698 lines
36 KiB
Plaintext
698 lines
36 KiB
Plaintext
PART XII
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FINANCE, PROPERTY, CONTRACTS AND SUITS
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CHAPTER I.—FINANCE
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General
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264. Interpretation.—
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In this Part, unless the context otherwise
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requires,
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(a) "Finance Commission" means a Finance
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Commission constituted under article 280 ,
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(b) " State" does not include a State specified in
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Part C of the First Schedule ;
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(c) references to States specified in Part C of the
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First Schedule shall include references to any
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territory specified in Part D of the First
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Schedule and any other territory comprised
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within the territory of India but not speci-
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fied in that Schedule.
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265. Taxes not to be imposed save by authority of law.—No tax shall
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be levied or collected except by authority of law.
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266. Consolidated Funds and public accounts of India and of the
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States.—(1) Subject to the provisions of article 267 and to the provisions of
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this Chapter with respect to the assignment of the whole or part of the net
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proceeds of certain taxes and duties to States, all revenues received by the
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Government of India, all loans raised by that Government by the issue of
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treasury bills, loans or ways and means advances and all moneys received by
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that Government in repayment of loans shall form one consolidated fund to be
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entitled “the Consolidated Fund of India”, and all revenues received by the
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Government of a State, all loans raised by that Government by the issue of
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treasury bills, loans or ways and means advances and all moneys received by
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that Government in repayment of loans shall form one consolidated fund to be
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entitled “the Consolidated Fund of the State”.
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(2) All other public moneys received by or on behalf of the Government
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of India or the Government of a State shall be credited to the public account of
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India or the public account of the State, as the case may be.
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(3) No moneys out of the Consolidated Fund of India or the
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Consolidated Fund of a State shall be appropriated except in accordance with
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law and for the purposes and in the manner provided in this Constitution.
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267. Contingency Fund.—(1) Parliament may by law establish a
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Contingency Fund in the nature of an imprest to be entitled “the Contingency
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Fund of India” into which shall be paid from time to time such sums as may be
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determined by such law, and the said Fund shall be placed at the disposal of the
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President to enable advances to be made by him out of such Fund for the
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purposes of meeting unforeseen expenditure pending authorisation of such
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expenditure by Parliament by law under article 115 or article 116.
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133
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134
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THE CONSTITUTION OF INDIA
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(2) The Legislature of a State may by law establish a Contingency Fund in
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the nature of an imprest to be entitled “the Contingency Fund of the State”
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into
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which shall be paid from time to time such sums as may be determined by such
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law, and the said Fund shall be placed at the disposal of the Governor or Rajpra
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mukh
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of the State to enable advances to be made by him out of such Fund for the purpo
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ses of
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meeting unforeseen expenditure pending authorisation of such expenditure by the
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Legislature of the State by law under article 205 or article 206.
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Distribution of Revenues between the Union and the States
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268. Duties levied by the Union but collected and appropriated by
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the States.—(1) Such stamp duties and such duties of excise on medicinal and
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toilet preparations as are mentioned in the Union List shall be levied by the
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Government of India but shall be collected—
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(a) in the case where such duties are leviable within any State specified in Par
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t C of the First Schedule, by the Government of India, and
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(b) in other cases, by the States within which such duties are
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respectively leviable.
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(2) The proceeds in any financial year of any such duty leviable within
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any State shall not form part of the Consolidated Fund of India, but shall be
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assigned to that State.
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269.Taxes levied and collected by the Union but assigned to the States
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(1) The following duties and taxes shall be levied and collected by the Governme
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nt of India but shall be assigned to the States in the manner provided in clause
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(2), namely: -
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(a) duties in respect of succession to property other than agricultural land;
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(b) estate duty in respect of property other than agricultural land;
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(c) terminal taxes on goods or passengers carried by railway, sea or air;
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(d) taxes on railway fares and freights;
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(e) taxes other than stamp duties on transactions in stock-exchanges and futures
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markets;
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(f) taxes on the sale or purchase of newspapers and on advertisements published
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therein;
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(2) The net proceeds in any financial year of any such duty or tax, except in so
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far as those proceeds represent proceeds attributable to State specified in Par
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t C of the First Schedule, shall not form part of the Consolidated Fund of India
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, but shall be assigned to the States within which that duty or tax is leviable
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in that year, and shall be distributed among those States in accordance with suc
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h principles of distribution as may be formulated by Parliament by law.
