IN RE: THE BERUBARI UNION AND EXCHANGE OF ENCLAVES REFERENCE UNDER ARTICLE 143(1) OF THE CONSTITUTION OF INDIA versus .

Pramatha Nath

Mul1herjee v.

State of West Bengal

Dos Gupta ].

Marth z4.

tute also minor offence under s. 323 I.P.C. The Magistrate when he took cognizance under s. 190(l)(b) Cr. P.O. of the offence under s. 332 I.P.C. cannot but have taken cognizance alHo ofthe minor offence under s. 323 I.P.C. Consequently, even after the order of discharge was made in respect of the offence under s. 332 I.P.C. the minor offence under s. 323 of which he had also taken cognizance remained for trial as there was no itfdication to the contrary. That being an offence triable under Chapter XX Cr. C.P. the Magistrate rightly followed the procedure under Chapter XX.

The appeal is accordingly dismissed.

Appeal dismissed.

IN RE: THE BERUBARI UNION AND EXCHANGE OF ENOLA VES

REFERENCE UNDER ARTICLE 143(1) OF THE CONSTITUTION OF INDIA

(B. P. SINHA, 0. J., s. K. DAS, P. B. GAJENDRA-GADKAR, A. K. SARKAR, K. SuBBA RAo, 'l\L HIDAYATULLAH, K. 0. DAS GUPTA and J. C. SHAH, JJ.)

President's Reference-Inda-Pakistan Agreement, r958-Divi-sion of Berubari Union and exchange of Cooch-Behar Enclaves-If involve cession of territory-Implementation-Amendment of Consti-tution-Constitution of India, Arts. I, 3, 368.

As result of the Radcliffe Award dated August 12, 1947, Berubari Union No. 12 fell within West.Bengal and was treated as such by the Constitution which came into force on January 26, 1950, and has since been governed on that basis. Certain dis-putes arose between India and Pakistan subsequent to the Rad-.cJiffe Award but Berubari was not in issue before the Bagge Commission set up by agreement between the parties to decide those disputes. That commission made its award on January 26, 1950. Pakistan raised the question of Berubari for the first time in 1952 alleging that under the Radcliffe Award it should form part of East Bengal and was wrongly included in West Bengal. On August 28, 1949, the Ruler of the State of Cooch-Behar

3 S.C.R. SUPREME COURT REPORTS

entered into an agreement of merger with the Government of India and that Government took over the administration of Cooch-Behar which was ultimately merged with West Bengal on January I, 1950, so as to form part of it. It was found that certain areas which belonged to the State of Cooch-Behar became enclaves in Pakistan after the partition, and similarly certain Pakistan enclaves fell in India.

In order to remove the tension and conflict caused thereby the Prime Ministers of India and Pakistan entered into an agree-ment, called the Indo-Pakistan Agreement on September IO, 1958, and items 3 and 10 of that agreement provided for division of Berubari Union half and half between India and Pakistan and for an exchange of Cooch-Behar Enclaves in Pakistan and Pakis-tan Enclaves in India.

Doubts having subsequently arisen regarding the implemen-tation of the said items, the President of India referred the matter to the Supreme Court under Art. 143(1) of the Consti-tution:

Held, that item No. 3 of the Agreement leaves no manner Of doubt that the parties to it were thereby seeking-to settle the dis-pute apart from the Award, amicably, and on ad hoc basis by dividing the territory half and half. There is absolutely no indi-cation in it that they were seeking to interpret the Award and determine the boundary on that basis. The question relating to Berubari must, therefore, be considered on the basis that it in-volves cession of part of India's territory to Pakistan and this applies with greater force to the agreement relating to the exchange of the enclaves.

There can be no doubt that the implementation of the Agreement would alter the boundary of West Bengal and affect Entry 13 in the First Schedule to the Constitution, since as matter of fact Berubari was treated as part of West Bengal and governed as such from the date of the Award and was thus com-prised th,erein before the commencement ,of the Constitution. Any argument to the contrary cannot be accepted.

The State of Australia v. The State of Victoria, (19n) 12 C.L.R. 667 and The State of South Australia v. State of Victoria, (1914] A.C. 283, distinguished and held inapplicable.

Although it may be correct to describe the preamble as key to the mind of the Constitution-makers, it forms no part of the Constitution and cannot be regarded as the source of any sub-stantive power which the body of the Constitution alone can confer on the Government, expressly or by implication. This is · equally true of prohibitions and limitations. It was not, therefore, correct to say that the preamble could in.any way limit the power of Parliament to cede parts of the national territory. Nor was it correct to say that Art. 1(3)(c) did so.

Article 1(3)(c) correctly construed, confers no power to acquire foreign territories but merely recognises automatic absorption of such territories as may be acquired by India in its sovereign right and, consequently, does not exclude by implication, the power to cede national territory. Moreover, the power to amend

In re: Bernbari Union &- Exchange of Enclaves

252 SUPREME COURT. REPORTS

1960 the Constitution under Art. 368 gives the Parliament the power to amend Art. 1(3)(c) so as to include the power to cede national In re. territory as well. It was, therefore, incorrect to suggest that Berubari Union the sovereign State of India lacked the t\VO essential attributes & Exchange of of sovereignty, namely, the power to acquire foreign territory E1iclaves and the power- to cede national territory, and that no process of legislation could validate the Agreement in question.

Although such cession of territory, which amounts in la\v to transfer of sovereignty must cause great hardship from the human point of view, the right of sovereign State to do so in the exercise of its treaty-making power and subject to such Jimi-tations as the Constitution may, expressly or by necessary impli-cation, impose, can never be in doubt and the question as to· whether the treaty can be implemented by ordinary legislation or by constitutional amendment must depend on the provisions of the Constitution itself.

It may be assumed in construing Art. 3 that the Consti-tution contemplated changes of the territorial limits of the constituent States and there was no guarantee of their territorial integrity. Broadly speaking, that Article deals with the terri-torial adjustment inter sc of the Constituent States of India, and not merely their reorganisation on linguistic or other basis. Article 3(c) deals with the diminution of the area of State and it is unreasonable to suggest that it is wide enough to cover cession of national territory. The t.rue position is that the Consti-tution does not expressly provide either for acquisition of foreign territory or for cession of national territory; powers are inherent in that behalf in every sovereign State.

Consequently, the Agreement cannot be implemented by law relatable to Art. 3 and legislation relatable to Art. 368 would be inevitable.

It follows, therefore, that the Parliament acting under Art. 368 can make law to give effect and implement the Agreement in question covering both Berubari and the Enclaves or pass law amending Art. 3 'so as to cover cases of cession of the territory of India and thereafter make law under the amended Art. 3 to implement the Agreement.

ADVISORY JURISDICTION : Special Reference ~o. 1 of 1959. •

Reference by the President of India under Arti-cle 143(1) of the Constitution of India on the imple-mentation of the Indo-Pakistan Agreement relating to Berubari Union and Exchange of Enclaves.

The circumstances which led to this Reference by the President and the questions referred appear from the full text of the Reference dated April 1, 1959, which is reproduced below :-

WHEREAS the Boundary Commission appointed under the Chairmanship of Sir Cyril Radcliffe in

3 s.c.R. SUPREME COURT REPORTS

accordance with sub:section (3) of section 3 of the

Itidian Independence Act, 1947, made an Award, hereinafter referred to as "the Radcliffe Award", copy whereof is annexed hereto as Annexure I, deter-mining the boundaries of the Province of East Bengal and the Province of West Bengal constituted by clause (b) of sub-section (1) of section 3 of the said Act;

AND WHEREAS certain boundary disputes having arisen out of the interpretation of the Radcliffe Award, the Dominion of India and "the Dominion of Pakistan set up, by agreement, Tribunal under the Chairman-ship of the Hon'ble Lord Justice Algot Bagge for the adjudication and final settlement of the. said boun-dary disputes and for demarcating the boundary accordingly ;

AND WHEREAS the said Tribunal gave decisions on the ·said boundary disputes, such decisions being hereinafter referred to as "the Bagge Awards'', copy . whereof is annexed hereto as Annexure II ;

AND WHEREAS, with respect to the District of Jalpai-guri, the demarcation of the boundary line between the Province of West Bengal and the Province of East Bengal i8 described in paragraph 1 of the Schedule forming · Annexure to the Radcliffe Award as

follows:-

"A line shall be drawn along the boundary be-tween the Thana of Phansidew in theDistrict of 'Darjeeling and the Thana Tetulia in the District of Jalpaiguri from the point where that boundary meets the Province of Bihar and then along the boundary between the Thanas of Tetulia and Raj-ganj; the Thanas of Pachagar and Rajganj, and the Thanas of Pachagar and Jalpaiguri, and shall then continue along the northern corner of the Thana Debiganj to the boundary of the State of Cooch-Behar. The District of Darjeeling and so much of the District of Jalpaiguri as lies north of this line shall belong to West Bengal, but the Thana of Patgram and any other portion of Jalpaiguri ·Dis-trict which lies to the east or south shall belong to East Bengal" ;

In re: Berubari Union &- Exchange of Enclav<S

In 1'e: Berubari Union & Exchange of Enclaves

AND WHEREAS further dispute arose between the Government of India and the Government. of Pakistan whether, having regard to the above description of the boundary line with respect to the District of Jalpaiguri, the Radcliffe Award assigned the territory in the said District known as Bernbari Union No. 12 (being the territory covered by blue parallel lines in the sector map, copy whereof is annexed hereto as Annexure III) to the Province of West Bengal, as contended by the Government of India or it assigned major portion of the said territory to the Province of East Bengal, as contended by the Government of Pakistan;

AND WHEREAS certain other disputes also arose between the Government of India and the Govern-ment of Pakistan regarding the interpretation and implementation of certain other parts of the Radcliffe Award and of some parts of the Bagge Awards;

AND WHEREAS the problem arising from the exist-ence of enclaves in Pakistan of certain territories of India which formed part of the territories of the former Indian State of Cooch-Behar (shown in red in the sector map, copy whereof is annexed hereto as Annexnre IV) and of enclaves in India of certain territories of Pakistan (shown in blue in the said sector map) was, along with other border problems, er.gag-ing the attention of the Government of India and the Government of Pakistan;

AND WHEREAS, with view to removing causes of tension and resolving border disputes and problems relating to Indo.Pakistan border areas and establish-ing peaceful conditions along those areas, the Prime Minister of India, for and on behalf of the Govern-ment of India, and the Prime· Minister of Pakistan, for and on behalf of the Government of Pakistan, entered into an agreement settling some of the said disputes and problems in the manner set out in the note jointly recorded by the Commonwealth Secretary, Ministry of External Affairs, Government of India, and the Foreign Secretary, Ministry of Foreign Affairs and Commonwealth Relations, Government of Pakistan, copy whereof is annexed hereto as Annexure V, the agreement as embodied in the said

