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Presumption of Territorial Operation

Canons of Statutory Interpretation

Definition

The rule that Acts passed by Parliament or State Assemblies are presumed to apply solely within their territorial jurisdiction, unless an extra-territorial operation is expressly enacted or justified by a territorial nexus.

Example

In G.V.K. Industries Ltd. v. Income Tax Officer, the Supreme Court held that Parliament's power to make laws with extra-territorial operation under Article 245(2) is legitimate provided the law has an aspect or nexus related to India.