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Constitution of India · Section Article 294

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

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

  1. Succession to property, assets, rights, liabilities and obligations in certain cases.—As from the commencement of this Constitution—

  • (a) all property and assets which immediately before such commencement were vested in His Majesty for the purposes of the Government of the Dominion of India and all property and assets which immediately before such commencement were vested in His Majesty for the purposes of the Government of each Governor’s Province shall vest respectively in the Union and the corresponding State; and

  • (b) all rights, liabilities and obligations of the Government of the Dominion of India and of the Government of each Governor's Province, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations respectively of the Government of India and the Government of each corresponding State, subject to any adjustment made or to be made by reason of the creation before the commencement of this Constitution of the Dominion of Pakistan or of the Provinces of West Bengal, East Bengal, West Punjab and East Punjab.

Plain English Summary

This article deals with how property, assets, rights, and debts belonging to the British government before India's independence were divided between the central Government of India and the various States. It also clarifies which rights and obligations belong to the central government versus the state governments.

Key Points

  • Property and assets previously held by the British for the Government of India now belong to the Union (Central Government).
  • Property and assets previously held for a specific Governor's Province now belong to that corresponding State.
  • Rights, liabilities, and obligations of the Government of India and each State are clearly defined as belonging to the respective government.
  • This division is subject to adjustments made due to previous political changes (like the creation of Pakistan or certain provinces).

Why It Matters

This article is foundational for understanding the legal ownership and responsibilities of the central and state governments in India today, defining their respective spheres of authority regarding assets and obligations.

Landmark Judgements

No major landmark judgements.

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