or   political   ethics   was
subject to debate and discussion.   Sir Ivor Jennings  in his
treatise   “The   Law   and   the   Constitution”   noticed   the
distinction between laws and conventions as made by Professor
Dicey,   but   opined   that   distinction   appears   to   be   plain   and
unambiguous, it is by no means free from difficulty.
58. Professor Dicey’s statement that the convention is not a
binding   rule   was   departed   with   by  Sir   Kenneth   Wheare  in
“Modern Constitutions”, who wrote:­
“By   convention   is   meant   a   binding   rule,   a   rule   of
behaviour accepted as obligatory by those concerned
in the working of the constitution.”
59. Sir Ivor Jennings in his treatise has elaborately dealt
the   conventions   of   the   Constitution   while   explaining   the
purpose of the convention, he states:­
“The   short   explanation   of   the   constitutional
conventions   is   that   they   provide   the   flesh   which
clothes the dry bones of the law; they make the legal
56
constitution   work;   they   keep   it   in   touch   with   the
growth of ideas. A constitution does not work itself;
it has to be worked by men…………………..”
60. How   the   conventions   are   to   be   established   was   also
explained by Sir Ivor Jennings in following words:­
“It is clear, in the first place, that mere practice
is   insufficient.     The   fact   that   an   authority   has
always   behaved   in   a   certain   way   is   no   warrant   for
saying that it ought to behave in that way.  But if
the   authority   itself   and   those   connected   with   it
believe that they ought to do so, then the convention
does   exist.     This   is   the   ordinary   rule   applied   to
customary   law.     Practice   alone   is   not   enough.     It
must be normative………………….”
61. Further, he states that:­
“………………………….For   neither   precedents   nor   dicta   are
conclusive.  Something more must be added.  As in the
creation of law, the creation of a convention must be
due   to   the   reason   of   the   thing   because   it   accords
with the prevailing political philosophy.   It helps
to make the democratic system operate; it enables the
machinery of State to run more smoothly; and if it
were   not   there   friction   would   result.     Thus,   if   a
convention continues because it is desirable in the
circumstances of the constitution, it must be created
for the same reason…………………….”
62. The   test   to   find   out   as   to   whether   a   practice   or
precedent has become convention, Sir Ivor Jennings lays down
following tests:­
“……………..We   have   to   ask   ourselves   three   questions:
first,     what   are   the   precedents;   secondly,   did   the
actors in the precedents believe that they were bound
by   a   rule;   and   thirdly,   is   there   a   reason   for   the
rule?   A single precedent with a good reason may be
enough   to   establish   the   rule.     A   whole   string   of
precedents without such a reason will be of no avail,
unless   it   is   perfectly   certain   that   the   persons
concerned regarded them as bound by it.  And then, as
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we   have   seen,   the   convention   may   be   broken   with
impunity.”
63. The above three tests laid down by Sir Ivor Jennings has
been approved by a Constitution Bench of this Court in Supreme
Court Advocates­On­Record Association and Others Vs. Union of
India, (1993) 4 SCC 441 (Para 346).  The Constituent Assembly
while drafting the Constitution of India was well aware of the
British   convention.   Initially   on   17.07.1947  Hon'ble   Sardar
Vallabhbhai   Patel  while   moving   Clause   14   stated   that   the
Governor   shall   be   generally   guided   by   the   conventions   of
responsible, Government as set out in Schedule. A Schedule was
contemplated   tobe   framed   according   to   the   traditions   of
responsible Government. It is useful to notice what was said
by Hon'ble Sardar Vallabhbhai Patel:
"The Hon'ble Sardar Vallabhbhai Patel : Sir, I move
that:
“In the appointment of  his  ministers;  and  his
relations with them, the Governor shall be generally
guided by the conventions of responsible, Government
as   set   out   in   Schedule.....;   but   the   validity   of
anything done by the Governor shall not be called in
question  on  the  ground  that  it  was   done  otherwise
than in accordance with these conventions.”
Now a  Schedule  according  to the traditions  of
responsible   Government   will   be   framed   and   put   in.
This  also  is  a  non­controversial  thing  and   I  move
the proposition for the acceptance of the House.”
64. Although Schedule IIIA   was   contemplated   codifying
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convention   but   at   the   later   stage   it   was   decided   to   drop
codifying the convenient. The reasons for not codifying the
convention   was   elaborated   by   Shri.   T.T.   Krishnamachari   in
Constituent Assembly debate on 11.10.1949. Schedule IIIA which
was contemplated to be inserted by way of amendment was not
moved. Similarly, Schedule IV which was to describe relations
of the President and the Governor viz­a­viz the Ministers was
also moved to be deleted. On the questioning of deletion of
the Schedule, Dr. B.R. Ambedkar asked Shri Krishnamachari to
explain.   Shri   T.T.   Krishnamachari   while   explaining   stated
following:
"Shri   T.T.   Krishnamachari:  ....Therefore,   we   have
decided to drop Schedule IIIB which we proposed as
an   amendment   and   also   Schedule   IV   which   finds   a
place in the Draft Constitution,  because it is felt
to be entirely unnecessary and superfluous, to give
such   direction   in   the   Constitution   which   really
should   arise   out  of  conventions  that   grow  up   from
time to time, and the President and the Governors in
their   respective   spheres   will   be   guided   by   those
conventions....”
