Provided for the establishment of all India federation consisting of the British province and the pricely states.The joining of principles states voluntary and as a result the federation did not come into existence. Diarchy was introduced at the centre (e.g., Department of foreign affairs and the defence were reserved for the governor general. The other federal subjects were to be administered by the governor general with the assistance and advice of a council of ministers to be choosen by him ( but to include representative of princely states and minorities and to be responsible to the central legislature.) Residuary powers were to be be with the governor general only.
The federal legislature (central legislature was to have the two Chambers ( bicameral) the council of state and the federal assembly. The council of states was to be a permanent body with one - third of it's membership being located after every two years. The federal assembly duration was fixed for five years.
It made a 3 - fold division of powers federal central legislative list provincial legislative list and the concurrent legislative list. Residuary legislative powers were subject to the discretion of the governor- general. Even if a bill was passed by the federal legislature the governor - general could veto it.
