The Indian Supreme Court says all citizens should be bound by the same laws in civil issues such as marriage, divorce and property rights.
Muslims say a common law will interfere with Islamic codes
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The issue of a common civil code for all Indians is a deeply sensitive and controversial one as it would affect, for example, the right of an Indian Muslim man to have more than one wife.
The main party in the government, the Bharatiya Janata party (BJP), has long been pushing for such a law in the face of opposition from its coalition allies.
The BBC's Jyotsna Singh in Delhi says the Supreme Court's supportive remarks of a common civil code, in the run up the crucial state elections, may help the BJP to argue its case.
'Matter of regret'
At present, the Indian constitution allows members of different faiths to follow their own religious laws.
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A common civil code will help the cause of national integration by removing the contradictions based on ideologies
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But in a ruling on Tuesday, the Supreme Court said a common civil code would help national integration in India.
Any move to bring such legislation would have to be initiated and approved by the federal parliament.
The court was ruling on a petition filed by a Christian priest relating to property rights.
Under current law, Christians are forbidden from donating inherited property for charitable purposes.
The court pointed out that there is already legal provision for a uniform civil code in India. It said it was "a matter of regret" that it has not been enacted.
"A common civil code will help the cause of national integration by removing the contradictions based on ideologies," the court said.
Opposition
The issue of a uniform civil code has always divided Indians along religious lines.
Religious minorities in India are strongly opposed to such provisions saying such a common law would interfere with their codes of conduct.
In 1986, the Supreme Court ruled against the marital code for Muslims in a landmark judgement when it said a Muslim woman, Shah Bano, was entitled to alimony in a divorce case.
But Prime Minister Rajiv Gandhi, faced with mounting anger from Muslim groups, used parliamentary procedures to set aside the court judgement.
Our correspondent says that even Muslims supporting reforms within the Islamic laws, particularly in regard to divorce and marriage, are wary of being subject to common civil laws saying their religious rights may not be protected.