12Part XII (A:264-300A): Finance, Property, Contracts and Suits
· Article 264 :
Interpretation
[264. In this
Part, "Finance Commission" means a Finance Commission constituted
under article 280.]*
--------------------
* Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch., for
art. 264
· Article 265 :
Taxes not to be imposed save by authority of law
265. No tax
shall be levied or collected except by authority of law.
· Article 266 :
Consolidated Funds and public accounts of India and of the States
266. (1)
Subject to the provisions of article 267 and to the provisions of this Chapter
with respect to the assignment of the whole or part of the net proceeds of
certain taxes and duties to States, all revenues received by the Government of India,
all loans raised by that Government by the issue of treasury bills, loans or
ways and means advances and all moneys received by that Government in repayment
of loans shall form one consolidated fund to be entitled "the Consolidated
Fund of India", and all revenues received by the Government of a State,
all loans raised by that Government by the issue of treasury bills, loans or
ways and means advances and all moneys received by that Government in repayment
of loans shall form one consolidated fund to be entitled "the Consolidated
Fund of the State".
(2) All other public moneys received by or on behalf of the Government of India
or the Government of a State shall be credited to the public account of India
or the public account of the State, as the case may be.
(3) No moneys out of the Consolidated Fund of India or the Consolidated Fund of
a State shall be appropriated except in accordance with law and for the
purposes and in the manner provided in this Constitution.
· Article 267 :
Contingency Fund
267. (1)
Parliament may by law establish a Contingency Fund in the nature of an imprest
to be entitled "the Contingency Fund of India" into which shall be
paid from time to time such sums as may be determined by such law, and the said
Fund shall be placed at the disposal of the President to enable advances to be
made by him out of such Fund for the purposes of meeting unforeseen expenditure
pending authorisation of such expenditure by Parliament by law under article
115 or article 116.
(2) The Legislature of a State may by law establish a Contingency Fund in the
nature of an imprest to be entitled "the Contingency Fund of the
State" into which shall be paid from time to time such sums as may be
determined by such law, and the said Fund shall be placed at the disposal of
the Governor* of the State to enable advances to be made by him out of such
Fund for the purposes of meeting unforeseen expenditure pending authorisation
of such expenditure by the Legislature of the State by law under article 205 or
article 206.
--------------------
* The words "or Rajpramukh" omitted by the Constitution (Seventh
Amendment) Act, 1956, s. 29 and Sch
· Article 268 :
Duties levied by the Union but collected and appropriated by the States
268. (1) Such
stamp duties and such duties of excise on medicinal and toilet preparations as
are mentioned in the Union List shall be levied by the Government of India but
shall be collected-
(a) in the case where such duties are leviable within any [Union territory]*,
by the Government of India, and
(b) in other cases, by the States within which such duties are respectively
leviable.
(2) The proceeds in any financial year of any such duty leviable within any
State shall not form part of the Consolidated Fund of India, but shall be
assigned to that State.
--------------------
* Subs. by s. 29 and Sch., ibid., for "State specified in Part C of the
First Schedule"
· Article 268A :
Service tax levied by Union and collected and appropriated by the Union and the
States
[268A. (1)
Taxes on services shall be levied by the Government of India and such tax shall
be collected and appropriated by the Government of India and the States in the
manner provided in clause (2).
(2) The proceeds in any financial year of any such tax levied in accordance
with the provisions of clause (1) shall be-
(a) collected by the Government of India and the States;
(b) appropriated by the Government of India and the States, in accordance with
such principles of collection and appropriation as may be formulated by
Parliament by law.]*
--------------------
* Ins. by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 2 (which is
yet not in force, date to be notified later on)
· Article 269 :
Taxes levied and collected by the Union but assigned to the States
269. [(1) Taxes
on the sale or purchase of goods and taxes on the consignment of goods shall be
levied and collected by the Government of India but shall be assigned and shall
be deemed to have been assigned to the States on or after the 1st day of April,
1996 in the manner provided in clause (2).
Explanation:- For the purposes of this clause,-
(a) the expression "taxes on the sale or purchase of goods" shall
mean taxes on sale or purchase of goods other than newspapers, where such sale
or purchase takes place in the course of inter-State trade or commerce;
(b) the expression "taxes on the consignment of goods" shall mean
taxes on the consignment of goods (whether the consignment is to the person
making it or to any other person), where such consignment takes place in the
course of inter-State trade or commerce.