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270. Taxes levied and collected by the Union and distributed between the Union a
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nd the States
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(1) Taxes on income other than agricultural income shall be levied and collected
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by the Government of India and distributed between the Union and the States in
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the manner provided in clause (2).
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(2) Such percentage, as may be prescribed, of the net proceeds in any financial
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year of any such tax, except in so far as those proceeds represent proceeds attr
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ibutable to State specified in Part C of the First Schedule or to taxes payable
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in respect of Union emoluments, shall not form part of the Consolidated Fund of
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India, but shall be assigned to the States within which that tax is leviable in
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that year, and shall be distributed among those States in such manner and from s
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uch time as may be prescribed.
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(3) For the purposes of clause (2), in each financial year such percentage as ma
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y be prescribed of so much of the net proceeds of taxes on income as does not re
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present the net proceeds of taxes payable in respect of Union emoluments shall b
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e deemed to represent proceeds attributable to State specified in Part C of the
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First Schedule.
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(4) In this article -
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(a) "taxes on income" does not include a corporation tax:
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(b) "prescribed" means -
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(i) until a Finance Commission has been constituted, prescribed by the President
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by order, and
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(ii) after a Finance Commission has been constituted, prescribed by the Presiden
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t by order after considering the recommendations of the Finance Commission;
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(c) "Union emoluments" includes all emoluments and pensions payable out of the C
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onsolidated Fund of India in respect of which income-tax is chargeable.
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271. Surcharge on certain duties and taxes for purposes of the
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Union.—Notwithstanding anything in articles 269 and 270, Parliament may at
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any time increase any of the duties or taxes referred to in those articles by a
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surcharge for purposes of the Union and the whole proceeds of any such
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surcharge shall form part of the Consolidated Fund of India.
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272. Taxes which are levied and collected by the Union and may be distributed be
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tween the Union and the States
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Union duties of excise other than such duties of excise on medicinal and toilet
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preparations as are mentioned in the Union List shall be levied and collected by
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the Government of India, but, if Parliament by law so provides, there shall be
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paid out of the Consolidated Fund of India to the States to which the law imposi
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ng the duty extends sums equivalent to the whole or any part of the net proceeds
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of that duty, and those sums shall be distributed among those States in accorda
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nce with such principles of distribution as may be formulated by such law.
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136
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THE CONSTITUTION OF INDIA
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273. Grants in lieu of export duty on jute and jute products.—(1)
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There shall be charged on the Consolidated Fund of India in each year as
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grants-in-aid of the revenues of the States of Assam, Bihar, Odisha and West
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Bengal, in lieu of assignment of any share of the net proceeds in each year of
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export duty on jute and jute products to those States, such sums as may be
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prescribed.
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(2) The sums so prescribed shall continue to be charged on the
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Consolidated Fund of India so long as any export duty on jute or jute products
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continues to be levied by the Government of India or until the expiration of ten
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years from the commencement of this Constitution whichever is earlier.
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(3) In this article, the expression “prescribed” has the same meaning as
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in article 270.
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274. Prior recommendation of President required to Bills affecting
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taxation in which States are interested.—(1) No Bill or amendment which
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imposes or varies any tax or duty in which States are interested, or which varie
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s
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the meaning of the expression “agricultural income” as defined for the purpo
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ses
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of the enactments relating to Indian income-tax, or which affects the principles
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on which under any of the foregoing provisions of this Chapter moneys are or
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may be distributable to States, or which imposes any such surcharge for the
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purposes of the Union as is mentioned in the foregoing provisions of this
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Chapter, shall be introduced or moved in either House of Parliament except on
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the recommendation of the President.
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(2) In this article, the expression “tax or duty in which States are
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interested” means—
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(a) a tax or duty the whole or part of the net proceeds whereof are
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assigned to any State; or
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(b) a tax or duty by reference to the net proceeds whereof sums
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are for the time being payable out of the Consolidated Fund of India to
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any State.
