Question

Which of the following statements are correct regarding the territorial extent of legislation under the Indian Constitution?

(i) The Parliament can make extraterritorial laws applicable to Indian citizens and their property worldwide.
(ii) A state legislature’s laws are applicable only within the state, except when a sufficient nexus exists with the object of the legislation.
(iii) The President can make regulations for Union Territories like Andaman and Nicobar Islands with the same force as an act of Parliament.

• A. Only (i) and (ii)
• B. Only (ii) and (iii)
• C. Only (i) and (iii)
• D. All are correct

Answer 1

Answer:

D. All are correct

Territorial Extent of Legislation in India

• The Indian Constitution, primarily through Article 245, defines the territorial extent of laws made by Parliament and State Legislatures. This article is crucial for understanding the legislative powers of both the Union and the States.

I. Parliament's Power of Extraterritorial Legislation (Statement i)

• Constitutional Basis: Article 245(2) explicitly states that "No law made by Parliament shall be deemed to be invalid on the ground that it would have extraterritorial operation."
• Scope: This provision empowers the Parliament to enact laws that apply to:
  • Indian citizens residing anywhere in the world.
  • Their property located anywhere in the world.
  • Any offence committed by an Indian citizen outside India.
  • For example, laws related to income tax for NRIs, or laws prosecuting Indian citizens for crimes committed abroad (e.g., under the Indian Penal Code, 1860, as amended).
• Implication: This means Parliament's legislative competence is not limited by the geographical boundaries of India when it comes to Indian subjects or matters having a real nexus with India.

II. State Legislature's Territorial Jurisdiction and Doctrine of Territorial Nexus (Statement ii)

• Constitutional Basis: Article 245(1) provides that "Subject to the provisions of this Constitution, Parliament may make laws for the whole or any part of the territory of India, and the Legislature of a State may make laws for the whole or any part of the State."
• General Rule: A state legislature's power to make laws is generally confined to the geographical limits of that state.
• Doctrine of Territorial Nexus: However, a significant exception to this rule is the Doctrine of Territorial Nexus. This doctrine allows a state legislature to make laws applicable to objects, persons, or transactions situated outside its territorial limits, provided there is a sufficient and real nexus (connection) between the state and the object/person/transaction.
• Examples:
  • A state can levy sales tax on goods sold outside the state if the contract of sale was concluded within the state (nexus).
  • A state can legislate on income tax for a non-resident if the income accrues or arises within that state.
  • Laws related to property situated within the state, even if the owner resides outside.
• Judicial Interpretation: The Supreme Court has upheld this doctrine in various cases, such as State of Bombay v. R.M.D. Chamarbaugwala (1957), which dealt with lotteries organized outside the state but with tickets sold within.

III. President's Power to Make Regulations for Union Territories (Statement iii)

• Constitutional Basis: Article 240 of the Indian Constitution grants the President the power to make regulations for certain Union Territories.
• Applicable Union Territories: This power applies to:
  • Andaman and Nicobar Islands
  • Lakshadweep
  • Dadra and Nagar Haveli and Daman and Diu
  • Ladakh
  • Puducherry (only when its Legislative Assembly is suspended or dissolved)
• Nature of Regulations: The regulations made by the President under this article have the same force and effect as an Act of Parliament.
• Legislative Authority: The President can even repeal or amend any Act made by Parliament in relation to these Union Territories. This power is legislative in nature, aimed at ensuring the good governance, peace, and progress of these specific territories, especially given their unique administrative needs.
• Condition: This power is typically exercised when Parliament is not in session or when it's deemed necessary for the specific administration of these territories.