2023 Supreme(SC) 501

SUPREME COURT OF INDIA
DHANANJAYA Y. CHANDRACHUD, CJI., M.R. SHAH, KRISHNA MURARI, HIMA KOHLI, PAMIDIGHANTAM SRI NARASIMHA, JJ.
Government of NCT of Delhi – Appellant
Versus
Union of India – Respondent
Civil Appeal No 2357 of 2017
Decided on : 11-05-2023

IMPORTANT POINTS
(1) Division of administrative powers between Union and NCTD – NCTD is not similar to other Union Territories. By virtue of Article 239AA, NCTD is accorded a “sui generis” status, setting it apart from other Union Territories – There does not exist a homogeneous class of Union Territories with similar governance structures.
(2) Legislative Assembly of NCTD has competence over entries in List II and List III except for expressly excluded entries of List II. In addition to Entries in List I, Parliament has legislative competence over all matters in List II and List III in relation to NCTD, including entries which have been kept out of legislative domain of NCTD by virtue of Article 239AA(3)(a).
(3) Executive power of NCTD is co-extensive with its legislative power – It shall extend to all matters with respect to which it has power to legislate.
(4) Union of India has executive power only over the three entries in List II over which NCTD does not have legislative competence.
(5) Executive power of NCTD with respect to entries in List II and List III shall be subject to executive power expressly conferred upon Union by Constitution or by a law enacted by Parliament.
(6) Phrase ‘insofar as any such matter is applicable to Union Territories’ in Article 239AA(3) cannot be read to further exclude legislative power of NCTD over entries in State List or Concurrent List, over and above those subjects which have been expressly excluded;
(7) With reference to the phrase “Subject to the provisions of this Constitution” in Article 239AA(3), legislative power of NCTD is to be guided and not just limited, by broader principles and provisions of Constitution.
(8) NCTD has legislative and executive power over “Services”, that is, Entry 41 of List II of the Seventh Schedule because:
(9) Definition of State under Section 3(58) of the General Clauses Act 1897 applies to the term “State” in Part XIV of the Constitution. Thus, Part XIV is applicable to Union territories.
(10) Exercise of rule-making power under proviso to Article 309 does not oust legislative power of appropriate authority to make laws over Entry 41 of State List.

Headnote:(A) Constitution of India - Articles 239 and 239AA - Union Territories - The case addresses the contest of power between the Union Territory of Delhi and the Union Government regarding control over services and its legislative framework. The Supreme Court clarified that the National Capital Territory of Delhi (NCTD) is a sui generis entity, distinct from other Union Territories. It held that while NCTD has legislative competence over services as defined under Entry 41 of the State List, it must operate within the constitutional confines established by Articles 239AA(3)(a) which restricts legislative power over public order, police, and land. The legislative assembly's power extends to subjects in the State List except for express exclusions and operates in a federal structure alongside the Union's legislative authority. The judgments affirm that the execution of 'services' is under the purview of NCTD, although the Union retains legislative power over certain domains. (Paras 1-165)

(B) Federalism and Governance - Legislative Assembly Powers - The Constitution mandates a legislative assembly for NCTD, established by Article 239AA, entailing unique parameters that differentiate it from other Union Territories, confirming NCTD's legislative powers within its defined jurisdiction. Findings indicate that the governance structure must balance the local governance needs against the overarching interests of national governance. (Paras 1-165)

(C) Powers and Regulations of Services - Services, as encompassed within the legislative jurisdiction of NCTD, must adhere to the principles laid out by federalism, ensuring a balance of autonomy and accountability in governance. The 2018 Constitution Bench judgment reinforces the necessity of a cooperative federal framework where NCTD’s government must exercise its powers effectively while aligning with constitutional provisions. (Paras 1-165)