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275. Grants from the Union to certain States.—(1) Such sums as
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Parliament may by law provide shall be charged on the Consolidated Fund of
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India in each year as grants-in-aid of the revenues of such States as Parliament
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may determine to be in need of assistance, and different sums may be fixed for
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different States:
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137
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THE CONSTITUTION OF INDIA
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Provided that there shall be paid out of the Consolidated Fund of India as
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grants-in-aid of the revenues of a State such capital and recurring sums as may
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be necessary to enable that State to meet the costs of such schemes of
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development as may be undertaken by the State with the approval of the
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Government of India for the purpose of promoting the welfare of the Scheduled
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Tribes in that State or raising the level of administration of the Scheduled Are
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as
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therein to that of the administration of the rest of the areas of that State:
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Provided further that there shall be paid out of the Consolidated Fund of
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India as grants-in-aid of the revenues of the State of Assam sums, capital and
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recurring, equivalent to—
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(a) the average excess of expenditure over the revenues during the
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two years immediately preceding the commencement of this Constitution
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in respect of the administration of the tribal areas specified in Part I of
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the table appended to paragraph 20 of the Sixth Schedule; and
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(b) the costs of such schemes of development as may be
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undertaken by that State with the approval of the Government of India
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for the purpose of raising the level of administration of the said areas to
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that of the administration of the rest of the areas of that State.
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(2) Until provision is made by Parliament under clause (1), the powers
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conferred on Parliament under that clause shall be exercisable by the President
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by order and any order made by the President under this clause shall have effect
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subject to any provision so made by Parliament:
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Provided that after a Finance Commission has been constituted no order
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shall be made under this clause by the President except after considering the
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recommendations of the Finance Commission.
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138
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THE CONSTITUTION OF INDIA
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276. Taxes on professions, trades, callings and employments.—(1)
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Notwithstanding anything in article 246, no law of the Legislature of a State re
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lating
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to taxes for the benefit of the State or of a municipality, district board, loca
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l board or
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other local authority therein in respect of professions, trades, callings or
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employments shall be invalid on the ground that it relates to a tax on income.
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(2) The total amount payable in respect of any one person to the State or
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to any one municipality, district board, local board or other local authority in
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the State by way of taxes on professions, trades, callings and employments
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shall not exceed two hundred and fifty rupees per annum.
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Provided that if in the financial year immediately preceding the commencement of
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this Constitution there was in force in the case of any State or any such munic
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ipality, board or authority a tax on professions, trades, callings or employment
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s the rate, or the maximum rate, of which exceed two hundred and fifty rupees pe
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r annum, such tax may continue to be levied until provisions to the contrary is
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made by Parliament by law, and any law so made by Parliament may be made either
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generally or in relation to any specified States, municipalities, boards or auth
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orities
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(3) The power of the Legislature of a State to make laws as aforesaid
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with respect to taxes on professions, trades, callings and employments shall not
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be construed as limiting in any way the power of Parliament to make laws with
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respect to taxes on income accruing from or arising out of professions, trades,
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callings and employments.
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277. Savings.—Any taxes, duties, cesses or fees which, immediately
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before the commencement of this Constitution, were being lawfully levied by
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the Government of any State or by any municipality or other local authority or
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body for the purposes of the State, municipality, district or other local area
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may, notwithstanding that those taxes, duties, cesses or fees are mentioned in
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the Union List, continue to be levied and to be applied to the same purposes
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until provision to the contrary is made by Parliament by law.
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278. Agreement with States in Part B of the First Schedule with
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regard to certain financial matters.
