Article 2 of constitution of India states parliament may by law admit into the Union, or establish, new States on such terms and conditions, as it thinks fit.
The admission or establishment of a new state will be on such terms and conditions as parliament may think fir. There is nothing in the constitution which would entitle a new state, after its formation or admission into the union to claim complete equality of status with a state existing at the commencement of the constitution or formed later under article 3. Article 2 gives complete discretion to parliament to admit or establish new states on such terms and conditions as it thinks fit. Such terms and conditions must be consistent with foundational principles of basic structure of constitution.
Several territories such as Dadra and Nagar Haveli, Goa, Daman and Diu, Pondicherry and Sikkim have been admitted into the union since commencement of constitution. But in all these cases article 2 was not invoked as admission in all these cases was done by an amendment of the constitution under article 368. The only example of admisson of territory under article 2 appears to be of Chandernagore under Chandernagore (Merger) Act, 1954.
Article 3 states Parliament may by law
(a) form a new State by separation of territory from any State or by uniting two or more States or parts of States or by uniting any territory to a part of any State;
(b) increase the area of any State;
(c) diminish the area of any State;
(d) alter the boundaries of any State;
(e) alter the name of any State; Provided that no Bill for the purpose shall be introduced in either House of Parliament except on the recommendation of the President and unless, where the proposal contained in the Bill affects the area, boundaries or name of any of the States, the Bill has been referred by the President to the Legislature of that State for expressing its views thereon within such period as may be specified in the reference or within such further period as the President may allow and the period so specified or allowed has expired Explanation I In this article, in clauses (a) to (e), State includes a Union territory, but in the proviso, State does not include a Union territory Explanation II The power conferred on Parliament by clause (a) includes the power to form a new State or Union territory by uniting a part of any State or Union territory to any other State or Union territory
The law referred to in article 2 and 3 may alter or amend the first schedule of the Constitution which set out the names of the state and descripttion of the territories, and forth schedule allocating seats in council of state in parliament. The law so made may also make supplemental, incidental and consequential provisions which would include provisions relating to setting up of legislative, executive and judicial organs of the state essential to effective state administration under state constitution; the expenditure and distribution of revenue; apportionment of assets and liabilities; provisons as to services; transfer of proceedings and other related matters. No state can therefore be formed or admitted under article 4 by parliament which does not have affective legislative, executive and or judicial organs.
Article 4 talks about Laws made under Articles 2 and 3 to provide for the amendment of the First and the Fourth Schedules and supplemental, incidental and consequential matters
(1) Any law referred to in Article 2 or Article 3 shall contain such provisions for the amendment of the First Schedule and the Fourth Schedule as may be necessary to give effect to the provisions of the law and may also contain such supplemental, incidental and consequential provisions (including provisions as to representation in Parliament and in the Legislature or Legislatures of the State or States affected by such law) as Parliament may deem necessary
(2) No such law as aforesaid shall be deemed to be an amendment of this Constitution for the purposes of Article 368 PART II C ITIZENSHIP
In case parliament makes a law under article 2 and 3, the law must also include necessary provisions for amendment of first and forth schedules of the constitution. The first schedule specifies the states which are the members of the union and their respective territories. The fourth schedule specifies the number of seats to which each state is entitled im the council of states. Further this article enables parliament to include supplementary, incidental and consequential provisions also.
Clause 2 expressly provides that changes made in the constitution by which such law shall not be deemed to be an amendment of the constitution for the purposes of article 368. The result is that alterations in the constitution coming within the purview of article 4 maybe carried out by a bare majority subjects to the requirement laid down under previso to article 3 if such alterations relate to the matters specified in that article.
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