In the case of State of Bihar v Union of India10, it was said that the Hindustan Steel Ltd.Which was a registered company, could not contest in the court as it doesn’t come underthe explanation of the word “State” in Art. 131 of the Constitution. The main questionthat comes is that what exactly is the meaning of “State” under art. 131? the article saysthat the disputes should be in respect of legal rights and not disputes of the politicalcharacteristics. So as to explain the statement, a legal right according to Black’s LawDictionary is “Lawfully guaranteed powers a legal entity acquires from winning a courtdecision. Realization or defence of just and lawful claims or interests against ‘The wholeworld’ is the basis. Whether or not the existence such rights is publicly known, legalrights as laws impact every citizen.”In the case of State of Rajasthan v Union of India11 it was observed that the supreme courtattracted only when dispute arises between or amongst the States and the Union of Indiain the context of the constitutional relationship that exists between them and the powers,rights, duties, immunities, liabilities, disabilities, etc., flowing there from. Whether a suitfiled by the State against the Union of India for recovery of compensation for loss onaccount of damage caused to goods despatched through the Indian Railways could be filedin a civil court. It was held that the case was maintainable only in the District Court andnot in the Supreme Court. These suits can’t be filled in the Supreme Court as there is noquestion of rights or claims of the state or union.In the case of State of Karnataka v Union of India12 said that The Indian Constitutionaccepts the federal concept and distributes the sovereign powers between the co- ordinateconstitutional entitles, namely, the Union and the States. This concept implies that onecannot encroach upon the governmental functions or instrumentalities of the other, unlessthe Constitution expressly provides for such interference. The legislative fields allotted tothe units cover subjects for legislation and they do not deal with the relationship betweenthe two co-ordinate units functioning in their allotted fields: this is regulated by otherprovisions of the Constitution and there is no provision which enables one unit to takeaway the property of another except by agreement. The future stability of our vast countrywith its unity in diversity depends upon the strict adherence of the federal principle, whichthe fathers of our Constitution have so wisely and foresightedly incorporated therein.