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With reference to the provisions of InterState Trade and Commerce of our Constitution, consider the following
statements:
1. The State Legislature can impose reasonable restrictions on the freedom of trade, commerce and intercourse with other state.
2. Bill for this purpose can be introduced in the legislature, only with the previous sanction of the Governor.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
With reference to the provisions of InterState Trade and Commerce of o...
The freedom guaranteed by Article 301 is
a freedom from all restrictions, except
those which are provided for in the other
provisions (Articles 302 to 305) of Part
XIII of the Constitution itself.
These are explained below:
  • The Parliament can impose restrictions on the freedom of trade, commerce and intercourse between the states or within a state in public interest. But, the Parliament cannot give preference to one state over another or discriminate between the states, except in the case of scarcity of goods in any part of India.
  • The legislature of a state can impose reasonable restrictions on the freedom of trade, commerce and intercourse with that state or within state in public interest.
    But, a Bill for this purpose can be introduced in the legislature only with the previous sanction of the President. Further, the State Legislature cannot give preference to one state over another or discriminate between the states. The legislature of a state can impose reasonable restriction on goods imported from other states or the union territories any tax to which similar goods manufactured in that state are subject. This provision prohibits the imposition of discriminatory taxes by the state.
  • The freedom (under Article 301) is subject to the nationalisation laws (i.e., laws providing for monopolies in favour of the Centre or the states). Thus, the Parliament or the State Legislature can make laws for the carrying on by the respective government of any trade, business, industry or service, whether to the exclusion, complete or partial, of citizens or otherwise.
    The Parliament can appoint an
    appropriate authority for carrying out the purposes of the above provisions relating to the freedom of trade, commerce and intercourse, and restrictions on it. The Parliament can also confer on that authority the
    necessary powers and duties. But, no such authority has been appointed so far.
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Most Upvoted Answer
With reference to the provisions of InterState Trade and Commerce of o...
1. The State Legislature can impose reasonable restrictions on the freedom of trade, commerce and intercourse with other states.

This statement is correct. According to Article 301 of the Indian Constitution, trade, commerce, and intercourse throughout the territory of India shall be free. However, this freedom is subject to reasonable restrictions that can be imposed by the State Legislature. These restrictions are necessary for the public interest and can be imposed on the following grounds:

a) Protection of public health.
b) Protection of the interests of any scheduled tribe.
c) Protection of the interests of any backward class of citizens.
d) Protection of the interests of the general public.

These restrictions are important to maintain law and order, prevent the spread of diseases, protect the rights of marginalized communities, and safeguard the interests of the public.

2. Bill for this purpose can be introduced in the legislature, only with the previous sanction of the Governor.

This statement is incorrect. The previous sanction of the Governor is not required to introduce a bill in the State Legislature for imposing restrictions on trade, commerce, and intercourse with other states. The power to introduce such bills lies with the State Legislature itself, and they can exercise this power without seeking the Governor's sanction.

The Governor's role comes into play when the bill is passed by the State Legislature. After the bill is passed, it is sent to the Governor for his assent. The Governor can either give his assent or withhold it. If he withholds his assent, the bill will not become law. However, if he gives his assent, the bill becomes law and the restrictions on trade, commerce, and intercourse with other states come into effect.

In conclusion, statement 1 is correct as the State Legislature can impose reasonable restrictions on the freedom of trade, commerce, and intercourse with other states. However, statement 2 is incorrect as the previous sanction of the Governor is not required to introduce a bill in the State Legislature for this purpose.
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With reference to the provisions of InterState Trade and Commerce of our Constitution, consider the followingstatements:1. The State Legislature can impose reasonable restrictions on the freedom of trade, commerce and intercourse with other state.2. Bill for this purpose can be introduced in the legislature, only with the previous sanction of the Governor.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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