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(l) Notwithstanding anything in this Consti-
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tution, the Government of India may,
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subject to the provisions of clause (2),
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enter into an agreement with the Govern-
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meant of a State specified in Part B of the
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First Schedule with respect to
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(a) the levy and collection of any tax or duty
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leviable by the Government of India in such
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State and for the distribution of the proceeds
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thereof otherwise than in accordance with the
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provisions of this Chapter ;
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(b) the grant of any financial assistance by the
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Government of India to such State in conse-
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quence of the loss of any revenue which
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that State used to derive from any tax or
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duty leviable under this Constitution by the
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Government of India or from any other
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sources ;
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(c) the contribution by such State in respect of any
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payment made by the Government of India
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under clause (i) of article 291,
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and, when au agreement is so entered into, the provisions
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of this Chapter shall in relation to such State have effect
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subject to the terms of such agreement.
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(2) An agreement entered into under clause (1) shall
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continue in force for a period not exceeding ten years from
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the commencement of this Constitution :
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Provided that the President may at any time after
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the expiration of five years from such commencement
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terminate or modify any such agreement if after considera-
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tion of the report of the Finance Commission he thinks it
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necessary to do so.
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279. Calculation of “net proceeds”, etc.—(1) In the foregoing
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provisions of this Chapter, “net proceeds” means in relation to any tax or d
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uty
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the proceeds thereof reduced by the cost of collection, and for the purposes of
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those provisions the net proceeds of any tax or duty, or of any part of any tax
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or
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duty, in or attributable to any area shall be ascertained and certified by the
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Comptroller and Auditor-General of India, whose certificate shall be final.
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(2) Subject as aforesaid, and to any other express provision of this
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Chapter, a law made by Parliament or an order of the President may, in any
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case where under this Part the proceeds of any duty or tax are, or may be,
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assigned to any State, provide for the manner in which the proceeds are to be
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calculated, for the time from or at which and the manner in which any
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payments are to be made, for the making of adjustments between one financial
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year and another, and for any other incidental or ancillary matters.
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139
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THE CONSTITUTION OF INDIA
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280. Finance Commission.—(1) The President shall, within two years
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from the commencement of this Constitution and thereafter at the expiration of
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every fifth year or at such earlier time as the President considers necessary, b
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y
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order constitute a Finance Commission which shall consist of a Chairman and
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four other members to be appointed by the President.
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(2) Parliament may by law determine the qualifications which shall be
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requisite for appointment as members of the Commission and the manner in
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which they shall be selected.
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(3) It shall be the duty of the Commission to make recommendations to
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the President as to—
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(a) the distribution between the Union and the States of the net
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proceeds of taxes which are to be, or may be, divided between them
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under this Chapter and the allocation between the States of the respective
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shares of such proceeds;
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(b) the principles which should govern the grants-in-aid of the
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revenues of the States out of the Consolidated Fund of India;
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(bb) the measures needed to augment the Consolidated Fund of a
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State to supplement the resources of the Panchayats in the State on the basis
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of the recommendations made by the Finance Commission of the State;
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(c) the continuance or modification of the terms
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of any agreement entered into by the Gov-
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ernment of India with the Government of any
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State specified in Part B of the First Schedule
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under clause (1) of article 278 or under article
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306 ; and
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(d) any other matter referred to the Commission by the President
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in the interests of sound finance.
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(4) The Commission shall determine their procedure and shall have such
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powers in the performance of their functions as Parliament may by law confer
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on them.
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281. Recommendations of the Finance Commission.—The President
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shall cause every recommendation made by the Finance Commission under the
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provisions of this Constitution together with an explanatory memorandum as to
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the action taken thereon to be laid before each House of Parliament.
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Miscellaneous Financial Provisions
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282. Expenditure defrayable by the Union or a State out of its
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revenues.—The Union or a State may make any grants for any public purpose,
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notwithstanding that the purpose is not one with respect to which Parliament or
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the Legislature of the State, as the case may be, may make laws.
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140
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THE CONSTITUTION OF INDIA
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283. Custody, etc., of Consolidated Funds, Contingency Funds and
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moneys credited to the public accounts.—(1) The custody of the
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Consolidated Fund of India and the Contingency Fund of India, the payment of
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moneys into such Funds, the withdrawal of moneys therefrom, the custody of
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public moneys other than those credited to such Funds received by or on behalf
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of the Government of India, their payment into the public account of India and
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the withdrawal of moneys from such account and all other matters connected
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with or ancillary to matters aforesaid shall be regulated by law made by
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Parliament, and, until provision in that behalf is so made, shall be regulated b
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y
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rules made by the President.
