Polity

Inter State Relations

2 real PYQs·4 concepts ↓·Asked 2018 · 2025

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Inter-State Trade and Commerce

›Articles 301 to 307 in Part XIII of the Constitution deal with trade, commerce, and intercourse within India.
›Article 301 declares that trade, commerce, and intercourse throughout the territory of India shall be free.
›The objective of Article 301 is to break down border barriers between states and create a single unit for free flow of trade.

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Articles 301 to 307 in Part XIII of the Indian Constitution govern inter-state trade, commerce, and intercourse within the territory of India. Article 301 aims to foster a unified economic environment by declaring that trade, commerce, and intercourse throughout India shall be free, thereby removing barriers between states and encouraging the free flow of goods and services. This freedom extends to both inter-state and intra-state trade. However, this freedom is not absolute and is subject to certain restrictions outlined in Articles 302 to 305. Parliament can impose restrictions in the public interest, but it cannot discriminate between states unless there is a scarcity of goods. State legislatures can also impose reasonable restrictions in the public interest, provided the bill receives the President's sanction, and they too cannot discriminate between states. States can levy taxes on imported goods that are similar to those manufactured domestically, preventing discriminatory taxation. Additionally, the freedom is subject to nationalisation laws, allowing the Parliament or state legislatures to create government monopolies in trade or services. Parliament is empowered to appoint an authority to implement these provisions, though no such authority has been appointed so far.

›Articles 301 to 307 in Part XIII of the Constitution deal with trade, commerce, and intercourse within India.
›Article 301 declares that trade, commerce, and intercourse throughout the territory of India shall be free.
›The objective of Article 301 is to break down border barriers between states and create a single unit for free flow of trade.
›The freedom under Article 301 applies to both inter-state and intra-state trade, commerce, and intercourse.
›Article 301 is violated if restrictions are imposed at a state frontier or at any prior or subsequent stage.
›The freedom guaranteed by Article 301 is subject to restrictions provided in Articles 302 to 305.
›Parliament can impose restrictions on the freedom of trade, commerce, and intercourse between or within states in the public interest (Article 302).
›Parliament cannot give preference to one state over another or discriminate between states, except in cases of scarcity of goods in any part of India.
›A state legislature can impose reasonable restrictions on the freedom of trade, commerce, and intercourse within or with that state in the public interest.
›A bill for imposing state legislative restrictions requires the previous sanction of the President.
›State legislatures cannot give preference to one state over another or discriminate between states.
›A state legislature can impose taxes on goods imported from other states or UTs, provided similar goods manufactured in that state are also taxed, to prohibit discriminatory taxes (Article 304).
›The freedom under Article 301 is subject to nationalisation laws (e.g., laws providing for government monopolies) (Article 305).
›Parliament can appoint an appropriate authority to carry out the purposes of these provisions, but no such authority has been appointed so far.

Inter-State Relations — Water Disputes, Inter-State Council, Zonal Councils

›Article 261: Full Faith and Credit clause — applies to civil judgements only, not criminal
›Article 262: Inter-state water disputes — SC jurisdiction excluded; tribunal decision = final
›Article 263: Inter-State Council — established 1990 under V.P. Singh government

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The Constitution makes four provisions for inter-state comity: 1. Adjudication of inter-state water disputes (Article 262) 2. Coordination through inter-state councils (Article 263) 3. Mutual recognition of public acts, records and judicial proceedings (Article 261) 4. Freedom of inter-state trade, commerce and intercourse (Articles 301–307, Part XIII) In addition, Parliament has established **Zonal Councils** (statutory bodies) to promote inter-state cooperation.

