Introduction 

• Following the transition from British rule to the sovereign Republic of India, it became essential to establish clear guidelines for the succession of property, rights, and obligations between various governmental entities.  
• The provisions contained herein reflect the constitutional principles that ensure the smooth functioning of governmental operations while protecting individual property rights.  
• These regulations are designed to maintain continuity in governance while establishing new frameworks for property management, contractual relationships, and legal proceedings in modern India.  
• Part XII of the Constitution of India (COI) under chapter III which entails the provisions regarding Property, Contracts, Rights, Liabilities, Obligations and Suits. 

Legal Provisions  

Article 294: Succession to property, assets, rights, liabilities and obligations in certain cases 

• The following provisions govern the transfer of property and assets from the previous governmental structure: 
  • All property and assets previously vested in His Majesty for the Dominion of India shall vest in the Union of India. 
  • All property and assets previously vested in His Majesty for each Governor's Province shall vest in the corresponding State. 

Article 295: Succession to property, assets, rights, liabilities and obligations in other cases 

• The succession of rights, liabilities, and obligations shall be as follows: 
  • All rights, liabilities, and obligations of the former Government of the Dominion of India shall transfer to the Government of India. 
  • All rights, liabilities, and obligations of the former Government of each Governor's Province shall transfer to the Government of the corresponding State. 

Article 296: Property accruing by escheat or lapse or as bona vacantia 

• Any property that would have accrued by escheat, lapse, or as bona vacantia (property without rightful owner) shall vest:  
  • In the State, if the property is situated within that State. 
  • In the Union, in all other cases. 
• Exception: If such property was in possession or control of the Government at the time of accrual, it shall vest in:  
  • The Union, if used for Union purposes. 
  • The State, if used for State purposes. 

Article 297: Things of value within territorial waters or continental shelf and resources of the exclusive economic zone to vest in the Union 

• The Union shall have exclusive ownership of:  
  • All lands, minerals, and valuable items underlying the ocean within India's territorial waters. 
  • Resources within the continental shelf. 
  • Resources within the exclusive economic zone. 
• The Parliament shall have the authority to specify the limits of:  
  • Territorial waters  
  • Continental shelf  
  • Exclusive economic zone  
  • Other maritime zones 

Article 298: Power to carry on trade, etc. 

• The Union and each State shall have executive power to:  
  • Carry on any trade or business. 
  • Acquire, hold, and dispose of property. 
  • Make contracts for any purpose. 
• Limitations:  
  • Union's executive power shall be subject to State legislation in matters where Parliament cannot make laws. 
  • State's executive power shall be subject to Parliamentary legislation in matters where State Legislature cannot make laws. 

Article 299: Contracts 

• All contracts made in exercise of executive power shall be:  
  • Expressed to be made by the President (for Union) or Governor (for State). 
  • Executed by authorized persons in prescribed manner. 
• Liability Protection:  
  • The President and Governors shall not be personally liable for contracts made for constitutional purposes. 
  • Persons executing contracts on their behalf shall not be personally liable. 

Article 300: Suit and Proceedings 

• The Government may sue or be sued:  
  • As "Union of India" for the central government b. By the name of the respective State for state governments. 
• Pending Legal Proceedings:  
  • The Union of India shall be substituted for the Dominion of India. 
  • Corresponding States shall be substituted for former Provinces or Indian States. 

Conclusion 

Implementation of these provisions requires careful consideration of both Union and State interests, while maintaining the fundamental right to property as protected by law. The success of these provisions depends on their faithful interpretation and application by governmental authorities, judicial bodies, and other stakeholders involved in property management and contractual relationships. Regular review and updates of these provisions, in accordance with constitutional procedures, ensure their continued relevance and effectiveness in serving the public interest while protecting individual rights.