Constitution of India · Section Article 295
Succession to property, assets, rights, liabilities and obligations in other cases
Article 295 — Succession to property, assets, rights, liabilities and obligations in other cases
- Succession to property, assets, rights, liabilities and obligations in other cases.—(1) As from the commencement of this Constitution—
- (a) all property and assets which immediately before such commencement were vested in any Indian State corresponding to a State specified in Part B of the First Schedule shall vest in the Union, if the purposes for which such property and assets were held immediately before such commencement will thereafter be purposes of the Union relating to any of the matters enumerated in the Union List, and
- (b) all rights, liabilities and obligations of the Government of any Indian State corresponding to a State specified in Part B of the First Schedule, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations of the Government of India, if the purposes for which such rights were acquired or liabilities or obligations were incurred before such commencement will thereafter be purposes of the Government of India relating to any of the matters enumerated in the Union List, subject to any agreement entered into in that behalf by the Government of India with the Government of that State. (2) Subject as aforesaid, the Government of each State specified in Part B of the First Schedule shall, as from the commencement of this Constitution, be the successor of the Government of the corresponding Indian State as regards all property and assets and all rights, liabilities and obligations, whether arising out of any contract or otherwise, other than those referred to in clause (1).
Plain English Summary
This article deals with what happens to the property, rights, and debts of Indian States when the Constitution came into effect. Generally, if the original purpose of the state's assets now aligns with the Union (Central Government)'s responsibilities, those assets and obligations transfer to the Union. However, for most other matters, the State Government remains the successor.
Key Points
- Transfer to Union: Property and assets of Indian States vest in the Union if their original purpose is now related to subjects listed in the Union List.
- Transfer of Rights/Liabilities: Rights and obligations of a State Government transfer to the Government of India if those matters relate to Union List subjects, provided there is an agreement.
- State Succession: The Government of each State remains the successor for all property and rights/liabilities except those specifically transferred under clause (1).
Why It Matters
This article clarifies the legal ownership and responsibility for assets and obligations between the Indian States and the central government, defining which entity takes over specific responsibilities after the Constitution began.
Landmark Judgements
No major landmark judgements.