Rights and Liabilities of the Government under the Indian Constitution

Constitutional Framework (Articles 294–300)

• Part XII of the Constitution (Articles 294 to 300) deals with:

• • Succession of property and assets
  • Governmental liabilities and immunities
  • Contracts and legal proceedings involving government
• Purpose: Ensure legal continuity and clarity in ownership, liability, and litigation post-independence.
  

Succession of Property & Assets (Articles 294–295)

• Article 294: All assets and liabilities of the Dominion of India and provinces vested in the Union or corresponding states after the Constitution commenced.
• Article 295: States inherit rights and obligations of former princely states.
  

Escheat, Lapse, Bona Vacantia (Article 296)

• If a person dies intestate without legal heirs:

• • Property passes to the state (if located there) or to the Union (otherwise).
  • Terms:
    • Escheat: Property of a person dying without heir
    • Lapse: Rights lost due to inaction
    • Bona Vacantia: Ownerless property
      

Ownership of Ocean Wealth (Article 297)

• Union owns all:
  • Minerals, oil, and natural resources in territorial waters
  • Continental shelf, EEZ (Exclusive Economic Zone)
• States cannot claim resources from adjacent ocean areas.
  

Power to Carry on Trade (Article 298)

• Union and States may:

• • Carry on any trade or business
  • Acquire, hold, and dispose property
  • Make contracts for any purpose using executive power
    

Government Contracts (Article 299)

• Valid government contract must:

• 1. Be expressed in the name of the President or Governor
  2. Be executed on their behalf
  3. Be signed by authorised person
• President/Governor not personally liable, nor the signing officer.
  

Suits by or Against Government (Article 300)

• Union and State governments can sue or be sued in their name:

• • E.g., Union of India, State of Maharashtra
• Continuity clause: Legal proceedings same as pre-Constitution era.
• Contracts: Government is liable for breach.
• Torts:
  • Not liable for sovereign functions (e.g., military action, policing)
  • Liable for non-sovereign functions (e.g., commercial, municipal)
    

Important Judgments on Government Liability

• P&O Steam Navigation Co. Case (1861): Introduced sovereign vs non-sovereign functions.
• Kasturi Lal Case (1965): Confirmed immunity for sovereign functions.
• Nagendra Rao Case (1994): State liable for negligence causing harm.
• Common Cause Case (1999): Rejected broad sovereign immunity.

Immunities to Key Officials (Article 361)

• • President & Governors:
    • Cannot be sued or arrested during their term for official acts.
    • Can be tried for personal civil acts after 2-month notice.
    • No criminal proceedings during tenure.
  • Ministers: No immunity for official or personal acts.
  • Judicial Officers: Protected under Judicial Officers Protection Act, 1850 for actions taken in judicial capacity.
  • Civil Servants:
    • Immune when acting on sovereign functions.

• Personally liable only if:

• • • Contract isn’t constitutionally valid, or
    • Actions exceed official powers
      

Summary of Relevant Articles

Article	Subject Matter
294	Succession of property from dominion/provinces
295	Succession from princely states
296	Escheat, lapse, bona vacantia
297	Ocean wealth to vest in Union
298	Power to carry on trade, property acquisition
299	Government contracts
300	Suits and liability of Union/States
361	Immunities of President and Governors

Conclusion

• The Constitution strikes a balance between government authority and accountability.
• Provides for clear succession, contractual liability, and legal redress while protecting senior officials from personal harassment.
• These provisions are essential for ensuring a stable legal order and administrative efficiency in India.