Article 246 of the Costitution of India with Case law
Here is a detailed explanation of Article 245 of the Constitution of India, along with relevant case law:
📜 Article 245 – Constitution of India
"Extent of laws made by Parliament and by the Legislatures of States"
✅ Text of Article 245:
Clause (1):
Subject to the provisions of this Constitution:
Parliament may make laws for the whole or any part of the territory of India,
A State Legislature may make laws for the whole or any part of the State.
Clause (2):
No law made by Parliament shall be deemed invalid on the ground that it would have extra-territorial operation.
🔍 Key Points:
| Feature | Description |
|---|---|
| Parliament's power | Can legislate for the entire country, including Union Territories |
| State Legislature's power | Limited to its own state |
| Extra-territorial validity | A Central law is valid even if its effects go beyond Indian territory |
| Limitation | Powers are subject to constitutional provisions (e.g., Fundamental Rights, federal distribution of powers in Article 246) |
⚖️ Important Case Laws on Article 245:
1. A.H. Wadia v. Income-Tax Commissioner
Citation: AIR 1949 FC 18
Facts: Income tax law was challenged for applying to non-residents.
Held: A legislature can make laws with extra-territorial effect, but courts cannot enforce rights or liabilities arising outside their jurisdiction unless it relates to India.
Relevance: Affirmed the principle later codified in Article 245(2).
2. Tata Iron & Steel Co. v. S.R. Sarkar
Citation: AIR 1961 SC 65
Held: Parliament can enact laws that extend to entire India or even affect people outside India, so long as the subject matter falls within its constitutional competence.
Relevance: Emphasized the broad legislative reach under Article 245(1) and (2).
3. GVK Industries Ltd. v. Income Tax Officer
Citation: (2011) 4 SCC 36
Facts: Challenged taxation law that allegedly had extra-territorial effect.
Held:
Parliament has power to make extra-territorial laws, but such laws must have a real and substantial nexus with India.
Article 245(2) doesn't give unlimited power; must still be guided by constitutional morality and sovereign limits.
Significance: Qualified the broad reading of Article 245(2) — foreign-related laws must connect with Indian interests.
4. State of Bombay v. R.M.D. Chamarbaugwala
Citation: AIR 1957 SC 699
Held: Laws with extra-territorial operation are valid only for Parliament, not for States.
Relevance: Reinforces that State legislatures cannot make laws for outside their territory under Article 245.
🧠 Why Article 245 Matters:
Establishes the territorial competence of legislatures.
Empowers Parliament to pass laws with global implications (e.g., taxation, cybersecurity, foreign investment).
Limits State legislation to state boundaries, protecting India's federal structure.
📚 Summary Table:
| Aspect | Parliament | State Legislature |
|---|---|---|
| Can legislate for | Whole of India or any part | Whole or part of the state |
| Extra-territorial effect | Permitted under clause (2) | Not permitted |
| Judicial limitations | Nexus with India required (GVK case) | Bound by state territorial limits |
| Relevant for | Cross-border laws, internet, finance | Local governance and administration |
RELATED Blog
0 comments