The relations between the Centre and the States are divided into three distinct constitutional categories: Legislative, Administrative, and Financial.
1. Legislative Relations (Articles 245 to 255)
The Constitution divides legislative subjects into three lists in the Seventh Schedule:
- Union List (List I): 97+ subjects of national importance (Defense, Foreign Affairs, Railways) on which only Parliament can legislate.
- State List (List II): 66+ subjects of local importance (Police, Public Health, Agriculture) on which State Legislatures normally legislate.
- Concurrent List (List III): 47+ subjects of common interest (Education, Forests, Criminal Law) on which both tiers can legislate. Residuary powers belong exclusively to the Parliament under Article 248.
Essential Judicial Doctrines of Interpretation:
- Doctrine of Pith and Substance: When a legislature's power is challenged for encroaching on the other list, the court looks at the true nature and character (pith and substance) of the law. If it falls substantially within its assigned field, the law is upheld as valid, and minor incidental encroachments are ignored (State of Bombay v. F.N. Balsara).
- Doctrine of Colorable Legislation: Derived from the maxim "what cannot be done directly cannot be done indirectly." It checks whether a legislature, lacking the power to legislate on a topic, has disguised its law to pretend it falls within its power (K.C. Gajapati Narayan Deo v. State of Orissa).
- Repugnancy under Article 254: If a Central law and a State law in the Concurrent List conflict, the Central law prevails and the State law is void to the extent of repugnancy. However, under Article 254(2), if the State law was reserved for and received the assent of the President, it prevails in that State.
2. Administrative Relations (Articles 256 to 263)
The executive power of every State must be exercised to ensure compliance with Central laws. The Union Executive holds the power to give administrative directions to the States (Articles 256 & 257). Failure to comply can trigger Article 365, making it a ground for President's Rule under Article 356.
3. Financial Relations (Articles 268 to 281)
The Constitution divides taxing powers, prohibiting States from taxing subjects in the Union List. Because the Union holds higher tax-yielding sources, the revenues are shared based on recommendations of the Finance Commission (Article 280), which is appointed by the President every five years to ensure fiscal balance.