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Constituent Assembly Of India -Volume IX

Dated: August 19, 1949

Honourable Dr. B. R. Ambedkar: They are provided for very different reasons agricultural labour would be amply provide in the lower Chamber.My Friend Shri Muniswami Pillai by an amendment raised the question that there should be special representation for the Scheduled Castes in the Upper Chamber. Now, I should like to point out to him that so far as the Drafting Committee is concerned, it is governed by the report of the Advisory Committee which dealt with this matter. In the report of the Advisory Committee which was placed before the House during August 1947 the following provision finds a place:-

"(c) There shall be reservation of seats for the Muslims in thuled Caste and defined in scheduled I to the Government of India Act 1935 shall have the same rights and benefits which are herein provided for etc., etc." e Lower House of the Central and Provincial Legislatures on the basis of their population.'

"3. (a) The section of Hindu community referred to as sched

which means that the, representation to be guaranteed to the Scheduled Castes shall be guaranteed only in the Lower Houses of the Central and Provincial Legislatures. That being the decision of the Constituent Assembly, I do not think it is competent for the Drafting Committee to adopt any proposition which would be in contradiction to the decision of the House. I might say, although I do not want to injure anybody's feeling. that if any one was vociferously in favour of this decision, it was my Friend Mr. Muniswamy Pillai and I think he ought to be content with what he agreed to abide by then.

Mr. Vice-President: Dr. Ambedkar you have to formally withdraw went No. 2.

The Honourable Dr. B. R. Ambedkar: Yes, I have to withdraw it.

The amendment was, by leave of the Assembly, withdrawn.

Shri H. V.Kamath: I beg leave of the House to withdraw amendment No. 3

The amendment was, by leave of the Assembly, withdrawn.

Shri S. Nagappa: In view of the explanation given by Dr. Ambedkar, I beg leave to withdraw amendments Nos. 66, 67, 68, 70 and 71.

The amendments were, by leave of the Assembly, withdrawn.

Dr. Manmohan Das: I beg to withdraw amendment No. 69.

The amendment was, by leave of the Assembly, withdrawn.

Shri V. I. Muniswamy Pillai: I beg leave of the House. to withdraw my amendment, and I do not agree with the observations of the Honourable Ambedkar.

The amendment was, by leave of the Assembly, withdrawn.

Mr. Vice-President: The question is:

"That in amendment 1 (List I Fourth Week), the proviso to clause I of the propossed article 150 be deleted.-

The amendment was negatived.

Mr. Vice-President: The question is:

"That in amendment 1 (List I Fourth Week), in clause of the proposed article 150. the words 'Unless Parliament by law otherwise provides' be deleted."

The amendment was negatived,.

Mr. Vice-President: The third amendment is for the deletion of the words "co-operative movement' in clause (5).

The question is:

"That in amendment 1 (List I Fourth Week), in clause 5 of the Proposed article 150 the words 'co-operative movement be deleted.'

The amendment was negatived.

Mr. Vice-President: The question is:

"That in amendment 1 (List I. Fourth Week). in clause 5 of the proposed article 150, before the word 'literature, the words 'religion, philosophy' be inserted.'

The amendment was negatived.

Mr. Vice-President: I now put Mr. Sarwate's amendment to the House.

The question is:

"That in sub-clause (b) of clause (3) of the proposed article 150. after Words 'consisting of persons the words 'resident in the State be added, and for the words In the the words 'in the territory of India' be substituted."

The, amendment was adopted.

Mr. Vice-President: I now put amendment No. 2284 of the Printed List. Volume 1, that the word "medicine" be inserted in clause (5).

The question is:

"That in clause (5) of article 150, after the word 'art' the word 'medicine be inserted".

The amendment was negatived.

Mr. Vice-President: I now put the amendment No. 2287 in the printed volume 1, for the addition of the words "engineering and commerce" in clause (5).

The question is

"That in clause (5) of article 150, before the word 'engineering the word 'commerce be added."

The amendment was negatived.

Mr. Vice-President:Now I place before the House article 150, as amended.

The question is:

"That article 150, as amended, stand part of the Constitution"

The motion was adopted.

Article 150, as amended, was added to the Constitution.


Article - 215-A

The Honourable Dr. B. R.Ambedkar: Sir, I move my amendment No. 6, List 1, Fourth Week.

"That after Part VIII, the following new Part be



215A. In this Constitution-

(a) the expression 'scheduled areas' means the areas specified in pars I to VII of definitions the Table appended to paragraph 18 of the Fifth Schedule in relations to the states to which those Parts respectively relate subject to any order made under sub-paragraph (2) of that paragraph;

(b) the expression 'tribal areas' means the areas specified in Parts I and II of the Table appended to paragraph 19 of the Sixth Schedule subject to any order made under sub-paragraph (3) of paragraph I or clause (by of subparagraph (I-) of paragraph 17-of-that Schedule.

215B. Administration of Schedule and tribal areas.

(1) The provisions of the Fifth Schedule shall apply to the administration and control of the scheduled areas and scheduled tribes in any State for the time being specified in Part I or Part III of the First Schedule other than the State of Assam.

(2) The provisions of the Sixth Schedule shall apply to the administration of the tribunal is in the State of Assam."

Sir, my amendment merely replaces the original articles 189 and 190. The only thing we are doing is that we are transferring the provisions contained ilk articles 189 and 190 to another and a separate part. It is because of the transposition that it has become necessary to re-number them in order to secure the necessary logical sequence of the new part. Barring minor changes, there are no changes of substance at all, in the new articles proposed by me-article 215A and article 215B.

Mr. Vice-President: There is an amendment at page 253 of the printed volume I No. 2553, by Mr. Naziruddin Ahmad. Does he propose to move it?

Mr. Naziruddin Ahmad: The whole basis of that amendment is taken away come new amendments moved, making the whole thing impracticable.

Mr. Vice-President: Then you do not move it. The same remarks apply to amendments Nos. 2554 and 2557. 1 presume amendment No. 2555 is not Does any Member wish to speak on the motion ?

Shri Brajeshwar Prasad: Sir, I rise to support the articles 215A and 215B moved by Dr. Ambedkar. But I would like to add the following words Until Parliament by law otherwise provides It is not safe, it is not proper to define and lay down the constitution and the government of the tribal areas which cannot be changed without an amendment of the Constitution. Everything in the tribal areas is in a flux. Therefore it will be wise on the part of the Drafting Committee to add these words in articles 215A and 215B.

