Important Legal Definitions
Explore legal terms, clear definitions and practical examples.
Doctrine of Territorial Nexus
Constitutional & Public Law Doctrines
Definition
Derived from Article 245, this doctrine establishes that a State legislature can pass laws that operate extra-territorially only if there is a real, substantial, and not illusory connection between the State and the person, property, or transaction being taxed or regulated.
Example
In State of Bombay v. R.M.D. Chamarbaugwala, the Supreme Court upheld Bombay’s tax on prize competitions published in Bangalore because extensive circulation and collection of entry fees occurred inside Bombay, establishing a sufficient territorial nexus.