3 S.C.R. SUPREME COURT REPORTS

note being hereinafter referred to as "the In\:fo-Pakis-tan Agreement" ; ·

AND WHEREAS the ludo-Pakistan Agreement settles the aforesaid dispute relating to the territory known as Berubari Union No. 12 in the manner specified in item (3) in paragraph 2 thereof, the agreement relat-ing to such settlement being hereinafter referred to as "the Agreement relating to Berubari U11ion" ;

AND WHEREAS the ludo-Pakistan Agreement settles the aforesaid problem arising from the existence of Indian enclaves in Pakistan and Pakistan enclaves in India by exchange of enclaves in the manner set out in Item (10) read .with Item (3) in paragraph 2 thereof, the agreement relating to such exchange of enclaves being hereinafter referred to as "the Agreement relat-ing to Exchange of Enclaves";

AND WHEREAS doubt has arisen whether the implementation of the Agreement relating to Berubari Union requires any legislative action either by way of suitable law of Parliament relatable to article 3 of the Constitution or by way of suitable amendment of the Constitution in accordance with the provisions of article 368 of the Constitution or both ;

AND WHEREAS doubt has arisen whether· suitable law of Parliament relatable to article 3 of the Constitu-tion is sufficient to implement the Agreement relating to Exchange of Enclaves or whether, in addition or in the alternative, suitable amendment of the Constitution in accordance with the provisions of article 368 of the Constitution is necessary for the purpose;

AND WHERE.AS there is likelihood of the Constitu-tional validity of any action taken for the implementa-tion of the Agreement relating to Berubari Union and the Agreement relating to Exchange of Enclaves being questioned in courts of law, involving avoidable and protracted litigation ;

AND WHEREAS, in view of what has been herein-before stated, it appears to me that the questions of law hereinafter set out have arisen and are of such nature and of such importance that it is expedient that the opinion of the Supreme Court of India should be obtained thereon ; .

In re: Berubari Union & Exchange of Enclaves

Now, THEREFORE, in exercise of the powers conferred upon me by clause (1) of article 143 of the Constitu-tion, I, Rajendra Prasad, President of India, hereby refer the following questions to the Supreme Court of India for consideration and report thereon, namely:-

"(l) Is any legislative action necessary for the implementation of the Agreement relating to Berubari Union?

(2) If so, is law of Parliament relatable to article 3 of the Constitution sufficient for the purpose 01· is an amendment of the Constitu-tion in accordance with article 368 of the Constitution necessary, in a,ddition or in the alternative?

(3) Is law of Parliament relatable to article 3 of the Constitution sufficient for implementa-tion of the Agreement relating to Exchange of Enclaves or fa an amendinent of the Constitution in accordance with article 368 of the Constitution necessary for the purpose, in addition or in the alternative ?"

[A nnexures omitted]

1959. December 8, 9, 10 and 11. M. 0. Setalvad, Attorney-General of India, 0. K. Daphtary, Solicitor-General of India, H. N. Sanyal, Additional Solicitor-General of India, G. N. Joshi, R.H. Dhebar and T. M. Sen, for the Union o"f India. It is important to note that the integrity of the territory of the States is not guaranteed by the Constitution of India and Parlia-ment is made Supreme even with respect to the ques-tions relating to the territory. Part I of the Constitu-tion is self-contained code wit.h respect to the terri-tory of the Union. The residuary powers are vested in Parliament. The provisions in the Constitution of the United States, Australia and Canada are entirely different.

The Prime Ministers' agreement with regard to Berubari Union No. 12 does not involve any cession of territory, but it merely ascertains the boundary be-tween East Bengal and West Bengal, which had been left vague by the Radcliffe Award. As such, this part of the agreement can be impl~mented by executive

3 S.C.R. SUPREME COURT REPORTS

action: Where there is merely settlement of bounda" ries, it is not case of alienation of cession of land. The State of South Australia v. State of Victoria, 12 C.L.R. 667 ; Penn v. Baltimore, 1 Ves. Sen. 444; Gran-dall on Treaties, I Edn., pp. 115 and 161 ; The Lessee of Lattimer et al v. Poteet, 10 L. Ed. 328 .. The territo-ries ofBerubari Union No. 12 were being governed by West Bengal unconstitutionally and did not fall within item 3 of the First Schedule to the Constitution. Berubari Union was administered by West Bengal as its own territory, though legally it was not part of its territory and it was not administered " as if it formed part of West ·Bengal " within the meaning of item 3 of Sch. I. The giving of part of the Berubari Union to East Bengal under the Prime Ministers' agreement did not involve any amendment to the First Schedule to the Constitution. A.LR. 1959 Cal. 506 at 517 and 518.

The executive power of the Union is co-extensive with the powers of Parliament with this limitation that the executive cannot act against the provisions of the Constitution or of any law made by Parliament. [1955] 2 S.C.R. 225 at 234-237. The power of making trea-ties is within the sovereign power and resides both in the executive and in Parliament. What the executive can do in respect of treaties and agreements is part of the Governmental function. The executive can by entering into treaty or agreement settle boundary dispute which does not involve acquisition or cession of territory.If the agreement relating to Berubari does not amount to mere settlement or delineation of boundary, then legislation, by Parliament relatable to Art. 3 of the Constitution would be sufficient but legislation under Art. 368 would be incompetent. Part I of the Constitution is self-contained code dealing with the territories of the Union. Article 1 defines the territory of India as the territory of the States; the description of the territories of the States describes the territory of India. Article 2 contem-plates addition to the territories of the Union by the admission of new States or new areas. Article 3(a) contemplates in its last part uniting any territory to

In re: Berubari Union

& Exchange of Enclaves

In re: Beruba1i Union 6- Exchange of Enclaves

part of any State and any territory includes foreign territory that may be acquired. Article 3(b) contem-plates increase in the area of auy State which may be by acquiring foreign territory and adding it to that of the State. Article 3(c) contemplates the diminish-ing of the area of any State which may be by cession to foreign power. There is no restriction or limita-tion placed on the words" increase " or "decrease " in clause (b) and(c) of Art. 3 and they are comprehen-sive enough to inclnde increase or decrease by acquisi-tion of foreign territory or cession of State territory. See Babulal Parate's case, [1960] 1 S.C.R. 605. No doctrinaire approach or preconceived notions should be imported in the interpretation of Arts. 2 and 3 of an organic instrument like the Constitution. Legislation under Art. 368 of the Constitution is neither necessary nor proper. Legislation under Art. 368 would put the States to disadvantage as under that Article it would not be necessary, as it would be under·Art. 3, to refer the bill to that State for expressing its views thereon.

The exchange of the Cooch-Behar enclaves does not involve cession of territory and executive action alone is sufficient to implement the agreement. An exchange of territory for administrative considerations as part of larger settlement does not amount to cession. Oppenhiem, 8th Edn., p. 451, Art. 169, p. 548, Art. 216, p. 547; Halsbury, Vol. 7, Art. 604. Even if the transac-tion involves cession of territory, legislation under Art. 3 of the Constitution will be sufficient to imple-ment the agreement.

The Union has the right to cede territory if and when the occasion arises. S,uch right vests in every Sovereign State and can be implied even when not specifically conferred by its Constitution. Willoughby, Vol. I, p. 572.

S. M. Bose, Advocate-General, West Bengal, B. Sen, K. 0. Mukherjee and P. K. Bose, for the State of West Bengal. Under the Indian Independence Act the whole of the district of J alpaiguri was provisionally ·given to West Bengal. If the Radcliffe Award fixed the boundary line, then there can be no dispute and no necessity for the agreement. But, if the Award

-i"' c..

3 S.C.R. SUPREME COURT REPOH,TS

·did dot fix. the line and left . it undetermined, then r960 under the Indian Independence Act, the whole of In re: Bernbari went to West Bengal. The Act contemplates Berubari Union settlement of the boundary by an Award and not by & Exchange of of agreement of the Prime Ministers. If the Award did Enclaves not settle the boundary, then the whole of Jalpaiguri belonged to India. The Prime Ministers' agreement in fact divides Berubari half and half without making any attempt to clarify the Award. It was wrong to -say that the agreement amounts merely to delinea-tion of the boundary.· rt· involves cession of Indian territory to Pakistan. The Constitution gives power only to acquire foreign territory and not to cede Indian territory to foreign powers. , First, it would be necessary to take action under ·Art. 368 empowering Parliament to make law for cession of territory and then legislation under Art. 3 can be resorted to. In Art. 3(a) the words "any territory'~ are not wide enough to include foreign territory; they apply what has already been acquired and has become. part of the Union under Art. 1. Parliament has power only to pass law in respect of territory over which it has jurisdiction. Article 3 merely deals with the internal arrangement of the territories of the States and does not deal with acquisition of foreign territory or cession of the Indian territory to foreign powers. N. 0. Chatterjee with Janardan Sharma for Krishna Kumar Chatterjee and Ramaprasanna Roy and with U. M. Trivedi, D.R. Prem, Veda Vyasa, R.' Thiagara-jan and Ganapat Rai, for (1) the President, Bharatiya Jana Sangh, Kerala, (2) Secretary, Jana Sangh, Mandi, (3tShri Tata Srirama Murthy, Akhila Bharatiya Jan-.Sangh, Visakhapatam, (4) Chairman, Bharatiya Jan-sangh, Mangalore, (5) Secretary, Bharatiya Jansangh, Sitapur, (6) Shri N. Thamban Nambiar, Bharatiya Jansangh, Thaliparambu and (7) President, Bharatiya J ansangh, Pattambi (Cochin). The Prime Ministers' agreement cannot be implemented at all. Indian territory cannot be ceded at all. Berubari is an inte-. gral part of the Union of India and it was and has all along been under the possession of ·West Bengal since the partition of the country in 1947. The true nature of the ~rime Ministers ' agreement is that it is not the

& Exchange of of Enclaves

In re: Berubari Union & Exchange of Enclaves

ascertainment of boundary in accordance with -the· Radcliffe Award, but it is pure ca.se of cession of territory to Pakistan. The case reported in The State of South Australia v. State of Victoria, 12 C.L.R. 667, has no bearing, as in that case there was no qne3tion of giving of any territory to foreign power. Similarly, Penn v. Baltimore, 1 Ves. Sen. 444, was not concerned with the cession of any territory. There are certain implied prohibitions in our Constitution and it is not completely amendable Constitution. The preamble to the Constitution does not permit the dismember-ment of India and preserves the integrity of the terri-tory of India. Article 4, s. 3, para. 2, of the United States Constitution gives specific power to cede territory. It does not flow necessarily from the con-cept of sovereignty that the Government must have power to cede its territory. 33 L. Ed. 642; 1933 U. S. 258. The express mention of the power of acquisition .in Arts. 1 and 2 excludes the power to cede. The .maxim "expressio uniu.~ exclusio alterius" is applic-able to statutes also. Brooms Legal Maxims, 10th Edn., p. 452; Craies, 5th Edn., p. 240; 1951 U. S. 914; Willoughby, Vol. 1, p. 518. The Indian Parliament is not sovereign and it is prohibited from changing or dismembering or whittling down the territory of India. [1951] S.C.R. 744, 968. The preamble is the key to open the minds of the makers. 8 E.R. 1034; A.I.R. 1956 S.C. 246; [1950] S.C.R. 1098. In the transfer of the areas of Berubari to Pakistan, the fundamental rights of thousands of persons are involv-ed. The rights of franchise and citizenship cannot be taken away by executive action. 0. B. Agai-wala and A. G. Ratnaparkhi, for the Secretary, Jalpaiguri Revolutionary Socialist Party, the Secretary, All India Forward Bloc, Calcutta and Shri Nirmal Bose of Jalpaiguri. The agreement can-not be implemented by executive action. The Govern-ment is not dealing with its own property but with the property of the States. Even legislation under Art. 3 would not be sufficient. The right of citizen-ship cannot be taken away except by legislation under Art. 11. In the implementation of the agreement the fundamental rights guaranteed by Part III of the

3 S.C.R. SUPREME COURT REPORTS

Constitution are involved and the citizens of that part of Beru bari which has to be given to Pakistan will be deprived of all such rights. Citizens of India cannot be deprived of their fandamental rights by legislation under Art. 3. The agreement cannot be implemented even by legislation under Art. 368 as there are limita- ' tions on the power to amend imposed by the preamble. Such an agreement can only be ill)plemented with the consent of the people by referendum.