Shri Yudhisthir Mishra (Orissa: General): Mr. Vice-President, Sir. The Committee which was set up under clause 20 of the Cabinet Mission" Statement of 16th May, 1946 was required to report to the Constituent Assembly upon the scheme for the administration of the tribal and excluded areas, and to advise whether these rights should be incorporated in he Constitution : and I think, in accordance with the Cabinet Mission's plan, the Tribal Advisory Committee was set up to report about the administration of the tribal areas and the provisions to be incorporated in the Draft Constitution. 'The Advisory Committee has submitted its report and the present provisions have been incorporated in the Draft Constitution according to that report. Now, Sir, the Tribal Advisory Committee did not then enquire into the conditions of the tribal people in the Indian States as it was not within its scope. In the meantime, however, a large number of Indian States have been integrated into the neighbouring provinces and they will now be administered as parts, of those provinces. It is therefore meet and proper that the tribal people of these small States should also get the benefit of the present provisions. In the original draft, the States were excluded from the operation of these provisions regarding the scheduled tribes but they have been included in the amendment just moved by Dr. Ambedkar. When the backward tribal people of the provinces will have the benefit of the provisions of the Fifth Schedule, there is no reason why the aboriginal tribes of the States under the same administration should be excluded. There is a large aboriginal population in Saraikella and Khirswan in Bihar and Orissa and the C.P. States. inOrissa they form one-third of the population in the States. But I regret to say that none of the tribal areas in these States have been specified as Scheduled areas in parts V to VII of the table appended to paragraph 18 of the Fifth Schedule of the Draft Constitution. The reason probably for omitting the tribal areas from the category of Scheduled areas is that the Advisory Committee on Tribes has not been able to go into the whole question, as it was not within its scope. I would request the Drafting Committee to specify the scheduled areas from the States in the Fifth Schedule, when that particular Schedule is taken into consideration in this House. The President of the Indian Republic under the new Constitution will, of course., have sufficient authority to specify any new area in any State a.,; a Scheduled area under sub-para. (2) of paragraph 18 of the Fifth Schedule. If it is not possible for the Drafting Committee at this stage to specify the scheduled areas from the States in the Constitution, I would submit that as soon as the Constitution is passed, the President of the Indian Republic should set up a Commission to enquire into the conditions of the tribal people of these States and to report whether any of the areas would be specified as scheduled areas. I cannot but strongly press for the protection of these tribal people of Orissa and the C.P. States by bringing the tribal areas under the scope of the Fifth Schedule as has been done in the case of the provinces.

The tribal. areas according to the proposed Constitution will no longer be treated like excluded or partially excluded areas in the present Constitution, and as they have been done in the 1935 Act. The scheduled areas specified in the Fifth Schedule will not be excluded from the jurisdiction of the Legislature or executive but according to the provisions of the Draft Constitution, the Tribal Advisory Committee as has been provided for in the Fifth Schedule, will only work is a sort of check on the executive power of the provinces as far as tribal matters are concerned. I submit that the tribal people of these States are as backward as, their kinsmen in the provinces. 'Therefore, whilst supporting the amendment of' Dr. Ambedkar, I request him to take steps to incorporate the scheduled areas of Orissa and the C.P. States in the Fifth Schedule when that question comes up for consideration before this House.

Shri H. V. Kamath: Sir, I rise to support the suggestion made by my honourable Friend, Shri Brajeshwar Prasad, with regard to the future administration of these tribal areas. It will be agreed on all hands that we do not contemplate the continuance of these various tribal scheduled areas in the same condition as they are today. I am sure that all of us visualise the day when they will be brought up to the level of the adjoining neighbouring provinces and will be integrated with the Provinces and States that lie contiguous to them. We do not contemplate a permanently different type of administration for them, from what is obtaining or might obtain or will obtain in the rest of India. In the light of these considerations the suggestion made by my Friend, Shri Brajeshwar Prasad is quite sound and I suggest that we should adopt the article as proposed by Dr. Ambedkar today, subject to the condition "until Parliament by law otherwise provides". We have just now adopted an article where we have vested power in Parliament to alter such.a fundamental thing as the composition of the Second Chamber. I do not see any reason why, as regards the constitution of these tribal councils ', and in general the administration of the tribal areas, Parliament should not be vested with the power to alter, at any subsequent date, this Constitution by an ordinary vote of Parliament.

Pandit Thakur Das Bhargava (East Punjab: General): According to, Mr. Brajeshwar Prasad the whole thing is in a state of flux. Therefore it is a good ground that Parliament should be given the power.

Shri Brajeshwar Prasad: That is exactly what he is saying

Pandit Thakur Das Bhargva: The very ground given by Mr. Brajeshwar Prasad constitutes a good reason why Parliament should be empowered and the proposed provision is justifiable.

Shri H. V. Kamath: On the contrary, Parliament should also have the power to declare other than otherwise, later on. It can change later on. I do not know what Pandit Bhargava has in his mind. I hope he will make it clear later on. But it is clear to me that it should not be left to an amendment of the Constitution: as it is, it will be so rigid that the Constitution will have to be amended if we wish to change the constitution and administration of the tribal areas. But if we leave it to Parliament to change it, it will be easier: otherwise it will involve an amendment of the Constitution, which I do not like in this particular context. I therefore suggest that Parliament should be invested with the power to make any suitable alterations in this regard and therefore the suggestion made by Shri Brajeshwar Prasad may be embodied suitably in the final draft of the article before it is brought before the House.

The Honorable Dr. B.R. Ambedkar: I do not think there is any necessity to offer any remarks in reply.

Mr. Vice-President: The question is:

"That after Part VIII, the following new Part be inserted:-



215A  In this Constitution-

(a) the expression 'scheduled areas' means the areas specified in Parts I to VII of  Table  Definition appended to paragraph 18 of the Fifth Schedule in relation to the States to which
those Parts respectively relate subject to any order made under  sub- paragraph  (2) of that paragraph;

(b) the expression 'tribal areas' means the areas specified in Parts I and II of the Table appended to paragraph 19 of the Sixth Schedule subject to any order made under sub-paragraph (3) of paragraph 1 or clause (b) of sub-paragraph (1) of paragraph 17 of that Schedule.

215B. (1) The provisions of the Fifth Schedule shall apply to the administration  Administration and control of the scheduled areas and scheduled tribes in any of scheduled  State for the time being specified in Part I or Part III of the First and tribal areas  Schedule other than the State of Assam.

(2) The Provisions of the Sixth Schedule shall apply to the administration of the tribal areas in the State of Assam."

The motion was adopted.

Part VIII A and articles 215A and 215B were added to the Constitution.

Mr. Vice-President: The question is:

"That article 189 be deleted."

The motion was adopted.

Article 189 was deleted from the Constitution.

Mr. Vice-President: The question is:

"That article 190 be deleted".

The motion was adopted.

Article 190 was deleted from the Constitution.

Article 250--(Contd.)

Mr. Vice-President: We now take up article 250. When the article was last under consideration Mr. Sidhva was speaking on his amendment No.12 of List I-Fourth Week.

Shri R.K. Sidhva: Mr. Vice President, Sir, as you rightly stated, last time when I was moving my amendment No.12 the Honourable Dr. Ambedkar intervened and stated that this article should be held over. My amendment in the printed list (page 27) reads:

"That with reference to Amendment No. 2851 of the List of Amendments, in article 250, the following proviso be added at the end:-

'Provided that the proceeds collected by the Government of India under clause (c) shall be assigned to local authorities in the jurisdiction of the States'.

If you refer to clause (c) of the article you will find that it relates to "terminal taxes on goods or passengers carried by railway or air". My amendment, if accepted, would mean that, while (a) (b) and (d) would remain, (c) would go. I will give you my reasons as to why I desire that clause (c) should be deleted from this article.

The Octroi, terminal tax and toll tax are more or less allied taxes and at the same time they form the major revenue of the local bodies. Prior to the Government of India Act, 1935, the terminal tax was a provincial subject. In the 1935 Act this terminal tax has been put as a Central subject. The Drafting Committee haw more or less borrowed the section from the Government of India Act with minor changes in the language. They have not taken care to see why the terminal tax was changed in the 1935 Act from a provincial subject to a Central subject. If they had taken pains in the matter I am confident that they would have accepted my amendment.