65. The   above   debates   in   the   Constituent   Assembly   clearly
indicate that Constitutional conventions were very much in the
contemplation during the debates in the Constituent Assembly.
Conventions were expected to grow from time to time and the
President and Governors in their respective spheres were to be
guided by those conventions.
59
66. The   American   jurisprudence   also   recognises   convention
including   the   constitutional   conventions.   John   Alexander
Jameson   in  'A   Treatise   on   Constitutional   Conventions'  while
explaining the constitutional convention states:
"as its name implies, constitutional; not simply as
having for its object the framing or amending of
Constitutions,   but   as   being   within,   rather   than
without,   the   pale   of   the   fundamental   law;   as
ancillary   and   subservient   and   not   hostile   and
paramount to it. The species of Convention sustains
an official relation to the state, considered as a
political   organization.   It   is   charged   with   a
definite,   and   not   a   discretionary   and
indeterminate, function.”
67. Leonid Sirota in his Article 'Towards a Jurisprudence of
Constitutional Conventions' defines constitutional convention,
as:
“those   primary   constitutional   rules,   limiting   the
powers   of   the   several   organs   of   government   in   a
polity   and   governing   the   relations   among   them,
which are not found in constitutional or ordinary
statutes or the common law, and which reflect the
'constitutional theory' or political values of the
day.”
68. The constitutional conventions are born and recognised in
working   of   the   Constitution.   The   purpose   and   object   of
constitutional   convention   is   to   ensure   that   the   legal
framework of the Constitution is operated in accordance with
constitutional   values   and   constitutional   morality.   The
60
constitutional   conventions   always   aims   to   achieve   higher
values   and   objectives   enshrined   in   the   Constitution.   The
conventions are not static but can change with the change in
constitutional   values   and   constitutional   interpretations.   No
constitutional   convention   can   be   recognised   or   implemented
which runs contrary to the expressed constitutional provisions
or   contrary   to   the   underlined   constitutional   objectives   and
aims which Constitution sought to achieve. 
69. There   have   been   several   pronouncements   by   this   Court
where   the   Constitutional   conventions   were   referred   to   and
relied. In U.N.R. Rao vs. Smt. Indira Gandhi, (1971) 2 SCC 63,
this Court while interpreting Article 75(3) held that while
interpreting the Constitution the conventions prevalent at the
time when Constitution was formed, have to be kept in mind. In
interpreting Article 75(3), this Court took support from the
conventions followed in United Kingdom and other countries. In
paragraphs 3 and 11 following was held:
“3………It   seems   to   us   that   a   very   narrow   point
arises on the facts of the present case. The House
of   the   People   was   dissolved   by   the   President   on
December   27,   1970.   The   respondent   was   the   Prime
Minister   before   the   dissolution.   Is   there   anything
in   the   Constitution,   and   in   particular   in   Article
75(3),   which   renders   her   carrying   on   as   Prime
Minister  contrary to  the  Constitution?  It was said
that   we   must   interpret   Article   75(3)   according   to
its   own   terms   regardless   of   the   conventions   that
prevail   in   the   United   Kingdom.   If   the   words   of   an
Article   are   clear,   notwithstanding   any   relevant
61
convention,   effect   will   no   doubt   be   given   to   the
words.   But   it   must   be   remembered   that   we   are
interpreting   a   Constitution   and   not   an   Act   of
Parliament,   a   Constitution   which   establishes   a
Parliamentary   system   of   Government   with   a   Cabinet.
In   trying   to   understand   one   may   well   keep   in   mind
the   conventions   prevalent   at   the   time   the
Constitution was framed.”
“11.  We   are   grateful   to   the   learned
Attorney­General   and   the   appellant   for   having
supplied to us compilations containing extracts from
various   books   on   Constitutional   Law   and   extracts
from   the   debates   in   the   Constituent   Assembly.   We
need not burden this judgment with them. But on the
whole we receive assurance from the learned authors
and the speeches that the view we have taken is the
right   one,   and   is   in   accordance   with   conventions
followed not only in the United Kingdom but in other
countries following a similar system of responsible
Government.”
