Rights and Liabilities of the Government

Articles 294 to 300 in Part XII of the Constitution of India deals with the property contracts, rights, liabilities, obligations, and suits of the Union and the states.

This article will go in length about the Rights and Liabilities of the Government within the perspective of the polity segment of the IAS Exam.

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Property of the Union and the States

Regarding the management of Property of both Union and the States, the following rights and liabilities are available to the government.

1. Succession: All property and assets that were vested in the Dominion of India or a province or an Indian princely state, before the commencement of the present Constitution, became vested in the Union or the corresponding state

Similarly, all rights, liabilities and obligations of the government of the dominion of India or a province or an Indian state would now be the rights, liabilities and obligations of the Government of India or the corresponding state

2. Escheat, Lapse and Bona Vacantia: Any property in India that would have accrued to the King of England or ruler of Indian state (princely) by escheat (death of a person intestate without any heir), lapse (termination of rights through disuse or failure to follow appropriate procedures) or bona vacantia (property found without any power) for want of a rightful owner, would now vest in the state if the property is situated there and in the Union, in any other case.

In all three cases, the property accrues to the government as there is no rightful owner (claimant).

3 Sea-Wealth: All lands, minerals and other things of value under the waters of the ocean within the territorial waters of India, the continental shelf of India and the exclusive economic zone of India vests in the Union. Hence, a state near the ocean cannot claim jurisdiction over these things

India’s territorial waters extend to a distance of 12 nautical miles from the appropriate baseline. Similarly, India’s exclusive economic zone is more than 2 million sq km.

4. Compulsory Acquisition by Law: The Parliament as well as the state legislatures are empowered to make laws for the compulsory acquisition and requisitioning of private property by the governments. Further, the 44th Amendment Act (1978) has also abolished the constitutional obligation to pay compensation in this regard except in two cases:

a) when the government acquires the property of a minority educational institution

b) when the government acquires the land held by a person under his personal cultivation

and the land is within the statutory ceiling limits

5. Acquisition under Executive Power: The Union or a stance can acquire, hold and dispose property under the exercise of its executive power, Further, the executive power of the Union or a state extends to the carrying on any trade or business within and in other states also.

Suits by or Against the Government

Article 300 of the Constitution of India deals with the suit by or against the Government in India. It lays down that the Government of India may sue or be sued by the name of the Union of India and government of a state may sue or be sued by the name of the Union of India and government of a state may sue or be sued by the name of that state, eg, State of Madhya Pradesh or State of Gujarat and so on.

Thus, the Union of India and states are legal entities (juristic personalities) for purposes of suit and proceeding, not the government of the Union or Government of states.

Regarding the extent of the Governmental liability, the Constitution (Article 300) declares that the Union of India or states can sue or be sued in relation to their respective affairs in the like cases as the domination of India and the corresponding provinces or Indian states might have sued or been sued before the Constitution. This provision is subject to any law made by Parliament or a state legislature. But no such law has been enacted so far.

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Before independence, the government was suable for contracts but not for torts (wrongs committed by its servants) in respect of its sovereign functions. This is explained as follows:

1. Liability for Contracts: Under the exercise of its executive power, the Union or a state can enter for the acquisition, holding and disposal of property or to carry on any trade or business, or for any other purpose. But, the Constitution lays down three conditions that must be fulfilled by such contracts.

1. They must be expressed to be made by the president or governor, as the case may be;
2. They must be executed on behalf of the president or governor, as the case may be
3. They must be executed by such person or in such manner as the president or governor may direct or authorise

These conditions are mandatory and not merely directory in nature. Failure to comply with them nullifies the contracts and renders them void and unenforceable in the courts

2. Liability for Torts: In the beginning, the East India Company was only a trading body. Gradually, it acquired territories in India and became a sovereign authority. The Company was suitable for its functions as a trader but not as a sovereign

This immunity of the Company in respect of its sovereign functions was based on the English Common Law maxim that the ‘King can do no wrong’, which means that the King was not viable for wrongs of his servants.

This traditional immunity of the State (the Crown) in Britain from any legal liabilities for any action has been done away by the Crown Proceeding Act (1847). However, the position in India still remains the same.

Therefore, the Government in India can be sued for torts committed by its officials only in exercise of its non-sovereign functions but not in the sovereign functions like administering justice, constructing a military road, commandeering goods during war etc.

Articles related to Rights and Liabilities of the Government

The following table gives a brief about the article of the Constitution of India that governs the liabilities and rights of the Government of India:

Find important Articles of the Constitution, by visiting the linked article.

Aspirants can find complete information about upcoming Government Exams through the linked article. More exam-related preparation materials will be found through the links given below