This Act marked a second milestone towards the Complete Responsible Government in India.
It was a lengthy and detailed Act having 321 Sections with 10 Schedules.
It provided for the establishment of an All-India Federation consisting of provinces and princely states as units.
While under all the previous Government of India Acts, the Government of India was unitary, the Act of 1935 proposed a Federation taking the Provinces and the Indian States as one unit.
But the accession of the Princely States to the Federation was optional. It could not be established until the States had given their assent to join the Federation.
At the time of joining it, each ruler of the State was required to sign an Instrument of Accession mentioning therein the extent to which it consented to surrender its authority to the Federal Government.
However, in reality All-India Federation never came into existence as the princely states did not give their consent to join it.
This Act divided the powers between the Centre and units by way of three lists:
Federal List (For Centre, with 59 items): These subjects were subjects of national importance. The most important of them were external affairs, currency and coinage, naval, military and air force, census etc.
Provincial List (For Provinces, with 54 items): These subjects were the subjects of local importance. The main amongst them were police, provincial public services, education etc., and
The Concurrent List (For Both Centre and Provinces with 26 items): These subjects were the subjects which were essentially of a provincial and local nature but required a uniform policy throughout India. Criminal Law, Criminal Procedure, Civil Procedure, Marriage and Divorce, Arbitration etc. were the most important subjects in this list.
The Federal Legislation had the power to legislate with respect to the subjects enumerated in the Provincial List if a proclamation of emergency was made by the Viceroy.
The Federal Legislation could also legislate with respect to a Provincial subject if the Legislature of two or more Provinces desired this in their common interest.
In case of inconsistency in the concurrent Field, a Federal Law prevailed over a Provincial Law to the extent of that inconsistency.
Residuary powers were given to the Viceroy.
The Act divided Legislative power between the Provincial and Central Legislatures and within its defined areas the Provinces were no longer delegates of the Central Government but were autonomous units of administration.
This act provided for the adoption of dyarchy at the Centre. Consequently, the federal subjects were divided into reserved subjects and transferred subjects. However, this provision of the Act did not come into operation at all.
It introduced bicameralism in 6 out of 11 provinces. Thus, the legislatures of Bengal, Bombay, Madras, Bihar, Assam and United Provinces were made bicameral consisting of a legislative council (Upper House) and a legislative assembly (Lower House).
It further extended the principle of Communal Representation by providing separate electorates for depressed classes (Scheduled Castes), women and labour (Worker).
Under this Act it has been provided that the Provincial Executive was to consist of the Governor and a Council of Ministers to advise him. The Governor was the head of the Executive.
It extended franchise. About 10 per cent of the total population got the voting rights.
It provided for the establishment of Reserve Bank of India to control the currency and credit of the country.
It provided for the establishment of
: Federal Public Service Commission.
: Provincial Public Service Commission.
: Joint Public Service Commission (for two or more provinces).
It provided for the establishment of a Federal Court, which was set up in 1937.
The Federal Court had one Chief Justice and not more than 6 other judges. The retiring age of these judges were 65 years. The Judges were appointed by the Crown.
Jurisdiction of Federal Court: The Federal Court had three kinds of jurisdictions i.e. Original, appellate and advisory.
Original Jurisdiction: The Federal Court had exclusive jurisdiction in any dispute between the Federation and its units or the units inter se.
Appellate Jurisdiction: The appellate jurisdiction of the Federal Court extended to appeals from the Judgment of any High Court in India to the Federal Court if the High Court certified that the case involved a substantial question of law as to the interpretation of the Government of India Act, 1935 or any Order in Council made therein.
An appeal could go to the Privy Council from decisions of the Federal Court.
Advisory Jurisdiction: The Federal Court had also advisory jurisdiction. The Viceroy could refer any question of law to the Federal Court to obtain its opinion whenever he liked to seek its advice.
