CENTRE-STATE RELATIONS

IN THE SEVENTIES *

 

SHRI G. S. PATHAK

Vice-President of India

 

            For several years past the subject of Centre-State relationship has been engaging the earnest attention of jurists, legislators, political scientists and a number of organisations, notably the Institute of Constitutional and Parliamentary Studies, the Indian Law Institute, the Institute of Public Administration, the Indian Parliamentary Association and the Indian Institute of Advanced Study. There have been conventions, seminars and symposia in which learned papers were read and important speeches made. Some of these bodies have published the result of their deliberations and the Institute of Constitutional and Parliamentary Studies has also devoted one special number of its journal to this topic. Recently we have, in the shape of the reports of the Administrative Reforms Commission the Rajamannar Committee, important documents on the subject. In addition to all this, articles have been appearing in the Press from time to time. We have, thus, a voluminous material, almost exhausting the points that emerged and also the views expressed, pro and contra, on those points. That it was considered necessary for these three institutions of Hyderabad to organise this seminar underscores the importance of the subject. It also shows the heartening aspect of our democratic life, namely, that there is always public discussion on all important matters in which academies and persons in public life also participate in addition to those who are directly concerned. I am sure all this material will prove useful to the participants in this seminar. There may, of course, be new points not already covered and I have no doubt that this seminar will throw fresh light on the subject as a whole.

 

            At the outset, it would perhaps be appropriate to recall the background in which our Constitution was framed. When the partition of 1947 was finally announced, the reaction of Indian leaders was immediate and they unanimously favoured a strong Central Government. Pakistan attacked us thrice. The present situation created by the continuing influx into our territory of Pakistani nationals has created for us social and economic problems of vast magnitude and also constitutes a threat to peace. Among the framers of the Constitution were great leaders, eminent jurists, reputed statesmen and learned political scientists and others who had devoted their whole life in the service of the nation. They were all patriotic people, zealous and determined to see that India after independence must be a strong and united nation capable of weathering all storms. Uppermost in their minds was the fact that the history of the country disclosed fissiparous tendencies and divisive factors. They were also apprehensive of external attack. It was also felt that a strong Central Government would command respect from the nations of the world. Throughout the proceedings of the Constituent Assembly the idea persisted that ‘the unity of the nation’, which is mentioned as one of the national ideals in the Preamble of the Constitution, must be secured and this could be done only by adopting a federal structure with a strong centre. The integrity of the country, vast in area and with a large population, could not otherwise be assured. It is significant that at the conclusion of the proceedings of the Constituent Assembly, Dr. Rajendra Prasad referred to the fissiparous tendencies in the various elements of the country’s life–communal differences, caste differences provincial differences and so forth. He found it appropriate to close the proceedings with the prayer that the country may be given men of strong character, men of vision, men who would not sacrifice the interests of the country, by and large, for the sake of smaller groups and areas and who would rise above the prejudices born of these differences.

 

            When Dr. Ambedkar said that the use of the word “Union” in the Constitution was deliberate, he had in mind the American history. In the course of his speech in the Constituent Assembly Dr. Ambedkar observed that “The Drafting Committee wanted to make it clear that though India was to be a federation, the federation was not the result of an agreement by the States to join in federation, and that the federation not being the result of an agreement, no State has the right to secede from it. The Federation is a Union because it is indestructible.” He continued: “Though the country and the people may be divided into different States for convenience of administration, the country is one integral whole, its people a single people, living under a single imperium derived from a single source.....” It is also worth remembering that the provinces which became States under the Federation were mere administrative units and no sovereign entities. No doubt, under the Constitution, the States enjoy supremacy within their spheres, subject to the limits and conditions imposed by the Constitution. The territories of the States, however, are the territories of the Union of India over which the Union laws operate. There is single citizenship for the whole country.

