In Brief

This was an advisory reference under Article 143(1) of the Constitution seeking the Supreme Court's opinion on whether the Punjab Termination of Agreements Act, 2004 was constitutionally valid and whether it validly terminated the inter-State water-sharing agreement of 31.12.1981 and discharged Punjab from court-ordered obligations. Punjab had enacted the legislation to nullify binding Supreme Court decrees requiring completion of the Sutlej-Yamuna Link Canal. The Court held that no State can legislatively nullify a binding Supreme Court judgment or unilaterally terminate an inter-State agreement. Such action violates separation of powers, the rule of law, and federal principles. The Court answered all referred questions in the negative, declaring the Punjab Act unconstitutional and unenforceable.

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