(A) States Reorganisation Act (37 of 1956) , S.108— Constitution of India , Art.3, Art.4, Sch.VII List II Entry 17— Right to receive and utilise water - Inter-State agreement between predecessor States relating to irrigation and power generation etc. continues - State cannot claim to have legislative powers over such waters - Section 108 constitutionally valid. The States Reorganisation Act was enacted to provide for the reorganisation of the States of India and for matters connected therewith as stipulated by Art. 3 of the Constitution. The creation of new States by altering territories and boundaries of existing States is within the exclusive domain of Parliament. The law making power under Arts. 3 and 4 is paramount and is not subjected to nor fettered by Art. 246 and Lists II and III of the 7th Schedule. The Constitution confers supreme and exclusive power of Parliament under Arts. 3 and 4 so that while creating new States by reorganisation, the Parliament may enact provisions for dividing land, water and other resources; distribute the assets and liabilities of predecessor States amongst the new States; make provisions for contracts and other legal rights and obligations. The constitutional validity of law made under Arts. 3 and 4 cannot be questioned on ground of lack of legislative competence with reference to the lists of 7th Schedule. The new State ....