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transferring all ruling powers and by agreeing to the integration of the States. The main part of our obligation under these Agreements, is to ensure that the gurantees given by us in respect of privy purse are fully implemented. Our failure to do so would be a breach of faith and seriously prejudice the stabilisation of the new order."
Article 291, thus, embodies constitutional sanction for the due fulfilment of the Government of India's guarantees and assurances in respect of privy purses and provides for the necessary adjustments in respect of privy purse payments necessitated by changed conditions.
239. Under the terms of the Covenants and Agreements of Merger the privy purses of the Rulers are to be free from all taxation. The exemption in respect of taxation applies only to the amounts of privy purses and does not extend to any other income of the Rulers or the income of the members of their families. The right of the Rulers to this exemption has been accepted because in their own teritories the Rulers were recognised as Sovereigns and were free from all kinds of taxation. This arrangement is also covered by Article 291 which provides that any sum paid to a Ruler as privy purse, which is charged on the Consolidated Fund of India, shall be exempt from all taxes on income.
240. Guarantees regarding rights and privileges.—Guarantees have been given to the Rulers under the various Agreements and Covenants for the continuance of their rights, dignities and privileges. The rights enjoyed by the Rulers vary from State to State and are exercisable both within and without the States. They cover a variety of matters ranging from the use of red plates on cars to immunity from Civil and Criminal jurisdiction and exemption from customs duties etc. Even in the past it was neither considered desirable nor practicable to draw up an exhaustive list of all these rights. During the negotiations following the introduction of the scheme embodied in the Government of India Act, 1935, the Crown Department had taken the position that no more could be done in respect of the rights and privileges enjoyed by the Rulers than a general assurance of the intention of the Government of India to continue them. Obviously, it would have been a source of perpetual regret if all these matters had been treated es justiciable. Article 363 has, therefore been embodied in the Constitution which excludes specifically the Agreements of Merger and the Covenants from the jurisdiction of Courts except in cases which may be referred to the Supreme Court by the President. At the same time, the Government of India considered it necessary that constitutional recognition