70. The   most   elaborate   consideration   of   Constitutional
convention was undertaken by the Constitution Bench of this
Court   in  Supreme   Court   Advocates­on­record   Association   and
others vs. Union of India, (1993) 4 SCC 441,  Justice Kuldip
Singh   in   his   judgment   has   elaborately   considered   the
Constitutional   convention.   This   Court   held   that   conventions
are found in all established Constitutions and soon develop
even in the newest. In paragraphs 340 and 341 following was
laid down:
“340.  The written Constitutions cannot provide
for every eventuality.  Constitutional institutions
are   often   created   by   the   provisions   which   are
generally   worded.   Such   provisions   are   interpreted
62
with   the   help   of   conventions   which   grow   with   the
passage of time. Conventions are vital insofar as
they fill up the gaps in the Constitution itself,
help   solve   problems   of   interpretation,   and   allow
for   the   future   development   of   the   constitutional
framework. Whatever the nature of the Constitution,
a   great   deal   may   be   left   unsaid   in   legal   rules
allowing enormous discretion to the constitutional
functionaries. Conventions regulate the exercise of
that   discretion.   A   power   which,   juridically,   is
conferred upon a person or body of persons may be
transferred, guided, or canalised by the operation
of the conventional rule. K.C. Wheare in his book
Modern Constitutions  (1967 Edn.) elaborates such a
rule as under:
“What often happens is that powers granted in
a   Constitution   are   indeed   exercised   but   that,
while they are in law exercised by those to whom
they are granted, they are in practice exercised
by   some   other   person   or   body   of   persons.
Convention,   in   short,   transfers   powers   granted
in a Constitution from one person to another.”
341.  The   primary   role   of   conventions   is   to
regulate the exercise of discretion — presumably to
guard   against   the   irresponsible   abuse   of   powers.
Colin   R.   Munro   in   his   book  Studies   in
Constitutional   Law  (1987   Edn.)   has   summed   up   the
field   of   operation   of   the   conventions   in   the
following words:
“Some   of   the   most   important   conventions,
therefore,   are,   as   Dicey   said,   concerned   with
‘the discretionary powers of the Crown’ and how
they should be exercised. But it is not only in
connection   with   executive   government   and
legislature­executive   relations   that   we   find
such rules and practices in operation. They may
be   found   in   other   spheres   of   constitutional
activity too; for example, in relations between
the Houses of Parliament and in the workings of
each   House,   in   the   legislative   process,   in
judicial administration and judicial behaviour,
in the civil service, in local government, and
in   the   relations   with   other   members   of   the
Commonwealth.””
63
71. This   Court   held   that   every   act   by   a   constitutional
authority is a 'precedent' in the sense of an example which
may or may not be followed in subsequent similar cases, but a
long series of precedents all pointing in the same direction
is very good evidence of a convention. On the requirements for
establishing the existence of a convention, this Court quoted
with approval the test laid down by Sir W. Ivor Jennings in
'The   Law   and   the   Constitution'.   In   paragraphs   345   and   346
following was laid down:
“345.  Every act by a constitutional authority
is a ‘precedent’ in the sense of an example which
may   or   may   not   be   followed   in   subsequent   similar
cases, but a long series of precedents all pointing
in the same direction is very good evidence of a
convention.
346.  The   requirements   for   establishing   the
existence of a convention have been succinctly laid
down  by Sir W.  Ivor Jennings in  The Law and the
Constitution, Fifth Edn., (1959) as under:
“We   have   to   ask   ourselves   three   questions:
first, what are the precedents; secondly, did
the actors in the precedents believe that they
were bound by a rule; and thirdly, is there a
reason for the rule? A single precedent with a
good   reason   may   be   enough   to   establish   the
rule. A whole string of precedents without such
a   reason   will   be   of   no   avail,   unless   it   is
perfectly   certain   that   the   persons   concerned
regarded them as bound by it.””
72. This   Court   after   referring   to   several   treatises   on   the
64
constitutional law held that the constitutional functionaries
have to follow the same as a binding precedent. In paragraphs
351 and 353 following was held:
“351. It is not necessary for us to delve into
this subject any more. We agree that a convention
while   it   is   a   convention   is   to   be   distinguished
from the law. But this does not mean that what was
formerly a convention cannot later become law. When
customary   rules   are   recognised   and   enforced   by
courts as law, there is no reason why a convention
cannot   be   crystallized   into   a   law   and   become
enforceable.   “Conventions   can   become   law   also   by
judicial recognition” stated K.C. Wheare in Modern
Constitution  (1966   Edn.).   It   is   no   doubt   correct
that the existence of a particular convention is to
be   established   by   evidence   on   the   basis   of
historical  events  and  expert  factual  submissions.
But once it is established in the court of law that
a   particular   convention   exists   and   the
constitutional functionaries are following the same
as   a   binding   precedent   then   there   is   no
justification to deny such a convention the status
of law.
353.  We   are   of   the   view   that   there   is   no
distinction between the “constitutional law” and an
established   “constitutional   convention”   and   both
are binding in the field of their operation. Once
it is established to the satisfaction of the Court
that   a   particular   convention   exists   and   is
operating then the convention becomes a part of the
“constitutional   law”   of   the   land   and   can   be
enforced in the like manner.”
73. This   Court   in   the   above   case   has   clearly   held   that
existence of a particular convention is to be established by
historical   and   factual   evidence   and   for   establishing   the
existence   of   convention   the   test   laid   down   by   Sir   Ivor
65
Jennings was also approved and applied in the following words
in paragraph 357:
“357.  We   now   proceed   to   consider   whether   an
established constitutional  convention  can  be  read
in Articles 124(2) and 217(1) of the Constitution
of   India   to   the   effect   that   in   the   matter   of
appointment of the Judges of the High Courts and
Supreme   Court,   the   opinion   of   the   judiciary
expressed   through   the   Chief   Justice   of   India   is
primal and binding. For that purpose we adopt the
test for the existence of a convention, laid down
by Sir Ivor Jennings, based on three questions: (a)
What are the precedents? (b) Did the actors in the
precedents believe that they were bound by a rule?,
and (c) Is there a reason for the rule?”
