evidence: It is necessary to distinguish the phrases ‘Union of India’ and ‘Territory of India’. The Union of India includes only those States which enjoy the status of being members of the federal system and share the distribution of powers with the Union. The Union Territories are not included in the Union of states whereas the term Indian Territory includes not only the States but also the Union Territories and other territories that India may acquire. In the First Schedule of the Constitution, the States and Territories are specified. [...] In this case, the supreme court held that the power of Parliament to diminish the area of a State (under Article 3) does not cover the cession of Indian territory to a foreign country. Indian territory can be ceded to a foreign state only by amending the Constitution Under Article 368. Consequently, the 9th Constitutional Amendment Act (1960) was enacted to transfer the said territory to Pakistan. Supreme Court in 1960 ruled that the Settlement of a boundary dispute between India and another Country does not require a Constitutional amendment. It can be done by executive action as it does not involve cession of Indian territory to a foreign country.