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39.  In   the   landmark   judgment   of   this   Court   in  Kesavananda Bharati v. State of Kerala, (1973) 4 SCC 225  a new dimension was   given   to   the   constitutional   principles.   This   Court   by majority   judgment   declared   that   the   basic   feature   of   the Constitution   could   not   be   amended   by   a   constitutional amendment. Sikri, C.J. while delivering the majority judgment had held that federal character of the Constitution is one of the basic structures of the Constitution.

45. A Constitution Bench in  Kuldip Nayar v. Union of India, (2006) 7 SCC 1, held that India is not a federal State in the traditional sense of the term and it is not a true federation formed   by   agreement   between   various   States   and   it   has   been described as quasi­federation and similar other concepts.

46. A   nine­Judge   Constitution   Bench   in  Jindal   Stainless Limited and Another Vs. State of Haryana and Others, (2017) 12 SCC 1 had occasion to consider the nature of federalism in the Indian   Constitution   while   considering   the   relations   between Union   and   States   in   reference   to   part   XIII   of   the Constitution.  Dr. T.S. Thakur, Chief Justice of India, as he then   was,   speaking   for   the   Court   noticed   the   nature   of federalism   as   ingrained   in   the   Constitution.     Constitution Bench   held   that   even   though   our   Constitution   may   not   be strictly federal in its character but the significant features of federal Constitution are found in the Indian Constitution. In Paragraph 32, Constitution Bench laid down as follows:­ “32.  Whether   or   not   the   Constitution   provides   a federal  structure  for  the  governance   of  the  country has   been   the   subject­matter   of   a   long   line   of decisions   of   this   Court,   reference   to   all   of   which may be unnecessary but the legal position appears to be fairly well settled that the Constitution provides for   a   quasi­federal   character   with   a   strong   bias towards the Centre. The pronouncements recognised the proposition  that  even  when   the  Constitution  may  not be   strictly   federal   in   its   character   as   the   United States   of   America,   where   sovereign   States   came together   to   constitute   a   federal   Union,   where   each State enjoins a privilege of having a Constitution of its   own,   the   significant   features   of   a   federal Constitution   are   found   in   the   Indian   Constitution which  makes  it  a  quasi­federal  Constitution,  if  not truly   federal   in   character   and   in   stricto   sensu federal.   The   two   decisions   which   stand   out   in   the long   line   of   pronouncements   of   this   Court   on   the subject may, at this stage, be briefly mentioned. The first   of   these   cases   is   the   celebrated   decision   of this   Court   in  Kesavananda  Bharati  case15,  wherein  a thirteen­Judge  Bench  of  this  Court,  Sikri,   C.J.  (as his Lordship then was), being one of them talks about whether   the   Constitution   of   India   was   federal   in character and if so whether federal character of the Constitution   formed   the   basic   feature   of   the Constitution. Sikri, C.J. summed up the basic feature of the Constitution in the following words: (SCC p. 366, paras 292­94) “292.   …   The   true   position   is   that   every provision   of   the   Constitution   can   be   amended provided   in   the   result   the   basic   foundation and structure of the Constitution remains the same.   The   basic   structure   may   be   said   to consist of the following features:

294. The above foundation and the above basic features are easily discernible not only from the   Preamble   but   the   whole   scheme   of   the Constitution, which I have already discussed.” To   the   same   effect   are   the   views   expressed   by Shelat and Grover, JJ. who declared that the federal character of the Constitution is a part of its basic structure.”

47. In  Jindal   Stainless   Ltd.   (supra),   one   of   us   (Ashok Bhusha,J) has also expressed views on the form of the Indian Constitution,   which   was   the   same   as   expressed   by   majority opinion.  In Paragraph 944, following was held:­ “944.  The law declared by this Court as noted above clearly   indicates   that   the   Indian   Constitution   is basically federal in form and has marked traditional characteristics   of   a   federal   system,   namely, supremacy   of   the   Constitution,   division   of   power between the Union and the States and existence of an independent judiciary. Federalism is one of the basic features   of   the   Indian   Constitution.   However,   the history of Constitution including the debates in the Constituent   Assembly   indicate   that   the   distribution of   powers   was   given   shape   with   creating   a   strong Centre   with   the   object   of   unity   and   integrity   of India.   The   States   are   sovereign   in   the   allotted fields.   The   Indian   Constitution   cannot   be   put   in traditional   mould   of   federalism.   The   traditional concept of federalism has been adopted with necessary modification in the framework of the Constitution to suit the country’s necessity and requirement. The sum total of above discussion is that federalism in the Constitution   is   limited   and   controlled   by   the Constitution and the exercise of powers of both the States   and   the   Centre   are   controlled   by   express provisions of the Constitution.”

108.  From   the   foregoing   discussion,   it   is   clear   as day   that   both   the   concepts,   namely,   democracy   i.e. rule by the people and federalism are firmly imbibed in  our   constitutional  ethos.  Whatever  be  the   nature of   federalism   present   in   the   Indian   Constitution, whether absolutely federal or quasi­federal, the fact of   the   matter   is   that   federalism   is   a   part   of   the basic structure of our Constitution as every State is a constituent unit which has an exclusive Legislature and   Executive   elected   and   constituted   by   the   same process as in the case of the Union Government. The resultant   effect   is   that   one   can   perceive   the distinct   aim   to   preserve   and   protect   the   unity   and the territorial integrity of India. This is a special feature of our constitutional federalism.”