The power to make a law having extra territorial operation is conferred only on Parliament and not on the state legislatures. Hence an Act of the State Legislature, if it gives extra-territorial operation to its provisions, can be successfully challenged in the court, unless extra-territorial operation can be sustained on the ground of territorial nexus. It means that although the object to which the law applies may not physically be located within the territorial limits of a State, yet the State law will be valid if there exists a connection or nexus between the state and the object.
Quite interesting, but there seems to be lack of clarity in the law and use of this so called territorial nexus. Does this confine within the boundaries of Indian country or does it apply overseas? And under what circumstances can this nexus be put into use?
Territorial nexus is not confined within the boundaries of India but can be applied overseas. For example if a Hindu Indian already having a wife who is leaving in India cannot marry another woman in the overseas without divorce with the wife leaving in India even if the law of that particular nation permits. The law that is prevalent in India comes into force at that time.
Territorial nexus is a doctrine that allows application of the law of a nation outside its territorial boundaries and it is basically an International law. The law of Air and water comes under this doctrine and it comes into force only if the laws are violated. For example if a fight is hijacked from India and lands in some other nation, the laws of hijacking of India will be applicable for providing punishment and not the laws of that nation. This what exactly territorial nexus means.