State (NCT of Delhi) v. Union of India, (2018) 8 SCC 501

Bench

A 5-Judge Constitutional Bench of the Supreme Court:

1. Dipak Misra, C.J.
2. Dr. A.K. Sikri, J.
3. A.M. Khanwilkar, J.
4. Dr. D.Y. Chandrachud, J.
5. Ashok Bhushan, J.

Facts

• The case concerned the division of powers between the Government of the National Capital Territory (NCT) of Delhi and the Union Government.
• The issue arose from conflicts between the Delhi Government (led by the Chief Minister) and the Lieutenant Governor (LG), particularly regarding administrative control over various departments.
• The 69th Constitutional Amendment Act, 1991, inserted Article 239AA, which granted Delhi a Legislative Assembly and a Council of Ministers, while retaining its status as a Union Territory.
• Despite this, several disputes emerged over whether the LG was bound by the aid and advice of the Council of Ministers or if he had discretionary powers similar to that of a Governor.
• The Delhi High Court ruled in 2016 that the LG had supremacy in administrative matters.
• The Delhi Government appealed to the Supreme Court, arguing that this ruling undermined Delhi’s democratic governance.

Issues

1. What is the status of the NCT of Delhi under the Constitution of India?
2. Does the Lieutenant Governor have independent decision-making powers, or is he bound by the aid and advice of the Council of Ministers?
3. What are the limits of the Delhi Government’s legislative and executive powers under Article 239AA?
4. Does the Union Government have overriding authority over the elected government of Delhi?

Ratio Decidendi (Legal Principle)

• Delhi is not a full-fledged state but has a unique status as a Union Territory with an elected government under Article 239AA.
• The Lieutenant Governor must act on the aid and advice of the Council of Ministers, except in matters explicitly reserved for the Union Government.
• The Lieutenant Governor does not have independent decision-making powers and cannot refer every matter to the President under Article 239AA(4).
• The Delhi Legislative Assembly has the power to make laws on all subjects in the State List and Concurrent List, except on matters related to land, police, and public order.

Observations

• The Constitution intends for Delhi to have a democratic and representative government.
• The Lieutenant Governor is an administrator, not a Governor.
• Excessive interference by the LG undermines the principles of federalism and democracy.
• The Council of Ministers, led by the Chief Minister, is responsible for day-to-day governance.
• The Union Government retains authority in specific matters but should not override the elected government unnecessarily.

Decision

• The Supreme Court ruled in favor of the Delhi Government, holding that:
  • The LG is bound by the aid and advice of the Council of Ministers except in matters beyond the legislative competence of the Delhi Assembly.
  • The LG cannot act independently and must not obstruct the Delhi Government’s decisions unnecessarily.
  • The Delhi Government has the power to make laws and execute policies on subjects under its jurisdiction.
  • However, matters related to land, police, and public order remain under the exclusive control of the Union Government.

Important Terms

1. Article 239AA (Special Status of Delhi)

• Grants Delhi a Legislative Assembly with elected representatives.
• Specifies that the Lieutenant Governor must act on the aid and advice of the Council of Ministers except in certain cases.

2. Article 239AA(4) (Lieutenant Governor’s Role)

• Allows the Lieutenant Governor to refer matters to the President if there is a dispute.
• The Supreme Court ruled that this should be used sparingly and not as a means to override the elected government.

3. 69th Constitutional Amendment (1991)

• Introduced Article 239AA, granting Delhi partial statehood while keeping it a Union Territory.
• Established the Delhi Legislative Assembly and a Council of Ministers.

4. Executive Powers of Delhi Government

• The Delhi Government has executive power over subjects in the State List and Concurrent List, except for land, police, and public order.
• The LG cannot interfere in routine governance matters unless required by law.

5. Federalism

• India follows a quasi-federal system, meaning that some powers are shared between the Union and States.
• The Court ruled that Delhi’s special status must be respected, and excessive central control is unconstitutional.