AIR 1963 KERALA 278 ::1963 Ker LT 393 ::1963 Ker LJ 316 ::ILR (1963) 1 Ker 361

Kerala High Court

Hon'ble Judge(s): M. S. Menon , C.J. AND T. K. Joseph, P. Govindan Nair , JJ

Constitution of India , Art.299(1)— Government of India Act (1935) (25 and 26 Geo Vi and 1 Edw VIII Cl.(2)) , S.175(3)— Non-compliance with - Suit brought on contract by State Government - Applicability of doctrine of mutuality - State Government fully executing its part of contract - Suit brought by it against other contracting party is maintainable even though there is no compliance with Art.299(1) - Such suit is maintainable also u/S.65, Contract Act. The provisions relating to the contracts made by a State Government contained in S. 175 (3) of the Government of India Act, 1935 and Art. 299 (1) of the Constitution of India are meant for the protection of the State. Hence, no suit against any State Government based on an alleged contract entered into with the State can be enforced against such Government in a Court of law if the contract is not embodied in an agreement entered into by the Governor and executed on behalf the Governor in the manner prescribed and by the @page-Ker279 authority empowered to do so. AIR 1962 SC 110 and AIR 1962 SC 113 and AIR 1954 SC 236 and AIR 1962 SC 779, Rel. on.(Para 10) Similarly the State Government will, in a case where there is no compliance with the above statutory provisions, not be able to maintain an action on contract against the other contracting party, ....