Contractual Liability of Administration: An Indian Perspective

The issue of government liability elicits a significant response in any democratic nation where the government acts as a "welfare & service state." Conversely, the idea of an intense form of government calls for the State to actively participate in welfare and service activities, while on the other hand, the idea of governmental accountability could discourage such participation. As a result, a very fine line must be drawn. There are potentially two options available to someone who has been harmed or forced to incur a loss. He can either file a lawsuit against the offending officer or the government that the officer was representing. Because they were treated like regular people in the early common law, the concepts of culpability of the officers in question were recognised. With the expansion of governmental authority, the "officer's liability" has given way to the "State liability," on whose behalf he acts. The main justification for this change may be the concern that the idea of "officer's liability" may stifle the officers' independence and initiative. However, the current fashion shows a thoughtful blending of these two ideas. This paper discusses in detail the contractual liability of the government in India and what are the provisions for this in various laws in India. Also, it mentions the judiciary’s observations in various cases regarding contractual liability.