(2) The net proceeds in any financial year of any such tax, except in so far as
those proceeds represent proceeds attributable to Union territories, shall not
form part of the Consolidated Fund of India, but shall be assigned to the
States within which that tax is leviable in that year, and shall be distributed
among those States in accordance with such principles of distribution as may be
formulated by Parliament by law.]*
[(3) Parliament may by law formulate principles for determining when a [sale or
purchase of, or consignment of, goods]*** takes place in the course of
inter-State trade or commerce.]**
--------------------
* Subs. by the Constitution (Eightieth Amendment) Act, 2000, s. 2, for cls. (1)
and (2)
** Ins. by the Constitution (Sixth Amendment) Act, 1956, s. 3
*** Subs by the Constitution (Forty-sixth Amendment) Act, 1982, s. 2, for
"sale or purchase of goods"
· Article 270 :
Taxes levied and distributed between the Union and the States
[270. (1) All
taxes and duties referred to in the Union List, except the duties and taxes
referred to in articles **[268 and 269], respectively, surcharge on taxes and
duties referred to in article 271 and any cess levied for specific purposes
under any law made by Parliament shall be levied and collected by the
Government of India and shall be distributed between the Union and the States
in the manner provided in clause (2).
(2) Such percentage, as may be prescribed, of the net proceeds of any such tax
or duty in any financial year shall not form part of the Consolidated Fund of
India, but shall be assigned to the States within which that tax or duty is
leviable in that year, and shall be distributed among those States in such
manner and from such time as may be prescribed in the manner provided in clause
(3).
(3) In this article, "prescribed" means,-
(i) until a Finance Commission has been constituted, prescribed by the
President by order, and
(ii) after a Finance Commission has been constituted, prescribed by the
President by order after considering the recommendations of the Finance
Commission.]*
--------------------
* Subs. by the Constitution (Eightieth Amendment) Act, 2000, s. 3, for art. 270
(w.e.f. 1-4-1996)
** The words and figures in brackets shall stand substituted as "articles
268, 268A and 269" by the Constitution (Eighty-eighth Amendment) Act,
2003, s. 3 (which is yet not in force, date to be notified later on)
· Article 271 :
Surcharge on certain duties and taxes for purposes of the Union
271.
Notwithstanding anything in articles 269 and 270, Parliament may at any time
increase any of the duties or taxes referred to in those articles by a
surcharge for purposes of the Union and the whole proceeds of any such
surcharge shall form part of the Consolidated Fund of India.
· Article 272 :
[Repealed.]
272. [Taxes
which are levied and collected by the Union and may be distributed between the
Union and the States.] Rep. by the Constitution (Eightieth Amendment) Act,
2000, s. 4
· Article 273 :
Grants in lieu of export duty on jute and jute products
273. (1) There
shall be charged on the Consolidated Fund of India in each year as
grants-in-aid of the revenues of the States of Assam, Bihar, Orissa and West
Bengal, in lieu of assignment of any share of the net proceeds in each year of
export duty on jute and jute products to those States, such sums as may be
prescribed.
(2) The sums so prescribed shall continue to be charged on the Consolidated
Fund of India so long as any export duty on jute or jute products continues to
be levied by the Government of India or until the expiration of ten years from
the commencement of this Constitution whichever is earlier.
(3) In this article, the expression "prescribed" has he same meaning
as in article 270.
· Article 274 :
Prior recommendation of President required to Bills affecting taxation in which
States are interested
274. (1) No
Bill or amendment which imposes or varies any tax or duty in which States are
interested, or which varies the meaning of the expression "agricultural
income" as defined for the purposes of the enactments relating to Indian
income-tax, or which affects the principles on which under any of the foregoing
provisions of this Chapter moneys are or may be distributable to States, or which
imposes any such surcharge for the purposes of the Union as is mentioned in the
foregoing provisions of this Chapter, shall be introduced or moved in either
House of Parliament except on the recommendation of the President.
(2) In this article, the expression "tax or duty in which States are
interested" means-
(a) a tax or duty the whole or part of the net proceeds whereof are assigned to
any State; or
(b) a tax or duty by reference to the net proceeds whereof sums are for the
time being payable out of the Consolidated Fund of India to any State.