This octroi tax which is levied by the local bodies is a pernicious tax. It creates so many complications. The tax is levied on the weighment of goods and in the matter of ad valorem also on the weighment of articles carried by rail, which has created a kind of harassment to the trade. Not only that. It has also lead to corruption with the result that the Government of India appointed a Committee to investigate into the matter. They unanimously resolved that the octroi should be abolished and instead terminal tax should be substituted.

Terminal Tax is a very substantial tax which is recovered by various local bodies, and on the recommendation of that Committee in many local bodies this octroi has now been abolished although it has proceeded with a slow pace. Today nearly 80 per cent of the local bodies still levy the octroi and the Provincial Governments are permitting them without taking any notice of the recommendations of the Committee.

The terminal tax is levied by municipalities and also by the Sanitary Committees and local boards Committees. The object of this alternation in the Government of India Act, 1935, is quite evident. This terminal tax brings a substantial big amount on one single item which is imported, namely, petroleum. The kerosene and petrol which is imported from foreign countries is subject to a tax, and although the terminal tax is only one pice per gallon it brings in a revenue of nearly Rs. 1,10,000 for only one tanker which arrives at either of the ports of Karachi, Bombay, Madras or Calcutta. This affected the Britishers who hold the sole monopoly of the import of these articles. Therefore, for the interest of their own nationals, the Britishers at that time thought that under the provisions of the Government of India Act, 1935, which confers autonomy to provinces, if the terminal tax is allowed to be retained by the province, the province might further increase the terminal tax. Therefore, they conveniently omitted this from the provincial list and tagged it on to the Central list.

You will be pleased to see that I had moved another amendment in this matter which I am glad the Drafting Committee has accepted. That amendment was that after the word "railway" there should be a comma and the word "sea" should be added. In the original clause you will find that the word "sea" is omitted. The Drafting Committee without considering its implications merely copied the words from the Government of India Act. I brought to their notice that the omission of the word "sea" was deliberate on the part of the framers of the Government of India Act, 1935, their object being not to allow the terminal tax to be levied on petroleum goods which arrived by sea, and they therefore intentionally omitted the word "sea". I am not quite sure that the Drafting Committee actually realized the reason for accepting my amendment-I do not know whether they merely felt that 'air' and 'railways' are mentioned here but 'sea' is omitted and therefore 'sea' should be included, without realizing the implications of my amendment. My amendment, if not accepted, would have deprived the local bodies of a large revenue on terminal tax. Therefore, from that point of view I congratulate the Drafting Committee for having accepted my amendment. I can assure that if this amendment was not accepted, in all it would have brought a loss of a crore of rupees to the local bodies by way of this terminal tax.

I come to the other part in which it is stated in the article that this tax shall be collected by the Government of India but will be handed over to the States. So far so good. In the Government of India Act, 1935, there is a proviso that no fresh or additional terminal tax shall be imposed unless the permission of the Central Government is obtained. That is a most objectionable feature in that Act which has been copied by the Drafting Committee. You are preventing the local bodies from expanding their revenue by increasing the terminal tax on certain articles. I see no reason why the Provincial Government should not be allowed to increase it on the recommendation of the local bodies in regard to items on which they desire an increment in the terminal tax. The Calcutta Corporation wanted to increase certain items of tax on goods imported by rail, but when the matter was referred to the Government the increment was not allowed on the ground that it is a corollary of the toll-tax. The Kanpur Municipality had a question of similar nature which was referred to the U.P. Government which in turn referred it to the Central Government who did not give permission to accept any additional items. These are the impediment which stand in the way of betterment of the local bodies. I am sorry to state that the Drafting Committee have not taken this matter into consideration at all. At a Conference held last year of the Provincial Local self-government Ministers presided over by the health Minister, this question of Finances in relation to the Provinces and the local bodies was considered and a unanimous resolution was passed which was forwarded to the Drafting Committee. I fail to understand how when the Provincial Ministers are agreed unanimously on the point, the Drafting Committee negatived it. The resolution said:

"The Committee was of the opinion that while terminal tax may be governed by Central Legislature, it should be made clear that such taxes are for the benefit of local bodies. With this end in view, it suggested that in the Draft article 250, the words 'and shall be payable to local bodies' be inserted after the words 'shall be assigned to the States in clause (1) of the Draft article'."

I fail to understand why they have discarded the suggestion unanimously put forward. I may also draw your attention to the amendment proposed by the Honourable Pandit Govind Ballabh Pant. He is one of the Ministers who takes great interest in the welfare of local bodies. He has stated that in clause (1) of article 250, sub-clause (c) be deleted and sub-clause (d) be re-numbered as sub-clause (c). I wish he was present here today; had he been present he would have supported me very strongly and I am sure if he had supported this, Dr. Ambedkar would have had no other alternative but to accept it. On a previous occasion when the question of the increment of the taxes on profession came up, my amendment suggested Rs. 250 plus a certain percentage but the Drafting Committee did not accept it. My friend Pandit Pant was very keen on it and he pressed for Rs. 250 and the Drafting Committee accepted it. It is very strange that the Drafting Committee ignores the recommendations from Members like us but when similar recommendations are  moved by a man of position they accept them. What does it show? It shows that they have not understood the matter themselves thoroughly and only when - according to them - a responsible Member puts it forward they accept it. They consider us as irresponsible. I deprecate that idea. While I have the highest respect for the legal knowledge that the Drafting Committee have, I in return expect the same kind of respect from the Drafting Committee to those Members who have studied and have vast experience of the working of local bodies. I am very sorry that that spirit does not exist, otherwise there would be no dispute over the present question. Why should the terminal tax be removed from the Provincial to the Central List? It was done in 1935 for other reasons; the Britishers did not want a particular type of tax to be imposed on articles that they imported. The Provinces were autonomous in those days and they could have increased the terminal tax. It made no difference to the consumers, the tax being insignificant, but the collective amount that was brought in was beneficial to the local bodies. Sir, I feel very strongly on this question. It is not my view-point but I am telling you that as the President of the All-India Local Authorities Union they have unanimously supported my standpoint; all the Local Self-Government Ministers have supported it and because the Finance  Minister of the Central Government is opposed to it, for reasons best known to him, the Drafting Committee has rejected these unanimous proposals. When my friend  Dr. Ambedkar last time got up and intervened to say that this subject should be held over, I thought he would take a very reasonable view of this matter but I was surprised to find that he has made no change in his attitude and has allowed this article to remain as it was. It is not going to improve the financial conditions of the local bodies; the Provincial Governments will be put to a great amount of strain. It is up to this House to see that sufficient provision is made in the Constitution for the betterment of the local bodies. How else are you going to improve the lot of the common man and make him happy? The common man, the masses live in the villages; gaon panchayats, notified and sanitary committees and municipal committees all govern their respective villages and towns. Somehow it seems to be the notion of the Drafting Committee that they will have nothing to do with the local bodies, that it is the function of the Provincial Governments. I ask what business have you to take away the terminal tax to the Centre? Why should you take away the taxes for which a Province is legitimately entitled and which the local bodies have all along been collecting? The Centre has nothing to do with this tax. I want to hear one single instance where the terminal tax has been collected at any time by the Centre. It has been a Provincial subject and always recovered by the local bodies. Even the Provincial Governments have not kept a single pie of it to themselves but given it all to local bodies. This impediment of not allowing the terminal tax to be increased but having to come to the Centre for permission has brought about the result that the finances of the local bodies have suffered gravely.