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(2) The custody of the Consolidated Fund of a State and the
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Contingency Fund of a State, the payment of moneys into such Funds, the
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withdrawal of moneys therefrom, the custody of public moneys other than
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those credited to such Funds received by or on behalf of the Government of the
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State, their payment into the public account of the State and the withdrawal of
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moneys from such account and all other matters connected with or ancillary to
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matters aforesaid shall be regulated by law made by the Legislature of the
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State, and, until provision in that behalf is so made, shall be regulated by rul
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es
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made by the Governor or Rajpramukh of the State.
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284. Custody of suitors' deposits and other moneys received by
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public servants and courts.—All moneys received by or deposited with—
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(a) any officer employed in connection with the affairs of the
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Union or of a State in his capacity as such, other than revenues or
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public moneys raised or received by the Government of India or the
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Government of the State, as the case may be, or
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(b) any court within the territory of India to the credit of any
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cause, matter, account or persons,
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shall be paid into the public account of India or the public account of State, a
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s
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the case may be.
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285. Exemption of property of the Union from State taxation.—(1)
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The property of the Union shall, save in so far as Parliament may by law
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otherwise provide, be exempt from all taxes imposed by a State or by any
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authority within a State.
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(2) Nothing in clause (1) shall, until Parliament by law otherwise
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provides, prevent any authority within a State from levying any tax on any
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property of the Union to which such property was immediately before the
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commencement of this Constitution liable or treated as liable, so long as that
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tax continues to be levied in that State.
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141
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THE CONSTITUTION OF INDIA
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286. Restrictions as to imposition of tax on the sale or purchase of
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goods.—(1) No law of a State shall impose, or authorise the imposition of, a
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tax on the sale or purchase of goods where such sale or purchase takes place—
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(a) outside the State; or
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(b) in the course of the import of the goods into, or export of the
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goods out of, the territory of India.
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Explanation. For the purposes of sub-clause (a), a
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sale or purchase shall be deemed to have taken place in the
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State in which the goods have actually been delivered as a
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direct result of such sale or purchase for the purpose of
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consumption in that State, notwithstanding the fact that
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under the general law relating to sale of goods the property
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in the goods has by reason of such sale or purchase passed
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in another State.
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(2) Except in so far as Parliament may by law other-
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wise provide, no law of a State shall impose, or authorise
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the imposition of, a tax on the sale or purchase of any
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goods where such sale or purchase takes place in the course
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of inter-State trade or commerce :
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Provided that the President may by order direct that
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any tax on the sale or purchase of goods which was being
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lawfully levied by the Government of any State
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immediately before the commencement of this Constitution
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shall, notwithstanding that the imposition of such tax is
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contrary to 'the provisions of this clause, continue to be
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levied until the thirtyfirst day of March, 1951.
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(3) No law made by the Legislature of a State
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||
imposing, or authorising the imposition of, a tax on the
|
||
|
||
|
||
|
||
Arts. 287-288 } FINANCE 245
|
||
|
||
sale or purchase of any such goods as have been declared
|
||
by Parliament by law to be essential for the life of the
|
||
community shall have effect unless it has been reserved
|
||
for the consideration of the President and has received his
|
||
assent.
|
||
|
||
287. Exemption from taxes on electricity.—Save in so far as
|
||
Parliament may by law otherwise provide, no law of a State shall impose, or
|
||
authorise the imposition of, a tax on the consumption or sale of electricity
|
||
(whether produced by a Government or other persons) which is—
|
||
(a) consumed by the Government of India, or sold to the
|
||
Government of India for consumption by that Government; or
|
||
(b) consumed in the construction, maintenance or operation of any
|
||
railway by the Government of India or a railway company operating that
|
||
railway, or sold to that Government or any such railway company for
|
||
consumption in the construction, maintenance or operation of any
|
||
railway,
|
||
and any such law imposing, or authorising the imposition of, a tax on the sale
|
||
of electricity shall secure that the price of electricity sold to the Government
|
||
of
|
||
India for consumption by that Government, or to any such railway company as
|
||
aforesaid for consumption in the construction, maintenance or operation of any
|
||
railway, shall be less by the amount of the tax than the price charged to other
|
||
consumers of a substantial quantity of electricity.
