Chapter 68 Rights And Liabilities Of the Government Of India

Category: Indian Polity

Articles 294 to 300 of the Indian Constitution are part of Part XII, which focuses on the subjects of property, contracts, rights, liabilities, obligations, and suits involving the Union (the central government) and the states (the individual state governments).

The Constitution of India establishes both the Union and the states as "juristic persons." This legal term means that both the Union and the states have the ability to hold rights and liabilities similar to individuals or companies. They can enter into contracts, own property, and be sued or can sue others. This is crucial as it allows the government entities to operate effectively within legal frameworks, enabling them to manage resources, conduct business, and participate in the legal system.

For example, Article 294 specifically states that the Union and states can own and manage properties, which is essential for governance and administration. Article 295 addresses the continuation of laws made by former rulers, ensuring a smooth transition after India gained independence. Article 296 allows for the allocation of property and it's responsibilities among the Union and states.

Furthermore, Article 297 discusses how certain types of properties are to be deemed properties of the Union. This can include assets that were previously owned by the British Crown before India became independent. Article 298 provides the Union and states with the authority to regulate trade and commerce, which is essential for economic operations.

Article 299 requires that all contracts made in the name of the Union or a state must be executed in a specific manner, which includes being in writing and signed by persons duly authorized by the Union or state government. This ensures transparency and accountability in government dealings.

In addition to these articles, Article 300 explicitly states that the Union can sue and be sued, enabling it to protect its interests in a court of law. Likewise, states have similar provisions under which they can engage in legal actions.

Understanding these articles is critically important for grasping how the Indian political and legal systems function, particularly regarding the responsibilities and rights of government entities. These provisions help define the relationship between the government and its citizens while ensuring that governance is carried out fairly and legally. Thus, the constitutional framework regarding property and contracts strengthens the rule of law in India and fosters an environment of trust and accountability in government operations.

Property Rights of the Union and the States in India

In India, the ownership of property and assets is defined by the Constitution. When the Constitution came into effect, any property that was once owned by the Dominion of India, provinces, or Indian princely states automatically became the property of the Union of India or the respective state. This means that all rights, responsibilities, and obligations that were linked to the old governments are now transferred to the current government structures of India.

Succession of Property

Before the Constitution started, any property held by the Dominion of India, a province, or an Indian princely state now belongs to various governing bodies. For instance, if there were assets belonging to an Indian state or the colonial government, those assets are now assets of the Union of India or the respective state. This smooth transfer ensures that governance remains uninterrupted and that the assets continue to be used for the public good.

Escheat, Lapse, and Bona Vacantia

There are special situations where property may not have a clear owner. For example, if someone dies without a will and has no heirs, that property is referred to as 'escheat.' If someone's rights to a property end due to not using it during a specified time, this is called 'lapse.' In cases where something of value is found without any owner, it is termed 'bona vacantia.'

According to the law, if such properties arise within a state's boundaries, they become the property of that state. If they are found outside that state, they go to the Union government. This means that the government can take control of properties without clear ownership and utilize them for public purposes.

Sea-Wealth

All valuable things found in the sea, such as lands and minerals, are owned by the Union government of India. This includes resources found under the ocean within India's territorial waters or exclusive economic zone. The territorial waters extend up to 12 nautical miles from India's baseline, while the exclusive economic zone reaches up to 200 nautical miles. Because of this law, individual states cannot claim ownership over any marine resources, ensuring that the Union has control over national riches found at sea.

Compulsory Acquisition by Law

The government in India has the power to take over private property for public use, which is referred to as compulsory acquisition. Both Parliament at the national level and state legislatures have the authority to pass laws for such acquisitions. This process is regulated under Article 300A of the Indian Constitution, which allows for the acquisition of property by the government. However, following the 44th Amendment Act of 1978, it is no longer mandatory for the government to pay compensation, except in certain situations. These exceptions include the acquisition of land owned by minority educational institutions and land cultivated by a farmer if it falls within statutory ceiling limits.

Acquisition under Executive Power

The Union government and the states have the authority to acquire, hold, and manage properties as part of their executive powers. This means they can engage in activities such as trade and commerce not just within their own boundaries but also in other states. This provision ensures that the governments can efficiently manage public resources and engage in economic activities that benefit the community.

In summary, the constitutional provisions around property management ensure that all assets are systematically transferred and managed, balancing the needs of the government with the rights of the public. These laws guide how properties are dealt with when ownership is unclear and outline the procedures for government acquisition of property for public utility.

Suits By or Against the Government: Article 300 of the Indian Constitution

Article 300 of the Indian Constitution outlines how legal cases involving the government are managed. It specifies that the Government of India can initiate a lawsuit or be involved in one under the name "Union of India." Likewise, the state governments can sue or face lawsuits under the name of the respective state, such as "State of Andhra Pradesh" or "State of Uttar Pradesh." This means that the Union of India and state governments are recognized as legal entities, allowing them to partake in legal actions, similar to individuals and businesses.

Government's Legal Status and Liability

According to Article 300, both the Union and state governments have the authority to sue or be sued, just as the earlier Indian dominions (before the Constitution was enforced) could have done. However, this is subject to any laws enacted by Parliament or a state legislature, and as of now, no specific law addressing this has been passed. Therefore, the legal position today is more or less the same as it was before India adopted its Constitution in 1950.

In the period before the Constitution, the government could be sued for contracts but not for torts (which are wrongful actions that cause harm), especially concerning sovereign functions—tasks carried out in the interest of the state. The distinction between contracts and torts is crucial for understanding government liability.

Liability for Contracts

Under its executive powers, both the Union and state governments can enter into contracts. This includes agreements for buying, managing, and selling property or conducting trade. However, three specific conditions must be met for these contracts to be valid:

  1. They must clearly state they are made by the President or the Governor.
  2. They need to be executed on behalf of the President or Governor.
  3. They should be carried out by someone authorized by the President or Governor.