Sir, I have sufficiently elaborated my points on this question. This being a technical issue many Members do not probably care to understand it, but I would request the honourable House to bear in mind one factor that if you really want the local bodies to live, if you want your common man to be happy, you cannot do it without giving them adequate money. You merely give them certain powers but you deny them the money which is entirely due to them. Today, the entertainment tax, the electricity tax and similar taxes which are rally the local boards' share, are taken away by the Provinces. In the County Councils of Europe and, I can tell you, in many States of America, these taxes are collected by the local bodies and not by the Government. Tramways, buses and taxis are run by local bodies in the other countries and all the gains' go to them. The terminal tax which the local bodies were enjoying upto 1935 were taken away from them in that year. I am very sorry that particular provision of the Government of India Act has been bodily put in the Draft Constitution. I expected the Government to bear in mind the difficulties of the local bodies. I hope the Drafting Committee would now at least see that this clause is omitted especially when an amendment to this effect has been sponsored by no less a person than Pandit Govind Ballabh Pant, at the instance I think of the Conference of Ministers of Local Self-Government who unanimously demanded this financial provision for the good working of the local bodies. It is only the Finance Ministry who are against this demand. They want to grab everything. This is unfair. From this point of view I move the amendment and I expect that even at this late stage the Drafting Committee will consider the necessity, the urgency and the importance of this tax being left to be levied by the Provinces for the benefit of the local bodies. I have here before me a report of the United Provinces Grants-in-aid Committee. I wish the Drafting Committee had read this report. They have made out a very strong case for the purpose of the terminal tax which they say, should be allowed to be levied by the local bodies. They also say that the local bodies should be given freedom to increase the number of items for the levy of this tax and to increase the tax. If you bring in an impediment to this, you will be doing a great disservice to the administration of the local bodies, while the Provincial governments are doing their best by enacting the Panchayat Act. United Provinces have passed this Act, though it is too early to say how it will work; the Central Provinces Government also have enacted a similar measure. If you do not give them sufficient funds or financial resources, how will the local bodies be able to do any good to the small man for whom everyone today is showing lip sympathy? With these words I move my amendment which I hope the Drafting Committee will accept.

Shri Brajeshwar Prasad: Mr. Vice-President, I am not moving my amendment 7 and 11.

Mr. Vice-President: Amendment No. 8 is also not moved, as Pandit Govind Ballabh Pant is not present.

The Honourable Dr. B.R. Ambedkar: Sir, I move:-

"That in sub-clause (c) of clause (1) of article 250, after the word 'railway' a comma and the word 'sea' be inserted."

Sir, I move my next amendment also.

"That in clause (2) of article 250, for the words 'revenues of India' the words 'Consolidated Fund of India' be substituted."

Mr. Naziruddin Ahmad: Mr. Vice-President, Sir, I beg to move:

"That in sub-clause (b) of clause (1) of article 250, after the word 'estate', the words 'or succession' be inserted."

I submit this is a purely formal amendment. Clause (b) says 'Estate duty in respect of property ......' To that I want to add "or succession duty". There is a difference between estate duty and succession duty. Estate duty is leviable on the death of a man owning an estate and succession duty is calculated from the point of view of the successor. If we put down Rs. one lakh as the taxable value of the property, estate duty will have to be paid by all who get the property. But if there are more heirs than one, the share of each would be less than the one lakh and no one pays the succession duty. At present there is a Bill before the Legislature for charging estate duty. Here we are legislating for a long time. Therefore, we should have both estate or succession duty.

The Honourable Dr. B.R. Ambedkar: Succession duty is covered by (a) which says 'Duties in respect of succession to property'. Why repeat that in (b)/

Mr. Naziruddin Ahmad: The two might have been...............(??)

Mr. President: At the last meetings, the amendments on pages 297 and 298 of the Printed List, Vol. II were called and no Member moved them. Does any Member now propose to move any of them? If no one wants to move them, does any Member wish to speak on the article?

Prof. Shibban Lal Saksena (United Provinces: General): Mr. Vice-President, Sir, I have stood up to support the amendment moved by my honourable friend, Mr. Sidhva. He has in a very lucid speech explained to the House the purpose of his amendment and also pointed out the importance of it. He has also said that no less a person than the Premier of my Province, the Honourable Pandit Govind Ballabh Pant, had given notice of a similar amendment. Sir, it is the second occasion when the cause of local bodies has been brought before this House. The first occasion was when we discussed article 256, when I moved an amendment for increasing the limit up to which local bodies could tax the people in their areas, i.e., up to one per cent of their annual income or up to Rs. 1,000. That was opposed on the ground that income-tax would be affected and that the men are already taxed by the Centre on their income. Here again, my honourable Friend, Mr. Sidhva, has suggested that clause (3) should be deleted from article 250 and the appropriation of revenue from this head should not be made by the Central Government but the local bodies should be entitled to appropriate the sums coming from this revenue. I am therefore very much surprised that in spite of all the arguments put forward by my honourable Friend, Mr. Sidhva, and his assertion before this House that all the local self-government Ministers of all the provinces in the country had suggested that this clause should go and in spite of the fact that a person like Pandit Pant has also suggested that this clause should be deleted, still the Drafting Committee will not accept the amendment because the Finance Ministry wants that this money should go to them.

Sir, a very fundamental question is raised by this amendment. We probably think that only the Centre and provinces should be provided with funds. We forget that the local bodies have also got vital functions to perform. I was surprised to learn from one of the members of the Drafting Committee that these bodies were useless bodies and it was so much money wasted if it was given to them. As one who has experience of these bodies I personally feel that ultimately you have to take care of the people in the villages and in the cities and you can really reach them only through these local bodies. I know that in my own district there are about a thousand primary schools and the conditions of the schools are such that it should be a shame to any Government, and if one were to go about repairing them it would cost several lakhs of rupees but the total income of my District Board is hardly Rs. 10 lakhs; it cannot afford the repairs. Here you pass schemes worth crores of rupees for education, for universities and all these things but when it comes to the question of giving money to the local bodies which really finance the schools for the children of the village people, then we say we should not remove this clause from this article and we should not raise the limit of taxability of persons for local bodies to Rs. one thousand. I therefore say that by this stubbornness and refusal to help local bodies, you are really defeating the very purpose of the Constitution which is intended to benefit the defeating the very purpose of the Constitution which is intended to benefit the masses. I say the masses are benefited best when the local bodies are given the power to cater for them. They must be supplied with sources of revenue which are expanding and the terminal tax that is levied on pilgrim traffic should be given to them because they have to spend a lot to cope with that traffic and if you deny them this terminal tax, they would not be able to serve the pilgrims properly. Everybody wants to grab money and there is no source of revenue left to be exploited by the local boards, and with the little that the local bodies get they cannot make even both ends meet. I therefore strongly support the amendment moved by Mr. Sidhva; he has shown that it is not his own opinion but the unanimous opinion of all the Ministers of local self-government of the various provinces in the country; he also said that it is the legitimate right of local bodies to get this tax, and still I do not know of any reason why his amendment should not have been accepted. Last time this article was held over for further consideration and therefore I ask the House to support the amendment of Mr. Sidhva and see that this clause does not remain in this Constitution.