|
||
|
||
142
|
||
|
||
THE CONSTITUTION OF INDIA
|
||
|
||
288. Exemption from taxation by States in respect of water or
|
||
electricity in certain cases.—(1) Save in so far as the President may by order
|
||
otherwise provide, no law of a State in force immediately before the
|
||
commencement of this Constitution shall impose, or authorise the imposition
|
||
of, a tax in respect of any water or electricity stored, generated, consumed,
|
||
distributed or sold by any authority established by any existing law or any law
|
||
made by Parliament for regulating or developing any inter-State river or riverva
|
||
lley.
|
||
Explanation.—The expression “law of a State in force” in this clause
|
||
shall include a law of a State passed or made before the commencement of this
|
||
Constitution and not previously repealed, notwithstanding that it or parts of it
|
||
may not be then in operation either at all or in particular areas.
|
||
(2) The Legislature of a State may by law impose, or authorise the
|
||
imposition of, any such tax as is mentioned in clause (1), but no such law shall
|
||
have any effect unless it has, after having been reserved for the consideration
|
||
of
|
||
the President, received his assent; and if any such law provides for the fixatio
|
||
n
|
||
of the rates and other incidents of such tax by means of rules or orders to be
|
||
made under the law by any authority, the law shall provide for the previous
|
||
consent of the President being obtained to the making of any such rule or order.
|
||
289. Exemption of property and income of a State from Union
|
||
taxation.—(1) The property and income of a State shall be exempt from Union
|
||
taxation.
|
||
(2) Nothing in clause (1) shall prevent the Union from imposing, or
|
||
authorising the imposition of, any tax to such extent, if any, as Parliament may
|
||
by law provide in respect of a trade or business of any kind carried on by, or o
|
||
n
|
||
behalf of, the Government of a State, or any operations connected therewith, or
|
||
any property used or occupied for the purposes of such trade or business, or any
|
||
income accruing or arising in connection therewith.
|
||
(3) Nothing in clause (2) shall apply to any trade or business, or to any
|
||
class of trade or business, which Parliament may by law declare to be incidental
|
||
to the ordinary functions of Government.
|
||
|
||
143
|
||
|
||
THE CONSTITUTION OF INDIA
|
||
|
||
290. Adjustment in respect of certain expenses and pensions.—
|
||
Where under the provisions of this Constitution the expenses of any court or
|
||
Commission, or the pension payable to or in respect of a person who has served
|
||
before the commencement of this Constitution under the Crown in India or
|
||
after such commencement in connection with the affairs of the Union or of a
|
||
State, are charged on the Consolidated Fund of India or the Consolidated Fund
|
||
of a State, then, if—
|
||
(a) in the case of a charge on the Consolidated Fund of India, the
|
||
court or Commission serves any of the separate needs of a State, or the
|
||
person has served wholly or in part in connection with the affairs of a
|
||
State; or
|
||
(b) in the case of a charge on the Consolidated Fund of a State, the
|
||
court or Commission serves any of the separate needs of the Union or
|
||
another State, or the person has served wholly or in part in connection
|
||
with the affairs of the Union or another State,
|
||
there shall be charged on and paid out of the Consolidated Fund of the State or,
|
||
as the case may be, the Consolidated Fund of India or the Consolidated Fund of
|
||
the other State, such contribution in respect of the expenses or pension as may
|
||
be agreed, or as may in default of agreement be determined by an arbitrator to
|
||
be appointed by the Chief Justice of India.
|
||
|
||
291- (1) Where under any covenant or agreement
|
||
entered into by the Ruler of any Indian
|
||
State before the commencement of this
|
||
Constitution, the payment of any sums,
|
||
free of tax, has been guaranteed or assured by the Govern-
|
||
ment of the Dominion of India to any Ruler of such State
|
||
as privy purse
|
||
(a) such sums shall be charged on, and paid out of,
|
||
the Consolidated Fund of India ; and
|
||
(b) the sums so paid to any Ruler shall be exempt
|
||
from all taxes on income.
