Passage of laws as money bills: SC to constitute seven-member bench to hear cases

NEW DELHI: The Supreme Court will constitute a seven-member bench to examine the validity of laws introduced in the Lok Sabha as money bills to bypass the Rajya Sabha.

Even though the BJP is the largest party in the Rajya Sabha, it does not have the majority to pass the bills. Because of this, the money bill introduced an amendment regarding the powers of the ED in the Prevention of Black Money Act. The Aadhaar Act was also passed as a money bill.

A five-judge bench had in November 2019 referred to a wide bench the petitions challenging the passage of the Finance Act, 2017 as a money bill by the Lok Sabha, which also included an amendment on the composition and service of central tribunals. Chief Justice DY Chandrachud clarified that a seven-member bench would be constituted when petitioners' lawyer Abhishek Singhvi brought this to his attention yesterday. The bench will also examine other constitutional issues.

A five-judge Constitution Bench passed the Aadhaar Act as a money bill with a majority verdict. It is noteworthy that Justice DY Chandrachud, who dissented then, is now the Chief Justice.

Money bill and loophole

Constitution Article 109(1): Money Bill need not be introduced in Rajya Sabha but it may be sent for recommendations. The Rajya Sabha cannot reject or amend it. It should be returned to the Lok Sabha within 14 days. The Lok Sabha can accept or reject the recommendations of the Rajya Sabha. Either way, both Houses will be deemed to have passed.

Article 109(5) – If not returned to the Lok Sabha within 14 days, it shall be deemed to have passed.

110(1) A to G of the Constitution: Money Bills can be introduced for appropriation of funds from the Consolidated Fund of India and taxation matters.

Article 110(3): Speaker's decision on whether a money bill is final