The Calcutta Gas Company v. The State of West Bengal

Question: Could West Bengal make a law to take over management of a gas undertaking? The Supreme Court said yes. “Gas and gas-works” sit in Entry 25 of List II, so the State has power. “Industry” in Entry 24 does not include gas. Union power under Entry 52 of List I (Union-controlled industries) uses “industry” in the same sense as Entry 24, so it also does not pull gas into Union control unless Parliament says so for some other reason.

1. Was the West Bengal Legislature competent to enact the Oriental Gas Company Act, 1960?
2. Does “industry” in Entry 24 List II or Entry 52 List I include the gas industry?

• Entry 25, List II (State List): “Gas and gas-works” — exclusive State power.
• Entry 24, List II: “Industries” — subject to Entry 7 and Entry 52 of List I.
• Entry 52, List I (Union List): Industries declared by Parliament to be under Union control — uses the same meaning of “industry” as Entry 24.

Note: State List Entry 52 (tax on entry of goods) is a different subject and not central to this case.

Held: The Supreme Court upheld the Act. The State has exclusive power over “gas and gas-works” under Entry 25 List II. “Industry” in Entry 24 List II — and in Entry 52 List I — does not include the gas industry. The Oriental Gas Company Act, 1960, was within the legislative competence of West Bengal and was valid.

• Specific entry (gas: Entry 25 List II) prevails over the general “industries” entry.
• Meaning of “industry” remains consistent across Entry 24 List II and Entry 52 List I.
• State can manage and legislate for gas undertakings unless a constitutional limit applies.

Use this case to show how specific subjects in the State List protect State power. When a topic is expressly named (like gas), it is not pushed into the broader “industry” bucket.

• Gas is a State subject (Entry 25 List II).
• “Industry” ≠ gas industry for constitutional entries.
• State action valid when it fits the exact List entry.

Mnemonic: “GAS = Go Ahead State”

1. Spot the subject: gas and gas-works.
2. Match to Entry 25 List II.
3. Conclude State competence; “industry” does not change it.

Issue: Can West Bengal legislate for a gas undertaking’s management?

Rule: Entry 25 List II; Entry 24 List II; Entry 52 List I.

Application: Gas is a special State subject; “industry” entries cannot absorb it; the Act fits Entry 25.

Conclusion: The Act is valid; the State Legislature was competent.

Legislative Competence

Power of a legislature to make laws on a subject in the Seventh Schedule.

Entry 25 List II

State List subject: gas and gas-works.

Entry 52 List I

Union List subject: industries Parliament declares to control.