Page 57 – Rights & Liabilities of Government
Based on M. Laxmikanth – Indian Polity (6th Edition)
Key Idea Summary
Core concepts and exam relevance
The Government of India and State Governments have legal rights & liabilities similar to a corporate body.
They can:
- Own property
- Enter contracts
- Sue and be sued
- Doctrine of Sovereign Immunity
- Government liability in torts
- Contractual liability
- Article 300
Constitutional Provisions
Articles 294-300
Article 294 & 295
- Transfer of property
- Transfer of assets
- Transfer of liabilities
- From British India to Union & States
Article 298
- Executive power to carry trade
- Executive power to acquire property
- Executive power to make contracts
- Union & States both have this power
Article 299 – Contracts
- Contracts in name of President/Governor
- Executed by authorized persons
- Non-compliance = void contract
- Personal liability not on President/Governor
Article 300 – Suits
- Government may sue
- Government may be sued
- Based on pre-constitutional liability
- Like "Dominion of India" before 1950
Government Liability
Contractual vs Tortious
📝 Contractual Liability
- Government bound by valid contracts
- Must follow Article 299 formalities
- Can be sued for breach
- Statutory limitation applies
- Arbitration possible
⚠️ Tort Liability
- Sovereign functions: Traditionally no liability
- Non-sovereign functions: Liable
- Courts evolving this distinction
- Compensation increasingly awarded
- Human rights violations = liability
Sovereign: Defence, law & order, taxation (traditionally no liability)
Non-sovereign: Running railways, postal services, hospitals (liable)
Note: Courts are increasingly holding government liable even for sovereign function violations of fundamental rights.
Evolution of Government Liability
Key milestones
British Crown took over East India Company assets and liabilities
Articles 294-300 adopted; liability based on pre-constitutional position
Supreme Court upheld sovereign immunity for police custody negligence
Courts increasingly award compensation for human rights violations
Simulation Lab
Government Liability Explorer
🧪 Government Liability Simulator
Select a scenario to understand government liability.
Select a scenario to analyze government liability.
Exam Booster – Practice Questions
Test your understanding
1 Which Article deals with government contracts?
Article 299 deals with contracts. Must be in name of President/Governor and executed by authorized person. Non-compliance = void contract.
2 Can government be sued?
Article 300 allows government to sue and be sued. No prior permission needed for civil suits. Government has legal personality.
Memory Hooks & Quick Revision
Key takeaways for exam day
Revision Summary
3 Exam Points to Remember
- 1 Art. 299: Contracts in name of President/Governor | By authorized person | Else VOID
- 2 Art. 300: Govt can sue & be sued | Like "Dominion of India" liability
- 3 Tort: Sovereign = No liability (evolving) | Non-sovereign = Liable | HR violations = Liable