Inter-State Councils

     Article 263 of the Indian Constitution allows for the establishment of an Inter-State Council to facilitate coordination between the states and between the Centre and the states. The President can create such a council if it appears to him that it would serve the public interest. He also has the authority to specify the council’s duties, organization, and procedures.

Though the President has discretion in defining the council’s duties, Article 263 outlines specific responsibilities, including:

(a) Investigating and advising on disputes that may arise between states,
(b) Exploring and discussing topics of mutual interest to the states or between the Centre and the states,

(c) Making recommendations to improve coordination of policy and action related to these subjects.

The council’s advisory function regarding inter-state disputes is complementary to the Supreme Court’s jurisdiction under Article 131, which adjudicates legal controversies between governments. Unlike the binding decisions of the Supreme Court, the council’s role is advisory and can address both legal and non-legal disputes.

Under Article 263, the President has established several councils to improve policy and action coordination, including:

• • Central Council of Health and Family Welfare
  • Central Council of Local Government
  • Regional Councils for Sales Tax across Northern, Eastern, Western, and Southern Zones

Establishment of Inter-State Council

       The Sarkaria Commission on Centre-State Relations (1983–88) strongly advocated for a permanent Inter-State Council under Article 263. It recommended that this council should be referred to as the Inter-Governmental Council. The panel suggested that the council be tasked with duties specified in clauses (b) and (c) of Article 263.

Following these recommendations, the Janata Dal Government led by V. P. Singh established the Inter-State Council in 1990. Its composition includes:

1. 1. The Prime Minister as the Chairman
   2. Chief Ministers of all states
   3. Chief Ministers of union territories with legislative assemblies
   4. Administrators of union territories without legislative assemblies
   5. Governors of states under President’s Rule
   6. Six Central cabinet ministers, including the Home Minister, nominated by the Prime Minister.

Additionally, five cabinet-ranked ministers or Ministers of State (independent charge) are permanent invitees to the Council.

The Inter-State Council serves as a recommendatory body, focusing on issues related to inter-state relations, Centre-state relations, and Centre-union territory relations. Its primary duties include:

• • Investigating and discussing commonly shared subjects.
  • Making recommendations to enhance policy coordination and action.
  • Deliberating on other matters of general interest referred by the Chairman.

The Council meets at least three times a year, with meetings held in camera and decisions made by consensus. There is also a Standing Committee of the Council, established in 1996, which facilitates ongoing consultation and processes matters for the Council’s consideration. This committee includes:

1. 1. The union Home minister as the Chairman
   2. Five Union Cabinet Ministers
   3. Nine Chief Ministers

The Council is supported by a secretariat known as the Inter-State Council Secretariat, created in 1991 and headed by a secretary appointed by the Government of India. Since 2011, it has also functioned as the secretariat for the Zonal Councils.

Public Acts, Records, and Judicial Proceedings

      The Indian Constitution delineates that the jurisdiction of each state is confined to its own territory, which can lead to situations where the acts and records of one state might not be recognized in another. To address this issue, the Constitution incorporates a “Full Faith and Credit” clause that outlines the following provisions:

Recognition of Acts and Records:

• • Full faith and credit must be given throughout India to the public acts, records, and judicial proceedings of the Centre and every state. The term “public acts” encompasses both legislative and executive actions taken by the government. “Public record” includes any official documentation, such as books, registers, or records created by public servants in the course of fulfilling their official responsibilities.

Proof and Effect of Acts:

• • The conditions under which these acts, records, and proceedings must be proven, as well as the effects thereof, are governed by laws enacted by Parliament. This means that while the general rule requires recognition, Parliament retains the authority to specify how such acts and records should be proved and their legal effects when recognized in other states.

Execution of Civil Judgments:

• • Final judgments and orders from civil courts issued anywhere in India are enforceable throughout the country without the need for a new suit based on the judgment. This rule is limited to civil judgments and does not extend to criminal judgments, meaning that courts are not required to enforce the penal laws of one state in another.

Inter-State Trade and Commerce

1. 1. Articles 301 to 307 in Part XIII of the Indian Constitution focus on trade, commerce, and intercourse throughout the territory of India. Article 301 states that trade, commerce, and intercourse shall be free across the entire nation. This provision aims to eliminate border barriers between states, fostering a unified market that facilitates the free flow of trade and commerce. The freedom granted extends to both interstate and intrastate trade, commerce, and intercourse, meaning that restrictions are impermissible not only at state borders but also at any prior or subsequent stages.
   2. The freedom guaranteed by Article 301 is unrestricted except for limitations specified in Articles 302 to 305 of the Constitution. These limitations include:

• • • • • Parliamentary Restrictions: Parliament can impose restrictions on trade, commerce, and intercourse between states or within a state in the interest of the public. However, it cannot favor one state over another or discriminate between states, unless there is a shortage of goods in any part of India.
        • State Legislative Restrictions: State legislatures may impose reasonable restrictions on trade, commerce, and intercourse within the state, but any bill to this effect must have prior approval from the President. Additionally, state legislatures cannot prefer one state over another or discriminate between them.
        • Taxation on Imported Goods: State legislatures can impose taxes on goods imported from other states or union territories, provided that these taxes are consistent with those applied to similar goods produced within the state. This provision prevents discriminatory taxation practices by the states.
        • Subject to Nationalization Laws: The freedom under Article 301 is subject to nationalization laws that may establish monopolies in favor of the Centre or the states. Consequently, both Parliament and state legislatures may enact laws to manage any trade, business, industry, or service, potentially excluding citizens or others.

Parliament has the authority to designate an appropriate authority to implement these provisions relating to the freedom of trade, commerce, and intercourse, as well as to manage any restrictions. However, as of now, no such authority has been appointed.