Dr. Asad Malik Faculty of Law Jamia Millia Islamia
Dr. Asad Malik Faculty of Law Jamia Millia Islamia
2015-2016
Cooperative Federalism
Submitted to
Faculty of Law
By
3rd semester
Faculty of Law
Furthermore I would like to thank all those people who gave the subject their time
and wrote books which I eventually referred. In this matter, I would particularly
like to thank Dr. M. P. Jain, whose book was precise and the largest reference in
this work.
Without the contribution of the above said people I could have never completed
this project.
Contents
Introduction
1 A. V. Dicey The Law of the Constitution, p. 151, 155 (10 th Edn. 1959)
among different orders of government and rules to regulate their relationship
especially in the fiscal arena that can strike the right balance among different
objectives and resolve tensions.
constituent units
federal government
allocation of responsibilities vertically
allocation of responsibilities horizontally
Federalism in the Indian Constitution
To all appearances, the constitution that has formed the basis of governance in
India since independence; is federal. Though not formally designated as federal
it is proclaimed as a 'Union of states' in its very first article the constitution has
all the trappings of a federal polity, viz., statutorily mandated two layers of
government with specification of their respective powers and functions and also
the fiscal institutions that are needed to support a federal structure including
mechanisms for intergovernmental transfers to address the vertical and horizontal
imbalances that all federations unavoidably face.
One entity is not subordinate to the other in its own field; the authority of one is
co-ordinate with that of the other.
The Indian political system though supposedly decentralized and federal is too
centrist. It is quasi-federal at best and does not allow enough room for the states to
function freely or decentralization to come into full play.
A large concurrent list covering wide areas like economic and social
planning with residuary powers with the centre;
Primacy of central laws in the event of any conflict between a state
legislation and a parliamentary law;
2 Chelliah, 1991
Requirement of governor's assent for laws passed by state assemblies and of
president's assent for state enactments in certain matters3.
Power to parliament with qualifying majority to redraw the boundaries of a
state, divide it, and create new ones.
Power to the centre to take over the administration of a state in certain
circumstances and promulgate 'President's Rule'4.
1. Dispersion of powers between the center and the unit states forming federation
among a number of co-ordinate bodies, controlled by constitution.
2. Rigidity neither the center nor the state has power to amend the provision of
constitution relating separation of powers.
3. A written constitution
4. Domination of the constitution neither of center nor state has power to nullify
the constitution
In Pradeep Jain v. Union of India5, the Apex Court expressed as India is not a
federal State in the traditional sense of that term. It is not a compact of sovereign
State which have come together to form a federation by ceding undoubtedly
federal features.
3 Article 201
4 Article 356
5 1984 SCR (3) 942
The basic idea that has to be agreed to with is that the Constitution of India is
supreme and the Central legislative body cannot make any changes to those laws
included to define the power sharing arrangements between the Center and the
States in the country. This makes the Constitution of India federal in its approach
to power sharing between the center and the sub-ordinate units of the country.
But then it also has to be noted that there is no clear distinction of the division of
power between the center and the states, this can be seen as evident from the fact
that there are provisions for the over-riding of the will of the states in cases where
there is the implementation of Art. 201 and Art. 356. Articles 356, 352 and 360
give the power to the president to declare emergency, which can transform federal
system into a unitary system; however the provision is meant for temporary and
can be used only under certain exceptional situations under certain restrictions
created through judicial intervention, there are many circumstances in which the
central government has used this power to dissolve the state governments of the
opposite parties and to remain in power at the centre.
It also has to be noted that in the introduction of the Concurrent list, there is
confusion as to which entity, i.e. the Center or the States have the last say in the
matter, though it is accepted that if the two entities are in direct opposition to each-
other, then the decision of the Union shall be considered to have more weight than
that of the State.
However, the Indian National Congress and the Muslim League could not reach an
agreement on the Plan. Further, the first report by the Constituent Assembly also
envisioned a relatively weak Centre as advocated by the Cripps and Cabinet
Mission Plans. The passing of the India Independence Act and the eventual
Partition of India led the Constituent Assembly to adopt a more unitary version of
federalism.