In re: Berubari Union, &. Exchange of Enclaves

D. R. Prem (with the permission of the court). Article 3 deals with the formation of new States and alterations of areas, boundaries or names of existing States as indicated in the marginal note: Article 3 makes the same provisions in the present C<;mstitution ass. 290 did in the Government of India Act, 1935. Both deal with internal arrangement and not with foreign territory.

M. 0. Setalvad, in reply. The description of the boundary line in the Radcliffe Award is not ·clear and the provision in the agreement that the division would be horizontal only means that the division is to be by means of line running east to west dividing the territory half and half. The preamble cannot control the unambiguous language of the Articles of the Con-stitution. Willoughby, Vol. I, p. 62. Constitution of the United States of America, 1952 Edn, p. 59. The preamble is not part of the Constitution. The language of Art. 368 is perfectly clear and no limita-tions can be placed upon it on account of the preamble. The rights of citizenship and the fundamental rights do not affect the power unde,r Art. 368. It is only by legislation under Arts. 2 or 3(a) that foreign territory can be acquired and can become part of India. There is no reason or warrant to restrict the language or the scope of Art. 3. Clause (a) of Art. 3 clearly deals with foreign territory and there is no warrant for considering clauses (b) and (c) in any other way as not relating to foreign territory. Every other provision in Pa.rt l of the Constitution envisages two kinds of territory_:__Indian and foreign-and there is no reason to envisage only one kind of territory in els. (b), (c), (d) a.nd (e) of Art. 3. The Court should not construe the

provisions in such manner as would make adjust-In re: ments of boundary difficult. It is of the essence of sov-Berubat'i Union ereignty to cede and to acquire territory. Willoughby, &.. Exchange of Vol. I, pp. 575 and 576, Willis; pp. 254 to 255. There Enclaves is no specific provision regarding cession of territory in any Constitution. The power to cede territory in the United States is included in its treat.y making power and is not conferred by Article 4, section 3, part 2 of the United States Constitution as stated by Shri N. C. Chatterji. Willoughby, Vol. I, p. 90. Parliament has been empowered under Art. 11 to take away the rights of citizenship. law under Arts. 3 and 4 will deal with "supplemental and incidental" provisions and may contain provisions under Art. 11 for taking away the rights of citizenship also. Cession of terri-tory necessarily affects the nationality and rights of the inhabitants of the ceded territory. Anson's Law and Custom of the Constitution, 4th Edn. Vol. 2, Part II, p. 141. Fundamental rights cannot exist when there is transfer of allegiance consequent upon cession of territory.

cur. adv. vult.

1960. March 14. The Opinion of the Court was pronounced by Gaj,ndrngadkar ]. GAJENDRAGADKAR, J.-In accordance with the directives issued by the Prime Ministers of India and Pakistan, on September 10, 1958, the Commonwealth Secretary, Ministry of External Affairs, Government of India and the Foreign Secretary, Ministry of Foreign Affairs and Commonwealth, Government of Pakistan, discussed 10 items of dispute between the two countries and signed joint note recording their agreement in respect of the said disputes and submit-ted it to their respective Prinie Ministers; and with view to removing causes of tension and resolving border disputes and problems relating to Indo-Pakis-tan Border Areas and establishing peaceful conditions along those areas, the Prime Ministers, acting on behalf of their respective Governments, entered into an agreement settling some of the said disputes and problems in the manner set out in the said joint note. This agreement has been called the ludo-Pakistan

3 S.C.R. SUPREME COURT REPORTS

Agreement and will be referred to hereafter as the Agreement.

In the present Reference we are concerned with two items of the Agreement; item 3 in paragraph 2 of the Agreement reads as follows :-" (3) Berubari Union No. 12. .

Berubari Union

& Exchange of Enclaves

. This will be so divided as to give half the area to Gajendragadkar J, Pakistan, the other half adjacent to India being retained by India. The Division of Berubari Union No. 12 will be horizontal, starting from the north-east corner of Debiganj Thana. The division should be made in such manner that the Cooch-Behar Enclaves between Pachagar Thana of East Pakistan and Berubari Union No. 12 of Jalpaiguri Thana of West Bengal will remain connected as at present with Indian territory and will remain with India. The Cooch-Behar Enclaves lower down between Boda Thana of East Pakistan and Berubari Union No. 12 will be exchanged along with the general exchange of enclaves and will go to Pakistan." Similarly item 10 of the Agreement is as follows:-

" (lO) Exchange of Old Qooch-Behar Enclaves in Pakistan and Pakistan Enclaves in India without claim to compensation for extra area going to Pakis-tan, is agreed to." ·

It appears that subsequently doubt has arisen whether the implementation of the Agreement relating to Berubari Union requires any legislative action either by way of suitable law of Parliament relatable to Art. 3 of the Constitution or by way of suitable amendment of the Constitution in accordance with the provisions of Art. 368 of the Constitution or both; and that similar doubt has arisen about the imple-mentation of the Agreement relating to the exchange of Enclaves; and it further appears that there is likelihood of the constitutional validity of any action taken for the implementation of the Agreement relat-ing to Berubari Union as well as the Agreement relating to the exchange of Enclaves being questioned in courts of law involving avoidable and protracted litigation ; that is why the President thought that questions of law which have arisen are of such nature and of such importance that it is expedient that the

In 'le: Berubari Union & Exchange of Enclaves Gojendragadkar ] .

opm10n of the Supreme Court of India should be obtained thereon; and so, in exercise of the powers conferred upon him by cl. (1) of Art. 143 of the Consti-tution, he has referred tl)e following three questions to this Court for consideration and report thereon :-( l) Is any legislative action necessary for the implementation of the Agreement relating to Beru-bari Union?

(2) If so, is Jaw of Parliament relatable to arti-cle 3 of the Constitution sufficient for the purpose or is an amendment of the Constitution in accordance with article 368 of the Constitution necessary, in addition or in the alternative?

(3) Is law of Parliament relatable· to article 3 of the Constitution sufficient for implementation of the agreement relating to Exchange of Enclaves or is an amendment of the Constitution in accordance with article 368 of the Constitution necessary for the purpose, in addition or in the alternative ?

Before dealing with the questions thus referred to this Court it is necessary to set out briefly the histori-cal, political and constitutional background of the Agreement. On February 20, 194 7, the British Government announced its intention to transfer power in British India tb Indian hands by June 1948. On June 3, 1947, the said Government issued statement as to the method by which the transfer of power would be effected. On July 18, 1947, the British P:1rlia-ment passed the Indian Independence Act, 1947. This Act was to come into force from August 15, 1947, which was the appointed day:. As from the appointed day two independent Dominions, it was declared, would be set up in India to be known respectively as India and Pakistan. Section 2 of the Act provided that subject to the provisions of sub-ss. (3) and (4) of s. 2 the terri-tories of India shall be the territories under the sovereignty of His Majesty which immediately before the appointed day were included in British India except the territories which under sub-s. (2) of s. 2 were to be the territories of Pakistan. Section 3, sub-s. (1), provided, inter alia, that as from the appoint-ed day the Province of Bengal as constituted under the Government of India Act, 1935, shall cea2e to exist

3 S.C.R. SUPREME COURT REPQ~TS

and there shall be constituted in lieu thereof two new z9[6]o · Provinces to be known respectively as East Bengal In re.: and west Bengal. Sub-section (3) of s. 3 provided, B<rubari Union inter alia, that the boundaries of the new Provinces & Exchange of aforesaid shall be such as may be determined whether Enclaves before or after the appointed day by the award of boundary commission appointed or to be appointed by Gajenri,ragadkar ]" the Governor-General in that behalf, but until boun-daries are so determined, (a) the Bengal District specified in the First Schedule of this Act ............. .. ......... shall be treated as the territories which are to be comprised as the new Province of East Bengal; (b) the remaii;ider of the .territories comprised at the date of the passing of this Act in the Province of Bengal shall be treated as the territories which are to be com prised in the new Province of West Bengal. Section 3, sub-s. (4), provided that the expression "award" means, in relation to boundary commission, the decision of the Chairman of the commission con~ tained in his report to the Governor-General at the conclusion of the commission's proceedings. The Province of West Bengal is now known as the State of West Bengal and ·is part of India, whereas the Province of East Bengal has becomwa part of Pakis-tan and is now known as East Pakistan.

Berubari Union No. 12, with which we are concern-ed, has an area of 8•75 sq. miles and population of ten to twelve thousand residents. It is situated in the police station J alpaiguri in the District of J alpai-guri, which was at the relevant time part of Raja-shahi Division. It has, however, not been specified in the First Schedule of the Independence Act, and if the matter had to be considered in the light of the said Schedule, it would be part of West Bengal. But, as we shall presently point out, the First Schedule to the Independence Act did not really come into opera-tion at all.

On June 30, 1947, the Governor-General made an announcement that it had been decided that the Province of Bengal and Punjab shall be partitioned. Accordingly, boundary commission was appointed, inter alia, for Bengal consisting of four judges of High Courts and Chairman to be appointed later.

· '9[60 ]Sir Cyril Radcliffe was subsequently appointed as In re: Chairman. So far as Bengal was concerned the mate-B"ubari Union rial terms of reference provided that the boundary &- Exchange of commission should demarcate the boundaries of the Enclaves two parts of Bengal on the basis of ascertaining the . --contiguous areas of muslims and non-muslims; in Ga1endragadkar f. doing so it had also to take into account other factors. The commission then held its enquiry and made an award on August 12, 1947, which is known as the Radcliffe Award (hereinafter called the award). It would be noticed that this award was made three days before the appointed day under the Independence Act. The report shows that the Chairman framed seven basic questions on the decision of which the demarca-tion of boundary line between East-West Bengal depended. Question No. 6 is relevant for out purpose; it was framed in this way :

" C. 6. Which State's claim ought to prevail in respect of the districts of Darjeeling and J alpaiguri in which the muslim population amounted to 2·42% of the whole in the case of Darjeeling and 23·08% of the whole in the case of Jalpaiguri but which constituted an area not in any natural sense con-tiguous to another non-muslim area of Bengal?" It appears that the members of the commission were unable to arrive at an agreed view on any of the major issues, and so the Chairman had no alternative but to proceed to give his own decision. Accordingly the Chairman gave his decision on the relevant isslles in these words :-

" The demarcation of the boundary line is des-cribed in detail in the schedule which forms annexure to the award and in the map attached t,hereto, annexure B. The map is annexed for the purposes of illustration, and if there should be any divergence between the boundary as described in annexure and as delineated on the map in annexure the description in annexure is to prevail."

