Article 299 of CoI : Article 299: Contracts.

Explanation using Example

Example 1:

The Government of India decides to build a new highway connecting two major cities. The contract for the construction is made under the executive power of the Union. The contract document states that it is made by the President of India, but it is signed by the Secretary of the Ministry of Road Transport and Highways, who is authorized by the President to execute such contracts. If there are any issues with the construction, neither the President nor the Secretary will be personally liable; the liability will rest with the government.

Example 2:

The State Government of Maharashtra wants to lease a piece of land to a private company for setting up a solar power plant. The lease agreement is made under the executive power of the State and is expressed to be made by the Governor of Maharashtra. The agreement is signed by the Principal Secretary of the Department of Energy, who has been authorized by the Governor to execute such agreements. If any disputes arise regarding the lease, neither the Governor nor the Principal Secretary will be personally liable; the liability will be with the state government.