Shri V.S. Sarwate: Mr. Vice-President, Sir, I am in full sympathy with the claim which my honourable Friend, Mr. Sidhva has put forward regarding the local bodies, but as I interpret the article, I see no necessity for the amendment which he has proposed. As the article at present stands, the House may have noted that it is a reproduction of Section 137 of the Government of India Act except one item namely the stamp duty which has been transferred to article 249. Now admitting that the local bodies are very important bodies and as such require all the assistance and encouragement from the provincial Governments as put forward by Mr. Sidhva, till the article as it stands gives full discretion to the Provincial Governments to make allotments as they please, out of the proceeds which they receive from the Centre. There are many nation building activities in every province. There are village panchayats, there are local bodies, there is medicine and other subjects, for instance, education, and it may be that in one province the village Panchayats or local bodies may be important and may require comparatively more attention. Then in other parts of the country, Education may require more attention and in a third Province probably hygiene and medicine. So when the proceeds are received by the Governments of these various provinces, the Governments would have full discretion to allot the proceeds according to the special requirements of that province. If we accept the amendment, the effect would be that the discretion of the Provincial Governments will be circumscribed and would be restricted, so that all the proceeds must necessarily be given to the local bodies; whereas at present there is discretion to allot to the local bodies or to other nation-building departments. Therefore I think that the article as it stands gives more discretion, has more elasticity and serves better the purpose which the honourable Mover of the amendment has in mind. If the U.P. Government for the matter of that intends that the village panchayats and local bodies should be specially encouraged, it has full discretion to do so without the amendment being accepted here. Therefore, I think that the article as it stands should go in.

Shri R.K. Sidhva: May I know from the honourable the speaker whether he desires that the terminal tax collected from the jurisdiction of one province can be transferred to the other jurisdiction of that very province? Does he mean that?

Shri V.S. Sarwate: That would depend upon the principle. It is provided that the total amount collected would be divided among all the provinces. The principle of division which would be presented in the caste of duties in respect of succession to property may also be prescribed in the case of terminal taxes also. As I interpret it, there may also be different principles prescribed for the different categories (a) and (b) and different principles for (c) and (d) when Parliament passes the law prescribing principles of division. The article as it is gives a wider scope and greater elasticity and by the amendment we are creating difficulties for the provincial Governments.

Shri Brajeshwar Prasad: Mr. Vice-President, Sir, I rise to support the article; I am opposed to Mr. Sidhva's amendment for a very simple reason.

This Constitution recognises only two levels of Government, Central and provincial. There is no third legal entity known to constitutional law.

Shri R.K. Sidhva:Read section 250 carefully, you will find local bodies are mentioned there.

Shri Brajeshwar Prasad: That comes only by the way. If we give this power to the local bodies, we will have also to say what are the powers and functions of these local bodies. We will have to make a constitution for these local bodies here. Though in fact, it is a de facto Government, in this Draft Constitution, there are only two levels of Government known. We shall be creating innumerable difficulties and complications if we recognize a third level of Government by the backdoor.

Shri M. Ananthasayanam Ayyangar (Madras: General): Sir, I am sorry I am not able to support the amendment moved by Mr. Sidhva. This article 250 has been taken word for word section 137 of the Government of India Act. On that alone, I am not basing my claim. On the other hand, the principle that Mr. Sidhva's amendment seeks to introduce is both dangerous and not feasible. It is dangerous from this point of view. We are trying to interfere with provincial autonomy. He has ready some extracts from books and publications, the views of some Ministers of particular provinces. It is open to them to say so because the distribution of the proceeds of the taxes which are collected by the Centre can be made in any way they like. We introduce this principle of allocating or earmarking of particular taxes collected by the Centre to the provinces not for being utilized for such purposes as they may consider proper, but for a particular head of provincial administration, that would be interfering with provincial autonomy. I do not know how many of these Ministers are in favour of this proposal. We have already got the petrol tax which is being earmarked for the purpose of roads; there is a certain amount earmarked for education, and so on. Ultimately, what remains to the provinces? You ought to make the provision as flexible as possible.

There is another difficulty also. The terminal taxes are collected not at every terminal; not always in the same place. The amendment does not say that the amount collected at particular terminal are to be earmarked for those local administrations. Again, there are many local bodies; there are panchayats in the villages; there are district boards covering the entire district; there are municipalities having jurisdiction over only particular areas. Does he mean to say that amount should be distributed among the panchayats, district boards and municipalities? Even there, a certain amount of discretion is vested in the hands of the provincial Government. Again, the local administrations are in charge of various subjects, primary education, secondary education, health, sanitation, drainage, water-supply. For what purposes does he mean that this amount should be utilized? Even if this amendment is accepted, even then it would not interfere with the discretion vested. Even though it may not be flexible but rigid, it is still open to the provincial Government to use such powers as they have and to say that this amount shall be utilized for such and such purposes by the local bodies. It is not right that the Constitution itself should sub-divide and earmark the amounts for particular purposes and for particular local administrations. I was sorry to hear when my honourable Friend said that if the amendment had come from any other Minister, the drafting Committee would have accepted it. I am sure the Drafting Committee goes into these matters on their own merits and not with reference to the person who brings forward a particular amendment.

Shri R.K. Sidhva: That has happened in one case.

Shri M. Ananthasayanam Ayyangar: That may have happened. But, so far as article 250 is concerned, the persons who are in charge of and are interested in this matter are the persons in charge of the provincial administration. My honourable Friend Mr. Sidhva must take into consideration the experience, weight and authority which flows with any recommendation made by the provincial Governments as against individuals, by they as high as Mr. Sidhva himself. He cannot say that he has got all the experience of the Premier of a provincial Government. He ought not to have made such a remark in the House that the Drafting Committee makes invidious distinctions. I have got the greatest respect for the Drafting Committee. They are putting themselves to enormous inconveniences and trouble. We address ourselves only to some amendment here and there. They are incharge of the entire drafting of the Constitution. I take this opportunity to thank the Drafting Committee for the able manner in which they are carrying out the work. Any aspersion against their character or alleging that they make invidious distinctions is out of place.

Shri R.K. Sidhva: May I know from the honourable Member what answer he has to this point? Before the Government of India Act of 1935, this was a provincial subject, which has since been brought into the Centre by the Act of 1935.

Shri M. Ananthasayanam Ayyangar: It is not as if the proceeds are taken away by the Centre. The Centre is only a collecting agency. The Centre collects only for the purpose of ensuring uniformity. My honourable Friend may also see that with respect to another provincial tax, the sales tax, for the purpose of ensuring uniformity, a conference of provincial Finance Ministers is being called. The Centre may be able to act with greater speed and efficiency allocate the proceeds of the taxes to the various provinces. We are not unused to this, there is the duty in respect of succession to property; there is the Estate Duty in the same category.

Mr. Vice-President: Also, does Mr. Sidhva think that the taxes collected in Calcutta, Bombay and Madras should go to those provinces exclusively or to the local bodies in those provinces?

Shri R.K. Sidhva: At present these taxes are collected by the local bodies. The Government of India Act of 1935 makes it a Central subject.