Paragraph 1 in annexure is material. It provided that "a line shall be drawn along the boundary be-tween the Thana; of Phansidewa in the District of Darjeeling and the Thana Tetulia in the District of

3 S.C.R. SUPREME COURT REPORTS 267

Jalpaiguri from the point where that boundary meets I9[60 ]the Province of Bihar and then along the boundary In,.: between the Thanas of Tetulia and Rajganj, the Betubari. union Thanas of Pachagar and Rajganj and the Thanas of a;. Exchange of Pachagar and Jal paiguri, and shall then continue Enclaves along with northern corner of Thana of Debiganj to -1 the boundary of the State of Cooch-Behar. The Gajendragadkar . district of Darjeeling and so much of the district of Jalpaiguri as lies north of this line shall belong to West Bengal, but th~ 'fhana of Patgram and any other portion of Jalpaiguri District which lies to the east or south shall belong to East Bengal." Since the award came into operation three days before the day appointed under the Independence Act the territorial extent of the Province of West Bengal never came to be determined under Schedule I to the said Independ-ence Act but was determined by the award. There is no dispute that since the date of the award Beru-bari Union No. 12 has in fact formed part of the State of West Bengal and has been governed as such .. Meanwhile the Constituent Assembly which began its deliberations on- December 9, 1946, reassembled as the Sovereign Constituent Assembly for India after midnight of August 14, 1947, and it began its historic task of drafting the Constitution for India. draft-ing committee was appointed by the Constituent Assembly and the draft prepared by it was presented to the Assembly on November 4, 1948. After due . deliberations the draft passed through three readings and as finalised it was signed by the President of the Assembly and declared as passed on November 26, 1949. On that date it became the ionstitution of India.; but, as provided by Art. 394, only specified articles came into force as from thav date and the remaining provisions as from January 26, 1950, which day is referred to in the Constitution as the commence-ment of the Constitution. Article 1 of the Constitu-tion provides, inter alia, that India, that is Bharat, shall be Union of States and that the States and the territories thereof shall be the States and their terri-tories specified· in Parts A, and of the First Schedule. West Bengal was shown as one of the States in Part ; and it was provided that the

In t'e: Berubari Union 0- Exchange of Enclaves Gajendragadkar].

268 SUPREME COUR'f REPORTS (1960)

territory of the State of West Bengal shall comprise the territory which immediately before the commence-ment of the Constitution was comprised m the Province of West Bengal. In the light of the award Berubari Union No. 12 was treated as part of the Province of West Bengal and as such has been treated and governed on that basis. .

Subsequently, certain boundary disputes arose be-tween India and Pakistan and it was agrPed between them at the Inter-Dominion Conference held in New Delhi on December 14, 1948, that tribunal should be set up without delay and in any case not later than ,January 31, 1949, for the adjudication and final decision of the said disputes. This tribunal is known as ludo-Pakistan Boundaries Disputes Tribunal, and it was presided over. by the Hon'ble Lord Justice Algot Bagge. This tribunal had to consider two cate-gories of disputes in regard to East-West Bengal but on this occasion no issue was raised about the Beru-bari Union. In fact no reference was madp, to the District of J alpaiguri at all in the proceedings before the tribunal. The Bagge Award was made on Janu-ary 26, 1950.

It was two years later that the question of Berubari Union was raised by the Government of Pakistan for the first time in 1952. During the whole of this period the Berubari Union continued to be in the possession of the Indian Union and was governed as part of West Bengal. In 1952 Pakistan alleged that under. the award Berubari Union should really have formed part of East Bengal and it had been wrongly treated as part of West Bengal. Apparently cnrrespon-ence took place between the Prime Ministers of India and Pakistan on this subject from time to time and the dispute remained alive until 1958. It was under these circumstances that the present Agreement was reached between the two Prime Ministers on Septem-ber 10, 1958. That is the background of the present dispute in regard to Berubari Union No. 12.

At this stage we may also refer briefly to the back-ground of events which ultimately led to the proposed exchange of Cooch-Behar Enclaves between India and Pakistan. Section 290 of the Government of India

3 S.O.R. SUPREME COURT REPORTS

Act, 1935, had provij].ed that His Majesty may by Order-in-Council increase or diminish the area of any Province or alter the boundary of any :Province pro-In re: Btrubari Uni~n vided the procedure prescribed was observed. It is &.- Exchange of common ground that the Government of India was Enclaves authorised by the Extra-Provincial Jurisdiction Act of 1947 to e'xercise necessary powers in that behalf. Gaj<ndragadkar J. Subsequently on J·anuary 12, 1949, the Government of India Act, 1935, w11s amended and s. 290A and s. 290B were added to it. Section 290-A reads ')thus:-" 290-A. Administration of certain Acceding States as Chief Qommissioner's Province or as part of Governor's or Chief Commissioner's Pro-vince:-·

(1) "Where full and exclusive authority, jurisdic-tion and powers for and in relation to governance of any Indian State or any group of such States are for the time being exercisable by the Dominion Government, the Governor-General may by order direct-

( a) that the State or the group of States shall be administered in all respects as if the State or the . g'.oup of States were Chief Commissioner's Pro-vmce; or

(b) that the State or the group of States shall be administered in all respects as if the State or the group of States formed part of Governor's or Chief Commissioner's Province specified in the Order;".

Section 290-B(l) provides that the Governor-Gene· ral may by order direct for the administration of areas included within the Governor's Province or Chief Commissioner's Province by an Acceding State, and it prescribes that the acceding area shall be administered in all respects by neighbouring Acced-ing State as if such area formed part of such State, and thereupon the provisions of the Government of India Act shall apply accordingly.

After these two sections were· thus added several strp~ wPrP taken by the Government of India for the mergPr of lndian States with the U uion of India.

With that object the States Merger (Governors' Pro-vinces) Order, 1949, was passed on July 27, 1949. The effect of this order was that the States which had merged with the Provinces were to be administered in all respects as if they formed part of the absorbing Provinces. This order was amended from time to time. On August 28, 1949, an agreement of merger was entered into between the Government of India and the Ruler of the State of Cooch-Behar and in pur-suance of this agreement the Government of India took over the admini.ration, of Cooch-Behar on September 12, 1949; Cooch-Behar thus became part of the territory of India and was accordingly included in the list of Part States as Serial No. 4 in the First Schedule to the Constitution. .Thereafter, on 'Decem-ber 31, 1949, the States Merger (West Bengal) Order, 1949, was passed. It provided that whereas foll and exclusive authority, jurisdiction and power for and in relation. to the governance of the Indian State of · Cooch-Behar were exercisable by the Dominion Government, it was expedient to provide by the order made under s. 290A for the administration of the said State in all respects as if it formed part of the Pro-vince of West Bengal. In consequence, on January 1, 1950, the erstwhile State of Cooch-Behar was merged with West Bengal and began to be governed as if it was part of West Bengal. As result of this merger Cooch-Behar was taken out of the list of Part States in the First Schedule to the Constitution and added to West Bengal in the same Schedule, and the territorial description of West Bengal as prescribed in the First Schedule was amended by the addition of the clause which referred to the territories which were being administered as if they formed part of that Province. In other words, after the merger of Cooch-Behar the territories of West Bengal included those which imme-diately before the commencement of the Constitution were comprised in the Province of West Bengal as well as those which were being administered as if they formed part of that Province. Subsequently further addition has been made to the territories of West Benga,l by the inclusion of ~handernagore but it is not necessary to refer to the said addition at this stage.

In re: Betubari Union & Exchange of Enclaves

Gf1jendragadkar].

3 S.C.R. SUPREME COURT REPORTS

It appears that certain areas which formed part of the territories of the former Indian State of Oooch-Behar and which had subsequently become part of In re: Berubari Union c;he territories of India and then .of West Bengal o;. Exchange of became after the partition enclaves in Pakistan. Enclaves Similarly certain Pakistan enclaves were found in India. The problem arising from the existence of Gajendragadkar 1 • these enclaves in Pakistan and in India along with other border problems was being considered by the Governments of India and of Pakistan for long time. The existence of these enclaves of India in Pakistan and of Pakistan in India worked as constant source of tension and conflict between the two countries. With view to removing these causes of tension and conflict the two Prime Ministers decided to· solve the problem of the said enclaves and establish peaceful conditions along the said areas. It is with this object that the exchange of enclaves was agreed upon by them and the said adjustment is described in item 10 of paragraph 3 of the Agreement. That in brief is the historical and constitutional background of the exchange of enclaves.

On behalf of the Union of India the learned Attor-ney-General has contended that no legislative action is necessary for the i:rpplementation of the Agreement relating to Berubari Union as well as'the exchange of enclaves. In regard to the Berubari Union he argues . that what the Agreemeµt has purported to do is to ascertain or to delineate the exact boundary about which dispute existed between the two countr-ies by reason of different interpretations put by them on the relevant description contained in the award; the· said Agreem~mt is merely the recognition or ascertainment of the boundary which had already been fixed and in no sense is it substitution of new boundary or the alteration of the boundary implying any alteration of the territorial limits of India. He emphasises that the ascertainment or the settlement of the boundary in the light of the award by which both Governments were bound, is not an alienation or cession of the territory of India, and according to him, if, as result of the ascertainment of the true boundary in the light of the award, possession of some land has had to be

yielded to Pakistan it does not amount to cession of territory; it is merely mode of settling the boun-Beri,bari ln re: Union dary. The award had already settled the boundary,; & Exchange of but since dispqte arose between the two Govern-' Enclaves ments in respect of the location of the said boundary the dispute was resolved in the light of the directions Gajendmgadkar J. given by the award and in the light of the maps attached to it. · Where dispute about boundary thus arises between two States and it is resolved in the light of an award binding on them the agreement which embodies the settlement of such dispute must be treated as no more than the ascertainment of the real boundary between them and it cannot be treated as cession or alienation of territory by one in favour of the other. According to this argument there was neither real alteration of the boundary nor real dimi-nution of territory, and there would be no occasion to make any alteration or change in the description of the territories of West Bengal in the First Schedule to the Constitution.

It is also faintly suggested by the learned Attorney-General that the exchange of Cooch-Behar Enclaves is part of the general and broader agreement about the Berubari Union and in fact it is incidental to it. Therefore, viewed in the said context, even this exchange cannot be said to involve cession of any territory.

