Article 369

Article 369 of the Constitution of India was a temporary provision enacted to empower Parliament to legislate on certain matters ordinarily reserved for the States under the State List. It reflected the framers’ pragmatic approach to governance during the formative years of the Republic, enabling the Union Government to address urgent economic and administrative challenges faced by the newly independent nation.

Background and Constitutional Context

At the time of the Constitution’s commencement in 1950, India faced significant economic dislocation, shortages of essential commodities, and the need for uniform economic regulation across States. Recognising the necessity of a strong central response to these challenges, the Constituent Assembly inserted Article 369 as a transitional measure.
The provision allowed temporary centralisation of legislative authority in specific areas of trade and commerce, which were otherwise within the exclusive domain of State Legislatures under the State List (List II) of the Seventh Schedule.

Nature and Duration of the Provision

Article 369 was temporary in nature, designed to remain in force for five years from the commencement of the Constitution — that is, from 26 January 1950 to 25 January 1955.
During this period, Parliament could legislate on specified subjects from the State List as if they were matters in the Concurrent List (List III). This meant that laws made by Parliament on these subjects would prevail over State laws in the event of inconsistency, as provided under Article 254 of the Constitution.
After the expiry of the five-year period, the legislative competence for these matters reverted exclusively to the States, unless covered by other constitutional provisions or laws already enacted by Parliament.

Scope and Subject Matter

The scope of Article 369 was narrowly defined, covering only certain subjects essential for economic management and national recovery. These included:

1. Trade and Commerce Within a State (Entry 26, State List)Parliament could legislate on intra-state trade and commerce to ensure uniformity of regulations across the country.
2. Production, Supply, and Distribution of Goods (Entry 27, State List)This included control over the production, supply, and distribution of essential goods such as cotton textiles, foodstuffs, coal, iron, and steel, which were vital for industrial and economic stability.
3. Offences and PenaltiesParliament was empowered to define offences and prescribe penalties relating to the above matters to ensure effective enforcement of economic and trade regulations.
4. Jurisdiction and Powers of Courts (Except the Supreme Court)Parliament could legislate regarding the jurisdiction and powers of courts (other than the Supreme Court) in respect of the subjects covered by Article 369.
5. Fees in Respect of the Above MattersThe Union could impose and regulate fees connected with laws made under this temporary authority.

Objective and Purpose

The primary purpose of Article 369 was to facilitate economic and administrative coordination during the post-independence transition period. India’s economy in the early 1950s faced inflation, food scarcity, and industrial disorganisation, requiring strong and uniform control mechanisms.
Key objectives included:

• Ensuring uniform regulation of essential commodities and trade across all States.
• Preventing economic disparities and hoarding of essential goods.
• Establishing a centralised framework for industrial and commercial recovery.
• Maintaining national unity through consistent economic legislation during reconstruction.

Constitutional Mechanism

Article 369 functioned by treating certain entries in the State List as if they were in the Concurrent List. This temporary reclassification did not permanently alter the division of powers but enabled Parliament to legislate concurrently with States for the specified period.
Any law enacted under Article 369 continued to remain valid even after its expiry, until repealed or replaced by competent legislative authority.

Relevant Entries in the State List

The key entries temporarily brought under Parliament’s concurrent jurisdiction included:

• Entry 26: Trade and commerce within the State.
• Entry 27: Production, supply, and distribution of goods.

These entries were critical to ensuring economic integration and the smooth functioning of trade during India’s early years as a sovereign republic.

Judicial Interpretation and Case Law

The Supreme Court and High Courts have examined Article 369 in several cases, clarifying its scope and implications:

• State of Bombay v. F.N. Balsara (1951): The Court discussed the legislative competence of Parliament under Article 369, holding that its temporary power was constitutionally valid and limited to the specified subjects.
• Ch. Tika Ramji v. State of Uttar Pradesh (1956): The Court analysed the regulation of sugarcane under State law and observed that the Parliament’s powers under Article 369 had already expired, reaffirming the temporary nature of the provision.
• M.P.V. Sundararamier & Co. v. State of Andhra Pradesh (1958): The Supreme Court clarified that while Article 369 had ceased to operate after 1955, laws enacted during its operation remained valid. The case also reaffirmed the doctrine that legislative powers are to be interpreted strictly according to the distribution of subjects in the Seventh Schedule.

Expiry and Legal Consequences

Article 369 formally ceased to have effect on 25 January 1955, five years after the Constitution’s commencement. However, the laws enacted under its authority remained valid until repealed or amended by competent legislatures.
Following its expiry, legislative power over trade and production within States reverted entirely to State Legislatures, in accordance with the constitutional distribution of powers under Article 246 and the Seventh Schedule.

Relationship with Other Constitutional Provisions

• Article 246: Defines the distribution of legislative powers between Parliament and State Legislatures. Article 369 acted as a temporary deviation from this framework.
• Article 252: Allows Parliament to legislate for two or more States with their consent—this provision continues to provide an alternative mechanism for central legislation on State matters.
• Seventh Schedule: Enumerates subjects in the Union, State, and Concurrent Lists. Article 369 temporarily treated certain State List entries as part of the Concurrent List.

Significance and Impact

Article 369 was a pragmatic provision that reflected the flexibility of India’s federal system during a period of economic instability and national integration. Its significance can be summarised as follows:

• It allowed temporary centralisation of legislative power without permanently disturbing the federal structure.
• It facilitated the uniform regulation of essential commodities, promoting food security and trade stability.
• It served as a transitional measure, helping the nascent Republic consolidate administrative and economic systems.
• It demonstrated the Constitution’s adaptability, allowing extraordinary legislative arrangements to meet extraordinary circumstances.

Key Features of Article 369

• Temporary nature: Operative for only five years (1950–1955).
• Limited scope: Applied to specific economic and trade-related subjects.
• Federal continuity: Did not permanently alter the balance of power between the Union and the States.
• Judicial safeguard: Subject to constitutional interpretation and limited by the enumerated entries.