· Article 275 :
Grants from the Union to certain States
275. (1) Such
sums as Parliament may by law provide shall be charged on the Consolidated Fund
of India in each year as grants-in-aid of the revenues of such States as
Parliament may determine to be in need of assistance, and different sums may be
fixed for different States:
Provided that there shall be paid out of the Consolidated Fund of India as
grants-in-aid of the revenues of a State such capital and recurring sums as may
be necessary to enable that State to meet the costs of such schemes of
development as may be undertaken by the State with the approval of the
Government of India for the purpose of promoting the welfare of the Scheduled
Tribes in that State or raising the level of administration of the Scheduled
Areas therein to that of the administration of the rest of the areas of that
State:
Provided further that there shall be paid out of the Consolidated Fund of India
as grants-in-aid of the revenues of the State of Assam sums, capital and
recurring, equivalent to-
(a) the average excess of expenditure over the revenues during the two years
immediately preceding the commencement of this Constitution in respect of the
administration of the tribal areas specified in [Part I]* of the table appended
to paragraph 20 of the Sixth Schedule; and
(b) the costs of such schemes of development as may be undertaken by that State
with the approval of the Government of India for the purpose of raising the
level of administration of the said areas to that of the administration of the
rest of the areas of that State.
[(1A) On and from the formation of the autonomous State under article 244A,-
(i) any sums payable under clause (a) of the second proviso to clause (1) shall,
if the autonomous State comprises all the tribal areas referred to therein, be
paid to the autonomous State, and, if the autonomous State comprises only some
of those tribal areas, be apportioned between the State of Assam and the
autonomous State as the President may, by order, specify;
(ii) there shall be paid out of the Consolidated Fund of India as grants-in-aid
of the revenues of the autonomous State sums, capital and recurring, equivalent
to the costs of such schemes of development as may be undertaken by the
autonomous State with the approval of the Government of India for the purpose
of raising the level of administration of that State to that of the
administration of the rest of the State of Assam.]**
(2) Until provision is made by Parliament under clause (1), the powers
conferred on Parliament under that clause shall be exercisable by the President
by order and any order made by the President under this clause shall have
effect subject to any provision so made by Parliament: Provided that after a
Finance Commission has been constituted no order shall be made under this
clause by the President except after considering the recommendations of the
Finance Commission.
--------------------
* Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s.
71, for "Part A" (w.e.f. 21-1-1972).
** Ins. by the Constitution (Twenty-second Amendment) Act, 1969, s. 3
· Article 276 :
Taxes on professions, trades, callings and employments
276. (1)
Notwithstanding anything in article 246, no law of the Legislature of a State
relating to taxes for the benefit of the State or of a municipality, district
board, local board or other local authority therein in respect of professions,
trades, callings or employments shall be invalid on the ground that it relates
to a tax on income.
(2) The total amount payable in respect of any one person to the State or to
any one municipality, district board, local board or other local authority in
the State by way of taxes on professions, trades, callings and employments
shall not exceed [two thousand and five hundred rupees]* per annum.
**
(3) The power of the Legislature of a State to make laws as aforesaid with
respect to taxes on professions, trades, callings and employments shall not be
construed as limiting in any way the power of Parliament to make laws with
respect to taxes on income accruing from or arising out of professions, trades,
callings and employments.
--------------------
* Subs. by the Constitution (Sixtieth Amendment) Act, 1988, s. 2, for "two
hundred and fifty rupees"
** Proviso omitted by s. 2, ibid
· Article 278 :
Savings
278. [Agreement
with States in Part B of the First Schedule with regard to certain financial
matters.] Rep. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch
· Article 278 :
[Repealed.]
278. [Agreement
with States in Part B of the First Schedule with regard to certain financial
matters.] Rep. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch
· Article 279 :
Calculation of “net proceeds”, etc.
279. (1) In the
foregoing provisions of this Chapter, "net proceeds" means in
relation to any tax or duty the proceeds thereof reduced by the cost of
collection, and for the purposes of those provisions the net proceeds of any
tax or duty, or of any part of any tax or duty, in or attributable to any area
shall be ascertained and certified by the Comptroller and Auditor-General of
India, whose certificate shall be final.
(2) Subject as aforesaid, and to any other express provision of this Chapter, a
law made by Parliament or an order of the President may, in any case where
under this Part the proceeds of any duty or tax are, or may be, assigned to any
State, provide for the manner in which the proceeds are to be calculated, for
the time from or at which and the manner in which any payments are to be made,
for the making of adjustments between one financial year and another, and for
any other incidental or ancillary matters.
· Article 280 :
Finance Commission
280. (1) The
President shall, within two years from the commencement of this Constitution
and thereafter at the expiration of every fifth year or at such earlier time as
the President considers necessary, by order constitute a Finance Commission
which shall consist of a Chairman and four other members to be appointed by the
President.
(2) Parliament may by law determine the qualifications which shall be requisite
for appointment as members of the Commission and the manner in which they shall
be selected.
