The executive power of the Union and of each State shall extend to the carrying on of any trade or business and to the acquisition, holding and disposal of property and the making of contracts for any purpose: Provided that —

 

(a) the said executive power of the Union shall, in so far as such trade or business or such purpose is not one with respect to which Parliament may make laws, be subject in each State to legislation by the State; and

 

(b) the said executive power of each State shall, in so far as such trade or business or such purpose is not one with respect to which the State Legislature may make laws, be subject to legislation by Parliament.

Debate Summary

 

Draft Article 272, Draft Constitution of India (1948) 

(1) The executive power of the Union and of each State for the time being specified in Part I of the First Schedule shall extend, subject to any Act of the appropriate Legislature, to the grant, sale, disposition or mortgage of any property held for the purposes of the Union or of such State, as the case may be, and to the purchase or acquisition of property for those purposes respectively, and to the making of contracts.

(2) All property acquired for the purposes of the Union or of a State for the time being specified in Part I of the First Schedule shall vest in the Union or any such State, as the case may be.

 

Draft Article 272 (Article 298, Constitution of India 1950) was debated on 15 June 1949. The Draft Article gave the Union and the State executives the power to grant, sell, dispose or mortgage any property held by them and the power to purchase, acquire property and make contracts. 

 

The Drafting Committee Chairman moved an amendment to add States under Part III of Schedule I (Princely States) under the ambit of this Article. The amendment was adopted without any debate.

 

The Draft Article as a whole was adopted without any substantial discussion.