Says SC has power over dispute between GoI & GoN
The Gauhati High Court has observed that the constitutional dispute between the Union of India and the Government of Nagaland regarding petroleum and natural gas regulations in the state falls within the exclusive jurisdiction of the Supreme Court of India.
In a judgment on March 10, a division bench of Gauhati High Court comprising Justice Kalyan Rai Surana and Justice Manish Choudhury made the observation while disposing of a suo motu public interest litigation (PIL) concerning validity of Nagaland Petroleum and Natural Gas Regulations, 2012 and the Nagaland Petroleum and Natural Gas Rules, 2012. The PIL had its origin in a petition filed earlier by members of the Lotha Hoho challenging the legal validity of the state’s petroleum regulations and related actions taken by the Nagaland Petroleum and Natural Gas Board, including permissions and expressions of interest issued for oil and gas exploration.
According to court records, the petitioners had sought the quashing of the 2012 regulations and rules, contending that petroleum and natural gas exploration in the state must be governed strictly in accordance with Article 371A of the Constitution of India, which grants special constitutional protections to Nagaland in matters relating to ownership and transfer of land and its resources.
The petition also raised concerns over exploration activities proposed through agreements involving private companies, including Metropolitan Oil & Gas Pvt. Ltd.
During the course of the proceedings, the original petitioners sought to withdraw the PIL. However, the High Court decided to continue examining the matter on its own motion considering the constitutional issues involved and registered it as a suo motu PIL. The central question before the court was whether Nagaland Assembly had the legislative competence to enact the 2012 petroleum regulations and rules. The state government argued that under Article 371A, the ownership of land and its resources vests with the people of Nagaland, thereby empowering the state to regulate petroleum exploration within its territory.
On the other hand, the Union government maintained that petroleum and natural gas fall under Entry 53 of the Union List, placing regulation and development of mineral oil and natural gas within the legislative domain of Parliament.
After examining the submissions, the High Court observed that the issue essentially involves a constitutional dispute regarding legislative competence between the Centre and the state.
The bench noted that such disputes fall within the ambit of Article 131 of the Constitution, which grants the Supreme Court exclusive original jurisdiction over disputes between the Union government and one or more states. During the hearing, the court also recorded submissions indicating that the agreement or memorandum of understanding between the state government and Metropolitan Oil & Gas Pvt. Ltd. relating to oil and gas exploration was expected to lapse.
In view of this constitutional framework, the court held that the matter could not be adjudicated in the present PIL proceedings before the High Court. Accordingly, the bench disposed of the PIL while observing that any dispute concerning the legislative competence of the state to enact the petroleum regulations would have to be decided by the Supreme Court under Article 131.