6 Lawrence Saez, Federalism without a Centre (New Delhi: Sage Publications, 2002 , p 26
R. Ambedkar and Prime Minister Jawaharlal Nehru were in favour of a unitary
state while Home Minister Sardar Vallabhbhai Patel and many others stood for the
cause of federalism.
It goes to the credit of the framers of the Constitution that they had visualised and
anticipated contingencies which might arise at some point in the future and had
made provisions to meet them. As pointed out by constitutional experts, The
Constitution by adapting itself to changed circumstances strengthens the
Government in its endeavour to overcome the crisis. It is rather a merit of the
Constitution that it visualises the contingencies when the strict application of the
federal principle might destroy the basic assumption on which our Constitution is
built.
Federal structure in India
In the Kesavananda Bharati vs. state of Kerala9 case, the Supreme Court ruled that
all provisions of the constitution, including Fundamental Rights can be amended.
However, the Parliament cannot alter the basic structure of the constitution like
secularism, democracy, federalism, separation of powers. Often called the "Basic
structure doctrine", this decision is widely regarded as an important part of Indian
history.
In the 1978 Maneka Gandhi v. Union of India10 case, the Supreme Court extended
the doctrine's importance as superior to any parliamentary legislation. According to
the verdict, no act of parliament can be considered a law if it violated the basic
structure of the constitution. This landmark guarantee of Fundamental Rights was
regarded as a unique example of judicial independence in preserving the sanctity of
Fundamental Rights. The Fundamental Rights can only be altered by a
constitutional amendment, hence their inclusion is a check not only on the
executive branch, but also on the Parliament and state legislatures. The imposition
In the decision referred in State of Rajasthan case at, the Apex Court held:
"A conspectus of the provisions of our Constitution will indicate that, whatever
appearances of a federal structure our Constitution may have, its operations are
certainly judged both by the contents of power which a number of its provisions
carry with them and the use that has been made of them, more unitary than federal.
I mention the use that has been made of the constitutional provisions because
Constitutional practice and convention become so interlinked with or attached to
Constitutional provisions and are often so important and vital for grasping the real
purpose and function of Constitutional provisions that the two cannot often be
viewed apart. And, where the content of powers appears so vague and loose, from
the language of a provision as it seems to us to be in Article 356(1), for the reasons
given above, practice and convention may so crystallize as to become more
significant than the letter of the law. At any rate, they cannot be divorced from
In the decision referred in S.R. Bommai's case14, the Apex Court held at Para 107:
"In dealing with this question, it is necessary to bear in mind one fundamental
feature of a Federal Constitution. In England, Parliament is sovereign; and in the
words of Dicey, the three distinguishing features of the principle of Parliamentary
Sovereignty are that Parliament has the right to make or unmake any law whatever;
that no person or body is recognized by the law of England as having a right to
override or set aside the legislation of Parliament, and that the right or power of
Parliament extends to every part of the Queen's dominions17. On the other hand, the
essential characteristic of federalism is "the distribution of limited executive,
legislative and judicial authority among bodies which are co-ordinate with and
independent of each other". The supremacy of the Constitution is fundamental to
the existence of a federal State in order to prevent either the Legislature of the
federal unit or those of the member States from destroying or impairing that
delicate balance of power which satisfies the particular requirements of States
which are desirous of union, but not prepared to merge their individuality in a
unity. This supremacy of the Constitution is protected by the authority of an
independent judicial body to act as the interpreter of a scheme of distribution of
powers. Nor is any change possible in the Constitution by the ordinary process of
In State of M.P. v. Bharath Singh19 , it was held that the Indian Federal structure is
founded on;
(2) Distribution of power between three organs of the State -Legislature, Executive
and Judicial, each organ having some check direct or indirect on the other.
It is laid down by, that the most important point to ascertain whether a Constitution
is Federal in character is whether the powers of the Government are divided
between co-ordinate independent authority or not20. In accordance to H. M. Servai,
the learned author expressed the opinion that the most important feature of Federal
Constitution is the distribution of legislative power 21. Even A.V. Dicey22, had
expressed an opinion that the distribution of limited executive, legislative and
judicial authority among bodies each co-ordinate with and independent of the other
is essential to the Federal form of Government.