On this assumption the learned Attorney-General has further contended that the settlement and recog-nition of the true boundary can be effected by . executive action alone, and so the Agreement which has been reached between the two Prime Ministers can be implemented without any legislative action. In support of this argument the learned Attorney-General has relied upon certain provisions of the Constitution and we may at this stage briefly refer to them.

Entry 14 in List I of the Seventh Schedule reads thus: "Entering into treaties and agreements with foreign countries and implementing of treaties, agree-ments and conventions with foreign countries ". Article 253 occurs in Part XI which deals with rela-tions between the Union and tlw States. It provides

3 S.C.R. SUPREME COURT REPORTS

that "notwithstanding anything in the foregoing pro-visions of the said Chapter Parliament has power to make any law for the whole or any part of the territory In re: Berubafi Union of India for implementing any treaty, agreement or & Exchange of convention with any other country or countries or Enclaves any decision made at any international conference, association or other body ". This power is conferred Gajendragadkar J. on Parliament by reference to Entry 14. Besides there • are three other articles in the same part which are relevant. Article 24,5(1) empowers Parliament to make laws for the whole or any part of the territory of India; Article 245(2) provides that no law made by Parliament shall be deemed to be invalid on the ground that it would have extra-territorial operation; Article 246 prescribes the subject-matter oflaws which Parliament can make; and Art. 248 provides for the residuary powers of legislation in Parliament. Article . 248 lays down that Parliament has power to make any law with respect to any matter not enumerated in the Concurrent List or State List. There is thus no doubt about the legislative competence of Parliament to legislate about any treaty, agreement or convention with any other country and to give effect to such agreement or convention.

It is, however, urged that in regard to the making of treaties and implementing them the executive powers of the Central Government are co-extensive and co-incidental with the powers of Parliament itself. This argument is sought to be based on the provisions of certain Articles to which reference may be made. Article 53(1) provides that the executive power of the Union shall be vested in the President and shall be exercised by him either directly or through officers subordinate to him in accordance with the Constitu-tion. Article 73 on which strong reliance is placed prescribes the extent of the executive power of the Union. Article 73(1) says "that subject to the provi-sions of this Constitution the executive power of the Union shall extend (a) to the matters with respect to which Parliament ,has power to make faws; and (b) to the exercise of such rights, authority and jurisdic-tion as are exercisable by the Government of India by virtue of any treaty or agreement provided that

'9[60 ]the executive power referred to in sub-cl. (a) shall not, In": save as expressly provided in this Constitution or in Berubari union any law made by Parliament, extend in any State to & Exchange of matters with respect to which the Legislature of the Enclaves State has also the power to make laws"; and Article -74 provides that there shall be Council of Ministers Gajendragadkar ]. with the Prime Minister at the head to aid and advise the President in the· exercise of his functions; and Article 74(2) lays down that the question whether any, and if so what, advice was tendered by the Ministers to the President shall not be inquired into in any court. According to the learned Attorney-General the powers conferred on the Union executive under Art. 73(l)(a) have reference to the powers exercisable by reference to Entry 14, List I, in the Seventh Schedule, whereas the powers conferred by Art. 73( 1 )(b) are analogous to the powers conferred on the Parliament by Art. 253 of the Constitution. Indeed the learned Attorney- . General contended that this position is concluded by decision of this Court in. Rai Sahib Ram J awaya Kapur & Ors. v. The State of Punjab (')-Dealing with the question about the limits within which the executive Government can function under the Indian Constitution Chief Justice Mukherjea, who delivered the unanimous decision of the Court, has observed that " the said limits can be ascertained without much difficulty by reference to the form of executive which our Constitution has set up'', and has added, " that the executive function comprised both the determination of the policy as well as carrying it into execution. This evidently includes the initia-tion of legislation, maintenance of order, the promo-tion of social and economic welfare, the direction of foreign policy, in fact the carrying on or supervision of the general administration of the State"-It is on this observation that the learned Attorney-General has founded his argument.

Let us then first consider what the Agreement in fact has done. Has it really purported to determine the boundaries in the light of the award, or has it sought to settle the dispute amicably on an ad hoc basis by dividing the disputed territory half and half? Reading the relevant portion of the Agreement it is

\1) L1955J • s.c.R. 025.

3 S.C.R. SUPREME COURT REPORTS

difficult to escape the conclusion that the parties to :r960 it came to the conclusion that the most expedient and reasonab way to reso ve l l the dispute would Berubari Unian In re: - be to divide t_he area in question half and half. There &- Exchange of is no trace in the Agreement of any attempt to inter-Enclaves pret the ward or to determine what the ward really · --meant. The Agreement begins with the statement ofGajendragadkar J. the decision that the area in dispute will be so divided --as to give half the area to Pakistan, the other half adjacent to India being retained by India. In other words, the Agreement says that, though the whole of the area of Berubari Union No. 12 was within India, India was prepared to give half of it to Pakistan in spirit of give and take in order to ensure friendly rela-tions between the parties and remove causes of tension between them. Having come to this decision the Agreement describes how the decision has to be carried out. It provides that the divisfon of the area will be horizontal starting from the northeast corner of Debi-ganj Thana. It also provides that the division should be made in such manner that the Cooch-Behar Enclaves between Pachagar Thana of East Pakistan and Beru-bari Union No.12 ofJalpaiguri Thana of West Bengal will remain with India. This again is provision for carrying out the decision of dividing the area half and half. Yet, another provision is made as to the divi-sion of Cooch-Behar Enclaves lower down between Boda Thana of East Pakistan and Berubari Union No. 12 and it is provided that they shall be exchanged along with the general exchange of enclaves and will go to Pakistan. In our opinion, every -one of the clauses in this Agreement clearly and unambiguously shows that, apart from, and independently of, the award, it was agreed to divide the area half and half and the method of effecting this division was specific-ally indicated by making four material provisions in that behalf. If that be so, it is difficult to accept the argument that this part of the Agreement amounts to no more than ascertainment and delineation of the boundaries in the light of the award.

It is no doubt suggested by the learned Attorney. General that an examination of the description in

276 SUPREME COUR,T REPORTS

annexure in the Schedule to the award in relation to police station boundaries revealed lacuna in it, inasmuch as there was no mention in it of the boun-dary between police station Boda and police st•,tion Jalpaiguri; and the argument is that the result of this description was that the two points were specified, one on the western boundary of the Berubari Union (the extremity of the boundary between the Thanas of Pachagar and J alpaiguri) and the other on its eastern ,boundary (the northern corner of the Thana of Debi-ganj where it meets Cooch-Behar State) without giving an indication as to how these boundaries were to be connected, It is also pointed out that the line as drawn in the map, annexure B, in the Schedule to the award would, if followed independently of the descrip-tion given in Schedule in the annexure to the said award, mean that almost the whole of the Berubari Union would have fallen in the territory of East Bengal and that was the claim made by the Government of Pakistan, and it is that claim which was settled in the light of the award.

ln Ye: Berubari Union t$.. Exchange of Enclaves

Gajendragadkar ].

In this connection it is relevant to remember the direction specifically given by the Chairman in his award that the map is annexed for the purpose of illustration and that in case of any divergence betwflen the map, annexure B, and the boundary as described in annexure A, the description in annexure has to prevail, and so no claim could reasonably or validly be made for the inclusion of almost the whole of Berubari Union in East Bengal on the strength of the line drawn in the map. Besides, the lacuna to which the learned Attorney-General refers could have been cured by taking into account the general method adopted by the award in fixing the boundaries. Para-graph 3 in annexure shows that the line which was fixed by the award generally proceeded along the boundaries between the Tha.nas, and this general out. line of the award would have assisted the decision of the dispute if it was intended to resolve the dispute in the light of the award. The line which was direct-ed to be drawn in paragraph I of annexure has" to continue" along the northern corner of Thana Debi. ganj to the boundary of the State of Cooch-Behar, and

this in the context may suggest that it had to con-tinue by reference to the boundaries of the respective Thanas. It is principally because of these considera-tions that the territory in questio:i was in the posses-sion of India for some years after the date of the award and no dispute was raised until 1952.

lnre:

Berubari Union ~ Exchange of Enclaves

Gajendragadkar ].

We have referred to these facts in order to empha-size that the agreement does not appear to have been reached after taking into account these facts and is not based on any conclusions based on the interpreta . tion of the award and its effect. In fact the second clause of the Agreement which directs that the division of Berubari Union No. 12 will be horizontal starting from the north-east corner of Debiganj Thana is not very happily worded. The use of the ·word "hori• zontal " appears to be slightly inappropriate; but, apart from it, the direction as to this horizontal method of division as well as the other directions contained in the Agree1nent flow from the conclusion with which the Agreement begins that it had been decided that India should give half the area to Pakis-tan. We have carefully considered all the clauses in the Agreement and we are satisfied that it does not purport to be, and has not been, reached as result of any interpretation of the award and its terms; it has been reached independently of the award and for reasons and considerations which appeared to the parties to be wise and expedient. Therefore, we can-not accede to the argument urged by the learned Attorney-General that it does no more than ascertain and determine the boundaries in the light of the award. It is an Agreement by which part of the territory of India has been ceded to Pakistan and the question referred to us in respect of this.Agreement must, therefore, be considered on the basis that it involves cession or alienation of part of India's territory.

What is true about the Agreement in respect of Berubari Union No. 12 is still more· emphatically true about the exchange of Cooch-Behar Enclaves. Indeed the learned Attorney-General's argument that no legislation ii:! necessary to give effect to the Agreement in respect of this exchange was based on the assump-36 .

278 SUPREME COUR'T REPORTS

'9[[60 ]]tion that this exchange is part of larger and In re, broader settlement and so it partakes of its character. Berubari Union Since we have held that the Agreement in respect of & Exchange of Berubari Union No. 12 itself involves the cession of Enclaves the territory of India fortiori the Agreement in res-. dk pect of exchange of Cooch-Behar Enclaves does involve Ga;endraga ar 1 · t cess10n o · I · n ian t erntory. · Th at 18 · w y th question about this exchange must also be considered on the footing that part of th~ territory of India has been ceded to Pakistan; besides it is clear that unlike questions 1 and 2 the third question which has reference to this exchange postulates the necessity of legislation. In this connection we may also deal with another argument urged by the learned Attorney-General. He contended that the implementation of the Agreement in respect of Berubari Union would not necessitate any change in the First Schedule to the Constitution because, according to him, Berubari Union was never legally included in the territorial description of West Bengal contained in the said Schedule. We are not impressed by this argument either. As we have already indicated, since the award was announced Berubari Union has remained in possession of India and has been always treated as part of West Bengal and governed as such. In view of this factual position there should be no difficulty in holding that it falls within the territories which immediately before the commencement of the Constitution were comprised in the Province of West Bengal. Therefore, as result of the implementation of this Agreement the bounda-ries of West Bengal would be altered and the content of Entry 13 in the First Schedule to the Constitution would be affected.