All key facts

›Article 261: Full Faith and Credit clause — applies to civil judgements only, not criminal
›Article 262: Inter-state water disputes — SC jurisdiction excluded; tribunal decision = final
›Article 263: Inter-State Council — established 1990 under V.P. Singh government
›9 water dispute tribunals set up so far (as of 2019); most recent = Mahanadi (2018)
›Inter-State Council: PM as chairman; meetings in camera; decisions by consensus
›Article 301: Freedom of trade, commerce and intercourse (both inter-state and intra-state)
›Zonal Councils: statutory (not constitutional); 5 zones; Home Minister = common chairman of all
›North-Eastern Council: created under separate Act of 1971; 8 members including Sikkim (added 2002)
›Zonal Councils: deliberative and advisory only
›The President can define the nature of duties to be performed by an Inter-State Council, along with its organisation and procedure, even though Article 263 specifies the duties.
›The advisory function of the Inter-State Council on inter-state disputes is complementary to the Supreme Court's jurisdiction under Article 131 to decide legal controversies between governments.
›The Inter-State Council can deal with any controversy (legal or non-legal), but its function is advisory, unlike the court which gives a binding decision.
›Other councils established by the President under Article 263 include the Central Council of Health and Family Welfare, Central Council of Local Government, and four Regional Councils for Sales Tax.
›The "public acts" mentioned in Article 261 include both legislative and executive acts of the government.
›The "public record" mentioned in Article 261 includes any official book, register, or record made by a public servant in the discharge of their official duties.
›Final judgments and orders of civil courts anywhere in India are capable of execution anywhere within India without the necessity of a fresh suit upon the judgment.
›Article 301 aims to break down border barriers between states and create one unit to encourage the free flow of trade, commerce, and intercourse.
›Freedom under Article 301 is guaranteed from all restrictions, except those provided for in Articles 302 to 305 of Part XIII of the Constitution.
›Parliament can appoint an appropriate authority for carrying out the purposes of articles relating to trade, commerce, and intercourse, but no such authority has been appointed so far.
›While forming Zonal Councils, factors like natural divisions, river systems, communication means, cultural and linguistic affinity, economic development, security, and law and order are taken into account.
›Zonal Councils discuss and make recommendations regarding matters such as economic and social planning, linguistic minorities, border disputes, and interstate transport.
›The Inter-State Water Disputes Act (1956) empowers the Central government to set up ad hoc tribunals for disputes between two or more states regarding inter-state river waters.
›The decision of an ad hoc Inter-State Water Disputes Tribunal is final and binding on the parties involved.
›The Supreme Court does not have jurisdiction over water disputes referred to an ad hoc tribunal under the Inter-State Water Disputes Act (1956).
›An Inter-State Council aims at promoting coordination between states, union territories, and the Centre by examining and discussing issues.
›The duties of the Inter-State Council include investigating and discussing subjects of common interest to states or Centre, making recommendations for better policy coordination, and deliberating on matters referred by the chairman.
›The Inter-State Council's meetings are held in camera.
›The Standing Committee of the Inter-State Council, set up in 1996, is chaired by the Union Home Minister and includes 5 Union Cabinet Ministers and 9 Chief Ministers.
›The Zonal Councils have advisors such as a nominee from the Planning Commission (now NITI Aayog), a chief secretary from each state in the zone, and a development commissioner from each state in the zone, who participate without voting rights.
›Each Chief Minister in a Zonal Council acts as a Vice-Chairman by rotation for a period of one year.
›The North-Eastern Council (created by the North-Eastern Council Act of 1971) also functions to review measures for the maintenance of security and public order in the region.
›The need for an extra-judicial machinery to settle inter-state water disputes arises because rules of law based on private proprietary interests in water do not afford a satisfactory basis for settling disputes where public interest in proper use of water supplies is involved.
›Zonal Councils aim to remove after-effects of separation so that reorganisation, integration and economic advancement may synchronise.
›The River Boards Act (1956) provides for the establishment of river boards for regulation and development of inter-state rivers, established by Central government on request of state governments concerned.

borrowed featuresconstituent assemblyequality political and socialfunctions of constitutionpreamble

Public Acts, Records, and Judicial Proceedings

›The "Full Faith and Credit" clause is designed to address the difficulty that arises because each state's jurisdiction is confined to its own territory.
›Public acts include both legislative and executive acts of the government.
›Public records include any official book, register, or record made by a public servant in discharge of official duties.

