[Validity Of Finance Act 2017- Day-3] Majority Judgment In Aadhaar Case Covers My Case, Submits AG As Constitution Bench Reserves Judgment

As Attorney General K. K. Venugopal resumed his submissions on the constitutionality of the passage as a Money Bill of the Finance Act of 2017 on Monday, Chief Justice Ranjan Gogoi asked for a copy of the Supreme Court's order in Rajiv Garg, where the court had considered whether different conditions of service could be prescribed for different tribunals. In that case, the court had taken on record the assurance of the then-AG to speak with the different ministries as to uniformity in the retirement, functional facilities and accommodation of the Chairman and members of different tribunals. AG Venugopal pointed out that in the order, the court had required that the Centre fulfill its commitment, as communicated through the then-AG and the then-Solicitor General, regarding the discrepancies in tenures and other conditions of services of the Members and Presiding Officers of the different Tribunals. "Pursuant to this, the (Finance) Act was passed", said the Mr. Venugopal. He moved on to show how the Bill was returned to the Lok Sabha by the Upper House with certain recommendations, which were not accepted and that it was finally passed on March 30, 2017, to receive the assent of the President a day later- "none of the (recommended) amendments applied to Part XIV (on the merger of Tribunals and the conditions of service of their Chairperson/Members)", he emphasized. Indicating the long title of the Act- "An Act to give effect to the financial proposals of the Central Government for the financial year 2017-2018"- he argued that it was certified as a Financial Bill in the whole and not as to any part of it, adding that no portion of the law can be severed provided it is covered under sub-clause (g) of Article 110. In context of Article 110, which defines 'Money Bill', he advanced, "So far as sub-clauses (a) to (f) are concerned, they deal with some specific subjects and the bill has to be related only to what has been set out in them. But as for sub-clause (g), it can be any matter, not necessarily subject-oriented, but in relation to (a)-(f). Incidental matters can be relatable to any matter but must have connection to (a)-(f). If there is a payment from or a receipt in the Consolidated Fund of India (CFI), then it will be incidental to (a)-(f). For each one of these tribunals (in Schedule 8 of the Act), the total expenditure is up to 100 crores on salaries and allowances which are paid out of the CFI. Hence, the Finance Act is a money bill as it also comprehends in its scope a matter which is related to (a)-(f)" "Further, the persons manning the tribunals which have been abolished have to be paid a certain amount and that is covered by section 185. They are entitled to a compensation not exceeding three months' pay and this comes to over a crore of rupees. Also, the balance of all monies received by such a Tribunal and not spent before its abolition shall stand transferred to the Central government. Now, the Central government can't hold money and as such, the entirety of the funds would go to the CFI by virtue of Article 266" "The entirety of the salaries are being withdrawn from the CFI and the said receipts of the Central government are also being paid into it. 110(1)(c) deals with payments of money into or withdrawals from the CFI. But the (2017 Act's) provisions are not exclusively relatable to this and hence, I have to go to (g). With this, see 110(2). What is significantly omitted from clause (2) is salaries, allowances and pensions. While (a) has been excluded, (c) and (d) have been otherwise included (for qualifying as a Money Bill)", he continued. "I am treating 110(2) as a proviso to clause (1). Because 110(1) starts by saying 'a bill shall be deemed to be a Money Bill' and (2) starts with 'a bill shall not be deemed to be a Money Bill'. So (2) is an exception to (1). If there is a bill regarding payments out of the CFI by way of salaries, allowances and pensions, it will come under a main provision of (1), which would be most appropriately (g)" "These payments which are not excluded by 110(2) will necessarily be provisions incidental to and covered by the Finance Act...it has rightfully found a place in (g) as a matter incidental to any of the sub-clauses (a)-(f), specifically (c) and (d)". Referring to section 7 of the Aadhaar Act of 2017, (which speaks of 'subsidies', 'benefits' and 'services' in respect of which expenditure would be incurred on the CFI and in view of which the Aadhaar Act was held to be a Money Bill by another five-judge bench last year), he advanced that even if it is not so specifically mentioned, there can't be a single case where a payment by the Central government would not involve a payment out of the CFI by virtue of Article 266. He pointed out that in the Aadhaar case, the majority was of the view that all other provisions of the Act are incidental to this Section 7 and thus, protected by Article 110. "The amount which is involved is not...

[Validity Of Finance Act 2017- Day-3] Majority Judgment In Aadhaar Case Covers My Case, Submits AG As Constitution Bench Reserves Judgment

MEHAL JAIN

Tags