Enclaves . dk Ga;endraga

Before we part with this topic we ought to refer to the decision of the Australian High Court in The State of South Australia v: The State of Victoria ([1 ]) on which reliance has been placed by the learned Attorney-General. In that case the boundary between the 8tate of South Australia and the State of New South Wales was by Act 4 & 5 Will. IV, c. 95 and the Letters Pittent issued under that Act defined to be the 14lst meridian (r) (19I1) 12 C.L.R. 667,

of East Longitude. In 1847, by the authority of the r96o ,Governors of New South Wales and South Australia In re: and with the knowledge and approval of the Secretary Berubari Union of State line was located and marked on the ground & Exchange of as being the 14lst meridian, but it was discovered in Enclaves 1869 that the said line was in fact about two miles to the westward of tbiat meridian. 'l'he line. marked in Gajendragadkar J. 1847 had, however, been proclaimed by the respective Governors as the boundary and was the de facto boundary thenceforward .. In dealing with the dispute which had arisen in respect of the true boundary between the two States Griffith, C.J., referred to the fixation of the boundary in 184 7 and observed that "the real transaction is the ascertainment of fact by persons competent to ascertain it, and finding of fact so made, and accepted by both, is in the nature of an ward or judgment in rem binding upon them and all persons claiming under them" (p. 701). The said dispute was subsequently taken to the Privy Council and it was held by the Privy Council that "on the true construction of the Letters Patent it was contem-plated that the boundary line of the 14lst meridian of East Longitude should be ascertained and represented on the surface of the earth so as to form boundary line dividing the two colonies, and that it therefore implicitly gave to the executive of the two colonies power to do such acts as were necessary for perma-nently fixing such boundaries" (1). The Privy Council also observed that "the material facts showed that the two Governments made with all care sincere effort to represent as closely as was possible the theo-retieal boundary assigned by the Letters Patent by practical line of demarcation on the earth's surface. There is no trace of any intention to depart from the boundary assigned, but only to reproduce it, and as in its nature it was to have the solemn status of boundary of jurisdiction their Lordships have no doubt that it was intended by the two .executives to be fixed finally as the statutable boundary and that in point of law it was so fixed". It would thus be clear that the settlement of the boundaries which was held not to amount to an alienation in that case had been . (t) [1914] A.C. 283, 309.

280 SUPREM:Jjj COUR'l' REPORTS

r96o made wholly by reference to, and in the light of, the provision of the parliamentary statute to which refer-Ber~:,:·;,,fo,, ence has already been made. What was done in ,s. Exchange of 1847 by the parties who had authority to deal with Enclaves the matter was to locate and mark line on the -ground which was held to be the 14lst meridian Gajendragadkar J. though it is true that in 1869 it was discovered that the line so 'fixed was about two miles to the westward of the meridian. This was not case where contract-ing parties independently determined the line with view to settle the dispute between the two respective States. What they purported to do was to determine the line in accordance with the provisions of the parliamentary statute. In the present case, as we have already pointed out, the position of the Agree-ment is essentially different ; it does not purport to be based on the award and has been reached apart from, and independently of, it. Therefore, we do not think that the learned Attorney-General can derive any assistance from the decision in the case of The State of South Australia v. The State of Victoria ( [1]) in support of his construction of the Agreement.In view of our conclusion that the agreement amounts to cession or alienation of part of Indian territory and is not mere r.scertainment or determi-nation of the boundary in the light of, and by reference to, the award, it is not necessary to consider the other contention raised by the learned Attorney-General that it was within the competence of the Union execu-tive to enter into such an Agreement, and that the Agreement can be implemented without any legisla-tion. It has been fairly conceded by him that this argument proceeds on the assumption that the Agree-ment is in substance and fact no more than the ascertainment or the determination of the disputed boundary already fixed by the award. We need not, therefore, consider the merits of the argument about the character and extent of the executive functions and powers nor need we examine the question whether the observations made by Mukherjea, C.J., in the case of Ra.i Sahib Ram J awaya Kapur ([2]) in fact lend support to the said argument, and if they do, whether the question should not be reconsidered. (I) [I9II] I2 C.L.R. 667. (2) [1955] 'SC.R. 225.

3 S.C.R. SUPREME COURT REPORTS

At this stage it is necessary to consider the merits I9[60 ]of the rival contention raised by Mr. Chatterjee before In re: us. He urges that even Parliament has no power to Berubari union cede any part of the territory of India in favour of & Exchange of foreign State either by ordinary legislation or even by Enclaves the amendment of the Constitution ; and so, according -to him, the only opinion we can give on the Refer- Gajendragadkar J • ence is that the Agreement is void and cannot be made effective even by any legislative process. This extreme contention is based on two grounds. It is suggested that the preamble to the Constitution clearly postulates that like the democratic, republic-an form of government the entire territory of India is beyond the reach of Parliament and cannot be affected either by ordinary legislation or even by constitutional amendment. The makers of the Con-stitution were painfully conscious of the tragic parti-tion of the country into two. parts, and so when they framed the Constitution they were determined to keep the entire territory of India as inviolable and sacred. The very first sentence in the preamble which declares .that "We, the people of India, having solemnly resolved to constitute India into sovereign democratic Republic", says Mr. Chatterjee, irrevoc-ably postulates that India geographically and terri-torially must always continue to be democratic and republican. The other ground on which this conten-tion is raised is founded on Art. 1(3}(c) of the Consti-tution which contemplates that "the territory of India shall comprise such other territories as may be acquired'', and it is argued that whereas the Consti-,., tution has expressly given to the country the power to acquire other territories it has made no provision for ceding any part of its territory; and in such case the rule of construction, viz., expressio unius est exclusio alterius must apply. In our opinion, there is no substance in these contentions.

There is no doubt that the declaration made by the """' people of India in exercise of their sovereign will in the preamble to the Constitution is, in the words of Story, " key to ?pen the mind of the makers" which may show the general purposes for which they made the several provisions in the Constitution; but

r96o nevertheless the preamble is not part of the Consti-In re: tution, and, as Willoughby has observed about the Berubari Union preamble to the American Constitution, " it has never & Exchange of been regarded as the source of any substantive power Enclaves conferred on the Government of the United States, or -on any of its departments. Such powers embrace only Gajendragadkar f. those expressly granted in ~he body of the Consti-tution and such as may be implied from those so granted".

What is true about the powers is equally true about

the prohibitions and limitations. Besides, it is not easy to accept the assumption that the first part of the preamble postulates very serious limitation on one of the very important attributes of sovereignty itself. As we will point out later, it is universally recognised that one of the attributes of sovereignty is the power to cede parts of national territory if neces-sary. At the highest it may perhaps be arguable that if the terms used in any of the articles in the Consti-tution are ambiguous or are capable of two meanings, in interpreting them some assistance may be sought in the objectives enshrined in the preamble. 'I'herefore, Mr. Chatterjee is not right in contending that the pre-amble imports any limitation on the exercise of what is generally regarded as necessary and essential attribute of sovereignty.

Then, as regards the argument that the inclusion

of the power to acquire must necessarily exclude the power to cede or alienate, there are two obvious answers. Article 1(3)(c) does not confer power or authority on India to acquire territories as Mr. Chatterjee assumes. There can be no doubt that under international law· two of the essential attri-butes of sovereignty are the power to acquire foreign territory as well as the power to cede nation11l terri-tory in favour of foreign State. What Art. 1(3)(c) purports to do is to make formal provision for absorption and integration of any foreign territories which may be acquired by India by virtue of its inherent right to do so. It may be that this provision has found place in the Constitution not in pursuance of any expansionist political philosophy but mainly for providing for the integration and absorption of

Indian territories which, at the date of the Consti-z960 tution, continued to be under the dominion of foreign Tn re: States; but that is not the whole scope of Art. 1(3)(c). BerubariUnion It refers broadly to all foreign territd'l'ies which may & Exchange of be acquired by India and provides that as soon as Enclaves they are acquired they would form part of the terri--tory of India. Thus, on true construction of Gajendragadkar f. Art. 1(3)(c) it is erroneous to assume that it confers specific powers to acquire foreign territories. The other answer to the contention is provided by Art. 368 of the Constitution. That article provides for the procedure for the amendment of the Constitution and expressly confers power on Parliament in that behalf. The power to amend Constitution must inevitably include the power. to amend Art. 1, and that logically would include the power to cede national territory in favour of foreign State; and if that is so, it would be unreasonable to contend that there is no power in the sovereign State of India to. cede its territory and that the power to cede national territory which is an essential attribute of sovereignty is lacking in the case of India. We must, therefore, reject Mr. Chatterjee's contention that no legislative process can validate the Agreement in question.

What then is the nature of the treaty-making power of sovereign State ? That is the next pro-blem which we must consider before addressing our-selves to the questions referred to us for our opinion. As we have already point~d out it is an essential attri-bute of sovereignty that sovereign state can acquire foreign territory and can, in case of.necessity, cede part of its territory in favour of foreign State, and this can be done in exercise of its treaty-making power. Cession of national territory in law amounts to the transfer of sovereignty over the said territory by the owner-State in favour of another State. There can be no doubt that such cession is possible and in-deed history presents several examples of such transfer of sovereignty. It is true as Oppenheim has observed that " hardship is involved in the fact that in all cases of cession the inhabitants of the territory who remain lose their old citizenship and are handed OY«;ir to new sovereign whether they like it or

'9[60 ]not " ([1]); and he has pointed out that "it may be In re: possible to mitigate this hardship by stipulating an Berubari union option to emigrate within certain period in favour & Exchange of of the inhabitants of ceded territory as means of Enclaves averting the charge that the inhabitants are handed . -k over to new sovereign against their will " (p. 553). Ga;end1·agad ar I· utt oug rom t uman pomt · o view · great ar -ship is inevitably involved in cession of territory by one country to the other there can be no doubt that sovereign state can exercise its right to cede part of its territ,ory to foreign state. This power, it may be added, is of course subject to the limitations which the Constitution of the state may either expressly or by necessary implication impose in that behalf; in other words, the question as to how treaties can be made by sovereign State in regard to cession of national territory and how treaties when made can be implemented would be governed by the provisions in the Constitution of the country. Stated broadly the treaty-making power would have to be exercised in the manner contemplated by the Constitution and subject to the limitations imposed by it. Whether the treaty made can be implemented by ordinary legis-lation or by constitutional amendment will naturally depend on the provisions of the Constitution itself. We must, therefore, now turn to that aspect of the problem and consider the position under our Consti-tution.

Ga;end1·agad . -ar I·

In dealing with this af!pec.t we are proceeding on the assumption that some legislation is necessary to implement the Agreement in question. It is urged on behalf of the Union of India that if any legislative action is held to be necessary for the implementation of the Agreement law of Parliament relatable to Art. 3 of the Constitution would be sufficient for the purpose; and if that be so, there would be no occasion to take any action under Art. 368 Of the Constitution. The decision of this question will inevitably depend upon the construction of Art. 3 itself. The learned Attorney-General has asked us to bear in mind the special features of the basic structure of the Consti-

(1) Oppenheim's ••International Law ''-by Lauterpacht, \Tol. I, p. 551. (8th Ed.)