 

            Our Constitution-makers adopted what is known as, the co-opera­tive system of federalism. The chief characteristics of this system are inter-dependence between the Union and the component parts and also the practice of administrative co-operation between the Union and the State Governments and the partial financial dependence of the latter on the former. The relationship between the Centre and the States under this system is a deliberately balanced one. Co-operation is its very foundation. Co-operation, indeed, is an indisputable instrument in the working of the federal system. Speaking about the Australian Federation, Justice Starke of the Australian Supreme Court stated the basic truth applicable to our federation also: “Co-operation on the part of the Commonwealth (of Australia) and the States may well achieve objects that neither alone could achieve; that is often the end and the advantage of co-operation.” India had to develop as one single economic and social structure. To regulate the social and economic development of the country” planning of the activities are inevitably co-ordinated and inter-related. It is important to remember that the ‘economic and social planning’ is to be found in the Concurrent List. It is obvious that upon co-operation between the Centre and the States and the constructive exercise of powers and the carrying out of the obligations under the Constitution, depends the success of our planning, the maintenance of internal order and the preservation of external security.

 

            Since 1950 many events have occurred which have a direct or indirect hearing on Centre-State relationship. The States were re-organised under the States Re-oganisation Act, 1956. Thereafter claims were made on behalf of a number of regions that they might be constituted into new States. A notable example was the re-organisation of Punjab. Himachal Pradesh, an erstwhile Union territory, became a full-fledged State. In course of time, Governments having different political complexions, programmes and policies from the Government at the Centre came into being, but this eventuality was within the contemplation of the Constitution-makers. The Governor’s office assumed a new importance. Quite often the President had to take over the Government of certain States and delegate his powers to the Governor. As the Head of the State, the Governor had to exercise his powers in relation to the appointment of the Council of Ministers and the summoning and dissolution of the Houses in circumstances generating acute controversies and strong emotions. In some regions, language issues were also raised. Boundary disputes between certain States arose, some of them still remain unresolved. Disputes regarding river waters became acute and litigation is pending in the Supreme Court. In certain areas law and order problems became serious. Apart from the cases of floods and droughts and similar unforeseen calamities there have been growing financial demands by the States on the Centre.

 

            In this background it was natural that questions should arise regarding the rights, duties and powers of the States vis-a-vis the Centre and the rights, duties, and powers of the centre vis-à-vis the States. Constitutional machinery now is in full play, and its various parts have been subjected to real tests. This led in some cases to a re-examination of the constitutional set-up. Questions began to be asked: Has the Constitution met the challenges presented by ~he problems which arose in the course of its working? Can the difficulties experienced be resolved by mutual adjustments of an administrative character, and so on and so forth.

 

            The relationship between the Centre and the States covers a wide range and embraces a very large part of the functions and activities in the administrative, social and economic fields. This relationship became the subject of investigation by the Administrative Reforms Commission. That Commission, before examining the issues regarding this relationship, first appointed a strong team headed by Shri M. C. Setalvad to study all matters relating to Centre- State relations. On the basis of the report of this team, the Administrative Reforms Commission submitted its own report on 19th June, 1969, to the Government on the subject. Referring to the controversies which had arisen between the Centre and the States, the Commission observed: “but these controversies pertain mostly to matters administrative and financial and not to constitutional issues. Eminent leaders of various political parties who appeared before the Commission emphasised their faith in the Indian unity, though they argued for more autonomy and initiative for the States. We, therefore, do not think it necessary to suggest any amendments to the Constitution. We have, however, made recommendations to the delegation of more financial and administration of functions and powers to the States with the twin objectives of making the relations between the Centre and the States smoother and introducing efficiency and economy in the administration of the Union and State Governments. It is not in the amendment of the Constitution that the solution of the problems of the Centre-State relationship is to be sought, but in the working of the provisions of the Constitution by all concerned in the balanced spirit in which the founding-fathers intended them to be worked.” I need not detail the recommendations of the Administrative Reforms Commission which must be well-known to you all.

 

            On the 22nd September, 1969, the Tamil Nadu Government constituted a Committee consisting of Dr. Rajamannar, Dr. Lakshmanaswami Mudaliar and Thiru P. Chandra Reddy to examine the entire question regarding the relationship that should subsist between the Centre and the States in a federal set-up and to suggest suitable amendments to the Constitution so as to secure the States utmost autonomy. The report of this Committee has been considered by, and is still under the consideration of, individuals and bodies interested in the question. The reports of the Administrative Reforms Commission and of the Rajamannar Committee have received wide attention. There has also been critical examination in the Press. The point worthy of note is that while the Administrative Reforms Commission reported that no amendment of the Constitution was necessary, the report of the Rajamannar Committee has recommended, among other things, quite a number of constitutional amendments.

