The apex court also asked the Delhi government, which had moved the High Court seeking judgment on a acope of its powers under Article 239 AA of the Constitution, to approach it only after the Delhi High Court decides all the issues including the preliminary issue as to whether it has the jurisdiction over the dispute.
Disposing of the AAP government appeal, the bench said the High Court was a "constitutional court" and had the power to decide and interpret constitutional matters like this.
Senior advocate Indira Jaising, appearing for Delhi government, referred to constitutional provisions dealing with the powers of Delhi as a union territory.
Jaising in her brief arguments said the High Court has no
power to decide the dispute of this nature between the Centre and the state and hence it be asked to decide the jurisdictional aspect as the preliminary issue.
The Supreme Court then asked the senior lawyer as to why the Delhi government did not withdraw its plea from the High Court.
"You have come with the Special Leave Petition (SLP) in the matter when the High Court has already reserved the judgment," the bench said, adding that High Court is entitled to its views on Constitutional matters as they are "independent".
"Had it been a (civil) suit or a writ petition, we will have issued notice instantly. What order can we pass today in this case. Why should we tell the High Court that decide this issue or don't decide it on merits", the bench said.
"High Court had reserved the verdict pursuant to Supreme Court's order. This is a misconceived SLP," Rohatgi said.
The bench also said "constitutional issues cannot be compromised. Once the matter is pending in the High Court, then it shall decide the issue rightly or wrongly."
Delhi government's plea was listed for today's bench as two judges of the apex court -- J S Khehar and L Nageshwar Rao had earlier recused from hearing it.
On July 4, the Arvind Kejriwal government had made
unsuccessful efforts to ensure that its lawsuit for declaration of powers of Delhi as a state be heard along with its plea to restrain Delhi High Court from delivering verdict on a host of issues, including the scope of its powers.
Prior to this, the court had agreed to hear the Delhi government's plea.
In its plea, Delhi government has claimed that only the apex court had jurisdiction under the Constitution to deal with issues relating to the powers of States and Centre.
It has been alleged by the AAP government that it has been unable to function as most of its decisions are either annulled or changed by the Centre at the behest of Lieutenant Governor (LG) Najeeb Jung on the ground that Delhi is not a complete state.
There is an ongoing power tussle between Delhi government and LG on various issues including the control over Anti-Corruption Branch and power to transfer or retain bureaucrats.
The HC had on May 24 reserved its verdict on the plea of AAP government seeking a stay on the proceedings on petitions arising out of its standoff with the LG over powers to appoint bureaucrats in the national capital and other issues.
A total of 11 cases arising out of the confrontation between the LG and Delhi government are being heard together by the High Court.
Delhi government had on May 28 last year approached the high court challenging the Centre's notification of May 21, 2015, giving the LG absolute powers to appoint bureaucrats in the city.
