In Brief
The President referred four questions to the Supreme Court concerning the constitutional validity of the Punjab Termination of Agreements Act 2004, which aimed to nullify an inter-State water-sharing agreement dated 31 December 1981 and Supreme Court decrees enforcing it. The Court held unanimously that the Act was unconstitutional and invalid. The Court ruled that a State cannot unilaterally nullify binding judicial decrees or inter-State agreements through legislation; doing so violates separation of powers and rule of law. Once the judiciary has finally decided a dispute between States, the legislature cannot use its power to overturn that judgment. The Punjab Act sought to circumvent Court orders directing canal construction, which the Court found impermissible. All four referred questions were answered in the negative, upholding judicial supremacy and constitutional federalism."
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