74. We   now   proceed   to   apply   the   tests   for   establishing   a
convention in the facts of the present case. The submission of
Shri   Kapil   Sibal,   as   noted   above,   is   that   on   six   prior
occasions members were nominated to the Puducherry Legislative
Assembly   after   consultation   with   elected   Government   of
Puducherry. He has referred to nominations made in the year
1985, 1990, 1996, 2006 and 2011. With regard to year 2001, it
has   been   submitted   that   when   Lt.   Governor   unilaterally
forwarded the names   of the members, upon objection from the
then Chief Minister, the proceedings were dropped and proposed
list   was   referred   back   to   the   Administrator   for   lack   of
consultation.
75. Learned   counsel   appearing   for   the   Union   of   India   has
66
replied the aforesaid submission. In the short note submitted
on behalf of the Union of India, details regarding nominations
made   on   the   earlier   occasions   have   been   explained.   Learned
counsel for the Union of India has also produced the original
files   of   the   Central   Government   relating   to   the   aforesaid
nominations as was orally directed on 20.11.2018. It relates
to the nominations made on earlier occasions, original records
duly  flagged  has  been  submitted by  the  Union  of India.  The
details submitted by the Union of India are in the following
tabular form:
DETAILS REGARDING NOMINATIONS MADE ON EARLIER OCCASIONS
Centre Union
Territory
Remarks
1985 Congress Congress File not traceable
1990 Congress DMK On the recommendations of
LG
FLAG 1
FLAG 1A
1995 Congress Congress CM directly recommended
names to the Home Minister
out of which only one name
was accepted.  The other
names were taken from
request made by President,
Puducherry Pradesh
Congress Committee and
another recommendation/
order of PMO.  However,
the said notifications
were cancelled by a later
notification.
FLAG 2
FLAG 2A
1997 DMK Out of 3 MLA’s, two on the
recommendation of LG and
one on the recommendation
of CM
FLAG 3
FLAG 3A
FLAG 3B
2001 NDA Congress NO CM recommendation.
Persons recommended by LG
FLAG 4
FLAG 4A
67
were holding office of
profit and hence
nominations not done.
FLAG 4B
FLAG 4C
2005 UPA Congress All 3 MLA’s nominated on
the recommendation of CM &
LG
FLAG 5
FLAG 5A
FLAG 5B
FLAG 5C
2007 UPA Congress All 3 MLA’s nominated on
the recommendation of CM
and LG
FLAG 6
FLAG 6A
FLAG 6B
2011 UPA NR
Congress
Recommendation sent by LG
& CM.  However,
nominations not done.
FLAG 7
FLAG 7A
FLAG 7B
2014 UPA NR
Congress
All 3 MLA’s nominated on
the recommendation of CM
and LG
FLAG 8
FLAG 8A
FLAG 8B
2017 NDA Congress No recommendations
received either from LG or
CM
FLAG 8C
76. The above details indicate that in the year 1990, 1997,
2005,   2007   and   2014   nominations   were   made   on   the
recommendations of Chief Minister/LG. Original records fully
support the statement made in the above Chart. The position of
nomination is different in the year 1995, 2001 and 2011 which
needs to be specifically noted.
77. In   the   year   1995,   Chief   Minister   of   the   Pondicherry
suggested   three   names   for   nominations   whereas   President,
Puducherry   Pradesh   Congress   Committee   also   suggested   three
different names. The Prime Minister had approved three names
which consists one name suggested by Chief Minister, one name
suggested by  President, Puducherry Pradesh Congress Committee
68
and   one   name   of   its   own.   Notification   was   issued   on
26.07.1995. A decision was subsequently taken to cancel the
notification by the Home Minister on 12.08.1995. No further
nominations were made in the said year.
78. Now we come to year 2001. In the year 2001, Lieutenant
Governor   had   forwarded   names   of   10   persons   who   had   sought
nominations as members of the Legislative Assembly. The Chief
Minister,   Pondicherry   had   sent   representation   that   the   Lt.
Governor   did   not   consult   him   in   the   matter   of   proposing
nominations. The issue surfaced in the said year as to whether
the   consultation   of   Chief   Minister   is   necessary   before
nomination by the Central Government. The Home Minister by his
order   dated   08.08.2001   directed   for   obtaining   legal   advise.
The Joint Secretary and Legal Adviser submitted a note dated
21.09.2001 in which in paragraph 9 he opined:
"9. In the light of the above, we are of the view
that   consultation   with   the   Chief   Minister   of
Pondicherry   is   not   necessary   before   the   Central
Government nominates a person to be a member of its
Legislative   Assembly   under   sub­section   (3)   of
section 3 of the Act.”
No final nominations could be made in the year 2001, 2002 and
2003.
