Question

Which article of the Constitution of India authorises the government to enter into an arbitration agreement:

• A. Art. $235$
• B. Art. $299$
• C. Art. $39$
• D. both (a) and (c)

Answer 1

Answer: (B)

Art. $299$

As per Article 299 of the Indian Constitution, all contracts made in the exercise of the executive power of the Union or of a State shall be expressed to be made by the President, or by the Governor of the State and all such contracts and all assurances of property made in the exercise of that power shall be executed on behalf of the President or the Governor by such persons and in such manner as he may direct or authorise.

Also, neither the President nor the Governor shall be personally liable in respect of any contract or assurance made or executed for the purposes of this Constitution, or for the purposes of any enactment relating to the Government of India, nor shall any person making or executing any such contract or assurance on behalf of any of them be personally liable.

This means article 299 lays down three conditions for making valid contracts in the exercise of the executive power of the Center or a State:

• The contract must be expressed to be made by the president or the Governor as the case may be;
  
• All contracts made in the exercise of the executive power are to be executed on behalf of the President/Governor as the case may be; and
  
• The execution must be by such person and in such manner as the President or the Governor as the case may be, may direct or authorize.