|
||
(2) Where the territories of any such Indian State as
|
||
aforesaid are comprised within a State specified in Part A
|
||
or Part B of the First Schedule, there shall be charged on,
|
||
and paid put of, the Consolidated Fund of that State such
|
||
contribution, if any, in respect of the payments made by the
|
||
Government of India under clause (1) and for such period
|
||
as may, subject to any agreement entered into in that behalf
|
||
under clause (1) of article 278, be determined by order of
|
||
the President.
|
||
|
||
|
||
|
||
CHAPTER II.—BORROWING
|
||
292. Borrowing by the Government of India.—The executive power
|
||
of the Union extends to borrowing upon the security of the Consolidated Fund
|
||
of India within such limits, if any, as may from time to time be fixed by
|
||
Parliament by law and to the giving of guarantees within such limits, if any, as
|
||
may be so fixed.
|
||
293. Borrowing by States.—(1) Subject to the provisions of this article,
|
||
the executive power of a State extends to borrowing within the territory of Indi
|
||
a
|
||
upon the security of the Consolidated Fund of the State within such limits, if a
|
||
ny,
|
||
as may from time to time be fixed by the Legislature of such State by law and to
|
||
the giving of guarantees within such limits, if any, as may be so fixed.
|
||
|
||
144
|
||
|
||
THE CONSTITUTION OF INDIA
|
||
|
||
(2) The Government of India may, subject to such conditions as may be
|
||
laid down by or under any law made by Parliament, make loans to any State or,
|
||
so long as any limits fixed under article 292 are not exceeded, give guarantees
|
||
in respect of loans raised by any State, and any sums required for the purpose
|
||
of making such loans shall be charged on the Consolidated Fund of India.
|
||
(3) A State may not without the consent of the Government of India raise
|
||
any loan if there is still outstanding any part of a loan which has been made to
|
||
the State by the Government of India or by its predecessor Government, or in
|
||
respect of which a guarantee has been given by the Government of India or by
|
||
its predecessor Government.
|
||
(4) A consent under clause (3) may be granted subject to such
|
||
conditions, if any, as the Government of India may think fit to impose.
|
||
CHAPTER III.—PROPERTY, CONTRACTS, RIGHTS, LIABILITIES,
|
||
OBLIGATIONS AND SUITS
|
||
294. Succession to property, assets, rights, liabilities and obligations
|
||
in certain cases.—As from the commencement of this Constitution—
|
||
(a) all property and assets which immediately before such
|
||
commencement were vested in His Majesty for the purposes of the
|
||
Government of the Dominion of India and all property and assets which
|
||
immediately before such commencement were vested in His Majesty for
|
||
the purposes of the Government of each Governor’s Province shall vest
|
||
respectively in the Union and the corresponding State, and
|
||
(b) all rights, liabilities and obligations of the Government of the
|
||
Dominion of India and of the Government of each Governor's Province,
|
||
whether arising out of any contract or otherwise, shall be the rights,
|
||
liabilities and obligations respectively of the Government of India and
|
||
the Government of each corresponding State,
|
||
subject to any adjustment made or to be made by reason of the creation before
|
||
the commencement of this Constitution of the Dominion of Pakistan or of the
|
||
Provinces of West Bengal, East Bengal, West Punjab and East Punjab.
|
||
295. Succession to property, assets, rights, liabilities and obligations
|
||
in other cases.—(1) As from the commencement of this Constitution—
|
||
(a) all property and assets which immediately before such
|
||
commencement were vested in any Indian State corresponding to a State
|
||
specified in Part B of the First Schedule shall vest in the Union, if the
|
||
purposes for which such property and assets were held immediately
|
||
before such commencement will thereafter be purposes of the Union
|
||
relating to any of the matters enumerated in the Union List, and
|
||
|
||
145
|
||
|
||
THE CONSTITUTION OF INDIA
|
||
|
||
(b) all rights, liabilities and obligations of the Government of any
|
||
Indian State corresponding to a State specified in Part B of the First
|
||
Schedule, whether arising out of any contract or otherwise, shall be the
|
||
rights, liabilities and obligations of the Government of India, if the purposes
|
||
for which such rights were acquired or liabilities or obligations were incurred
|
||
before such commencement will thereafter be purposes of the Government
|
||
of India relating to any of the matters enumerated in the Union List,
|
||
subject to any agreement entered into in that behalf by the Government of India
|
||
with the Government of that State.