If these conditions are not met, the contracts will be rendered void. It is important to note that neither the President nor the Governor is personally liable for contracts executed in their name, and the same goes for the officials who carry out these contracts. This immunity does not mean that the government itself is exempt from following through on its contractual obligations. In fact, the Union and state governments are held to the same standards as any individual regarding contract law.

Liability for Torts

Historically, during the East India Company's rule, it operated primarily as a trading entity but eventually began acting as a sovereign power. The Company could be sued for its activities as a trader but had immunity from lawsuits concerning its sovereign activities. This idea stems from a common law principle in England that the "King can do no wrong," meaning the government could not be held liable for wrongs committed by its agents in performing sovereign duties.

In India, this principle has remained until more recent judgments by the Supreme Court. In the landmark case P and O Steam Navigation Company v. Secretary of State for India (1861), the court established a precedent that the government was only liable for torts committed in the course of non-sovereign functions. The distinction between sovereign and non-sovereign functions was reaffirmed in Kasturilal Ralia Ram Jain v. State of U.P. (1964), where the Supreme Court held that the government could not be sued for actions taken during sovereign functions.

However, there has been a shift in interpretation over time. In Nagendra Rao v. State of A.P. (1994), the Supreme Court criticized the rigid doctrine of sovereign immunity. It recognized that citizens should have the right to seek compensation for damages caused by the negligence of state officials, suggesting that the state should not escape accountability even during sovereign functions. The verdict emphasized that modern legal thought does not support placing the government above the law, and it aligns with a more welfare-oriented view of governance.

The changing perspective continues in Common Cause v. Union of India (1999), where the Supreme Court stated that the distinction between sovereign and non-sovereign functions is increasingly outdated, recognizing the extensive reach of state activities into citizens' lives. Thus, the court declared that the state should be accountable for acts causing harm, whether they arise from sovereign or non-sovereign functions.

In a more recent ruling in the Prisoner's Murder case (2000), the Supreme Court effectively rendered the earlier Kasturilal judgment insignificant and reiterated that the government cannot hide behind sovereign immunity when it causes harm through negligence.

Summary

The legal framework for suits involving the government in India is detailed in Article 300 of the Constitution, which allows both the Union and state governments to be parties in legal proceedings. While historically, the government had limited liability for torts due to sovereign immunity, recent judgments have expanded the scope of state liability. Citizens can now hold the government accountable for negligence, reflecting a modern approach that places the state on an equal footing with individuals and other legal entities within the context of contemporary Indian law.

Suits Against Public Officials in India

The Constitution of India provides certain protections or immunities to key public officials, such as the President and the Governor. These protections relate to both their official duties and personal actions.

President and Governor

Official Acts
The President of India and the Governors of the states cannot be taken to court for actions performed in their official capacities during their time in office or even afterward. This means that if they make decisions or take actions as part of their duties, they are shielded from lawsuits. However, if there are grounds for impeachment, such as misconduct, their actions can be reviewed by a court, tribunal, or any other body authorized by Parliament. In such cases, a person who feels wronged can file a suit against the Union of India or the state government rather than against the President or the Governor directly.

Personal Acts
Regarding personal matters, the President and Governors cannot face criminal charges for actions that are not related to their official responsibilities. They also cannot be arrested or imprisoned for these personal actions. However, this immunity only lasts while they are in office. If someone wants to file a civil lawsuit against them for their personal actions during their term, they must give two months’ advance notice before proceeding.

Ministers

Unlike the President and Governors, Ministers do not have any immunity for their official actions under the Indian Constitution. Even though they do not have to sign off on the actions of the President or Governors (which is a requirement in other countries, like Britain), they cannot be held accountable in court for those actions. Additionally, if a Minister gives advice to the President or Governor, the courts cannot question that advice. However, for their personal actions, Ministers can face lawsuits just like any other citizen can, which includes both criminal and civil cases.

Judicial Officers

Judicial officers enjoy a special immunity when it comes to their official duties. According to the Judicial Officers Protection Act of 1850, judges and other judicial roles are not liable to be sued in civil court for actions carried out within their official functions. This means they are protected from legal challenges regarding their decisions made while performing their duties.

Civil Servants

Civil servants also benefit from certain protections. The Constitution grants them personal immunity for acts conducted as part of their official duties. If a civil servant enters into a contract while carrying out their official role, they will not be held personally liable for it; instead, the government (whether Central or state) is responsible. However, if a contract is made without following the legal guidelines specified in the Constitution, the civil servant can be held personally accountable.

Moreover, civil servants are shielded from legal liability for their actions related to the government’s sovereign functions. In scenarios involving torts or illegal acts that are outside their official duties, they can be held accountable similarly to any ordinary citizen. If someone wishes to file a civil case against a civil servant for actions taken during their official duties, they must provide a two-month notice. Notably, no such notice is needed for actions taken outside the scope of their official responsibilities. For criminal proceedings against civil servants for their official actions, permission from the President or Governor may be necessary, depending on the circumstances.

Constitutional References

Various articles of the Indian Constitution and laws like the Judicial Officers Protection Act clarify these immunities. For example, Article 361 of the Constitution provides the immunity to the President and governors concerning official acts, while other legal provisions dictate the limitations and liabilities of ministers and civil servants.

In conclusion, while high-ranking officials like the President and Governors enjoy significant protections against legal actions connected to their official roles, these immunities do not extend to personal acts nor to ministers for their advice or actions. Judicial officers and civil servants have their own set of protections, emphasizing the importance of accountability while balancing the need for officials to perform their duties without the fear of constant legal scrutiny.