Mr. Vice-President: We have now included terminal taxes on goods or passengers carried by sea. Take terminal taxes collected in Calcutta, Bombay, Madras and other big ports which serve large areas. Should the particular corporation or provinces be entitled to retain them?

Shri R.K. Sidhva: The Calcutta Corporation or the Madras Corporation gets the benefit.

Mr. Vice-President: The main point is, the Calcutta Port carried goods and passengers for more than one province. Anyway, does Dr. Ambedkar want to say anything?

The Honourable Dr. B.R. Ambedkar: I do not want to say anything.

Mr. Vice-President: I will now put the amendments to the House.

The question is:

"That in sub-clause (c) of clause (1) of article 250, after the word 'railway' a comma and the word 'sea' be inserted."

The Amendment was adopted.

Mr. Vice-President: The question is:

"That in clause (2) of article 250, for the words 'revenues of India' the words 'Consolidated Fund of India' be substituted.

The amendment was adopted.

Mr. Vice-President: The question is:

"That in amendment No. 2851 of the list of Amendments, for the words proposed to be added in article 250, the following words be substituted:-

"The net proceeds of such taxes recovered under sub-clause (c) and (d) be assigned by the States to the local authorities in their jurisdiction."

The amendment was negatived.

Mr. Vice-President: I now put the whole article as amended. The question is:

"That article 250, as amended, stand part of the Constitution".

The motion was adopted.

Article 250, as amended, was added to the Constitution.

Article 277

Mr. Vice-President: We now go to 277.

The Honourable Dr. B.R. Ambedkar: Sir, I beg to move:

"That article 277 be re-numbered as clause (1) of article 277, and to the said article as so re-numbered the following clause be added:-

'(2) Every order made under clause (1) of this article shall, as soon as may be after it is made, be laid before each House of Parliament.'"

This article 277 is a consequential article. It lays down what shall be the financial consequences of the issue of an emergency proclamation by the President. Clause (1) of the article says that provisions relating to financial arrangements between provinces and the Centre may be modified by the President by order during the period of emergency. It was felt that it was not proper to give the President this absolute and unrestricted power to modify the financial arrangements between the provinces and the States and that the Parliament should also have a say in the matter. Consequently, it is now proposed to add clause (2) to article 277 whereby it is provided that any order made by the President varying the arrangements shall be laid before each House of Parliament. It follows that after the matter is placed before the Parliament, Parliament will take such action as it deems proper, which the President will be bound to carry out.

Mr. Vice-President: Amendment No. 14 is not moved by Shri Brajeshwar Prasad.

Pandit Kunzru - No. 72.

Pandit Hirday Nath Kunzru (United Provinces: General): Mr. President, I beg to move:

"That with reference to amendment No. 3007 of the List of amendments and Amendment No. 13 of List I (Fourth Week) of Amendments to Amendments, for article 277, the following article be substituted:-

Provided that the President may in any year of the said prescribed period direct that the sum to be retained by the Union in that year shall be the sum retained in the preceding year and that the said prescribed period shall be correspondingly extended, but he shall not give any such direction except after consultation with the States nor shall he give any such direction unless he is satisfied that the maintenance of the financial stability of the Government of India requires him so to do.

(2) In this article, 'prescribed' means prescribed by the President of Order."

Sir, the language of the amendment is complicated but it has been borrowed from the Government of India Act, 1935, with which honourable Members are familiar. I think that Dr. Ambedkar who laughed without any cause should also be familiar with it. The meaning of my amendment is this. Under article 251 a percentage has to be prescribed which will represent the share of the provinces in the divisible portion of the net proceeds of the income-tax. The language of that article is such as to make it appear that the entire provincial share shall have to be made over to the provinces at once. As soon as it has been prescribed by the President, with or without consultation with the Finance Commission as the case may be, it must be made over the provinces at once. What my amendment proposes is that notwithstanding the language of article 251, the Centre may make over the entire provincial share to the provinces not at one bound but in a certain period; but if during that period an emergency occurs, an emergency so grave as to require the issue of a Proclamation of Emergency, then the President may direct that the transfer of the provincial share in the particular year in which the emergency occurs shall be stopped. In other words, my amendment if accepted would restrict the power proposed to be given to the President by article 277. Further, while there may be delay in the transfer of the provincial share to the provinces nothing that has been already given to the provinces can be taken back from them.

Now having briefly explained the purpose of my amendment. I shall deal with article 277 as modified by the amendment of Dr. Ambedkar. When I referred to article 277 the other day and said that it was practically subversive of the financial rights of the States, Dr. Ambedkar objected to my referring to it and said that the article had not been moved and might therefore not be moved or be modified. He has now introduced a modification; but does this modification mean anything at all? Suppose Dr. Ambedkar had not moved this amendment, could anything have debarred Parliament from taking into consideration the modification of the financial relations between the Provinces and the States, brought into effect by the order of the President during the period of emergency? Parliament has got an inherent right to consider any matter that it likes. Consequently, the amendment moved by Dr. Ambedkar adds nothing to its power. It gives it no right that it would not otherwise possess. Let us, therefore, consider article 277 as it is, in the form in which it has been proposed in the Draft Constitution. We need pay no attention whatsoever to the amendment moved by Dr. Ambedkar because it means nothing in practice. It gives Parliament no additional opportunity of dealing with any order that the President might make that it would not otherwise have. Now article 277 authorizes the President, while a Proclamation of Emergency is in force, to direct "that all or any of the provisions of articles 249 to 259 of the Constitution shall for such period, not extending in any case beyond the expiration of the financial year in which such proclamation ceases to operate, as may be specified in the order, have effect subject to such exception or modifications as he thinks fit". The President in this article will enjoy full authority to alter the financial relations between the Provinces and the States in any manner that he likes. Let us therefore, consider what it is that the articles, referred to it article 277, give to the provinces. Under article 249, the Union may levy stamp duties under any law made by Parliament and such duty of excise on medicinal and toilet preparations as are mentioned in the Union List. These duties shall be collected and appropriated by the States. The Centre has never claimed a share in their proceeds. Article 250 that we have just dealt with provides that certain duties and taxes including duties in respect of succession to property other than agricultural land, and estate duty in respect of property other than agricultural land, shall be levied and collected by the Centre, but shall be distributed entirely between the Provinces except in so far as they represent the share attributable to the States for the time being specified in Part II of the First Schedule. This is the second source from which provinces will derive their income and it too is entirely provincial. The Centre has never laid claim to a percentage of their process of these duties. The third source will be the taxes on income. The President will, by order, fix the percentage of the divisible portion of the net proceeds of the income-tax that should be made over to the Provinces. I have already dealt with this.Then we come to the excise duties, duties of excise, other than duties of excise on medicinal and toilet preparations mentioned in the Union List, are to be levied and collected by the Government of India. But if Parliament so provides, the proceeds of these duties may be divided between the Centre and the Provinces. The President has no power to deal with them. Then there is the duty on jute which is not to be distributed now, between the Centre and the Provinces, but such provinces as are entitled to a share in the proceeds of the jute export duty will get a sum to be prescribed to compensate them for the loss of their share in the duty. Lastly, Sir, there are the grants from the Centre which of course can be altered from time to time.