|
||
(2) Subject as aforesaid, the Government of each State specified in Part B
|
||
of the First Schedule shall, as from the commencement of this Constitution, be t
|
||
he
|
||
successor of the Government of the corresponding Indian State as regards all
|
||
property and assets and all rights, liabilities and obligations, whether arising
|
||
out
|
||
of any contract or otherwise, other than those referred to in clause (1).
|
||
296. Property accruing by escheat or lapse or as bona vacantia.—
|
||
Subject as hereinafter provided, any property in the territory of India which, i
|
||
f
|
||
this Constitution had not come into operation, would have accrued to His Majesty
|
||
or, as the case may be, to the Ruler of an Indian State by escheat or lapse, or
|
||
as
|
||
bona vacantia for want of a rightful owner, shall, if it is property situate in
|
||
a
|
||
State, vest in such State, and shall, in any other case, vest in the Union:
|
||
Provided that any property which at the date when it would have so
|
||
accrued to His Majesty or to the Ruler of an Indian State was in the possession
|
||
or under the control of the Government of India or the Government of a State
|
||
shall, according as the purposes for which it was then used or held were
|
||
purposes of the Union or of a State, vest in the Union or in that State.
|
||
Explanation.—In this article, the expressions “Ruler” and “Indian State<74>
|
||
<EFBFBD><EFBFBD>
|
||
have the same meanings as in article 363.
|
||
297. All lands, minerals and other things of value
|
||
underlying the ocean within the territorial
|
||
waters of India shall vest in the Union
|
||
and be held for the purposes of the Union.
|
||
|
||
298. (1) The executive power of the Union and of
|
||
each State shall extend, subject to any
|
||
law made by the appropriate Legislature,
|
||
to the grant, sale, disposition or mortgage
|
||
of any poroperty held for the purposes of the Union or of
|
||
such State, as the case may be, and to the purchase or
|
||
acquisition of property for those purposes respectively, and
|
||
to the making of contracts.
|
||
(2) All property acquired for the purposes of the
|
||
Union or of a State shall vest in the Union or in such State,
|
||
as the case may be.
|
||
|
||
Cf. S. 176 (1) and (2) of the Government of India Act, 1935.
|
||
|
||
299. Contracts.—(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 or the Rajpramukh of the State, as the case may be
|
||
, and all such
|
||
contracts and all assurances of property made in the exercise of that power shal
|
||
l
|
||
be executed on behalf of the President or the Governor by such persons and in
|
||
such manner as he may direct or authorise.
|
||
(2) Neither the President nor the Governor nor the Rajpramukh shall be personall
|
||
y 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.
|
||
300. Suits and proceedings.—(1) 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 the State and may, subject to any provisions
|
||
which may be made by Act of Parliament or of the Legislature of such State
|
||
enacted by virtue of powers conferred by this Constitution, sue or be sued in
|
||
relation to their respective affairs in the like cases as the Dominion of India
|
||
and
|
||
the corresponding Provinces or the corresponding Indian States might have
|
||
sued or been sued if this Constitution had not been enacted.
|
||
|
||
147
|
||
|
||
THE CONSTITUTION OF INDIA
|
||
|
||
(2) If at the commencement of this Constitution—
|
||
(a) any legal proceedings are pending to which the Dominion of
|
||
India is a party, the Union of India shall be deemed to be substituted for
|
||
the Dominion in those proceedings; and
|
||
(b) any legal proceedings are pending to which a Province or an
|
||
Indian State is a party, the corresponding State shall be deemed to be
|
||
substituted for the Province or the Indian State in those proceedings.
|
||
|
||
|