"The reason of this restraint is not that the Indian Constitution recognizes any rigid
separation of powers. Plainly, it does not. The reason is that the concentration of
powers in any one organ may, by upsetting that fine balance between the three
organs, destroy the fundamental premises of a democratic Government to which
we are pledged. Sir Carleton K. Allen says that neither in Montesquieu's analysis
nor in Locke's are the Governmental powers conceived as the familiar trinity of
legislative, executive and judicial powers25. Montesquieu's "separation" took the
form not of impassable barriers and unalterable frontiers, but of mutual restraints,
or of what afterwards came to be known as "checks and balances". The three
organs must act in concert, not that their respective functions should not ever touch
one another. If this limitation is respected and preserved, " 26it is impossible for that
situation to arise which Locke and Montesquieu regarded as the eclipse of liberty -
the monopoly, or the disproportionate accumulation, of power in one sphere". In a
Federal System which distributes powers between three co-ordinate branches of
Government, though not rigidly, disputes regarding the limits of Constitutional
power have to be resolved by Courts and therefore, as observed by Paton, "the
distinction between judicial and other powers may be vital to the maintenance of
the Constitution itself27. Power is of an encroaching nature, wrote Madison in 'The
Cooperative Federalism
.
The Government of India Act, 1919 laid down the foundation of a federal form of
government in India. It introduced diarchy in India. A federal structure results in
the division of powers between the center and the units.
The Government of India Act, 1935 also laid down the provisions for a federal
form of government in India. It provided for the distribution of legislative powers
between the union and the provinces.
The Government of India Act, 1935, further provided for the cooperative
relationship between the provinces. Provisions were laid down to promote
harmony and to resolve the differences between the various provinces.
Sections 131, 132 and 133 of the Government of India Act, 1935 laid down
provisions for resolving the disputes related to waters. These dealt with the
problems relating to inter Province Rivers and river valleys.
Section 135 of the Government of India Act, 1935 laid down provisions for
the creation of councils dealing with the coordination between the various
provinces of the British India. The need for creating a cooperative relation between
the provinces was felt even before the independence.
The Government of India Act, 1935 laid down the foundation for the
creation of a cooperative relationship in the federal structure. The present
Constitution has elaborated the principles which were laid down under the Act.
Cooperative federalism under Indian Constitution
There has been a felt need for a change from competitive to cooperative
relationship in the working of the federal constitution. Cooperative federalism
means that the center and the states share a horizontal relationship and neither is
above the other. This trend has been promoted by three factors:
(1) the exigencies of war when for national survival, national efforts takes
precedence over fine points of Centre state division of powers;
(2) technological advances means making of communication faster;
(3) the emergence of the concept of social welfare state in response to public
demands for various social services involving huge outlays which the governments
of the units could not meet by themselves out of their own resources.
The concept of cooperative federalism helps the federal system, with its divided
jurisdiction to act in unison. It minimizes friction and promotes cooperation among
the various constituent governments of the federal union so that they can pool their
resources to achieve certain desired national goals.
The Constitution of India provides various provisions dealing with the cooperative
aspect of federal structure. The constitution makers deliberately provided for such
features in the constitution in order to ensure the smooth working of the
government.
Full Faith and Credit Clause
Article 261 of the Constitution of India provides that full faith and credit shall be
given throughout the territory of India to all the public acts, records and judicial
proceedings of the Union and of every State. This is a step to promote cooperation
and faith between the center and the states.
Clause (2) empowers the Parliament to lay down by law the mode of proof as well
as the effect of acts and proceedings of one state in another state.
According to clause(3), final judgments or orders delivered or passed by civil
courts in any part of the territory of India can be executed anywhere in the country
according to law.
The full faith and credit clause promotes uniformity and unity throughout the
territory of India. It develops a sense of harmony and unity in the country. It
promotes cooperation between the states and the center and gives due credit to all
the public acts.
Inter State Council
Article 263 provides that the President may by order appoint an Inter state Council
if it appears to him that public interest would be served by its establishment. The
President may define the organization, procedure and duties of the Council.