69
79. In the year 2011, although recommendations were sent by
the Lt. Governor and Chief Minister but no nominations were
made.   After   the   nominations   made   in   the   year   2014,   the
nominations   have   been   made   in   the   year   2017.   A   note   dated
16.08.2016 was put up by Deputy Secretary that last nomination
was made vide notification dated 02.09.2014 with the approval
of Home Minister. The tenure of the Assembly got over and new
Assembly has been constituted, hence, new persons are to be
appointed   as   Nominated   Members.   A   perusal   of   the   original
records indicates that following four issues were outlined to
be referred to the Attorney General for his advice:
"Issue   No.1:Whether   the   Central   Govt.   has   got
absolute   powers   to   appoint   nominated
Members   to   the   Legislative   Assembly   of
Puducherry?
Issue No.2: Whether recommendation of LG, Puducherry
is mandatory for consideration of names
for appointment of nominated Members to
Puducherry   Legislative   Assembly   by   the
Central Government ?
Issue No.3: If   the   reply   to   Issue   1   is   in
affirmative,   is   there   any   role   of   the
Chief   Minister/Council   of   Ministers   to
aid/advise   the   L.G.   in   the   matter   of
making   such   recommendation,   and   if   so,
whether such aid and advice is binding
upon the LG?
Issue No.4: Keeping   in   view   that   there   is   no   laid
down   procedure   for   such   nomination,
whether   any   prescribed   procedure   is
70
required to be followed or any specific
condition   to   he   imposed   for   making
nominations?”
80. The Attorney General on 15.11.2016 ordered the file “Be
put   up   before   the   S.G.”.   In   the   records   there   is   detailed
opinion   given   by   the   Solicitor   General   on   29.11.2016.   The
Solicitor General with regard to Queries Nos.1,2,3 and 4  has
opined:
"5. In   light   of   the   aforementioned   observations,
the Queries raised are answered accordingly:
i. Re:Query (I): Section 3(3) of the Government of
Union   Territories   Act,   1963   empowers   Central
Government   to   nominate   members   of   the
Legislative Assembly of Puducherry. Due to the
operation   of   the   word   “may”   in   the   said
sub­section   (3),   the   said   power   is   to   be
exercised   at   the   discretion   of   the   Central
Government. Hence, the Central Government may,
or   may   not   nominate   three   members   to   the
Legislative Assembly of Puducherry. However, it
is   relevant   to   note   the   members   nominated   in
the   manner   envisaged     in     sub­section   (3)   of
Section   3,   must   comply   with   the   criteria   of
qualification   of   members   to   the   Legislative
Assembly   enumerated   in   Section   4   of   the
Government   of   Union   Territories   Act,   1963   and
will be disqualified from being members of the
Legislative Assembly if found within Section 14
of   the   Government   of   Union   Territories   Act,
1963.
ii. Re: Query (iii): The Central Government may in
71
its   wisdom   consult   the   Administrator   of
Puducherry   for   consideration   of   names   for
appointment   of   nominated   members   to   the
Puducherry Legislative Assembly especially when
the   Administrator   is   the   nominee   of   the
President.
iii.Re: Query (iii): As stated in response to Query
(ii),   the   recommendation   of   Administrator   is
not   mandatory   for   consideration   of   names   for
appointment   of   nominated   members   to   the
Puducherry Legislative Assembly but he/she may
be   consulted.   Therefore,   the   role   of   Chief
Minister/Council of Minister to aid/advice the
L.G.   in   the   matter   of   making   such
recommendation does not arise.
iv. Re:   Query   (iv):  There   is   no   prescribed
procedure   for   the   Central   Government   to
nominate   three   members   to   the   Legislative
Assembly.   In   the   absence   of   such   procedure,
only the criteria for eligibility of a member
laid down in Section 4  supra  and the criteria
for   disqualification   in   Section   14  supra  must
be followed.
I have nothing further to add.”
81. The file processed thereafter and Home Minister approved
nominations   of   three   persons   to   the   Legislative   Assembly,
Puducherry on 20.06.2017. Draft notification was put up for
approval on 23.06.2016.
82. After having noticed the details of earlier nominations
from 1985 till 2017, now the question has to be answered as to
72
whether from  the  sequence  of  the  events as  noticed  above  a
Constitutional   convention   can   be   found   established   that
nominations to the Legislative Assembly has to emanate from
Chief Minister and can be made only with the concurrence of
Chief Minister. We have noticed the test formulated by  Sir W.
Ivor  Jennings,  as  approved  by  this  Court  in   Supreme Court
Advocates­on­record   Association   case  for   establishing   the
existence   of   a   convention.   The   relevant   test,   as   noticed
above, is again reproduced for ready reference:
“We   have   to   ask   ourselves   three   questions:
first, what are the precedents; secondly, did the
actors   in   the   precedents   believe   that   they   were
bound by a rule; and thirdly, is there a reason for
the rule? A single precedent with a good reason may
be enough to establish the rule. A whole string of
precedents   without   such   a   reason   will   be   of   no
avail,   unless   it   is   perfectly   certain   that   the
persons concerned regarded them as bound by it.”
