Rights and Liabilities of the Government under the Indian Constitution

Articles 294 to 300 of Part XII of the Indian Constitution detail the rights, liabilities, and responsibilities related to property, contracts, and legal suits involving the Union and State governments. This section covers the succession of assets, the acquisition of property, and the legal framework for governmental suits. It also addresses the immunities of key officials and the limits of governmental liability.

Constitutional Provisions and Protections

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.
• Escheat, Lapse, and Bona Vacantia: Any property in India that would have accrued to the King of England or a ruler of an Indian princely state through Escheat, Lapse, and Bona Vacantia would now vest in the state if the property is situated there and in the Union, in any other case.
• • Escheat: death of a person intestate without any heir, 
  • Lapse: termination of rights through disuse or failure to follow appropriate procedures
  • Bona Vacantia: property found without any power for want of a rightful owner.
• Sea-Wealth: All lands, minerals, and other things of value under the ocean’s waters 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. 
• Compulsory Acquisition by Law: The Parliament and 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 of 1978 has also abolished the Constitutional obligation to pay compensation in this regard except in two cases:
    • When the government acquires the property of a minority educational institution.
    • When the government acquires the land held by a person under his personal cultivation and the land is within the statutory ceiling limits
• 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 of any trade or business within and in other states.

Enroll now for UPSC Online Course

Suits by or Against the Government

Legal Status of the Union and State Governments: Article 300 of the Constitution lays down that  the Government of India may sue or be sued by the name of the Union of India, and the government of a state may sue or be sued by the name of that state, eg, State of Bihar or State of Uttar Pradesh and so on. 

• Thus, the Union of India and states are legal entities (juristic personalities) for purposes of suits and proceedings, not the Government of the Union or the government of states. 
• Extent of the Governmental Liability: Article 300 declares that the Union of India or states can sue or be sued in relation to their respective affairs 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. However, as of now, no such law has been passed. 
  • In the pre-Constitution period, the government was suable for contracts but not for torts (wrongs committed by its servants) regarding its sovereign functions.
  • Liability for Contracts: Under the exercise of its executive power, the Union or a state can enter into contracts for the acquisition, holding and disposal of property, or to carry on any trade or business, or for any other purpose. 
• Liability for Contracts Executed in the Name of the President or Governor: The President or the Governor is not personally liable in respect of any contract executed in his name. 
  • Similarly, the officer executing the contract is also not personally liable.  
  • But, the Constitution lays down three mandatory conditions to be fulfilled by such contracts:
    • They must be expressed to be made by the President/Governor, as the case may be;
    • They must be executed on behalf of the President or Governor, as the case may be; and
    • They must be executed by such person or in such manner as the President/Governor may direct or authorise.
• Liability for Torts:  The government (Union or states) in India can be sued for torts (civil wrongs) committed by its officials only in the exercise of its non-sovereign functions but not in the sovereign functions like administering justice, commandeering goods during war, constructing a military road, etc. 
  • Distinction Between Sovereign and Non-Sovereign Functions: This distinction between the sovereign and non-sovereign functions of the Government in India and the immunity of the government in respect of its sovereign functions was established in the famous PO Steam Navigation Company case (1861). 
    • This was reaffirmed by the Supreme Court in the Kasturi Lal case (1965). 
  • Nagendra Rao Case (1994): The Supreme Court of India ruled that when a citizen suffers any damage due to the negligent act of the servants of the State, the State would be liable to pay compensation for it, and the State cannot avoid this liability on the ground of sovereign immunity. 
  • Common Cause Case (1999): The Supreme Court of India, again examined the whole doctrine and rejected the sovereign immunity.

Suits Against Public Officials

President and Governor

• Ministers: The Constitution does not grant any immunity to the ministers for their official acts. 
  • Liability for Official Acts: But, since they are not required to countersign the official acts of the President and the Governors, they are not liable in the courts for those acts.  
  • Liability for Personal Acts: However, the ministers do not enjoy any kind of immunity for their personal acts, and can be sued for crimes as well as torts committed by them in the ordinary courts like common citizens.
• Judicial Officers: They enjoy immunity from any liability in respect of their official acts and hence, cannot be sued. 
  • Judicial Officers Protection Act (1850): stipulates that “no judge, magistrate, justice of peace, collector, or other person acting judicially shall be susceptible to be sued in any civil court for any act performed by him in the discharge of his official duty.” 
• Civil Servants: The civil servant who made a contract in his official capacity is not personally liable in respect of that contract, but it is the government (Central or state) that is liable for the contract. 
  • But, if the contract is made without complying with the conditions specified in the Constitution, then the civil servant who made the contract is personally liable. 
  • Immunity and Liability of Civil Servants: They also enjoy immunity from legal liability for their tortious acts in respect of the sovereign functions of the government. 
    • In other cases, the liability of the civil servants for torts or illegal acts is the same as of any ordinary citizen. 
  • Civil Proceedings: can be instituted against them for anything done in their official capacity after giving a two-month advance notice.
    • But, no such notice is required when the action is to be brought against them for the acts done outside the scope of their official duties. 
  • Criminal Proceedings: can be instituted against the civil servants for acts done in their official capacity, with the prior permission of the President or the Governor, where necessary.

Articles Related to Rights and Liabilities of the Government 

Enroll now for UPSC Online Course

Conclusion

The Constitution provides a comprehensive framework for managing the property and legal responsibilities of the Union and State governments. 

• It balances the government’s rights with obligations, ensuring that government actions are legally accountable while protecting key officials from personal liability. 
• This structure maintains legal clarity and stability in the functioning of the Indian state.

Sign up for the PWOnlyIAS Online Course by Physics Wallah and start your journey to IAS success today!

DOWNLOAD PDF