These are the various ways, Sir, in which the Provinces will derive their income. And article 277 allows the President to arrive at any decision he likes in regard to the availability of any or all these sources of income to the provinces. Now, what are the provinces to do, if such action is taken by the President? If the sum to be made over by the Centre to the Provinces were to be parted within a prescribed period, then in an emergency, the President could well say that the Centre could not afford to part with more money than it had already given to the province, so long as the emergency lasted. Such a proceeding would be intelligible and reasonable, but what is now proposed is that, after a financial settlement has been arrived at with the provinces and they have increased their expenditure and have come to depend on the money received by them from the Centre for meeting their liabilities, the President may say to them that whatever happens to them the financial settlement made by them must be modified. What are the provinces to do in these circumstances? So far as I can see, they are to enjoy the blessing of financial nirvana. The Provincial Governments and the people of the provinces may suffer seriously-may, so to say go about with a loin cloth- but the Centre will have little regard for their plight. Such a proceeding, I think, is both iniquitous and impracticable. My contention is, as I have already said, that if you have to give a certain sum of money, or a certain percentage of the proceeds of certain taxes to the provinces, you may delay the full distribution of the provincial share, but nothing that has been once given to them ought to be taken back. The Government of India Act, 1935, proposed nothing so drastic. The framers of the Act realized as well as the framers of the Constitution do, that the Centre may some day be involved in an emergency. But all that they provided was that the transfer of the full provincial share of the divisible portion of the proceeds of the income tax may be delayed on account of an emergency, but no part of the divisible portion given to the provinces before the occurrence of the emergency could be taken away from them. As regards the proceeds of the Central Excise Duties and the Central Export Duties and the other taxes that I have referred to, there could be no change in them whatsoever in any emergency. The position of the provinces in regard to the other taxes was to remain wholly unaffected by the occurrence of an emergency. It was realized that if the provinces, depending on the money received by them from the Centre extended primary education, or made it compulsory, or increased the number of hospitals and dispensaries, or undertook a programme for the improvement of the condition of the rural masses, they could not in justice be asked suddenly to change their budgets and tell their people that the facilities already available to them in respect of education, public health, medical relief or rural welfare shall be withdrawn. If such a thing were to be done in future, there would be serious discontent in the provinces, so serious indeed as to create another emergency greater than that to deal with which the President is to be given the plenary power contained in article 277. I think, therefore, Sir, that article 277, the effect of which on the provincial administration will be exceedingly harmful, should be replaced by the amendment that I have moved.

Sir, I do not know what the exact share of the divisible portion of the net proceeds of the income-tax now received by the provinces is. But I understand that the maximum share is still that prescribed in 1936, namely 50 per cent and that in all probability, the provinces are getting about 42 or 43 per cent of the divisible portion. I do not know what the prescribed percentage in future will be. Let us suppose that it is 60 per cent. Then you can lay down that the differences between 42 per cent and 60 per cent shall be transferred to the provinces within a certain period, and that if an emergency occurs during this period, the process of transfer can be halted. The provinces will thereby not suffer materially but article 277 is contrary to the best interests of the provinces and if given effect will create chaos there.

The House will undoubtedly be surprised that so drastic a provision should have been included in the Draft Constitution. The framers of the Constitution are reasonable people. We have therefore to consider what made them think of inserting such an article in the Constitution. When I dealt with some of the articles relating to the future financial position of the provinces, I pointed out that if the settlement were made too generous to begin with, the Centre might be faced with a serious position later when an emergency occurred. I ventured to say that it would be better if the Centre were a little cautious in the beginning so that it might have to take no action that would completely dislocate the finances of the provinces later. But that warning was not heeded. The only way now in which, according to the framers of the Constitution, the future financial position of the Centre can be safeguarded is that the President should be allowed during an emergency practically to annual the provisions of the articles 249 to 259. It will be open to the Finance Commission when it is appointed, and to the President after the Constitution has been passed, to consider carefully the existing situation and distribute the proceeds of the divisible sources of revenue between the Centre and the Provinces in such a way as to take due note of the interests both of the Provinces and the Centre. In spite of our having passed all the articles referred to in article 277, the President can still so fix the provincial and Central shares that the Centre may not be driven to take action of the kind envisaged in article 277. Such a course would be far better than pleasing the provinces now and making them gnash their teeth and tear their hair afterwards.

Sir, I have explained the meaning and purposes of my amendment as clearly as I could. I hope that the representatives of the Provinces realise how grave a danger to their interests article 277 constitutes. If the Provinces are not even to enjoy financial autonomy in certain circumstances, they will have no independence left whatsoever and their position will be equivalent to that of the municipalities and district boards. But it is not primarily on that ground that I have moved my amendment. I have done so in the interests of the people of the Provinces who cannot arbitrarily be deprived of the facilities that they have become accustomed to in such matters as education, medical relief and the welfare of the masses even during a war. Such a thing did not happen during the last war. Why should we then think that it would happen or might happen during a future war? Article 277 is an expression of nothing but the undiluted financial autocracy of the Centre. I hope therefore that every Member of the House will protest against this iniquitous provision and see that it is changed in such a way as to assure the Provinces that their finances cannot suddenly be disorganized by any order of the President and that at the same time the position of the Centre is such as to enable it to discharge properly its supreme responsibilities.

Amendments Nos. 3009 and 3010 on page 318 of the Printed List were not moved.

Prof. Shibban Lal Saksena: Sir, the speech delivered just now by my honorable Friend Dr. Kunzru will certainly give food for thought to the House for reviewing this important article. I have very carefully followed his speech and also studied his amendment. When we were discussing articles 275 and 276 and when we gave to the President powers to issue a Proclamation when necessary, we had provided that within two months of that Proclamation, it must be laid before each House of Parliament and must be approved. Only then will it continue for a further period of six months.

In article 277 it is provided that not only will the Central Parliament have concurrent jurisdiction over subjects which are the province of the States but also that "provisions of articles 249 to 259 of this Constitution shall for such period not exceeding in any case beyond the expiration of the financial year in which such proclamation ceases to operate, as may be specified in the order, have effect subject to such exceptions or modifications as the President thinks fit". So that, by this article, articles 249 to 259 lose their existence during an emergency. For the President has the power to pass orders in contravention of the provisions of these articles. I would have been happier if whatever changes or variations of the articles are desired were also part of the Proclamation and are brought before Parliament for approval. I have throughout protested against arming the President with almost autocratic powers in financial matters, but I am sorry to have to say that our protests have gone in vain and every time when an amendment comes, the President is armed with powers of issuing orders by which even the provisions of this Constitution can be amended. I think Dr. Kunzru has pointed out what difficulties arise if this article is passed as it is. The amendment of Dr. Ambedkar does not help matters at all. To "lay it" before each House of Parliament is not a sufficient safeguard. I therefore think that Dr. Kunzru has done a service to the House by bringing forward this amendment and by pointing out the danger inherent in this article 277.

This is a vital article. The budgets framed by the States may be upset by an order of the President and if he is not very favourably disposed towards some of the Ministers of any Province, then woe betide that Province. Therefore, it is not proper to pass this article in its present form. I would request Dr. Ambedkar and the Drafting Committee to review this article in the light of the arguments advanced by Pandit Kunzru and also in view of the fact that such powers should not be given to the President which may upset the budgets of the Provinces. Of course no President will deliberately use such powers and upset all their plans, but unless there are safeguards in the Constitution it is not proper to give those powers. With the best will in the world and with the most pious intentions he may pass order which may bring about the position I have pointed out. I therefore request that some machinery may be provided for in the Constitution by which that position may not be brought about. I hope that in the light of these arguments, the learned Doctor will accept my amendment.

