The framers of the Constitution were conscious of the fact that human knowledge is limited and human perception imperfect and no one could foresee what contingency may arise in future needing legislation. Therefore, the residuary power is intended to take care of such matters as could not be identified at the time of the constitution-making. Write a critical note on Residuary powers. (15 Marks)
Residuary power is parliament's exclusive power to make law with respect to any matter not enumerated in the concurrent or state list. It includes the power to make a law imposing a tax not mentioned in aforesaid lists. [Article 248 and Entry 97, List I, 7th Schedule]. Hence, residuary power caters to future contingencies needing legislation, relating to subject matters not mentioned in 7th Schedule. Eg. Wealth Tax, Commissions of Inquiry Act, acquisition of Auroville (SP Mittal v UOI).
Supreme Court in HS Dhillon case clarified that entry 97 has to be read with Article 246(1) and not Article 248. Further if matter doesn't fall under List II, Parliament will be competent to legislate on it under its residuary power in Entry 97 of List I. In such a case it becomes immaterial whether it falls under Entries 1-96 of List I.
While traditional federal nations (US, Australia) extended residuary power to States, in federal states with centralizing tendency (India, Canada), it's reserved for Centre. But, misuse of such power can undermine the federal balance. Hence, the residuary power can't be so expansively interpreted as to whittle down the power of State legislature and the entry in State list must be given a broad and plentiful interpretation before resorting to Entry 97 (International Tourism Corp. v State of Haryana). Before exclusive legislative competence can be claimed for Parliament by resorting to residuary power, the legislative incompetence of State must be clearly established.
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Residuary power is parliament's exclusive power to make law with respect to any matter not enumerated in the concurrent or state list. It includes the power to make a law imposing a tax not mentioned in aforesaid lists. [Article 248 and Entry 97, List I, 7th Schedule]. Hence, residuary power caters to future contingencies needing legislation, relating to subject matters not mentioned in 7th Schedule. Eg. Wealth Tax, Commissions of Inquiry Act, acquisition of Auroville (SP Mittal v UOI).
Supreme Court in HS Dhillon case clarified that entry 97 has to be read with Article 246(1) and not Article 248. Further if matter doesn't fall under List II, Parliament will be competent to legislate on it under its residuary power in Entry 97 of List I. In such a case it becomes immaterial whether it falls under Entries 1-96 of List I.
While traditional federal nations (US, Australia) extended residuary power to States, in federal states with centralizing tendency (India, Canada), it's reserved for Centre. But, misuse of such power can undermine the federal balance. Hence, the residuary power can't be so expansively interpreted as to whittle down the power of State legislature and the entry in State list must be given a broad and plentiful interpretation before resorting to Entry 97 (International Tourism Corp. v State of Haryana). Before exclusive legislative competence can be claimed for Parliament by resorting to residuary power, the legislative incompetence of State must be clearly established.