Controversy
A seven-judge Bench of the Supreme Court is set to address key issues related to the definition and scope of a Money Bill.
The ruling will affect several laws enacted recently without Rajya Sabha approval, raising concerns about their legality
The case has implications for India's federal structure and the balance of power between different branches of government.
The controversy began with the Finance Act, 2017, (verdict in Rojer Mathew vs South Indian Bank Ltd,) which was certified as a Money Bill and made significant changes to the jurisdiction and authority of 26 tribunals
The Finance Act abolished some tribunals, merged others, and imposed new qualifications and service conditions, leading to legal challenges
Articles and definitions
Money Bill: According to Article 110(1), a Money Bill must relate to specific subjects like taxation, borrowing, or appropriation of funds.
Money Bills require only Lok Sabha approval, with Rajya Sabha offering non-binding recommendations.
Article 110(3) gives the Lok Sabha Speaker the final say on whether a Bill is a Money Bill.
Scope Limitation: A Bill must address only matters listed in Article 110(1) to qualify as a Money Bill.
Finance Act, 2017:
The Act made extensive changes to tribunal functions, which the petitioners argued exceeded the scope of a Money Bill.
Typically, Finance Acts outline fiscal plans but do not make significant changes to tribunal functions.
The Finance Act, 2017, is contested for including substantive legal changes beyond what is deemed appropriate for a Money Bill.
The Act's changes were seen as encroaching on judicial independence and giving excessive rule-making power to the Union Executive.
Role of the Upper House
Justice D.Y. Chandrachud emphasized the Rajya Sabha’s essential role in reflecting the nation’s pluralism.
The Rajya Sabha is a key component of India’s federal structure.
Ignoring the Rajya Sabha’s role in Money Bills undermines the deliberate dialogue essential in a federal system.
Using Money Bills to bypass Rajya Sabha functions threatens the Constitution’s balance
Money Bills are intended to prevent Rajya Sabha from obstructing necessary government finances.
Allowing this practice unchecked could undermine democratic foundations and constitutional checks.
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