In T.N. Cauvery Sangam v. Union of India[i], the Supreme Court has held that
once the Central government finds that the dispute referred to in the request
received from the State government cannot be settled by negotiations, it becomes
mandatory for the central government to constitute a tribunal and to refer the
dispute to it for adjudication. Further, if the central government fails to make such
a reference, the court may, on an application under Article 32 by an aggrieved party
issue mandamus to the central government to carry out its statutory obligation.
Sarkaria commission on Centre state relations has strongly recommended for the
establishment of an inter state council to effect coordination between states.
In Dabur India Limited v. State of Uttar Pradesh[ii], the Supreme Court suggested
the setting up of a council under Article 263 to discuss and sort out problems of
central state taxation.
Zonal Councils
Zonal Councils have been introduced in India by the States Reorganisation Act,
1956. These councils have been created in order to bring the states of a particular
region in close conformity with each other. The Zonal Councils were created as an
instrument of intergovernmental consultation and cooperation mainly in socio
economic fields and also to arrest the growth of controversies and particularistic
tendencies among the various States.
There exists five Zonal Councils:
(1) Northern- comprising of the states of Punjab, Haryana, Himachal Pradesh,
Rajasthan, Jammu and Kashmir and the union territories of Delhi and Chandigarh.
(2) Eastern- comprising of the states of Bihar, West Bengal, Orissa and Sikkim.
(3) Western- comprising of the states of Gujrat, Maharashtra, Goa and the union
territories of Daman and Diu and Dadra and Nagar Haveli.
(4) Central- comprising of the states of Uttar Pradesh and Madhya Pradesh
(5) Southern- comprising of the states of Andhra Pradesh, Tamil Nadu, Karnataka
and Kerala and the union territory of Pondicherry.
Each State included in a zonal council enjoys a complete equality of status as:
(1) each state has an equality of representation in the council;
(2) each Chief Minister is to act as the Vice chairperson of the council in rotation
for a year;
(3) meetings of the council are to be held in each member state by rotation;
(4) the Chief Secretary of a member state is to act as the Secretary of the council
in rotation for one year.
A zonal council is an advisory body and has no executive or legislative function to
perform.
River water Disputes
Article 262 empowers the Parliament to provide by law for adjudication of any
dispute or complaint with respect to the use, distribution or control of the waters of
any interstate river or river valley.
A river board may be established by the Central government for advising the
governments interested in relation to matters concerning the regulation or
governance of an inter State river or river valley.
Planning and Finance
Planning makes inter governmental cooperation very necessary for in a federal
structure, the governments are not arranged hierarchically. The Directive Principles
of state Policy emphasize towards economic democracy, economic empowerment
of the weaker sections of the society, and a welfare state without which political
democracy does not have much meaning for the larger section of the poor people in
the country.
In 1950, the Government of India set up the Planning Commission with the Prime
Minister as its chairman. It has a vice president and a few central ministers and a
few non official experts as its members.
It has been assigned the following functions:
(1) to make an assessment of material, capital and human resources of the country
and investigate the possibilities of augmenting such of these resources as are found
to be deficient in relation to the nations requirements;
(2) to formulate a plan for the most effective and balanced utilization of the
countrys resources;
(3) on a determination of priorities, to define the stages in which the plan should
be carried out and propose the allocation of resources for the due completion of
each stage;
(4) to indicate the factors which are tending to retard economic development and
determine the conditions which in view of the current social and political situation,
should be established for the successful execution of the plan.
(5) to determine the nature of the machinery which will be necessary for securing
the successful implementation of each stage of the plan in all its aspects;
(6) to appraise from time to time the progress achieved in execution of each stage
of the plan and recommend the adjustments of policy and measures that such
appraisal might show to be necessary; and
(7) to make such interim and ancillary recommendations as might on a
consideration of the prevailing economic conditions, current policies, measures and
development programmes, or on an examination of such specific problems as
maybe referred to it for advice by the Central or State governments.
1. KASHYAP SUBHASH C., Constitutional Law of India, Vol. 1, Universal law Publishing
Co. Pvt. Ltd.
2. BASU D.D., Commentary on Constitution of India, 8th Ed., Vol. 4, Wadhwa, Nagpur
3. JAIN M.P., Outlines of Indian Legal and Constitutional History, 6th Ed. Lexis Nexis
Butterworths Wadhwa, Nagpur.