When a legislative measure is challenged as being beyond the competence of the enacting body, courts examine its "pith and substance," or its essential character and purpose, to determine whether it falls within the jurisdiction of the concerned legislature. Incidental encroachments into another legislative field are overlooked if the core purpose of the law aligns with the enacting legislature's authority. This ensures that minor overlaps do not render laws invalid and that legislative intent is upheld.
The doctrine has been upheld in several landmark cases in India. For instance, in State of Bombay v. F.N. Balsara (1951), the Supreme Court applied this principle to validate the Bombay Prohibition Act, even though it had an incidental impact on import and export, a Union List subject. Similarly, in Union of India v. Shah Goverdhan L. Kabra (2002), the Court reiterated that the true nature and purpose of the legislation must be assessed to decide its validity.
By focusing on the substance of the law rather than its form, the doctrine safeguards legislative competence and maintains a harmonious balance between the Union and State legislatures. It also prevents undue interference by one level of government in the legislative domain of the other, thereby fostering federalism. However, the application of this doctrine requires careful judicial analysis to ensure that it does not become a tool for overstepping constitutional limits.