Territorial Nexus
Territorial Nexus
ABSTRACT
The doctrine says that laws made by state legislature are not
applicable outside the state, except when there is a sufficient nexus
between the state and the object.
CONSTITUTIONAL PROVISION
The doctrine derives its powers from article 245bof the Indian
Constitution.
Article 245(2) provides that no law made by the parliament would be
invalid on the ground that it would be have extra territorial operation
that takes effect outside the’ territorial operation ‘ territory of India .
IMPORTANT JUDGEMENT
Case – Wallace v/s Income tax commission, Bombay
1. There was a co. registered in England & powers partners firm in
India.
2. The Indian Income tax authorities wanted to impose tax on
entire income.
3. The privy council applied the doctrine 4 held that the law of tax
valid.
4. They said that there is sufficient connection as major part of
income of the company is from British India.
Case – State of Bombay v/s RMDC (AIR 1957 SC 699)
CONCLUTION
As we have seen that there are two sides of the legislature power
that are among the centre and the state. Although having a supreme
and federal state the powers also need to be distributed among the
union and the centre. In this dual partnership between the state and
union parliament takes all the power to make laws for any territorial
tasks.
Taking about exceptions there is one exception that allows state to
make laws for any extra territorial activity. The ultimate path of
territorial nexus is so wide and has the power to be applies in other
parts outside the jurisdiction of India.
REFERENCE