doctrine of territorial nexus - Indian Laws - General

Doctrine of territorial nexus In State of Bombay v. RMD Chamarbaugwala 1957 (4) TMI 55 - SUPREME COURT , this Court considered the point whether the legislature overstepped the limits of its legislative field when the impugned act purported to affect men residing and carrying on business outside the State. It was held that on the basis of the doctrine of territorial nexus between the State and activities of the Petitioners which are not in the State, the impugned legislation cannot be held to be beyond the competence of the legislature. This Court recognized the existence of two elements to establish territorial nexus which are: a. The connection must be real and not illusory, and b. The liabilities sought to be imposed must be pertinent to that connection. The doctrine forbidding extra territorial legislation as held in Macloed's case (supra) was subsequently held to be of somewhat obscure extent. Statutes made by a Sovereign States cannot be said to be invalid on the ground of extra territoriality subject to certain conditions as is clear from the judgments referred to supra. The same principle was applied to State legislations in the United States of America. There is no distinction between the applicability of the aforesaid principle to civil or criminal statutes. STATE (NCT OF DELHI) VERSUS BRIJESH SINGH @ ARUN KUMAR AND ANR.- 2017 (10) TMI 1649 - SUPREME COURT