83. We will take up the three questions which are to be posed
for deciding the question. First is “what are the precedents”.
From the facts noticed above, although it is indicated that on
several   occasions   on   the   recommendations   of   the   Chief
Minister/LG nominations were made by the Central Government,
one relevant fact cannot be lost sight that recommendations
made by CM/LG were readily accepted by the Central Government
when the Government of Puducherry and the Central Government
73
were of the same political party or were of allies. But the
instance of year 1995  indicates that the recommendations made
by Chief Minister were not followed and the nominations were
made taking one name from Chief Minister's recommendation, one
name from Puducherry Pradesh Congress Committee  and one name
at   the   instance   of   the   Central   Government   itself   which
nominations, however, subsequently were cancelled. In the year
2001 recommendations made by Chief Minister and LG were not
accepted and no nominations were made. Similarly, in the year
2011 recommendations were made by Chief Minister and LG but no
nominations   were   made.   The   above   facts   does   not   indicate
uniform   precedent   in   making   nominations     by   the   Central
Government.
84. Now, we come to the second test that is “did the actors
in the precedents believed that they were bound by the rules”.
The said test is not satisfied in the present case since more
than   one   occasion   There   is   material   on   records   that   the
Central Government concluded that it is not bound by any rule
that recommendations made by Chief Minister is to be accepted
by the Central Government or recommendations of Chief Minister
is   a   condition   precedent   for   exercising   power   under
sub­section   (3)   of   Section   (3).   No   uniform   procedure   was
followed nor the Central Government was under the belief that
74
it is bound under the Rule to accept the recommendations made
by the Chief Minister. It is true that there is no inhibition
in the Central Government considering the recommendations sent
by Chief Minister or LG or ask for suitable names from Chief
Minister/LG   or   even   suggests   suitable   names   to   the   Chief
Minister/LG   but   the   fact   that   the   Central   Government   can
consider the recommendations or call for names is not akin to
saying that there was any precedent or rule that unless the
names   are   recommended   by   Chief   Minister   the     Central
Government   is   incapacitated   in   exercising   its   powers   under
sub­section (3) of Section 3 of the Act, 1963. The instance
where the Central Government readily accepted recommendations
made   by   LG   or   Chief   Minister   which   emanated   from   the
Government   belonging   to   the   same   political   party   cannot   be
said to be action of then Central Government by virtue of any
rule   or   convention   rather   the   acts   have   to   be   treated   as
convenient   exercise   of   power.   The   Central   Government     can
receive input from any quarter including the Chief Minister or
LG for nomination.
85. We may also refer to a judgment of this Court in Consumer
Education and Research Society vs. Union of India and others,
(2009)   9   SCC   648.  One   of   the   questions   which   came   for
75
consideration   before   this   Court   in   the   above   case   was
violation   of   constitutional   convention.   In   paragraph   37(ii)
following question was noticed:
"37(ii)   Whether   of   as   many   as   fifty­five   offices
relating   to   statutory   bodies/non­statutory   bodies,
without   referring   the   proposal   to   the   Joint
Committee   would   render   the   amendment   a   colourable
legislation   which   violated   any   “constitutional
convention” or Article 14 of the Constitution.”
86. One   of   the   contentions   raised   in   the   above   case   for
assailing the Parliament (Prevention of Disqualification) Act,
1959   as   amended   by   Act   31   of   2006   on   the   ground   that   for
exempting   particular   office   from   a   list   of   the   office   of
profit, opinion of Joint Committee was not obtained on Act 31
of   2006.   Repealing   the   contention   following   was   held   in
paragraph 79:
“79. This brings us to the last question. It is
not   in   serious   dispute   that   ever   since   Bhargava
Committee   submitted   its   report   in   November   1955,
whenever an office of profit had to be exempted the
matter used to be referred to a Joint Committee and
its opinion whether the office should be exempted
or not, was being taken and only when there was a
recommendation that a particular office should be
exempted,   the   Act   was   being   amended   to   add   that
office to the list of exemptions. However, this was
merely   a   parliamentary   procedure   and   not   a
constitutional   convention.   Once   Parliament   is
recognised   as   having   the   power   to   exempt   from
disqualification   and   to   do   so   with   retrospective
effect,   any   alleged   violation   of   any   norm   or
traditional   procedure   cannot   denude   the   power   of
Parliament to make a law. Nor can such law which is
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otherwise   valid   be   described   as   unconstitutional
merely because a procedure which was followed on a
few occasions was not followed for the particular
amendment.”
87. The above judgment although was considering law made by
the Parliament where in the present case we are concerned with
the   exercise   of   statutory   power   of   the   Central   Government
under   sub­section   (3)   of   Section   3   of   the   Act,   1963.   In
exercising   the   power   under   Section   3(3)   no   particular
statutory procedure having been prescribed except the exercise
of power as per Allocation of Business Rules and Transaction
of Business Rules, 1961 nominations made cannot be held to be
vitiated on the submission that a particular procedure which
was followed in some earlier cases was not followed.