3 S.C.R. SUPREME COURT REPORTS

tution in construing the relevant provisions of Art. 3. He c_ontends that the basic structure of the Consti-tution is the same as that of the Government of India Berubari Union In re: Act, 1935, which had for the first time introduced & Exchange of federal polity in India. Unlike other federations, the Enclaves Federation embodied in the said Act was not the result of pact or union between separate and Gajendra?adkar ], independent communities of States who came together for certain common purposes and surrendered part of their sovereignty. The constituent units of the federation were deliberately created and it is signifi-cant that they, unlike the ·units of other federations, had no organic roots in the past. Hence, in the Indian Constitutio~, by contrast with other Federal Constitutions, the emphasis on the preservation of the territorial integrity of the constituent States is ·absent. The makers of the Constitution were aware of the peculiar conditions under which, and the reasons for which, the States (originally Provinces) were formed and their boundaries were defined, and so they deli-berately adopted the provisions in Art. 3 with view to meet the possibility of the redistribution of the said territories after the integration of the Indian States. In fact it is well-known that as result of the States Reorganization Act, 1956 (Act XXXVII of 1956), in the place of the original 27 States and one Area which were mentioned in Part in the First Schedule to the Constitution, there are now only 14 States and 6 other Areas which constitute the Union territory mentioned in the First Schedule. The changes thus made clearly illustrate the working of the peculiar and. striking feature of the Indian Constitution. There may be some force in this contention .. It may, therefore, be assumed that in construing Art. 3 '~e should take into account the fact that the Constitution contemplated changes of the territorial limits. of the constituent States and there was no guarantee about their terri-torial integrity. .

. Part I of the Constitution deals with the Union and its territories, and iu sense its provisions set out self-contained code in respect of the said topic. Just as Part II deals with the topic of citizenship, Part I deals

with the territory of India. Art. 1 deals with the name and territory of India. It reads thus:-

In re: BerulJl1ri Union

" 1. (l) India, that is Bharat, shall be Union of States.

& Exchange of Enclaves .

(2) The States and the territories thereof shall be as specified in the First Schedule.

(3) The territory of India shall comprise-

Gaje.ndragadkar ].

( a) the territories of the States ;

(b) the Union territories specified in the First Schedule ; and

(c) such other territories as may be acquired."

Art. 1 as it now stands is the result of amendments made by the Constitution (Seventh Amendment) Act, 1956. Before its amendment, Art. 1 referred to the territory of India as comprising the territories of the States specified in Parts A, and 0 as well as the terri-tories specified in Part of the Schedule and such of the territories as might be acquired. Then separate provision had been made by Art. 243 in Part IX for the administration of the territories specified in Part and other territories such as newly acquired territories which were not comprised in the First Schedule. The Constitution Amendments of 1956 made some import-ant changes in Art. 1. The distinction between Parts A, and 0 and territories specified in Part was abolished and in its place came the distinc-tion between the territories of States and the Union territories specified in the First Schedule. In conse-quence Art. 243 in Part IX was deleted. That is how under the present Article the territory of India consists of the territories of the t;tates, the Union territories and such other territories as may be acquired. We have already referred to Art. 1(3)(c) and we have observed that it does not purport to confer power on India to acquire territories; it merely pro-vides for and recognises automatic absorption or assi-milation into the territory of India of territories which may be acquired by India by virtue of its inherent right as sovereign State to acquire foreign territory. Thus Art. 1 describes India as Union of States and specifies its territories.

Article 2 provides that Parliament may by law

admit into the Union or establish, new States on such

3 S.C.R. SUPREME COURT REPORTS

terms and conditions as it thinks fit. This Article x960 shows that foreign territories· which after acquisition In re: would become part of the territory of India under Berubari Union Art. 1(3)(c) can by law be admitted into the Union <!>' E:>:chang• of · under Art. 2. Such territories may be admitted into Enclaves the Union or may be constituted into new States on .-such terms and conditions as Parliament may thinkGajendragadkar f. fit; and as we shall presently point out such territories can also be dealt with by law under Art. 3(a) or (b). The expression "by law" used in Arts. 2 and 3·in this connection is significant. The acquisition of foreign territory by India in exercise of its inherent right as sovereign State automatically makes the said territory part of the territory of India. After such territory is thus acquired and factually made part of the territory of India the process of law may assimilate it either under Att. 2 or under Art. 3 (a) or (b).

As an illustration of the procedure which can be adopted by Parliament in making law for absorbing newly acquired territory we may refer to the Chander-nagore Merger Act, 1954 (Act XXXVI of 1954), which was passed on September 29, 1954, a.nd came into force as from October 2, 1954. Chandernagore, whicih was French possession, was declared free city, and in June 1946'the French Government, in agreement with the Government oflndia, stated that it intended to leave the people of the French establishments in India right to pronounce on their future fate and future status. In pursuance of this declaration referendum was held in Chandernagore in 1949, and in this referendum the citizens of Chandernagore voted in favour of the merger of the territory with India. Consequently, on May 2, 1950, the President of the French Republic effe~ted de facto transfer of the administration of Chandernagore to India, and as from that date the Government of India assumed control and jurisdiction over Chandernagore under s. 4 of the Foreign Jurisdiction Act, 1947 (Act 47 of 1947). Rele-vant notification was issued by the Government of India under the said section as result of which cer-tain Indian laws were made applicable to it. The said notification also provided that the corresponding

288 SUPREME COVRT R.EPORTS [1960]

1~6° French laws would cease to apply with effect from In ", May 2, 1950. This was followed by the treaty of ces-Beruba.i Union sion which was signed at Paris and in due course on .,. Exchange of June 9, 1952, Chandernagore was transferred de jure Enclav" to the Government of India on the ratification of the -said treaty. The result was Chandernagore ceased to Gojn•d•agadkar J. be French territory and became part of the terri-tory of India ; and the Foreign Jurisdiction Act was no longer applicable to it. Article 243(1) which was then in operation applied to Chandernagore as from June 9, 1952, and in exercise of the powers conferred under Art. 243(2) the President promulgated regulation for the administration of Chandernagore which came into force from June 30, 1952. The Government of India then ascertained the wishes of the citizens of Chander-nagore by appointing commission of enquiry, and on receiving the commission's report that the people of Chandernagore were almost unanimously in favour of merging with \Vest Bengal, the Government intro-duced in Parliament the Chandernagore Merger Act in question. After this Act was passed Chandernagore merged with the State of West Bengal as from Octo-ber 2, 1954. This Act was passed by Parliament under · Art. 3 of the Constitution. As result of this Act the boundaries of 'Vest Bengal were altered under Art. 3(d) and bys. 4 the First Schedule to the' Constitution was modified. \Ve have thus briefly refel'l'ed to the history of the acquisition and absorption of Chander-nagore and its merger with West Bengal because it significantly illustrates the operation of Art. l(3)(c) as well as Art. 3{b) and (d) of the Constitution.

That takes us to Art. 3 which deals with the topic of formation of new States and alteration of areas, boundaries or names of existing States; but before we construe Art. 3 it would be convflnient to refer to Art. 4. Article 4 reads thus :-

" 4. (1) Any law referred to in article 2 or article 3 shall contain such provisions for the amendment of the First Schedule and the Fourth Schedule as may be necessary to give effect to the provisions of the law and inay also contain.such supplemental, incidental and consequential provisions (including provisions as to representation in Parliament and

3 S.C.R. SUPREME COURT REPORTS

in the Legislature or Legislatures of the State or States affected by such law) as Parliament may deem necessary.

In Ye: Berubari Union &- Exchange of Enclaves

(2) No such law as aforesaid shall be deemed to be

an amendment of this Constitution for the purposes of article 368. "

The effect of Art. 4 is that the laws relatable to Art. 2 Gajmdragadkar J. or Art. 3 are not to be treated as constitutional amend-ments for the purpose of Art. 368, which means that if legislation is competent under Art. 3 in respect of the Agreement, it would be unnecessary to invoke Art. 368. On the other hand, it is equally clear that if legislation in respect of the relevant topic is not com-petent under Art. 3, Art. 368 would inevitably apply. The crux .of the problem, therefore, is : Can Parliament legislate in regard to the Agreement under Art. 3 ?

Let us now read Art. 3. It reads as follows :-

" Art. 3. Parliament may by law-

( a) form new State by separation of territory

from any State or by uniting two or more States or parts of States or by uniting any territory to part of any State ;

(b) increase the area of any State;

( c) diminish the area of any State;

(d) alter the boundaries of any State;

(e) alter the name of any State;

Provided that no Bill for the purpose shall be introduced in either House of Parliament except on the recommendation of the President and unless, where the proposal contained in the Bill affects the area, boundaries or name of any of the ·states ... the Bill has been referred by the President to the Legislature of that State for expressing its views thereon within such period as may be specified in the reference or within such further period as the President may allow and the period so specified or allowed has expired."

Prima facie ·Art. 3 may appear to deal with the problems which would arise on the reorganisation of the constituent States of India on linguistic or any other basis; but that is not the entire scope of Art. 3. Broadly stated it deals with the . internal adjustment inter se of the territories of the constituent States of

In re: Be"rubari Union ©- Exchtuige of Enclaves Gajendragadkar J

India. Article 3(a) enables Parliament to form new State and this can be done either by the separation of the territory from any State, or by uniting two or more States or parts of States, or by uniting any terri-tory to part of any State. There can be no doubt that foreign territory which after acquisition becomrs part of the territory of India under Art. 1(3)(c) is included in the last clause of Art. 3(a) and that such territory may, after its acquisition, be absorbed in the new State which may be formed under Art. 3(a). Thus Art. 3(a) deals with the problem of the formation of new State and indicates the modes by which new State can be formed.

Article 3(b) provides that Jaw may be passed to increase the area of any State. This increase may be incidental to the reorganisation of States in which case what is added to one State under Art. 3(b) may have been taken out from the area of another State. The increase in the area of any State contemplated by Art. 3(b) may also be the result of adding to any State any part of the territory specified in Art. 1(3)(c). Article 3(d) refers to the alteration of the boundaries of any State and such alteration would be the conse-quence of any of the adjustments specified in Art. 3(a), (b) or (c). Article 3(e) which refers to the alteration of the name of any State presents no difficulty, and in fact has no material bearing on the questions with which we are concerned. We have yet to consider Art. 3(c) the construction of which will provide 1he answers to the questions under reference; but before we interpret Art. 3(c) we would like to refer to one aspect relating to the said Article considered as whole.

It is significant that Art. 3 in terms does not refer to the Union territories and so, whether or not they are included in the last clause of Art. 3(a) there is ·no doubt that they are outside the purview of Art. 3(b ), (c), (d) and (e). In other words, if an increae.e or diminution in the areas of the Union territories is contemplated or the alteration of their boundaries or names is proposed, it cannot be effected by law relatable to Art. 3. This position would be of considerable assistance in intcrpreUng Art. 3(o).

