Professional Documents
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THE GOVERNMENT
TUSHARIKA SINGH
ROLL NUMBER- 411
LESSON PLAN
Class LL.M. Ist Semester
• Identify that the contracts are made following the prescribed procedure.
2. There may arise problems of public law as 2. There is nothing like that
Fundamental right, writ jurisdiction, Natural
justice.
4. It may involve not only supplies or 4. It may just to provide supplies and services
services but also livelihood , be instrument of
implementation of Government policies.
1. Written Contract
2. Execution by authorised person
3. Expression in the name of president( Governor)
Judicial Interpretation w.r.t Contractual Liability of Government
The second consequence which follows from these decisions is that if the contact b/w
Govt and another person is not in full compliance with all and could not be enforced
either by the govt. or by the other person as a contract.
But if however, there is valid contract as envisaged by art .299(1), the court may imply a
term which the parties had failed to incorporate in order to give full effect to the
intension of the parties.
In Mahabir auto store v Indian oil corporation AIR 1990
The basic principal relating to power of the state to entre into or not
to entre contract with individuals has been clearly laid down .
“ it is well settled that every action of the state or an instrumentality in exercise of
executive power, must be informed by reason.
Supreme court held that the object of Art. 299 of the constitution
of India is to protect the state not to saddle with liability for unauthorised
contracts.
State of Punjab v Omprakhash Baldeo Krishan AIR 1988
When an agreement becomes invalid for non compliance with art .299 of
the constitution , person enjoying benefit must restore under sec .70 of the contract.
(state of W.B v B.K. Mondal &Sons AIR 1962 )
Other Provisions Of The Indian Contract Act 1872
•The tender committee of the railway board fixed on rate for big manufacturers
and another foe smaller manufacturers
•Such as action under the circumstances was held reasonable and bona fide and it
is not hit by Art . 14 of the constitution .
In Sterling Computers Ltd. V M & N Publication Ltd. AIR 1996 SC 51
SC held that
•In exercising the power of judicial review in govt. contracts, the court is to
consider primarily as to whether there has been any infirmity in the “decision
making process”
•By way of judicial review the court can not examine the details of the terms of the
contract which have been entered into by the public bodies or the state .
The court has the inherent limitations on the scope of any enquiry
•But at the same time the court can certainly examine whether “decision making
process ” was reasonable ,rational , not arbitrary and violation of Art.14 of the
constitution.
In U.P. Rajkiya Nirman Nigam Ltd. V indure Pvt. Ltd. AIR 1996
SC held that:
The doctrine of indoor management can not be extended to formation
of contract or essential terms of contract unless the contract with the other
parties is duly approved and signed on behalf of a public undertaking or the govt
. With its seal by authorised or competent officer. Otherwise, it would be
hazardous for public undertaking. Or its instrumentalities to deal on contractual
relations with third parties.
LAW IN OTHER COUNTRIES
.Before 1947- immunity . Till 1978 there was ‘dispute; . Before constitution-
based on two doctrines- clause . Charter Act 1833- East India
1. The King by his writ can . Contract Disputes Act 1978 company
not command itself . Sec. 65 of GOI Act 1858-
2. The King can do no secretary of state
wrong. .Post Independence- Liability
same as of an individual u/ ICA
.Crown Proceedings Act,1947. 1872, only requisites of Art. 299
has to be fulfil
TEACHING METHODS TEACHING TOOLS
• Learning Outcomes