As power and jurisdiction of each of the states is limited to its territory, the acts and records of one state may not get recognition in other state without any binding provision to do so.
So, the Constitution provides that “Full faith and credit shall be given throughout the territory of India to public acts, records and judicial proceedings of the Union and of every State” (Article 261).
So laws or statutes of one state get similar recognition in other states. The Parliament has power to law down manner and conditions to enforce above provisions. Similarly, final judgments or orders delivered or passed by civil courts in any part of the territory of India shall be capable of execution anywhere within that territory according to law.
Inter-State Trade and Commerce
Article 301 of the Constitution states that no restrictions can be imposed on trade, commerce and intercourse throughout the territory of India (i.e. between two states or Union Territories as the case may be) except the following restrictions that are included under Article 302 to 305:-
- The Parliament can impose non discriminatory or fair or unbiased restrictions (i.e. giving preference to one state over other) on Inter State trade or commerce in Public interest, such as the Essential Commodities Act (1956) to control the production, supply or distribution of coal, steel, cotton, iron and petroleum.
- Even unfair or biased restrictions can be imposed by the Parliament in case of scarcity of goods in any part of India.
- The State Legislature may, by law, impose reasonable restrictions on freedom of Inter State trade or commerce in Public Interest but such law or amend shall be moved only with prior sanction of the President.
- The State Legislature may, by law, impose any tax on imported goods from other states which similar to goods produced in that state but not to discriminate between goods so imported and goods so produced.