CONTRACTUAL LIABILITY OF GOVERNMENT IN INDIAN LAW

AUTHOR – ADV. MAHESH MILIND RAMPURKAR, LLM 2ND YEAR, SHRI. NAVALMAL FIRODIA LAW COLLEGE PUNE

BEST CITATION – ADV. MAHESH MILIND RAMPURKAR, CONTRACTUAL LIABILITY OF GOVERNMENT IN INDIAN LAW, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (11) OF 2025, PG. 833-840, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

                    IN THE CAPITALIST GLOBALISED WORLD OF TODAY, GOVERNMENTS KEEP THEIR PROMISES JUST LIKE ANYONE ELSE. IN THE TIMES WHEN BRITISHERS RULED INDIA, CONTRACTS INVOLVING THE GOVERNMENT WERE GOVERNED BY ENGLISH COMMON LAW, WHICH OFTEN PROVIDED SOVEREIGN IMMUNITY. AFTER INDEPENDENCE, THE INDIAN CONTRACT ACT, 1872, BECAME THE KEY LAW GOVERNING CONTRACTS, INCLUDING THE ONES INVOLVING GOVERNMENT AS A PARTY. ARTICLE 299 OF THE INDIAN CONSTITUTION LAYS DOWN CONDITIONS FOR VALID GOVERNMENT CONTRACTS. NOW, CONTRACTUAL LIABILITY OF THE GOVERNMENT HAS EVOLVED OVER TIME, TODAY ACCOUNTABILITY IS ENSURED IN PUBLIC PROCUREMENT AND SERVICE AGREEMENTS. COURTS HAVE PLAYED SIGNIFICANT ROLE IN BALANCING GOVERNMENTS FUNCTIONS WITH THE RIGHTS OF CITIZENS. GOVERNMENT CONTRACTS ARE LEGALLY BINDING AGREEMENTS BETWEEN THE GOVERNMENT(STATE) AS ONE PARTY AND PRIVATE PARTIES. THESE CONTRACTS MUST ADHERE TO CERTAIN FORMAL REQUIREMENTS AND THEY MUST UPHOLD FAIRNESS, TRANSPARENCY, AND ACCOUNTABILITY. ISSUES LIKE LACK OF TRANSPARENCY, ARBITRARY DECISIONS, AND NON-COMPLIANCE WITH THE LEGAL PROCEDURES HAVE VERY OFTEN LED TO DISPUTES. THE CHALLENGE IS IN PROVING THAT PUBLIC FUND IS SPENT EFFICIENTLY AND LAWFULLY. STRENGTHENING LEGAL SAFEGUARDS AND TRANSPARENCY IN PROCEDURE IN GOVERNMENT CONTRACTS WILL LEAD TO REDUCED DISPUTES AND FOSTER GREATER ACCOUNTABILITY. THE REFORMS NEED TO INCLUDE MANDATORY DIGITAL RECORDS FOR CONTRACT MANAGEMENT, STRONGER MONITORING OF PROCUREMENT PROCESSES, AND CLEAR DISPUTE RESOLUTION SYSTEMS. THIS ARTICLE EXPLORES THE GOVERNMENT CONTRACTUAL LIABILITY UNDER INDIAN LAW, ANALYSES KEY CHALLENGES, AND PROPOSES REFORMS FOR IMPROVING TRANSPARENCY AND EFFICIENCY IN PUBLIC CONTRACTS

KEY WORDS: GOVERNMENT CONTRACTS, PUBLIC PROCUREMENT, CONTRACTUAL LIABILITY, ARTICLE 299, TRANSPARENCY, DISPUTE RESOLUTION