Part XII: Finance, Property, Contracts and Suits

Article 278: Agreements with States in Part B

Overview of Article 278: Agreements with Part B States

Original Article:

Article 278 initially provided a framework for agreements between the Union and Part B States regarding financial adjustments and matters arising from the integration of princely states. This article was omitted by the Constitution (Seventh Amendment) Act, 1956.

Explanations:

Article 278 played a transitional role by enabling agreements to address financial and administrative integration challenges between the Union and states previously categorized as Part B states. Its omission in 1956 reflected the evolution of a more unified administrative structure.

Key Provisions:

Scope of Article 278

Focused on resolving financial matters related to the integration of Part B states, it allowed for agreements covering revenue sharing, financial adjustments, and liabilities of erstwhile princely states.

Reason for Omission

With the reorganization of states in 1956, distinctions among Part A, B, C, and D states were abolished, rendering Article 278 redundant. The Seventh Amendment removed this transitional provision.

Amendments:

Article 278 was omitted by the Constitution (Seventh Amendment) Act, 1956, as part of broader efforts to simplify and unify India's administrative framework following the States Reorganisation Act.

Legislative History:

Introduced as a transitional measure in 1949, Article 278 facilitated financial negotiations with Part B states, many of which were erstwhile princely states. Its removal in 1956 marked a significant step toward administrative unification.

Debates and Deliberations:

  • Dr. B.R. Ambedkar explained the necessity of Article 278 to address unique financial challenges posed by the integration of princely states.
  • Shri T.T. Krishnamachari supported its inclusion as a temporary measure, highlighting the complexities of fiscal integration.

Frequently Asked Questions (FAQs):

Why was Article 278 omitted?

Article 278 was omitted because the distinctions between Part A, B, C, and D states were abolished by the Seventh Amendment, rendering its provisions unnecessary.

What issues did Article 278 address?

It addressed financial adjustments, revenue sharing, and liabilities related to the integration of princely states into the Union.

How did the Seventh Amendment affect Article 278?

The Seventh Amendment reorganized states and removed distinctions among state categories, leading to the omission of transitional provisions like Article 278.

References:

  • Constituent Assembly Debates, 1949
  • The Constitution (Seventh Amendment) Act, 1956
  • Reports on the States Reorganisation Act, 1956