🧾 Article 299 of the Indian Constitution
Title: Contracts made in the exercise of the executive power of the Union or of a State
🔍 Explanation:
Article 299 lays down the legal procedure for making government contracts (whether by the Union or a State). It ensures that public funds and government agreements are entered into legally, transparently, and with accountability.
📘 Key Provisions of Article 299:
| Clause | Provision |
|---|---|
| (1) | All contracts made by the Union or a State must: |
- Be expressed to be made by the President (for Union) or the Governor (for State),
- Be executed on their behalf, and
- Be signed by a person authorized by them. |
- | (2) | Neither the President nor the Governor shall be personally liable for any such contract. |
- | (3) | No one making or executing a contract on behalf of the government shall be personally liable, unless they act without authority. |
📊 Summary Chart: Article 299
| Feature | Details |
|---|---|
| Article | 299 |
| Applies To | Union and State Governments |
| Key Requirement | Contracts must be in the name of the President (Union) or Governor (State) |
| Execution Condition | Must be signed by an authorized officer |
| Legal Validity | If not made in this form, contract is void and unenforceable |
| Personal Liability | ❌ President/Governor not personally liable ❌ Officer not liable if acting properly |
| Objective | Ensure legality, transparency, and accountability in government contracts |
⚠️ Important Notes:
-
A contract not made as per Article 299(1) is not legally binding, even if it was acted upon.
-
This protects public funds and prevents unauthorized contracts by individuals in government.
📌 Example:
✅ Valid Contract:
✔ Made in the name of the President of India,
✔ Signed by a designated officer (e.g., Secretary, Ministry of Defence).
→ ✅ Legally enforceable.
❌ Invalid Contract:
✘ Oral agreement by a junior official, not authorized,
✘ Not in the name of the President or Governor.
→ ❌ Not valid under Article 299.
Here’s a real-life example illustrating how Article 299 of the Indian Constitution is applied — and what happens when it's not followed properly.
✅ Valid Example (Proper Contract Under Article 299)
🏛️ Case: Government Contract with a Road Construction Company
-
The Union Ministry of Road Transport wants to build a new highway.
-
The contract is:
-
Made in the name of the President of India.
-
Executed by the Secretary of the Ministry, who is duly authorized.
-
Terms are written and approved by the concerned department.
-
🟢 Result:
✔️ The contract is valid and enforceable.
✔️ If the construction company fails to complete the project, the government can sue them, and vice versa.
❌ Invalid Example (Violation of Article 299)
⚖️ Case: State of Bihar vs. Karam Chand Thapar & Bros. (AIR 1962 SC 110)
-
The Bihar Government entered into a contract not made in the name of the Governor,
-
And it was signed by an officer who was not authorized under Article 299(1).
🟥 Supreme Court Judgment:
❌ "The contract was not enforceable because it did not comply with the mandatory provisions of Article 299(1)."
🛑 Effect:
The company couldn’t claim compensation, even though it had spent money and done part of the work.
💡 Lesson from Article 299:
| If contract is made... | Then... |
|---|---|
| ✅ In the name of President/Governor & signed by authorized person | ✅ Legally valid and enforceable |
| ❌ Orally, casually, or by unauthorized person | ❌ Legally void, not enforceable in court |
Here is a ✅ Checklist to Ensure a Valid Government Contract under Article 299 of the Indian Constitution:
🧾 ✔️ Government Contract Validity Checklist (Article 299)
| ✅ | Requirement | ✅/❌ |
|---|---|---|
| 1️⃣ | Is the contract in writing? | |
| 2️⃣ | Is the contract expressed to be made in the name of the President (Union) or Governor (State)? | |
| 3️⃣ | Has the person signing the contract been formally authorized by the President/Governor (or their delegate)? | |
| 4️⃣ | Has the authorization been properly notified/documented (e.g., gazette or departmental order)? | |
| 5️⃣ | Does the contract comply with the rules and procedures of the department concerned (e.g., procurement guidelines)? | |
| 6️⃣ | Are all terms and conditions of the contract clearly defined and agreed upon? | |
| 7️⃣ | Is the contract signed by both parties and dated properly? | |
| 8️⃣ | Is there no personal liability clause on the President/Governor or authorized officer? | |
| 9️⃣ | Have all legal vetting and compliance checks been done by the concerned legal/finance department? |
✅ If all the above are checked "Yes" → Contract is VALID.
❌ If any of the top 3 are "No" → Contract is VOID under Article 299.
🧠 Quick Tip to Remember (3 Golden Rules):
-
🖋 Written contract
-
🏛 In the name of President or Governor
-
👤 Signed by authorized officer
Follow Us