88. We do not find any established practice or convention to
the   fact   that   names   for   nominations   to   members   of   the
Legislative Assembly has to emanate from Chief Minister and
can be made by the Central Government only after concurrence
by Chief Minister. Both the issues are answered accordingly.
Issue No. 6   
89. Shri Kapil Sibal submits that High Court in Paragraph No.
5 has made certain recommendations.  He has taken exception to
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the recommendation (iv), which is to the following effect:­
“(iv)   If   the   nominated   MLA   belongs   to   a   political
party on the date of nomination, it should be made
clear  that   he  shall   become   part   of   the   legislature
party   of   that   political   party.   If   there   is   no
legislature   party   in   the   house   on   the   date   of
nomination, the nominated MLA/s shall constitute the
legislature   party   of   that   political   party.   This   is
inter­alia owing to Explanation (b) to paragraph 2(1)
(b)   of   Tenth   Schedule   to   COI   using   the   term
'political party' and not 'legislature party'.”
90. We have perused the recommendations made in Paragraph No. 5
of   the   judgment   of   Justice   M.   Sundar.     The   recommendations
contained in paragraph No. 5 are nothing but recommendations to
the   Parliament   to   frame   legislation   on   various   aspects   as
enumerated   in   the   recommendation.     We   have,   in   the   foregoing
discussions, concluded that it is the Central Government, which
is   under   Section   3(3)   empowered   to   nominate   members   in   the
Legislative   Assembly   of   Union   Territory.     The   procedure   and
manner of taking decision by Central Government has already been
regulated by Rules of Business framed by President in exercise
of  power  under  Article 77 of  the Constitution of India.   The
Rules   framed   by   President   of   India   under   Article   77(3)   are
applicable   to   all   executive   actions   of   the   Central   Government
including   Constitutional   and   Statutory   functions.     In   a
Constitution Bench judgment of this Court in  Samsher Singh Vs.
State of Punjab and Another, (1974) 2 SCC 831 following was laid
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down in Paragraph No. 29:­
“29.  The   executive   power   is   generally   described   as
the   residue   which   does   not   fall   within   the
legislative   or   judicial   power.   But   executive   power
may also partake of legislative or judicial actions.
All powers and functions of the President except his
legislative powers as for example in Article 123 viz.
ordinance making power and all powers and functions
of the Governor except his legislative power as for
example in Article 213 being ordinance making powers
are   executive   powers   of   the   Union   vested   in   the
President   under   Article   53(1)   in   one   case   and   are
executive powers of the State vested in the Governor
under Article 154(1) in the other case. Clause (2) or
clause   (3)   of   Article   77   is   not   limited   in   its
operation to the executive action of the Government
of India under clause (1) of Article 77. Similarly,
clause   (2)   or   clause   (3)   of   Article   166   is   not
limited in its operation to the executive action of
the   Government   of   the   State   under   clause   (1)   of
Article   166.   The   expression   “Business   of   the
Government of India” in clause (3) of Article 77, and
the   expression   “Business   of   the   Government   of   the
State”   in   clause   (3)   of   Article   166   includes   all
executive business.”
91. There   being   already   Rules   of   Business   for   carrying   out
the functions by the Central Government as per Article 77(3)
of the Constitution of India, we fail to see any justification
for making recommendation in paragraph No. 5 of the impugned
judgment.     Furthermore,   the   power   is   to   be   exercised   by
Central   Government   and   it   is   to   be   presumed   that   Central
Government,   in   exercise   of   its   power,   shall   be   guided   by
objective and rational considerations. We, however, hasten to
add that there is no inhibition in Central government or the
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Legislature   to   make   Rules   or   a   Statute   for   more   convenient
transaction   of   business   regarding   nominations.
Recommendations to the Legislature and the high Constitution
authorities are not made in a routine manner and we are of the
view  that  High  Court  ought  to  have  desisted for making  any
recommendations   as   contained   in   paragraph   No.   5.     The
qualifications   and   disqualifications   to   become   a   member   or
continue to be a member of a Legislative Assembly have already
been   provided   in   the   Act,   1963.     The   qualifications   and
disqualifications   for   members   of   Legislative   Assembly   are
provided in the Act, 1963 and other relevant Statutes, which
are always to be kept in mind, while exercising any Statutory
functions  by  the  Central  Government.   We,  thus, are of  the
view tat not only recommendation made in paragraph No. 5(iv)
but all the recommendations made in Paragraph No. 5 deserves
to be set aside.   In result, all recommendations as made in
Paragraph No. 5 of the impugned judgment are set aside.
