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Rule 224 - Government Contracts | KartavyaDesk

GFR 2017

Original Rule Text

Rule 224 (2) All the contracts and assurances of property made in the exercise of the executive power of the Union shall be executed on behalf of the President. The words "for and on behalf of the President of India" should follow the designation appended below the signature of the officer authorized in this behalf.

What This Means

Rule 224(2) of the General Financial Rules (GFR), 2017, is about how contracts and property assurances are made when the government is involved. Basically, when the government (the 'Union') enters into an agreement to buy something, sell something, or make any kind of promise related to property, it's officially done in the name of the President of India. Think of it as the President being the ultimate representative of the government in these deals.

This rule ensures that there's a clear understanding that the government is a party to the contract. It also specifies that the officer signing the document on behalf of the government must clearly state that they are doing so 'for and on behalf of the President of India'. This phrase must be included after their official title. This rule applies to all government departments and agencies when they are making contracts or assurances related to property.

In simple terms, it's like saying the government is making the deal, but the President is the one ultimately responsible. It's a formality to ensure accountability and clarity in government transactions.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •All contracts and assurances of property by the Union are executed on behalf of the President of India.
  • •The phrase 'for and on behalf of the President of India' must be used after the signing officer's designation.
  • •This rule applies to all contracts and assurances of property made in the exercise of the executive power of the Union.
  • •The rule ensures clarity and accountability in government transactions related to property.
  • •Failure to adhere to this rule could lead to legal challenges regarding the validity of the contract.

Practical Example

The Ministry of Defence needs to purchase land for a new army training facility. Mr. Rajesh Kumar, a Joint Secretary in the Ministry, is authorized to sign the purchase agreement with the landowner. When signing the contract, Mr. Kumar must sign his name, followed by his designation 'Joint Secretary, Ministry of Defence' and then the phrase 'for and on behalf of the President of India'.

Without this phrase, the contract might be challenged later, arguing that it wasn't properly executed on behalf of the government. If the purchase price was INR 5,00,00,000 (5 Crore Rupees), and the phrase was missing, the landowner could potentially argue that the contract is invalid, causing significant delays and legal complications for the Ministry of Defence.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What happens if the phrase 'for and on behalf of the President of India' is omitted?▼
The contract may be challenged in court, potentially rendering it invalid or unenforceable. It's crucial to include the phrase to ensure the contract's legal standing.
Does this rule apply to all types of government contracts?▼
No, Rule 224(2) specifically applies to contracts and assurances related to property. Other types of contracts may have different signing requirements.
Who is responsible for ensuring compliance with this rule?▼
The officer authorized to sign the contract is responsible for ensuring that the correct phrase is included. Their superiors and legal advisors should also verify compliance.
What constitutes an 'assurance of property'?▼
An 'assurance of property' refers to any promise or guarantee related to the ownership, transfer, or use of property. This could include leases, mortgages, or any other agreement affecting property rights.
Does this rule apply to state government contracts?▼
No, this rule applies specifically to contracts made in the exercise of the executive power of the *Union* government (i.e., the central government). State government contracts are governed by their own rules and regulations.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 224(2) of GFR 2017, contracts and assurances of property made in the exercise of the executive power of the Union are executed on behalf of whom?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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