 

            Controversies between the States inter se, and between the Centre and States are normal in countries governed by federal Constitution. It is common knowledge that our Constitution-makers had before them the federal constitutions of the world and they were well aware of the constitutional history of many countries and the problems that had arisen there concerning the Centre-State relationship. They were conscious of the fact that such controversies were likely to arise in India and for this reason they made elaborate provisions for the resolution of disputes between the Centre and the States and the States inter se. As a measure for securing ‘co-ordination between States’–that is the heading of Article 263–the establishment of an inter-State Council was provided. The duties of such a Council are specifically enumerated. They are:

 

a)      to inquire into and advise upon disputes which may have arisen between States;

b)      to investigate and discuss subjects in which some or all of the States, or the Union and one or more of the States, have a common interest; or

c)      making recommendations upon any subject (that is a subject in which some or all of the States, or the Union and one or more of the States, have a common interest) and, in particular, recommendations for the better coordination of policy and action with respect to that subject.

 

            It is clear that the duties with which the inter-State Council under the Constitution can be charged are limited. They are advisory in the case of inter-State disputes and recommendatory in the case of subjects having a common interest. It will be a question of some importance whether any function not specified in Article 263 can be assigned to an inter-State Council when established.

 

            The Constitution has taken care of the disputes relating to waters of rivers in Article 262. In pursuance of the powers conferred by that article Parliament has enacted a law which is in operation. Further, the Constitution has conferred original jurisdiction on the Supreme Court in disputes between the Centre and one or more States or between the Centre and any State or States on one side, and one or more other States on the other or between two or more States (Article 131). Then there is the power of the President to obtain the opinion of the Supreme Court on any question or law or fact. In cases of disputes it is natural that it is in the interest of the parties concerned–and they would also prefer–to have the disputes settled by mutual discussion. That is the very essence of democratic life. With mutual goodwill and a spirit of accommodation probably many such problems and disputes could be resolved. If mutual discussions fail, resort could be had to the remedies provided in the Constitution.

 

            As regard, the legislative lists, it is well-known that the practice of having three lists, the Union, State and Concurrent, had come into vogue in federal constitutions before our Constitution was framed. The only question then could be whether the view to the Administrative Reforms Commission and others–that no change in the provisions of the Constitution governing the distribution of subjects between the Centre and the States is necessary–is correct, or re-distribution is required and if so, to what extent? The Administrative Reforms Commission had noted that the representatives of various parties and interests with whom they and the Study Team had had discussions were in agreement on the point that re-distribution of the subjects in the lists was not necessary. In the constituent Assembly there was full deliberation on the contents of the lists. While there were those, among whom was Mr. Santhanam, who wanted to give lesser powers to the Centre, there Were others like Mr. Frank Anthony who urged giving the maximum possible powers to the Centre in the interest of the integrity and cohesion of the nation. In particular, Mr. Anthony wanted to see that education and health were brought under the control of the Centre and at least some measure of control over Police Services throughout the country. The Constituent Assembly appears to have taken the view that the quantum of autonomy that was being conferred on the States was just and correct consistently with the securing of unity and integrity of the country.

 

            Questions have also been mooted in regard to the administrative relations between the Centre and the States. In this connection, it is necessary to bear in mind that, subject to the provisions of the Constitution, Parliament has got the power to make laws for whole or any part of the territory of India. It follows that Centre will also have its own agencies, personnel and property in the territories of the States. There are branches of Income-tax Department, Defence installations, Customs offices, public undertakings and many other offices belonging to the Centre, functioning in the territories of the States. It is a general principle of law that every power carries with it the power to do all Acts incidental and necessary in order to effectuate the object for which the original power was given. To have the power to make laws for the State territories and to execute them and to establish its agencies there, but not to have the power to take measures to protect such agencies would amount to stultification of the original power. The question assumes importance in cases where the State Government might not, or might be unable to give adequate protection to the personnel and the properties of the Central Government in the State territory. Articles 256, 257, 258 and 258-A and 365 are based upon the principle of co-operation which should subsist between the Centre and the States. Article 256 requires that the executive power of every State shall be so exercised as to ensure compliance with the laws made by Parliament, and the executive power of the Union shall extend to the giving of such directions to a State as may appear to the Government of India to be necessary for that purpose. This is a positive injunction on the State. Negatively, Article 257 requires that the executive power of every State shall be so exercised as not to impede or prejudice the exercise of the executive power of the Union and in this case also the executive power of the Union extends to the giving of all necessary directions. A question may be raised as to why the power to issue directions is given to the Government of India. The purpose underlying these two Articles is the purpose of the Government of India, related to the laws made by Parliament and the executive power of the Union, and the Government of India would be in the best position to judge what is necessary to carry out that purpose. For this reason it appears that the Constitution has given power to the Centre to issue directions to carry out the purpose.

