Defining the scope and powers of the Indian Parliament to extend its jurisdiction beyond nation’s territory, the Supreme Court in a far-reaching ruling has held that it can legislate on any extra-territorial issue, which has a direct “nexus” with Indians or any resources impacting the interests of India.
“The Parliament may exercise its legislative powers with respect to extra-territorial aspects or causes, things, phenomena (howsoever commonplace they may be), resources, actions or transactions, and the like — that occur, arise or exist or may be expected to do so, naturally or on account of some human agency, in the social, political, economic, cultural, biological, environmental or physical spheres outside the territory of India,” ruled a Constitution bench comprising CJI S.H. Kapadia and Justices B. Sudershan Reddy, K.S. Radhakrishnan, S.S. Nijjar and Swatanter Kumar.
Defining the scope of Article 245 of the Constitution which deals with the power of Parliament to legislate on any issue, the bench further explained that Parliament has the jurisdiction to pass any legislation that “seeks to control, modulate, mitigate or transform the effects of such extra-territorial aspects or causes, or in appropriate cases, eliminate or engender such extra-territorial aspects or causes, only when they have, or are expected to have some impact on, or effect in, or consequences for: (a) the territory of India, or any part of India; or (b) the interests of, welfare of, well-being of, or security of inhabitants of India, and Indians.”
While defining the Article 245, the SC made clear distinction between Parliament’s competence to legislate regarding any “territory beyond India” and “Indian interests beyond its territory”. The Parliament “is constitutionally restricted from enacting legislation with respect to extra-territorial aspects or causes that do not have, nor expected to have any, direct or indirect tangible or intangible impact on or effect in or consequences for the territory of India or any part of India, or the interests, welfare, well-being, or security of inhabitants of India, and Indians,” the bench held.
But the Constitution does not impose any pre-requisite tests; such as “sufficiency”, or “significance”, or in any other manner requiring a “pre-determined degree of strength” for Parliament to deliberate upon a legislative business. “All that would be required, would be the connection to India be real or expected to be real,” the apex court said.