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The Constitution contains a "Full Faith and Credit" clause to enable mutual recognition of public acts, records, and judicial proceedings across state boundaries. Since the jurisdiction of each state is confined to its own territory, the Constitution ensures that acts and records of one state are recognized throughout India, removing difficulties that would otherwise arise from territorial limitations. The clause operates on three principles: (i) Full faith and credit is given throughout India to public acts, records, and judicial proceedings of the Centre and every state; (ii) Parliament has power to determine the manner and conditions under which such acts, records, and proceedings are proved and their effects determined; and (iii) Final judgements and orders of civil courts in any part of India may be executed anywhere within India without requiring a fresh suit. The term "public acts" encompasses both legislative and executive acts of government. "Public record" includes any official book, register, or record made by a public servant in discharge of official duties. Importantly, the rule applies only to civil judgements and not to criminal judgements—states are not required to enforce the penal laws of another state.

All key facts

›The "Full Faith and Credit" clause is designed to address the difficulty that arises because each state's jurisdiction is confined to its own territory.
›Public acts include both legislative and executive acts of the government.
›Public records include any official book, register, or record made by a public servant in discharge of official duties.
›Full faith and credit applies to the Centre and every state throughout the territory of India.
›Parliament has power to prescribe the manner and conditions for proof and to determine the effect of such acts, records, and proceedings in one state when applied in another state.
›Final judgements and orders of civil courts in any part of India are capable of execution anywhere within India without requiring a fresh suit.
›The rule applies only to civil judgements, not to criminal judgements.
›States are not required to enforce the penal laws of another state.

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Inter-State Water Disputes

›Article 262 of the Constitution provides for the adjudication of inter-state water disputes and permits Parliament to bar the Supreme Court and other courts from exercising jurisdiction over such disputes.
›Parliament has enacted the River Boards Act (1956) to establish river boards for the regulation and development of inter-state rivers and river valleys at the request of concerned state governments.
›Parliament has enacted the Inter-State Water Disputes Act (1956), which empowers the Central government to set up ad hoc tribunals to adjudicate disputes between two or more states concerning inter-state rivers and river valleys.

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Inter-state water disputes arise from disagreements between two or more states regarding the use, distribution, and control of waters of inter-state rivers and river valleys. The Constitution provides a special framework for their adjudication outside the ordinary court system. Article 262 empowers Parliament to establish mechanisms for settling these disputes and to exclude the Supreme Court and other courts from exercising jurisdiction over referred cases. Parliament has enacted two principal laws under this provision: the River Boards Act (1956) and the Inter-State Water Disputes Act (1956). River boards advise state governments on the regulation and development of inter-state rivers, while ad hoc tribunals are established to adjudicate specific disputes. The tribunal's decision is final and binding on all parties. As of 2019, nine inter-state water dispute tribunals have been constituted to address disputes involving major river systems including the Krishna, Godavari, Narmada, Ravi, Beas, Cauvery, Vansadhara, Mahadayi, and Mahanadi.

All key facts

›Article 262 of the Constitution provides for the adjudication of inter-state water disputes and permits Parliament to bar the Supreme Court and other courts from exercising jurisdiction over such disputes.
›Parliament has enacted the River Boards Act (1956) to establish river boards for the regulation and development of inter-state rivers and river valleys at the request of concerned state governments.
›Parliament has enacted the Inter-State Water Disputes Act (1956), which empowers the Central government to set up ad hoc tribunals to adjudicate disputes between two or more states concerning inter-state rivers and river valleys.
›Tribunal decisions are final and binding on all parties to the dispute.
›As of 2019, nine inter-state water dispute tribunals have been established: Krishna Water Disputes Tribunal-I (1969), Godavari Water Disputes Tribunal (1969), Narmada Water Disputes Tribunal (1969), Ravi and Beas Water Disputes Tribunal (1986), Cauvery Water Disputes Tribunal (1990), Krishna Water Disputes Tribunal-II (2004), Vansadhara Water Disputes Tribunal (2010), Mahadayi Water Disputes Tribunal (2010), and Mahanadi Water Disputes Tribunal (2018).
›The need for extra-judicial machinery arises because rules of law based on private proprietary interests in water do not satisfactorily settle disputes where public interest in proper water use is involved.