 

Another measure of co-operation is furnished by Article 258 (1) which empowers the President, with the consent of the Government of a State, to entrust to that Government functions in relation to any matter to which the executive power of the Union extends. Conversely, the Governor of a State is empowered by Article 258-A, with the consent of the Government of India, to entrust to that Government functions in relation to any matter to which the executive power of that State extends. It may be observed that consent of the State Government does not appear to be necessary, where a law made by Parliament confers powers and imposes duties upon the State and its offices. What would happen in case the State Government refuses co-operation to the Centre and disregards the directions given in any matter authorised by the Constitution? Article 365 provides the answer. It lays down that in case the State fails to comply with, or to give effect to, any directions given in the exercise of the executive power of the Union under the provisions of this Constitution, it shall be lawful for the President to hold that a situation has arisen in which the Government of the State cannot be carried on in accordance with the provisions of this Constitution. Article 355 imposes a duty on the Union to ensure that the Government of every State is carried on in accordance with the provisions of this Constitution. This is in addition to its duty imposed by the said Article to protect every State against external aggression and internal disturbance. Dr. Ambedkar stated in the Constituent Assembly that Article 365 was consequential and not to give this power to the President was practically negativing the directions which the Central Government was empowered to give. The ultimate sanction is incorporated in Article 356 which gives power to the President to issue emergency proclamation where the Government of the State cannot be carried on in accordance with the Constitution.

 

The duty imposed by Article 355 in all the three respects, viz., protection against external aggression, protection against internal disturbance and ensuring that the Government of every State is carried on in accordance with the provisions of the Constitution, is an obligation imposed on the Centre in the interest and for the benefit of the people residing in the State also. That appears to be the intention of the framers of the Constitution in enacting the above provisions. Where the Government of the State is carried on in accordance with the provisions of the Constitution, no difficulty would arise and Article 365 would not come into play. For the retention of the emergency provisions contained in Article 356, Dr. Alladi very strongly supported Dr. Ambedkar. Dr. Alladi said that if responsible government functioned properly the Centre would not and could not interfere. This provision, according to him, is a bulwark in favour of the provincial or State autonomy because the primary obligation is cast upon the Union to see that the Constitution is maintained.

 

While considering the various issues in connection with Centre-State relationship and the powers of the Central Government created by the Constitution, it has to be remembered that the Central Government is responsible to Parliament. The House of the People represents the people of all the States and the Council of States represents all the States. Actions of the Government in all states are subjected to criticism in both the Houses of Parliament and whatever power is exercised by the Central Government whether in connection with Article 256, 257 or 356, they have to be justified before Parliament. I have been associated with Parliament since 1960 with the exception of short period and I think it is a tribute to our Parliament that it exercises effective check and supervision over the actions of the Central Government.

 

Governor’s powers have been the subject of discussion for several years past and I have spoken on the subject on a number of occasions. Briefly, the position appears to be this: The Governor who is a link between the Centre and the State, fills a dual role. Firstly, he is the constitutional authority charged with the duty of seeing that the government of the State is carried on in accordance with the provisions of the Constitution. This obligation is imposed on him by his oath whereby he is required to preserve, protect and defend the Constitution and also by the fact that he owes a duty to report to the President under Article 356 if the Government of the State cannot be carried on in accordance with the Constitution. His second role is that of the Head of the State.

