The Gauhati High Court has observed that the constitutional dispute between the Union government and the Government of Nagaland over petroleum and natural gas regulations in the state falls under the exclusive jurisdiction of the Supreme Court of India. In a judgment delivered on March 10, a division bench comprising Justice Kalyan Rai Surana and Justice Manish Choudhury made the observation while disposing of a suo motu public interest litigation (PIL) related to the validity of the Nagaland Petroleum and Natural Gas Regulations, 2012 and the Nagaland Petroleum and Natural Gas Rules, 2012.
The PIL originated from an earlier petition filed by members of the Lotha Hoho challenging the legal validity of the state’s petroleum regulations and actions taken by the Nagaland Petroleum and Natural Gas Board. The petition had questioned permissions and expressions of interest issued for oil and gas exploration in the state.
According to court records, the petitioners sought the quashing of the 2012 regulations and rules, arguing that petroleum and natural gas exploration in Nagaland must be governed strictly under Article 371A of the Constitution of India. The constitutional provision grants special protections to Nagaland regarding ownership and transfer of land and its natural resources.
The petition also raised concerns over proposed exploration activities through agreements involving private companies, including Metropolitan Oil & Gas Pvt. Ltd..
During the proceedings, the original petitioners sought to withdraw the PIL. However, considering the constitutional implications involved, the High Court decided to continue examining the matter on its own motion and registered it as a suo motu PIL.
The key issue before the court was whether the Nagaland Legislative Assembly had the authority to enact the petroleum regulations and rules in 2012. The state government argued that under Article 371A, ownership of land and its resources belong to the people of Nagaland, thereby empowering the state to regulate petroleum exploration within its territory.
On the other hand, the Union government maintained that petroleum and natural gas fall under Entry 53 of the Union List of the Constitution, which places regulation and development of mineral oil and natural gas within the legislative domain of Parliament.
After examining the submissions, the High Court observed that the issue essentially involves a constitutional dispute over legislative competence between the Centre and the state.
The bench noted that such disputes fall under Article 131 of the Constitution of India, which gives the Supreme Court exclusive original jurisdiction in disputes between the Union government and one or more states.
During the hearing, the court also recorded submissions that the agreement or memorandum of understanding between the Nagaland government and Metropolitan Oil & Gas Pvt. Ltd. relating to oil and gas exploration was expected to lapse.
In view of the constitutional framework, the High Court held that the matter could not be adjudicated in the present PIL proceedings before it. The bench disposed of the PIL while observing that any dispute regarding the legislative competence of Nagaland to enact petroleum regulations must be decided by the Supreme Court under Article 131.