Actual Article
Article 299: Contracts
- 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.
- 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 such contract or assurance be deemed to be a contract or assurance made by him personally.
- No contract made by or on behalf of the Government of India or the Government of a State shall be invalid by reason only that it was not made in accordance with the provisions of this article, nor shall any person making or executing any such contract or assurance be personally liable in respect thereof.
UPSC Notes for Article 299
Explanation:
- Contracts in Executive Power: Clause (1) mandates that all contracts made in the exercise of the executive power of the Union or a State must be expressed to be made by the President or the Governor, respectively. These contracts must be executed on their behalf by authorized persons.
- Personal Liability Exemption: Clause (2) ensures that neither the President nor the Governor is personally liable for contracts made or assurances given for governmental purposes.
- Validity of Contracts: Clause (3) states that no government contract shall be invalid solely because it was not made in strict compliance with the article’s provisions, nor shall the person executing the contract be personally liable.
Key Points:
- Formal Requirements: The article specifies the formal requirements for government contracts to ensure transparency and accountability in public dealings.
- Immunity for Heads of State: It provides immunity to the President and the Governors from personal liability in relation to official contracts, protecting them from legal repercussions arising from their official duties.
- Legal Safeguards: Ensures that government contracts remain valid even if there are procedural lapses, protecting the interests of the state and the public.
Important Cases and Commissions Related to Article 299
Cases:
- Chatturbhuj Vithaldas Jasani vs. Moreshwar Parashram (1954): The Supreme Court emphasized that contracts must be made in the name of the President or the Governor to be valid under Article 299.
- State of Bihar vs. Karam Chand Thapar & Bros. Ltd. (1962): This case highlighted the necessity for government contracts to comply with Article 299 to avoid disputes over their validity.
Commissions:
- Law Commission of India: Reviews and recommends amendments to ensure the effectiveness and compliance of government contracts with Article 299.
- Public Accounts Committee: Examines government contracts and ensures they are made in accordance with the constitutional provisions.
Important Reports Related to Article 299:
- Law Commission Reports: Discuss the legal framework for government contracts and recommend measures for improving compliance and transparency.
- Public Accounts Committee Reports: Analyze the execution of government contracts and provide recommendations for adherence to Article 299.
Previous Year Prelims Questions Related to Article 299
- (UPSC Prelims 2016) According to Article 299 of the Indian Constitution, who should government contracts be expressed to be made by?
- A. The Prime Minister
- B. The President or the Governor
- C. The Chief Justice of India
- D. The Finance Minister Correct Answer: B. The President or the Governor
- (UPSC Prelims 2018) What does Clause (2) of Article 299 state regarding the personal liability of the President or the Governor?
- A. They are personally liable for all contracts made in their name
- B. They are not personally liable for contracts made for governmental purposes
- C. They can delegate liability to other officials
- D. They must personally approve all contracts Correct Answer: B. They are not personally liable for contracts made for governmental purposes
Previous Year Mains Questions Related to Article 299
- Mains 2016: “Discuss the significance of Article 299 in ensuring the proper execution of government contracts. How does this article protect the interests of the state and provide legal safeguards for public dealings?”
- Mains 2019: “Evaluate the impact of Article 299 on the transparency and accountability of government contracts. What are the potential benefits and challenges associated with the formal requirements outlined in this article?”
Additional Insights:
- Ensuring Compliance: Article 299 ensures that government contracts are made in a structured and compliant manner, reducing the risk of disputes and legal challenges.
- Protecting Public Interest: By providing immunity to the President and Governors from personal liability, the article safeguards the interests of public officials and promotes efficient administration.
- Maintaining Validity: The provision that contracts remain valid despite procedural lapses ensures continuity and stability in government operations, protecting public interests and preventing potential disruptions.
Understanding Article 299 is crucial for UPSC aspirants as it provides insights into the mechanisms for executing government contracts, emphasizing the importance of transparency, accountability, and legal safeguards in public dealings. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the constitutional provisions and their impact on governance within the Indian Constitution.