Articles 294 to 300 of Part XII of the Constitution of India outline the rights, liabilities, and responsibilities of the Union and State governments regarding property, contracts, and legal suits. These provisions ensure a clear framework for the management of governmental assets and legal accountability.
Succession of Property
All property and assets previously held by the Dominion of India, provinces, or princely states automatically transferred to the Union or respective state governments upon the Constitution’s commencement. This includes all rights, liabilities, and obligations that were previously owned by these entities.
Escheat, Lapse, and Bona Vacantia
- Escheat – Property becomes state-owned when a person dies intestate without heirs.
- Lapse – Rights terminate due to disuse or failure to follow procedures.
- Bona Vacantia – Property without a rightful owner is claimed by the state. These principles ensure that unclaimed properties are managed by the government.
Sea-Wealth
All resources, including lands and minerals under the ocean’s waters within India’s territorial limits, belong to the Union. States cannot claim jurisdiction over these resources, which include the continental shelf and exclusive economic zone.
Compulsory Acquisition of Property
The Parliament and state legislatures can enact laws for compulsory acquisition of private property. The 44th Amendment Act of 1978 limits the obligation to pay compensation, with exceptions for minority educational institutions and land under personal cultivation within ceiling limits.
Acquisition Under Executive Power
The Union or state governments can acquire, hold, and dispose of property through their executive powers. This includes the authority to engage in trade and business both within and outside their jurisdictions.
Legal Status of Government
Article 300 establishes that the Government of India can sue or be sued in the name of the Union of India. Similarly, state governments can engage in legal proceedings under their respective names. This grants them legal personality for suits and proceedings.
Governmental Liability
The Union and state governments can be held liable for actions similar to those that could have been taken against the pre-Constitution governments. However, no specific laws have been enacted to define this liability further.
Liability for Contracts
The Union and states can enter contracts under their executive powers. However, contracts must meet three mandatory conditions: 1. They must be expressed as made by the President or Governor. 2. They must be executed on their behalf. 3. They must comply with prescribed execution methods. Failure to meet these conditions renders contracts void.
Liability for Torts
The government can be sued for torts committed by its officials only during the exercise of non-sovereign functions. Examples of sovereign functions, where immunity applies, include administering justice and military operations.
Distinction Between Sovereign and Non-Sovereign Functions
This distinction is crucial. The famous PO Steam Navigation Company case (1861) established that the government enjoys immunity for sovereign functions. The Supreme Court reaffirmed this in the Kasturi Lal case (1965).
Judicial Precedents on Liability
– Nagendra Rao Case (1994) – The Supreme Court ruled that the state is liable for damages caused by negligent acts of its servants. – Common Cause Case (1999) – The court rejected the doctrine of sovereign immunity, expanding governmental liability.
Immunity of the President and Governors
Article 361 grants immunity to the President and Governors for official acts. They cannot be sued during or after their term for actions performed in their official capacity. However, civil proceedings can be initiated against them for personal actions with prior notice.
Criminal and Civil Proceedings
- Criminal Immunity – The President and Governors cannot face criminal charges for personal actions during their term.
- Civil Proceedings – They can face civil suits for personal actions, provided a two-month notice is given.
Liability of Ministers
Ministers do not enjoy immunity for official acts. They can be held liable for personal acts and can be sued in courts like any ordinary citizen.
Immunity of Judicial Officers
Judicial officers are protected from liability for acts performed in their official capacity. The Judicial Officers Protection Act (1850) stipulates that they cannot be sued for actions taken while discharging their duties.
Civil Servants’ Liability
Civil servants are not personally liable for contracts made in their official capacity. However, if a contract violates constitutional conditions, they may be held personally liable. They have immunity for acts performed in sovereign functions, but not for torts or illegal acts.
Civil Proceedings Against Civil Servants
Civil proceedings can be initiated against civil servants for actions in their official capacity with a two-month notice. No notice is required for acts outside their official duties.
Criminal Proceedings Against Civil Servants
Criminal proceedings can be initiated against civil servants for acts done in their official capacity, subject to necessary permissions from the President or Governor.
Articles Governing Rights and Liabilities
The following articles of the Constitution govern the rights and liabilities of the government:
- – Article 294 – Succession to property and assets.
- – Article 295 – Succession in other cases.
- – Article 296 – Property accruing by escheat, lapse, or bona vacantia.
- – Article 297 – Resources within territorial waters and continental shelf.
- – Article 298 – Power to carry on trade.
- – Article 299 – Contracts.
- – Article 300 – Suits and proceedings.
- – Article 361 – Immunities of President and Governors.
Summary of Governmental Rights and Liabilities
The Constitution provides a structured framework for the management of property and legal responsibilities of the Union and State governments. It balances governmental rights with obligations, ensuring accountability while protecting officials from personal liability. This framework is essential for maintaining legal clarity and stability in the functioning of the state of India.