(3) It shall be the duty of the Commission to make recommendations to the
President as to-
(a) the distribution between the Union and the States of the net proceeds of
taxes which are to be, or may be, divided between them under this Chapter and
the allocation between the States of the respective shares of such proceeds;
(b) the principles which should govern the grants-in-aid of the revenues of the
States out of the Consolidated Fund of India;
[(bb) the measures needed to augment the Consolidated Fund of a State to
supplement the resources of the Panchayats in the State on the basis of the
recommendations made by the Finance Commission of the State;]*
[(c) the measures needed to augment the Consolidated Fund of a State to
supplement the resources of the Municipalities in the State on the basis of the
recommendations made by the Finance Commission of the State;]**
[(d)]*** any other matter referred to the Commission by the President in the
interests of sound finance.
(4) The Commission shall determine their procedure and shall have such powers
in the performance of their functions as Parliament may by law confer on them.
--------------------
* Ins. by the Constitution (Seventy-third Amendment) Act, 1992, s. 3 (w.e.f.
24-4-1993)
** Ins. by the Constitution (Seventy-fourth Amendment) Act, 1992, s. 3 (w.e.f.
1-6-1993)
*** Sub-clause (c) re-lettered as sub-clause (d) by s. 3, ibid. (w.e.f.
1-6-1993)
· Article 281 :
Recommendations of the Finance Commission
281. The
President shall cause every recommendation made by the Finance Commission under
the provisions of this Constitution together with an explanatory memorandum as
to the action taken thereon to be laid before each House of Parliament.
· Article 282 :
Expenditure defrayable by the Union or a State out of its revenues
282. The Union
or a State may make any grants for any public purpose, notwithstanding that the
purpose is not one with respect to which Parliament or the Legislature of the
State, as the case may be, may make laws.
· Article 283 :
Custody, etc., of Consolidated Funds, Contingency Funds and moneys credited to
the public accounts
283. (1) The
custody of the Consolidated Fund of India and the Contingency Fund of India,
the payment of moneys into such Funds, the withdrawal of moneys therefrom, the
custody of public moneys other than those credited to such Funds received by or
on behalf of the Government of India, their payment into the public account of
India and the withdrawal of moneys from such account and all other matters
connected with or ancillary to matters aforesaid shall be regulated by law made
by Parliament, and, until provision in that behalf is so made, shall be
regulated by rules made by the President.
(2) The custody of the Consolidated Fund of a State and the Contingency Fund of
a State, the payment of moneys into such Funds, the withdrawal of moneys
therefrom, the custody of public moneys other than those credited to such Funds
received by or on behalf of the Government of the State, their payment into the
public account of the State and the withdrawal of moneys from such account and
all other matters connected with or ancillary to matters aforesaid shall be
regulated by law made by the Legislature of the State, and, until provision in
that behalf is so made, shall be regulated by rules made by the Governor* of
the State.
--------------------
* The words "or Rajpramukh" omitted by the Constitution (Seventh
Amendment) Act, 1956, s. 29 and Sch.
· Article 284 :
Custody of suitors’ deposits and other moneys received by public servants and
courts
284. All moneys
received by or deposited with-
(a) any officer employed in connection with the affairs of the Union or of a
State in his capacity as such, other than revenues or public moneys raised or
received by the Government of India or the Government of the State, as the case
may be, or
(b) any court within the territory of India to the credit of any cause, matter,
account or persons, shall be paid into the public account of India or the
public account of State, as the case may be.
· Article 285 :
Exemption of property of the Union from State taxation
285. (1) The
property of the Union shall, save in so far as Parliament may by law otherwise
provide, be exempt from all taxes imposed by a State or by any authority within
a State.
(2) Nothing in clause (1) shall, until Parliament by law otherwise provides,
prevent any authority within a State from levying any tax on any property of
the Union to which such property was immediately before the commencement of
this Constitution liable or treated as liable, so long as that tax continues to
be levied in that State.
· Article 286 :
Restrictions as to imposition of tax on the sale or purchase of goods
286. (1) No law
of a State shall impose, or authorise the imposition of, a tax on the sale or
purchase of goods where such sale or purchase takes place-
(a) outside the State; or
(b) in the course of the import of the goods into, or export of the goods out
of, the territory of India.
*
[(2) Parliament may by law formulate principles for determining when a sale or
purchase of goods takes place in any of the ways mentioned in clause (1).
