The apex court said under the federal structure an individual can file such a plea but not a state government.
"How can state file such a plea? In a federal structure, how can a state file a plea challenging Parliament's mandate," a bench comprising Justices A K Sikri and Ashok Bhushan wondered at the outset.
"It can be challenged by individuals, but how a state has come (to court)? It cannot be done," the bench said, adding, "let Mamata Banerjee come and file a plea as individual. We will entertain it as she will be an individual".
Responding to his contention, the bench said, "You satisfy us how the state has challenged it. We know it is a matter which needs consideration."
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Sibal, however, insisted that the state was entitled to filing such a plea as subsidies under these schemes have to be given by the labour department.
"If it is so, tomorrow the Centre will file a petition challenging the states Act," the bench observed.