THE STATE’S CONTRACTUAL LIABILITY IN INDIA
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Abstract
Indian Government, being a welfare state, has been increasingly adopting various economic activities to provide large benefits to the general public. Today, a large number of individuals and business organizations enjoy tons of benefits in the form of government contracts, licenses, quotas, mineral rights, tenders, jobs, etc. This raises the possibility of exercise of power by a government to dispense largess in an arbitrary manner and the need was felt to regulate and protect the interests of an individual and what they would be entitled when the contract is breached by the government. Even when the government, as an entity entering into contracts with corporations, assumes the same rights and obligations as that of B2B (business to business) or individual to business contracts, their liability and requirements change. This paper analyses the position of government contracts, their judicial and statutory recognition and ensuing liabilities by studying provisions of the Constitution, Indian Contract Act, 1872, Limitation Act, 1963, case laws and the principles that govern the contractual liability of the State.
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