| PYQ Relevance: Mains: Q1 The Indian Constitution has provisions for holding joint sessions of the two houses of the Parliament. Enumerate the occasions when this would normally happen and also the occasions when it cannot, with reasons thereof. (UPSC IAS/2017) Q2 Rajya Sabha has been transformed from a ‘useless stepney tyre’ to the most useful supporting organ in the past few decades. Highlight the factors as well as the areas in which this transformation could be visible. (UPSC IAS/2020) |
Note4Students:
Prelims: Money Bill
Mains: Issues related to Money Bill
Mentor comments: In the coming weeks, a seven-judge Bench of the Supreme Court of India will address key questions regarding the definition and scope of a Money Bill. The ruling will impact numerous legislations passed recently without Rajya Sabha approval. The case, stemming from the November 2019 Rojer Mathew vs. South Indian Bank Ltd. verdict, challenges the Finance Act, 2017. This Act, certified as a Money Bill, made extensive changes to 26 tribunals’ authority and jurisdiction, including their abolition, merger, and the imposition of new qualifications and service conditions.
Let’s learn!
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Why in the News?
The Supreme Court’s ruling will impact legislation passed without the Rajya Sabha’s approval and influence the state of India’s federal structure.
| Articles and definitions: • Article 109: Allows Money Bills to become law with only the Lok Sabha’s approval; Rajya Sabha can only make recommendations, which are not binding. • Article 110(1): Defines a Money Bill, listing subjects such as taxation, borrowing, and appropriation from the Consolidated Fund of India. A Bill must address only these subjects to be deemed a Money Bill. • Article 110(3): Grants the Speaker of the Lok Sabha the final authority to determine if a proposed legislation is a Money Bill. |
A colourable exercise of power:
- This term refers to actions taken by a legislative body that, while appearing to be within their authority, actually circumvent constitutional limits or principles.
- In the context of the Finance Act, 2017, the petitioners argue that the Act’s provisions extend beyond the permissible scope of a Money Bill, thereby constituting a subterfuge to bypass the Rajya Sabha.
Arguments Against the Finance Act, 2017
- The Finance Act, 2017, included extensive amendments affecting the terms of office, qualifications, and regulatory powers of tribunals. These changes were seen as far-reaching and not merely incidental to financial matters, which should be the sole concern of a Money Bill as defined in Article 110(1) of the Constitution.
- The Act conferred significant powers to the executive to regulate tribunals through delegated legislation. This delegation was criticized as granting unbridled authority, undermining the independence of the judiciary.
- The petitioners contended that the Act perverted the Constitution’s plain language, aiming to defeat its fundamental principles, particularly the separation of powers and the independence of the judiciary.
Judicial Precedents and Constraints
- K.S. Puttaswamy Case: The majority in the Rojer Mathew case felt constrained by the precedent set in K.S. Puttaswamy vs. Union of India, where the Supreme Court upheld the classification of the Aadhaar Act as a Money Bill. The majority opinion noted that the Puttaswamy case did not adequately clarify the implications of the word “only” in Article 110(1), which is crucial for determining the legitimacy of a Money Bill.
- Need for Clear Standards: The lack of bright-line rules regarding the Speaker’s certification of a Bill as a Money Bill has led to ambiguity. The Rojer Mathew case emphasizes the necessity for a definitive interpretation of what constitutes a Money Bill to prevent future misuse of this classification.
Implications of the Rojer Mathew Case
- Potential for Future Challenges: The outcome of the Rojer Mathew case could have significant implications for the classification of future legislation as Money Bills, particularly regarding the balance of power between the Lok Sabha and Rajya Sabha.
- Broader Legislative Impact: If the seven-judge Bench decides to interpret the term “only” in a manner that restricts the scope of Money Bills, it could limit the legislative powers exercised through this route, thereby reinforcing constitutional safeguards against the misuse of legislative authority.
| Role of Rajya SabhaFederal Backbone: • Justice D.Y. Chandrachud emphasized that the Rajya Sabha is an “indispensable constitutive unit of the federal backbone of the Constitution.” It represents the interests of states and ensures their voices are heard in the legislative process. • Representation of Pluralism: The Rajya Sabha acts as a mirror to the pluralistic nature of Indian society, reflecting diverse regional and cultural interests that may not be adequately represented in the Lok Sabha. Checks and Balances • Preventing Authoritarianism: The Rajya Sabha serves as a check on the Lok Sabha, especially when the ruling party has a significant majority. It can prevent hasty or ill-considered legislation driven by populist sentiment. • Deliberative Role: As a deliberative body, the Rajya Sabha provides a platform for thorough debate on major issues, allowing for a more measured approach to law-making compared to the often fast-paced decisions of the Lok Sabha. Legislative Review • The Rajya Sabha is designed to review and re-evaluate legislation passed by the Lok Sabha, ensuring that laws are carefully considered and that potential flaws are addressed before enactment. • It acts as a guardian of the rights of states, promoting decentralization and ensuring that state interests are adequately represented in national legislation. Representation of Vulnerable Sections • Inclusivity: The Rajya Sabha allows for representing marginalized and minority groups, providing them a voice in the legislative process. This is particularly important for women, and religious, ethnic, and linguistic minorities who may struggle to gain representation in the Lok Sabha. • The President nominates members to the Rajya Sabha for their expertise in various fields, ensuring that diverse perspectives are included in legislative discussions. |
Way forward:
- Clarification of Money Bill Criteria: The Supreme Court should provide a clear and definitive interpretation of Article 110, particularly the implications of the term “only” in defining what constitutes a Money Bill.
- Strengthening the Role of the Rajya Sabha: The Court’s ruling should reinforce the importance of the Rajya Sabha as a critical component of India’s federal structure.