[(3) Any law of a State shall, in so far as it imposes, or authorises the
imposition of,
(a) a tax on the sale or purchase of goods declared by Parliament by law to be
of special importance in inter-State trade or commerce; or
(b) a tax on the sale or purchase of goods, being a tax of the nature referred
to in sub-clause (b), sub-clause (c) or sub-clause (d) of clause (29A) of
article 366, be subject to such restrictions and conditions in regard to the system
of levy, rates and other incidents of the tax as Parliament may by law
specify.]***]**
--------------------
* Explanation to cl. (1) omitted by the Constitution (Sixth Amendment) Act,
1956, s. 4.
** Subs. by s. 4, ibid., for cls. (2) and (3)
*** Subs. by the Constitution (Forty-sixth Amendment) Act, 1982, s. 3, for cl.
(3)
· Article 287 :
Exemption from taxes on electricity
287. 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.
· Article 288 :
Exemption from taxation by States in respect of water or electricity in certain
cases
288. (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 river-valley.
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 fixation
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.
· Article 289 :
Exemption of property and income of a State from Union taxation
289. (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 on
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.
· Article 290 :
Adjustment in respect of certain expenses and pensions
290. 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
efore 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.
· Article 290A :
Annual payment to certain Devaswom Funds
[290A. A sum of
forty-six lakhs and fifty thousand rupees shall be charged on, and paid out of,
the Consolidated Fund of the State of Kerala every year to the Travancore
Devaswom Fund; and a sum of thirteen lakhs and fifty thousand rupees shall be
charged on, and paid out of, the Consolidated Fund of the State of [Tamil
Nadu]** every year to the Devaswom Fund established in that State for the
maintenance of Hindu temples and shrines in the territories transferred to that
State on the 1st day of November, 1956, from the State of Travancore-Cochin.]*
--------------------
* Ins. by the Constitution (Seventh Amendment) Act, 1956, s. 19
** Subs. by the Madras State (Alteration of Name) Act, 1968 (53 of 1968), s. 4,
for "Madras" (w.e.f. 14-1-1969)
· Article 291 :
[Repealed.]
291. [Privy
purse sums of Rulers.] Rep. by the Constitution (Twenty-sixth Amendment) Act,
197l, s. 2
· Article 292 :
Borrowing by the Government of India
292. 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.
· Article 293 :
Borrowing by States
293. (1)
Subject to the provisions of this article, the executive power of a State
extends to borrowing within the territory of India upon the security of the
Consolidated Fund of the State within such limits, if any, 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.
(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.
· Article 294 :
Succession to property, assets, rights, liabilities and obligations in certain
cases
294. 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.
· Article 295 :
Succession to property, assets, rights, liabilities and obligations in other
cases
295. (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
(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 the
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).
· Article 296 :
Property accruing by escheat or lapse or as bona vacantia
296. Subject as
hereinafter provided, any property in the territory of India which, if 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" have the same meanings as in article 363.
· Article 297 :
Things of value within territorial waters or continental shelf and resources of
the exclusive economic zone to vest in the Union
[297. (1) All
lands, minerals and other things of value underlying the ocean within the
territorial waters, or the continental shelf, or the exclusive economic zone,
of India shall vest in the Union and be held for the purposes of the Union.
(2) All other resources of the exclusive economic zone of India shall also vest
in the Union and be held for the purposes of the Union.
(3) The limits of the territorial waters, the continental shelf, the exclusive
economic zone, and other maritime zones, of India shall be such as may be
specified, from time to time, by or under any law made by Parliament.]*
--------------------
* Subs. by the Constitution (Fortieth Amendment) Act, 1976, s. 2, for art. 297
(w.e.f. 27-5-1976)
· Article 298 :
Power to carry on trade, etc.
[298. The
executive power of the Union and of each State shall extend to the carrying on
of any trade or business and to the acquisition, holding and disposal of
property and the making of contracts for any purpose:
Provided that-
(a) the said executive power of the Union shall, in so far as such trade or
business or such purpose is not one with respect to which Parliament may make
laws, be subject in each State to legislation by the State; and
(b) the said executive power of each State shall, in so far as such trade or
business or such purpose is not one with respect to which the State Legislature
may make laws, be subject to legislation by Parliament.]*
--------------------
* Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 20, for art. 298
· Article 299 :
Contracts
299. (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 authorise.
(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.
--------------------
* The words "or the Rajpramukh" omitted by s. 29 and Sch., ibid
** The words "nor the Rajpramukh" omitted by s. 29 and Sch., ibid
· Article 300 :
Suits and proceedings
300. (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.
(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.
· Article 300A :
Persons not to be deprived of property save by authority of law
[300A. No
person shall be deprived of his property save by authority of law.]*
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* Ins. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 34 (w.e.f.
20-6-1979)