IMMUNITY TO GOVERNMENT - POLITY
News: Government cannot claim immunity under Article 299
What is in the news?
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Recently, The Supreme
Court has held that the government, when entering into a contract under the
President’s name, cannot claim immunity from the legal provisions of that
contract under Article 299 of the Constitution.
Key details from the verdict:
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It is a case between
Glock Asia-Pacific Limited and the Ministry of Home Affairs.
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Home ministry appointed
an officer from the law ministry as an arbitrator.
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Under Arbitration and Conciliation Act, 1996,
any person whose relationship with the parties or counsel of the dispute falls
under any of the categories in the Seventh Schedule will be ineligible to be
appointed as an arbitrator.
●
The court also appointed
former SC judge Justice Indu Malhotra “as the Sole Arbitrator to adjudicate
upon the disputes” in the case.
●
The top court had
reiterated three conditions to be met before a binding contract against the
government could arise namely:
○ The
contract must be expressed to be made by the Governor or the Governor-General.
○ It
Must be executed in writing.
○ The
execution should be by such persons and in such a manner as the Governor or the
Governor-General might direct or authorize.
Article 299:
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Article 299: ●
Article 299 of the Constitution provides
that “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” and that all such contracts and “assurances of
property made in the exercise of that power shall be executed” on behalf of
the President or the Governor by persons in a manner as directed and
authorized by them. ●
Article 299 (2) says that essentially,
neither the President nor the Governor can be personally held liable for such
contracts. |