Issue No.7
92. One of  the  submissions, which  has  been  pressed  by  Shri
Kapil Sibal is that even if the nominated members have right
to vote in the proceeding of Assembly, they have no right to
vote   in   two   circumstances,   i.e.   budget   and   no   confidence
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motion against the Government.   Article 239A which provides
for   composition   of   Union   Territory   of   Puducherry   itself
contemplated that the Parliament, may by law, create a body,
(i)   whether   elected   or;   (ii)   partly   nominated   and   partly
elected, to function as a Legislature for the Union Territory
of Puducherry.  Under Article 239, the Parliament has enacted
the law, i.e., the Government of Union Territory Act, 1963,
Section 3 of which provides that there shall be a Legislative
Assembly for each Union territory.  The total number of seats
in   the   Legislative   Assembly   of the   Union   territory   to   be
filled by persons chosen by direct election shall be thirty
and the Central Government may nominate not more than three
persons,   to   be   members   of   the   Legislative   Assembly   of the
Union   territory.     Thus,   the   composition   of   Legislative
Assembly   itself   consists   of   both   persons   chosen   by   direct
election   and   persons   nominated   by   the   Central   Government.
Both   elected   and   nominated   persons   are   part   of   Legislative
Assembly.   The provisions of Act, 1963 refers to members of
the   Legislative   Assembly.     Section   11   provides   that   every
member   of   the   Legislative   Assembly   of the   Union   territory
shall, before taking his seat, make and subscribe before the
Administrator, or some person appointed in that behalf by him,
an oath or affirmation according to the form set out for the
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purpose in the First Schedule.   The expression “every member
of   the   Legislative   Assembly   of   the   Union   territory”   shall
include   both   elected   and   nominated   members.     It   is   further
clarified by First Schedule of the Act, 1963, which contains
the forms of oaths and affirmations, which expressly refers
both elected and nominated members.
93. Section 12 deals with the voting in the Assembly, which
is as follows:­
12. Voting   in   Assembly,   power   of   Assembly   to   act
notwithstanding vacancies and quorum.
(1) Save   as   otherwise   provided   in   this   Act,   all
questions at any sitting of the Legislative Assembly
of the   Union   territory   shall   be   determined   by   a
majority of votes of the members present and voting
other than the Speaker or person acting as such.
(2) The  Speaker  or   person  acting  as  such  shall  not
vote   in   the   first   instance   but   shall   have   and
exercise a casting vote in the case of an equality of
votes.
(3) The   Legislative   Assembly   of the   Union   territory
shall have power to act notwithstanding any vacancy
in the membership thereof, and any proceedings in the
Legislative Assembly of the Union territory shall be
valid   notwithstanding   that   it   is   discovered
subsequently that some person who was not entitled so
to   do,   sat   or   voted   or   otherwise   took   part   in   the
proceedings.
(4) The   quorum   to   constitute   a   meeting   of   the
Legislative Assembly of the Union territory shall be
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one­third   of   the   total   number   of   members   of   the
Assembly.
(5) If   at   any   time   during   a   meeting   of   the
Legislative Assembly of the Union territory there is
no quorum, it shall be the duty of the Speaker, or
person acting as such, either to adjourn the Assembly
or to suspend the meeting until there is a quorum.
94. Section 12(1) provides that all questions at any sitting
of the Legislative Assembly of the Union territory shall be
determined by a majority of votes of the members  present and
voting other than the Speaker or person acting as such.  When
the expression used is votes of members present, obviously the
members of the Assembly both elected and nominated person has
to   be   counted,   we   cannot   while   interpreting   Section   12(1)
exclude the nominated members.  Further Section 12(1) uses the
expression “all questions at any sitting of the Legislative
Assembly”,   the   expression   “all   questions”   shall  include  all
matters,   which   are   to   be   decided   in   any   sitting   of   the
Legislative Assembly.   The Statutory provision does not give
indication   that   nominated   members   have   no   right   to   vote   on
budget and no confidence motion against the Government.   To
accept the submission of Shri Sibal shall be adding words to
provision of Section 12, which are clear and express. Further,
sub­section(1)   provides   that   in   the   voting   majority   of   the
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votes of the members present and voting, the speaker shall not
be a person, who shall vote.  When provision of sub­section(1)
clearly   provides   no   voting     by   Speaker,       if   intention   of
Legislature was to exclude the votes of nominated members, the
said   expression   was   bound   to   find   included   in   the
sub­section(1).     The   conclusion   is   inescapable   that   all
members including the nominated members are entitled to vote
in the sitting of the Legislative Assembly and the submission
of Shri Sibal that nominated members cannot exercise vote in
budget  and  no  confidence  motion has to  be  rejected.    Other
provisions like sub­section (4) of Section 12, which provides
for quorum to constitute a meeting of the Legislative Assembly
used the word “one­third of the total number of members of the
Assembly”, members of the Assembly obviously will include both
elected and nominated members.   Thus, there is no basis for
submission raised by Shri Sibal that nominated members cannot
exercise their vote in budget and no confidence motion against
the Government.  The issue is answered accordingly.
95. In   view   of   the   foregoing   discussions,   we   uphold   the
impugned   judgment   of   the   Madras   High   Court   for   the   above
reasons   except   directions   in   paragraph   5   which   are   hereby
deleted. In the result, the appeals are dismissed subject to
the   deletion   of   recommendations   made   in   paragraph   5   of   the
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judgment. Parties shall bear their own costs.
..........................J.
( A.K. SIKRI )
..........................J.
    ( ASHOK BHUSHAN )
..........................J.
( S. ABDUL NAZEER )
NEW DELHI,
December 06 , 2018.