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EDITORIAL ANALYSIS – Trickeries of the money bill

The Editorial covers GS paper 2 : Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

Introduction

The Supreme Court has now heard oral arguments in Revenue Bar Association (RBA) v. Union of India, in which the validity of the Finance Act of 2017, insofar as it affects the structure and functioning of various judicial tribunals, is under challenge. 

What is the background?

  • Ordinarily, the Finance Act, which is enacted at the beginning of every accounting year, seeks to give effect to the government’s fiscal policies.
  • In 2017, however, the state wielded the statute like a blunderbuss.
  • It not only set the fiscal agenda for the year ahead but it also toppled the existing regime governing the working of 26 different judicial bodies.
  • Until recently, each of these panels was governed by a separate statute, and those laws individually contained a set of principles providing for, among other things, the criteria employed to select and remove members to and from these bodies, and for salaries, allowances and other such service conditions of the members.

What are the concerns?

  • The petitioners argued that this move runs sharply athwart judicial independence.
  • The new law, in their belief, deputed to the executive what was really an essential legislative function.
  • Many of these tribunals, which included the National Green Tribunal (NGT), the Income Tax Appellate Tribunal, the National Company Law Appellate Tribunal, and the Industrial Disputes Tribunal, they pointed out, performed roles that were originally undertaken by the higher judiciary.
  • To assign to the executive’s whims the task of establishing the criteria employed in selecting members to the panels and to provide for the members’ service conditions was, therefore, pernicious to the basic principle of separation of powers.
  • Despite the Supreme Court’s previous ruling that the chairperson of a judicial tribunal ought to be equivalent to the Chief Justice of the high courts, as a result of the rules now made in furtherance of the Finance Act, in 13 different tribunals, a person who is merely qualified to be appointed as a judge of a high court can be selected as the presiding officer.

What are the needs for these reforms?

  • In B.R. Ambedkar’s vision, the Constitution embodied not only a charter of rights but also a foundation for republican governance. 
  • His worries that democracy in India was “only a top-dressing on an Indian soil, which is essentially undemocratic”, saw him lay stress on a need to diffuse constitutional morality among India’s citizens.

What are the loopholes?

  • One such clause, Article 110(1), grants to the Lok Sabha Speaker the authority to certify a draft law as a money bill so long as such legislation deals only with all or any of the matters specifically listed in the provision.
  • The ensuing clause clarifies that a draft law will not be a money bill for the reason that it also provides for the imposition or abolition of a tax.
  • The Union government, for its part, argued that the Speaker of the Lok Sabha was not only correct in making the classification, but that, in any event, her decision was beyond judicial review.
  • To this end, the government relied on Article 110(3), which states that in cases where a dispute arises over whether a bill is a money bill or not, the Speaker’s decision shall be considered final.
  • But, as the Supreme Court has repeatedly held, the finality accorded to the Speaker’s decision does not altogether oust the court’s jurisdiction.

Conclusion

  • The idea behind a money bill is derived from British parliamentary custom.
  • But unlike in Britain, where judicial review of the Speaker’s opinion is unambiguously prohibited, in India, Article 110 avoids creating any such bar.
  • Money bills exist simply to ensure that the Rajya Sabha isn’t allowed to bring down a government by refusing it access to the exchequer for everyday governance.
  • The Supreme Court has already squandered at least two opportunities in recent times to provide a sense of sanctity to the Constitution’s carefully structured arrangements.
  • The dispute over the Finance Act of 2017, therefore, assumes particular significance.
  • In deciding the case, the court will do well to pay heed to Ambedkar’s warnings, by recognising that the niceties of constitutional form are not a matter of trifles.

Source: The Hindu.