Part XII: Finance, Property, Contracts and Suits

Article 299: Contracts

Original Article:

(1) 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, as the case may be, 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 authorize.

(2) 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 heretofore in force, nor shall any person making or executing any such contract or assurance on behalf of any of them be personally liable in respect thereof.

Explanations:

Article 299 of the Constitution of India ensures that contracts made by the Union or State governments are legally binding and carried out in an official capacity. It also provides immunity to government officials, including the President and Governors, from personal liability for actions carried out under this provision.

Key Provisions:

Clause 1: Execution of Government Contracts

All government contracts must be executed in the name of the President or Governor and carried out by authorized representatives, ensuring formal legality and accountability.

Clause 2: Immunity from Personal Liability

Government officials executing contracts on behalf of the Union or State are not personally liable, reinforcing the principle of institutional accountability over individual responsibility.

Real-Life Examples:

Contracts awarded for public infrastructure projects, such as highway construction, are executed under the authority of the President or Governor, ensuring legitimacy and adherence to Article 299.

Amendments:

The Constitution (Seventh Amendment) Act, 1956, removed references to "Rajpramukh," simplifying the article for consistency with India’s evolving administrative framework.

Historical Significance:

Article 299 underscores the formal procedures and institutional frameworks necessary for government transactions, ensuring accountability and reducing ambiguity in public administration.

Debates and Deliberations:

Dr. B.R. Ambedkar clarified that Article 299 aimed to centralize contractual authority under the President or Governor to maintain consistency and prevent misuse of executive power. Members discussed the balance between institutional accountability and individual immunity, ensuring robust safeguards for both government functionaries and citizens.

References:

• Constitution of India: Full text and analysis of Article 299.
• Seventh Amendment: Simplification of administrative terms.