Shri Alladi Krishnaswami Ayyar (Madras: General): Mr. Vice-President, I should like to say a few words in support of article 277 along with the amendment moved by my Friend, the Honourable Dr. Ambedkar. A lurid picture has been painted by my esteemed Friend Pandit Hirday Nath Kunzru as to the effect of this article. Hospitals will be closed, all constructive activities of the Provinces will be set at naught, Provincial autonomy will come to a dead stop, the Central Executive will assume dictatorship, there will be nothing but chaos as a result of this article taken along with the amendment.

My friend forgets that article 277 is a sequel to 275. We are proceeding on the footing that the security of India is threatened or that there is war or domestic violence of a character which necessitates the President to proclaim an emergency posited by article 275. The normal conditions are disturbed by the very premises with which we start, namely war, and everybody must be ready to support the security of the country, to see that the State itself which is the basis for individual liberty does not fall to the ground. That is the basis of article 275.

Then article 277 does not say that the whole of the financial provisions will come to an end. It says, "subject to such exceptions or modifications as he thinks fit". Normally it is not expected that he will abrogate the 249 to 259 of the Constitution shall for such period have effect subject to such exception or modification as he thinks fit. Therefore, it is an exception to the rule that has been working for sometime, it is a modification of the rule that has been working for some time. It is not an obliteration of the entire financial structure or the financial relation between the Provinces and the Centre that is contemplated under article 277.

Even in normal times the Parliament has the power to interfere with the distribution. That is stated in the very articles, 249 to 259. The whole question of distribution is left to Parliament. No doubt distribution implies that a certain percentage at least will be left to the Provinces, but the intervention of the Federal Parliament is posited in the various articles to which reference has been made by my Friend Pandit Kunzru. Therefore, what we are now doing is- and he himself has pointed this out-to see that the plenary authority of Parliament to pass any law to interfere with the distribution is not affected even by the powers conferred upon the President under article 277. The President's power is not exclusive of, and does not derogate from, the plenary authority of Parliament under the Constitution. Therefore, the only question is that in an emergency like this, the President acting on the advice of the Central Cabinet ought to modify or to provide for certain exemption in regard to the distribution of the various proceeds.

So far as the right to distribute income-tax is concerned, even in normal times, it rests upon an order of the President - (on an Order of His Majesty in Council under the present Constitution)- it does not rest on Parliamentary authority. It no doubt contemplates that after the Statutory Commission makes its report a degree of permanency will be introduced in the distribution of income-tax proceeds, but until the financial provisions come into operation the power rests with the President which means the Central Cabinet. It does not mean that they will flout the claims of the various Provinces who are represented in the Upper house, and in the Lower House, and we are not to proceed on the footing that the representatives will not discharge their functions and their duties to their constituencies properly.

Therefore, I submit, Sir, that there is nothing drastic in article 277. You cannot carry on a war under the principle which obtains in normal times. You must provide the Centre with an emergency power and that emergency power is by no means so drastic and so omnibus a power, so all-comprehensive a power as might be imagined. It expressly says "subject to such exceptions or modifications as the Cabinet thinks fit." An exception cannot be the rule. A modification can only be a modification and an exception can only be an exception. Therefore, in an emergency, is the President, is the Central cabinet, to be clothed with some kind of discretionary power in regard to the adjustment of the financial relation between the Provinces and the Centre subject to the plenary power of Parliament and to the intervention of Parliament if anything goes wrong in the action of a Cabinet which is responsible to the Lower House and in which both the Houses can take the Cabinet to task for putting the emergency provisions into operation? Under those circumstances, I submit that it is inevitable that you should have a provision of that description. Whenever we refer to these things we must remember that we are dealing with a Cabinet which is responsible to the people. A Government which is responsible to the Parliament and the people can certainly be invested with greater powers than his Majesty in Council who was responsible only to the British Parliament and not to the Parliament of the country. It will mean the negation of the principle of responsible government to say that the responsible Government today must exercise in the circumstances of a war. At that time other people were responsible for the maintenance of India and for seeing there was no internal commotion. We are responsible now for the security of India and for the safety of the State. That is the principle contained in article 277. It is necessary consequence of article 275 which posits the existence of war or some domestic situation equivalent to war. There can be no exception taken to the principle underlying article 277 and the amendment which has been brought before the House by Dr. Ambedkar.

Shrimati Renuka Ray (West Bengal): Mr. Vice-President, Sir, I am one of those who believe that, in the present context of things in this country and in view of the fact that we have so much leeway to make up in the matter of the nation-building services, we should of course have a very strong federal Centre. It is necessary that the Centre should be in a position to see that the provinces do not fall behind in regard to the minimum standards of development. But, none-the-less, I must say that the arguments that Pandit Kunzru has advanced before the House this morning have a great deal in them. It is not possible for a province to administer its responsibilities in an adequate manner if its financial position is unstable or uncertain. I realise that it is in the case of emergencies alone that this power under article 277 is sought to be given to the President, which means the Central Government. None-the-less I do feel that this is a very drastic measure. The provinces draw their finances from two sources. One source is the obligatory allocation made to them to maintain their general services. The other is the grants made for development purposes. I could have understood it, if a demarcation had been made and the finances of the provinces had been left intact in the matter of obligatory taxes with which they carry on their normal life. Even that has not been done. I do not want to reiterate all that Pandit Kunzru has very pertinently pointed out. I do feel that this is a vital matter. There is article 276-B under which all extravagant expenditure during emergencies could be stopped. The provinces can be requested to drop their development programmes during an emergency such as war. But surely it should not be in the power of the Centre or the President to stop the normal functioning of the provinces. It is through the provinces that the life and activities of the people of the country is administered. I should like to point out that the Centre does not work in the air. It has to work through the provinces and I can see no reason whatsoever for having this provision just as it is. I do think that Pandit Kunzru has drawn attention to a very important point. I would therefore request Dr. Ambedkar and Drafting Committee to hold over this article and re-draft it in the light of the observations that have been made.

Prof. N.G. Ranga (Madras: General): Hold over till the emergency is over?

Shrimati Renuka Ray: I do not mean that Professor Ranga has sought to be very sarcastic. I would point out to him that even in an emergency the normal functioning of the provinces must continue. I see no reason whatsoever to give the President power to stop those sources of revenue from which the provinces have to function in a normal way, even in an emergency. I can understand stopping the development activities of a province in an emergency, but how can the normal functioning of the provinces be stopped even in emergencies? Even in war-time, people have to continue to eat, to have education and be protected against evil-doers. I do appeal to Dr. Ambedkar and the Drafting Committee to reconsider this article which is a vital one. I support the changes proposed by Pandit Kunzru.

Mr. Vice-President: Mr. Biswanath Das may now speak.

Pandit Hirday Nath Kunzru: It is nearly one o'clock.

Mr. Vice-President: We shall now adjourn and meet again at 9 a.m. tomorrow.

The Assembly then adjourned till Nine of the Clock on Saturday, the 20th August 1949.

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