 

A view is very often expressed that guide lines should be given to the Governor for the efficient discharge of his duties and for bringing uniformity of action in like situations. It may be remembered that in the Constituent Assembly, Dr. Ambedkar had first moved that provision should be made in the Constitution for giving instructions both to the President and to the Governors. Later on further consideration, he strongly took the view that a provision for the issue of instructions to both the President and the Governors should be omitted from the Constitution. While withdrawing the proposal to incorporate the instrument of instructions for the Governor Dr. Ambedkar said in the Constituent Assembly that the instrument was useless because there was no functionary who could see that the instrument of instructions were carried out by the Governor. Dr. Ambedkar appears to have admitted that the provisions of instrument of instructions were, strictly speaking, not enforceable or justiciable. The proposal by a Member that they may be justiciable was rejected on the ground that this would permit courts to interfere in the affairs of Parliament and thus the system of checks and balances would be upset. It is fair to deduce Dr. Ambedkar and the Members of the Drafting Committee to the conclusion that the written provisions of a non-jus instrument of instructions and tacit conventions of a Cabinet Government had equal value. The proposal to issue the instrument of instructions and to incorporate it in the Constitution was exhaustively considered by the Constituent Assembly and was rejected by it. For giving authoritative guide lines to the Governors, a power in the Constitution will have to be discovered and there is no such power. Moreover, no instrument of instructions can be exhaustive, as circumstances not anticipated and not provided for in the instrument may arise. In this situation, would it not be better that the Governors themselves may lay the guide lines to be followed by them and conventions in this respect may be allowed to grow?

 

I wish to say a few words on the Governor’s role on one more aspect. Sometimes, it has been said that even while acting as Chancellor of a university, the Governor is bound by the advice of the Council of Ministers. In this connection it is worthy of note that the Chancellor derives his powers from, and exercises his functions under, the statute creating the office of the Chancellor and it is the duty of the Chancellor to act in accordance with the provisions of that statute. Some of the functions are of a quasi-judicial character and the Chancellor, for that reason, has to exercise his own judgment. Such functions therefore cannot be expected to be discharged according to the advice of an outside body. Sometimes the Chancellor has to decide particular matters on the spot, for example, when he is presiding over the Senate in cases where he is authorised by the Act to so preside. In such cases the taking of advice from a body outside the university would be impracticable. The Chancellor’s functions and powers depend on, and are derived from, the statute creating the university and the office of the Chancellor, and they have to be in accord with the terms of each particular statute establishing the university. The fact that the Governor is ex-officio Chancellor is a mere method of appointment to the office of Chancellor. He is a Chancellor because he is a Governor, but he is not acting as Governor when he is acting as Chancellor. The Governor derives his powers and functions from the Constitution which does not authorise any State legislature to confer on him any power in his capacity as Governor. And the university Acts are ordinarily State enactments. Any other view would take away the autonomy of the universities which will function–if that view be correct–as a department of the Government. These are the various considerations which the Seminar may take into account, while dealing with the Governor’s role when appointed a Chancellor.

 

I have dealt with only some of the problems in connection with Centre-State relationship. I have avoided, as far as possible, giving my own views on these problems, although at places I had to give my interpretation of the Constitution. I am sure that the Seminar will exhaustively examine the various issues relating to the subject in depth. The Seminar will, I have no doubt, bear in mind the problems of law and order and other problems connected with internal security and external aggression. They are inescapable facts of life. I am mentioning this because no issue, much less the issue of Centre-State relations, can be examined in isolation.

 

What should be the approach to the solution of the problems arising in connection with the Centre-State relations? I lay the greatest emphasis on mutual consultations between the Central Government and the State Governments. Even at the risk of repetition, I may state that such problems have to be considered ultimately in the perspective of general considerations regarding the unity of the nation and the security of the country. While considering the question of whether there are any defects in the Constitution, it is important first to examine the reasons behind the constitutional provisions made in the Constitution and then to see whether those reasons still hold good, and further to examine whether the fault lies in the constitutional provisions or in the defective implememation of them. We must not forget that our Constitution has been in operation for about 21 years and some conventions have been formed and others are in the course of formation. I am of the opinion that Constitution, by and large, has worked very well.

 

* Speech delivered on the inauguration of the Seminar at Hyderabad on September 23, 1971

 

 

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