Public Acts, Records And Judicial Proceedings in Interstate Relations

Since the jurisdiction of a state is limited to its territorial boundaries, there is a possibility that the acts and records of one state may not be recognised in another state. The Constitution of India  provides for “full faith and credit” clause to solve this challenge in the following manner:

• Full faith and credit: Full faith and credit must be recognized across India for the public acts, records, and judicial proceedings of both the central government and all states. The term “public acts” encompasses the legislative and executive actions taken by the government. The expression “public records” includes any official book, register or record made by a public servant in the discharge of their official duty. 
• Parliamentary law: The method and conditions under which these acts, records, and proceedings can be verified, as well as the determination of their effects, will be dictated by parliamentary law. 
• Civil laws: Final judgements and order of civil courts in any part of India are capable of execution anywhere within India. However, this rule only applies to civil judgements and not criminal pronouncements.  

Inter State Trade and Commerce in India

The trade, commerce and intercourse within the territory of India is dealt with under Article 301 to Article 307 of Part XIII of the constitution. This provision in the Indian constitution has been adopted from the Australian constitution. 

Article- 301: Freedom of Trade, commerce and intercourse 

Article 301 states that there shall be freedom in trade, commerce, and interaction throughout India. The objective of this provision is to remove the border barriers between the states and to create one unit with a view to encourage the free flow of trade, commerce and intercourse in the country. This freedom also applies to trade, commerce, and interaction within individual states. 

Article- 302 to 305: Restrictions on freedom of trade, commerce and intercourse 

The freedoms given under Article 301 are not absolute but are qualified and can be restricted on grounds of provision given under Article 302 to Article 305. These restrictions are as follows:

1. In public interest, Parliament can impose restrictions on freedom of trade, commerce and intercourse between states or within a state. However, parliament cannot discriminate between the states except in case of scarcity of goods in any part of India.
2. In public interest, the legislature of a state can impose reasonable restrictions on freedom of trade, commerce and intercourse with other states or within that state. However, such a bill can only be introduced in the state legislature with the previous consent of the president. Also, the state legislature cannot discriminate between the states. 
3. The state legislature can impose such taxes on imported goods from other states or the union territories, which are imposed on similar goods manufactured in that state. This provision restricts the discriminatory taxes being imposed by the state on the other states. 
4. The freedom is subject to the nationalisation laws i.e parliament or state legislature can make laws to carry out any trade, business, industry or service to the complete or partial exclusion of citizens or otherwise. 

Article-307: Appointment of authority for carrying out the purposes of Articles 301 to 304 

The Constitution has empowered the Parliament to appoint or authorise any authority for carrying out the provisions under Article 301 to Article 304 and is also empowered to confer the necessary powers and duties on such a body. However, no such body has been authorised or appointed as of 2023. 

Interstate trade and commerce is not free of challenges. The challenges range from infrastructure bottlenecks and taxation issues to multiplicity of laws. Hence, the government has taken steps like indirect tax reforms- GST and E-Way bill to rationalise the taxation issues.  Also, the government is working on improving the transport infrastructure by constructing dedicated freight corridors, modernization of port infrastructure (sagarmala project) and promoting industrial corridors to promote interstate trade and also the export potential of India. 

Further, it is required for the states to increase their cooperation through interstate council and GST council to create a facilitative ecosystem for promoting interstate trade and commerce. Also, the Government can implement the Punchhi Commission recommendation to establish  an Inter-state Trade and Commerce Commission under Article 307 with binding decisions on the states and the centre.

Role of Zonal Councils in Improving Interstate Relations in India

Zonal councils are statutory bodies which are established by the States Reorganisation Act, 1956 passed by the Parliament.  The Act establishes five zonal councils one for each zone  which are as follows:

During the formation of these  zonal councils various factors have been kept in mind such as:

• Natural division of the country;
• River systems and means of communication;
• Cultural and linguistic affinity; and
• Requirements of economic development, security and law and order. 

However, the nature of these bodies are deliberative and advisory. 

Composition of Zonal Councils and Its Role in Interstate Relations in India  

Members with voting rights include:

1. Union Home Minister as the chairman of all five councils. 
2. Chief ministers of all the states in the zone. They act as the vice chairman of the council on a rotational basis for a period of one year at a time.   
3. Two other ministers from each state in the zone. 
4. Administrator of each union territory in the zone.

  Members without voting rights who act as advisors include-

1. The Chief Secretary of the government of each state in the zone
2. The Developmental commissioner of each state in the zone.

Role of the North-Eastern Council in Strengthening Interstate Relations in India

A separate zonal council for the north eastern region was constituted under the North Eastern Council Act of 1971. The council includes states of Assam, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya, Tripura, and Sikkim. 

In addition to the other functions of the zonal council, the north eastern council has to formulate a unified and coordinated regional plan covering the matters of common importance. It is necessary to periodically assess the actions taken by member states to ensure security and public order in the area. 

Functions and objectives  of zonal council 

• Integration: To achieve the emotional integration of the country. 
• Build unity: To help in arresting the growth of acute state consciousness, regionalism, linguism and particularistic trends. 
• Synchronisation between states: To help in removing the after effects of separation in some cases so that the process of reorganisation, integration, and economic advancement may synchronise. 
• Cooperation: To enable the centre and states to cooperate with each other in social and economic matters and exchange ideas and experience in order to evolve uniform policies. Also to promote cooperation and coordination between the states, union territories and the centre.
• Political equilibrium: To secure some kind of political equilibrium between different regions of the county. 
• Make recommendations: To make recommendations regarding matters like economic and social planning, linguistic minorities, border disputes, inter state transport. 

Challenges in zonal councils

• Rise of acute regional consciousness which restricts seamless coordination among different zonal councils and also between the various states constituting the zonal councils.
• Lack of regular meetings of the council 
• Sometimes, region wise issues become dominant over national issues which may enhance rift in the centre-state relationship.

Recommendations for Strengthening Zonal Councils

• Punchhi Commission recommended that the zonal councils should meet at least twice a year with an agenda proposed by states concerned to maximise co-ordination.

• Sarkaria Commission recommended that Zonal councils should be constituted afresh and reactivated to promote the spirit of federalism.

Hence, there is an urgent need for systemic reforms like a minimum number of meetings being prescribed for regular interaction among the council members. Also, strengthening of the zonal council can help in reducing the regional disparity  and fostering the spirit of cooperative federalism. 

The sharing of water and territories are among the most contentious issues between two or more states. The reorganisation of states has left several issues concerning the states unresolved. The politicization of these matters further intensifies the issue. If one state is willing to find a solution, the other disagrees. There is an institutional gap in the Indian union right now and it needs to be filled before inter-state frictions get out of control. The Inter – state council should be leveraged to solve these issues.

Every major commission on Centre – State relations, Inter – State boundary disputes for example Setalvad study team etc. has recommended strengthening inter state council for amicable resolution of disputes. Besides this the NITI Aayog governing council can also be helpful in resolving disputes. Along with strengthening the institutional mechanism there is a need to find innovative solutions like Interlinking of rivers, declaring water as a national resource. This will help in scientific assessment and distribution of water among states. Thus, there is an urgent need to focus on the inter-state issues and concerns because if left unchecked they can prove detrimental to the unity and integrity of India.