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27. Mr. Chandhiok learned Senior Counsel submits that as per Article 1 and Schedule I of the Constitution of India, Delhi was and continues to be a Union Territory; that Delhi is not a State within the meaning of expression under Article 1(3)(a) of the Constitution of India. The legislative action of the respondents is assailed inter alia on the ground of lack of legislative competence of the Legislative Assembly of Delhi. It is submitted that by the Constitution (Sixty-ninth) Amendment Act, 1991 w.e.f. 01.02.1992, Article 239AA was introduced into the Constitution which made special provisions with respect to the National Capital Territory of Delhi. By virtue of Article 239AA(2)(a) and Article 239AA(3)(a), the Legislative Assembly of Delhi was constituted with the powers to make laws with regard to any of the matters in the State List or in the Concurrent List in so far as such matter was applicable to the Union Territory of Delhi except matters with regard to Entries 1, 2 and 18 of the State List and Entries 64, 65 W.P.(C)No.4770/2012 page 13 of 531 and 66 of that List in so far as they relate to Entries 1, 2 and 18.

28. Learned Senior Counsel has argued that the expression ‗Union Territory' in Article 239AA(3)(b) refers to Delhi and therefore, the Parliament alone had the competence to legislate with regard to any matter concerning Delhi, in terms of the mandate of Article 246(4) which provided that the Parliament has power to make laws with respect to any matter for any Union Territory even if its falls under List II of Schedule VII of the Constitution.

29. It has been urged at length by the petitioners that despite introduction of Article 239AA by the Constitution (Sixty-Ninth) Amendment Act, 1991 which provides for the constitution of the Legislative Assembly of Delhi, only limited power and authority has been conferred on the Legislative Assembly of Delhi and the Parliament remains supreme so far as competence to legislate is concerned. It is also pressed that Delhi remains a Union Territory despite the provision of a Legislative Assembly for the National Capital Territory of Delhi. For this reason, the concept of subject- wise separation of powers into Union, State and Concurrent Lists in Schedule VII of the Constitution of India is of no consequence so far as Delhi is concerned.

(ii) Status of Legislative Assembly of Delhi.
(iii) On the subject of court fees, there is pre-existing Central Legislation which occupies the field. For this reason as well, the Delhi Legislative Assembly has no competence to enact law or amend it
(iv) Whether Lists in the Seventh Schedule are a substantive source of power for the Parliament and the State Legislatures?

109. It is argued by the petitioners that the Delhi Legislative Assembly is not vested with the legislative competence to make any law which would amount to a repeal of or amendment of an existing Parliamentary law. It is the Parliament alone which under sub-clause (a) of Article 239AA (3) has the power to amend and alter the legislation and that no such corresponding power has been W.P.(C)No.4770/2012 page 55 of 531 given to the Legislative Assembly of the NCT of Delhi under Article 239AA.

175. We have discussed above that Delhi is not a State within the meaning of the expression ‗Article 1(3)'. It remains a Union Territory. The separation of powers by the Lists is not applicable to the Union Territories under the Constitutional scheme.

W.P.(C)No.4770/2012 page 103 of 531

176. Before us the respondents source their power to legislate to clause 3(a) of Article 239AA. It is submitted that the Delhi Legislative Assembly is empowered to make laws with respect to any of the matters in the State List and the Concurrent List subject to the exceptions detailed therein. In making this submission, the respondents overlook the opening words of clause 3(a) of Article 239AA. Article 239 AA of the Constitution, under which the respondent claims to have exercised its legislative power, begins with the words ―subject to provisions of the Constitution‖. From the commencement of Article 239AA(3)(a), the Legislative Assembly of the National Capital Territory of Delhi has power to make laws for the whole or any part of the National Capital Territory with respect to any of the matters enumerated in the State List or in the Concurrent List. This legislative power under Article 239AA(3)(a) is subject to provisions of the Constitution, meaning thereby that the Legislative Assembly of the National Capital Territory of Delhi cannot alter or amend the Parliamentary statute notwithstanding that it has power qua entries in List II. Article 239AA(3)(a) itself provides as under:-