3 S.C.R. SUPREME COURT REPORTS

Article 3(c) deals with the problem of the diminution I9[60 ]of the area of any State. Such diminution may occur In re.: where the P!trt of the area of State is taken out and Beruba•i Union added to another State, and in that sense Arts. 3(b) &- Exchange of and 3( c) may in some cases be said to be co-related ; Enclaves but does Art. 3(c) refer to case where part of the . --dk area of State is taken out of that State and is not a;endraga "' J. added to any other State but is handed over to foreign State? The learned Attorney-General contends that the words used in Art. 3(c) are wide enough to include the case of the cession of national territory in favour of foreign country which causes the diminu-tion of the area of the State in question. We are not impressed by this argument. Prima facie it appears unreasonable to suggest that the makers of the Constitution wanted to provide for the cession of national territory under Art. 3(c). If the power tci acquire foreign territory which is an essential attribute of sovereignty is not expressly conferred by the Constitution there is no reason why the power to cede part of the national territory which is also an essential attribute of sovereignty should have been provided for by the Constitution. Both of these essential attributes of sovereignty are outside the Constitution and can be exercised by India as sovereign State. Therefore, even if Art. 3(c) receives the widest inter-pretation it would be difficult to accept the argument that it covers case of cessfon of part of national territory in favour of foreign State. The diminution of the area of any State to which it refers postulates that the area diminished from the State in question should and must continue to be part of the territory of India ; it may increase the area of any other State or may be dealt with in any other manner authorised either by Art. 3 or other relevant provisions of the Constitution, but it would not cease to be part of the territory of India. It would be unduly straining the language of Art. 3(c) to hold that by implication it provides for cases of cession of part of national territory. Therefore, we feel no hesitation in holding that the power to cede national territory cannot be read in1Art. 3(c) by implication.

292 SUPREME COURT Rh:PORTS

1960 There is another consideration which is of consider-able importance in construing Art. 3(c). As we have 8[,,,,~;,;~;.,]0[• ][already indicated Art. 3 does ][not ][in ][terms ][refer ][to ][the ]& Exchange of Union territories, and there can be no doubt that Enclaves Art. 3( c) does not cover them; and so, if part of the Union territories has to be ceded to foreign State no Gaj,,,drnpadkar .f. law relatable to Art. 3 would be competent in respect of such cession If that be the true position cession of part of the Union territories would inevitably have to be implemented by legislation relatable to Art 368; and that, in our opinion, strongly supports the construc-tion which we are inclined to place on Art. 3(c) even in respect of cession of the area of any State in favour of foreign State. It would be unreasonable, illogical and anomalous to suggest that, whereas the cession of part of the Union territories has to be implemented by legislation relatable to Art. 368, cession of part of the State territories can be implemented by legisla-tion under Art. 3. We cannot, therefore, accept the argument of the learned Attorney-General that an agreement which involves a· cession of part of the territory of India in favour of foreign State can be implemented by Parliament by passing law under Art 3 of the Constitution. We think that this conclu-sion follows on fair and reasonable construction of Art. 3 and its validity cannot be impaired by what the learned Attorney-General has described as the special features of the federal Constitution of India.In this connection the learned Attorney -General has drawn our attention to the provisions of Act XL VII of 1951 by which.the boundaries of the State of Assam were altered consequent on the cession of strip of territory comprised in that State to the Government of Bh~tan. Section 2 of this Act provides that on and from the commencement of the Act the territories of the State bf Assam shall cease to comprise the strip of territory specified in the Schedule which shall be ceded to the Government of Bhutan, and the bound-aries of the State of Assam shall be deemed to have been altered accordingly. Section 3 provides for the consequential amendment of the first. paragraph in Part of the First Schedule to the Constitution relating to the territory of Assam. The argument is

3 S.C.R. SUPREME COURT REPORTS

that when Parliament was .dealing with the cession of ry[6]• strip of territory which was part of the State of In,.: Assam in favour of the Government of Bhutan it has Berubari Union purported to pass this Act under Art. 3 of the Constitu- · .i;. Exchange of tion. It appears that the strip of territory which was Enclaves thus ceded consisted of about 32 sq. miles of the -territory in the Dewangiri Hill Block being part of Gajemtragadkar J. Dewangiri on the extreme northern boundary of Kamrup District. This strip of territory was largely covered by forests and only sparsely inhabited by Bhotias. The learned Attorney-General has not relied on this single statute as showing legislative practice. He has only cited this as an instance where the Parlia-ment has given effect to the cession of part of the territory of Assam in favour of the Government of Bhutan by enacting law relating to Art. 3 of the Constitution. We do not think that this instance can · be of any assistance in construing the scope and effect of the provisions of Art. 3.

Therefore our conclusion is that it would not be competent to Parliament to make law relatable to Art. 3 of the Constitution for the purpose of implement-ing the Agreement.· It is conceded by the learned Attorney-General that this conclusion must inevitably mean that the law necessary to implement the Agree-ment has to be passed under Art. 368.

Art. 368 reads thus:-

"Art. 368. An amendment of this Constitution may be initiated only by·the introduction of Bill for the purpose in either House of Parliament, and when the Bill is passed in each House by majority of the total membership of that House and by . majority of not less than two-thirds of the members of that House pr~sent and voting, it shall be presented to the President for his asslilnt and upon such assent being given to the Bill, the Comititu-tion shall stand amended in accordance with the terms of the Bill :

Provided that if such amendment seeks to make any changein-

(a) article 54, article 55, article 73, article 162 or article 241, or

In f't: Berubari Union 1!i- E:rchange of Enclaves Gajendtagadkar J.

(b) Chapter IV of Part V, Chapter V of Part VI, or Chapter I of Part XI, or

(c) any of the Lists in ·the Seventh Schedule, or

(d) the representation of States in Parliament, or ( e) the provisions of this article,

the amendment shall also require to be ratified by the Legislatures of not less than one-half of the States•*• by resolutions to that effect passed by those Legislatures before the Bill making provision for such amendment is presented to the Presid~nt for assent."

We have already held that the Agreement amounts .to cession of part of the territory of India in favour of Pakistan; and so its implementation would naturally involve the alteration of the content of and the consequent amendµient of Art. 1 and of the rele-vant part of the First Schedule to the Constitution, because such implementation would necessarily lead to the diminution of the territory of the Union of India. Such an amendment can be made under Art. 368. This position is not in dispute and has not been challenged before us ; so it follows that acting under Art. 368 Parliament may make law to give effect to, and implement, the Agreement in question covering the cession of part of Bernbari Union No. 12 as well as some of the Cooch-Behar Enclaves which by exchange are given to Pakistan. Parliament may, however, if it so chooses, pass law amending Art. 3 of the Constitution so as to cover cases of cession of the territory of India in favour of foreign State. If such law is passed then Parliament may be compe-tent to make law under the amended Art. 3 to implement the Agreement in question. On the other hand, if the necessary law is passed under Art. 368 itself that alone would be sufficient to implement the Agreement.

It would not be out of place to mention one more point before we. formulate our opinion on the questions referred to us. We have already noticed that under the proviso to Art. 3 of the Constitution it is prescrib-ed that where the proposal contained in the Bill affects the area, boundaries or name of any of the States, the Bill has to be referred by the President to

3 S.C.R. SUPREME COURT REPORTS

the Legislature of that State for its views thereon z960 within such period as is therein prescribed. . It has In re: been urged before us by the learned Attorney-Berubari Union General that if it is held that Parliament must act & Exchang• of under Art. 368 and not under Art. 3 to implement the Enclaves Agreement, it would in effect deprive the Legislature -··· of West Bengal of an opportunity to express its views Gajendragadkar J. on the cession of the territory in question. That no doubt is true; but, if on its fair and reasonable construction Art. 3 is inapplicable this incidental consequence cannot be avoided. On the other hand, it is clear that if the law in regard to the implemen-tation of the Agreement is to be passed under Art. 368 it has to satisfy the requirements prescribed by the said Article; the Bill has to be passed in each House by majority of the total membership of the House and by majority of not less than two-thirds of the House present and voting; that is to say~ it should obtain the concurrence of substantial section of the House which may normally mean the consent of the major parties of the House, and that is safeguard provided by 'the Article in matters of this kind.

In this connection it may incidentally be pointed out that the amendment of Art. 1 of the Constitution consequent upon the cession of any part of the territory of India in favour of foreign State does not attract the sateguard prescribed by the proviso to Art. 368 because neither Art. 1 nor Art. 3 is included in the list q_f entrenched provisions of the Constitution enumerated in the proviso. It is not for us to enquire or consider whether it would not be appropriate to include the·said two Articles under the proviso. That is matter for the Parliament to consider and decide,

We would accordingly answer the three questions referred to us as follows :-

Q. 1. Yes. , Q. 2. (a) law of Parliament relatable to Art. 3 of the Constitution would be incompetent ;

(b) law of Parliament relatable to Art. 368 ,

_ Qf the Constitution is competent and necessary; (c) law of Parliament relatable to both Art. 368 and Art. 3 would be necessary only if Parliament chooses first to pass it 111.w amending Art. 3

IH fd.'

B1rt4bori Union c£. E#changd of Encloues

Mllrch .15.

as indicated above ; in that case Parliament may have to pass law on those lines under Art. 368 and then follow it up with law relatable to the amendeJ Art. 3 to implement the agreement.

Q. 3. Same as answers (a), (b) and (c) to Question 2. Reference answered accordingly.

CHARANDAS HARIDAS AND ANOTHER

v. THE COMMISSIONER OF INCOME-TAX, BOMBAY NORTH, KUTCH, SAURASHTRA AND AHMEDABAD & ANOTHER (S. K. DAB, J. L. KAPUR and M. HIDAYATULLAH, JJ.)

Income-tax-Income from managing agency-Karla of Hindu undivided family becoming partner of managing agency firm-Income therefrom assessed as family income-Subsequent partition of managing agency comtnission-Claim for assessnzen-t as 1"11dividual income of divided members.

C, who was the Karta of the Hindu undivided family con-sisting of his \\'ifC, three sons and himself, was partner in six managing agency firms in six Mills, and the income received by him as partner was being assessed as that of the Hindu undivided family for the purposes of income-tax. On December 31, 1945, C, acting for his three minor sons and himself, and his wif~ entered into an oral agreement for partial partition, \Vi'.th effect fron1 January 1, 1946, by which gave certain share to his daughter in the managing agency commission from two of the six managing agencies held by the family and the balance together with the shares in the other managing agencies was divided into five equal shares between C, his wife and sons. The agreement was subse-quently recorded in document <lated September II, 1946, which recited, inter alia: "By this partition we decided that \Vhatever commission fell due till 31-12-45 and which is received after 31-12-45 should be kept joint and in r:espect of the commission which accrues from 1-1-46 and received after that date each of us become absolute owner of his one-fifth share and therefore from the date, i.e., from 1-1-46 these commissions cease to be the joint property of our family." For the assessment years 1947-48 and 1948-49, claimed that the incoine from the managing agency firms should no longer be treated as the income of the Hindu undivided family but as the separate income of the divided members, )Jut the Income-tax authorities rejected the claim on the grounds that by the document in question the division was of th• inrome and not of the assets from which the income wa

IO..·-·