CLAT Sample Paper UG-CLAT Mock Test-2 (2020)

  • question_answer
    Recently money bill came in for a debate. The background of the debate should be briefly understood. Supreme Court in the Adhar case had extensively examined arid discussed Article 110 that deals with the money bill. For an authoritative ruling, the Supreme Court had referred the issue to a seven bench judge.
    The case was referred because there was a need for absolute clarity with regard to provisions of the money bill, according to a five -judge constitution bench of CJI Ranjan Gogoi and Justices N V Ramana, D Y Chandrachud, Deepak Gupta and Sanjiv Khanna. There was a need to iron out ambiguities and debates.
    So far, it was the Lok Sabha speaker who decided whether a legislation is a money bill or not. The court’s view will be important but the majority judgment in the Aadhaar case, which upheld the Centre'’s decision to introduce the Aadhaar Act as a money bill. However, it did not elucidate and explain the scope and ambit of sub-clauses (a) to (f) to clause (1) of Article 110 and this needed a comprehensive examination. Therefore, according to the court, "“The issue and question of money bill, as defined under Article 110(1) of the Constitution, and certification accorded by the speaker of Lok Sabha in respect of Part-XIV of the Finance Act, 2017 (under which rules were framed for regulation of tribunals) is referred to a larger bench,”"
    The majority judgment in K S Puttaswamy (Aadhaar case) did not examine and answer use of the word ‘'only'’ in relation to sub-clauses (a) to (f) in the context of Article 110(1) of the Constitution. The use of the word ‘only’ can be easily applied in a bill relating to imposition, abolition, remission, alteration or regulation of any tax, the problem might likely arise in context of a bill “"relating to borrowing of money or giving of any guarantee by the government of India, or an amendment of law concerning financial obligation,”" according to the bench.
    For a Bill to be considered as a Money Bill, it must only contain provisions related to
    · Taxation,
    · Borrowing of money by the government,
    · Expenditure from or receipt to the Consolidated Fund of India, and matters that are incidental to such taxation,
    · Expenditure and related subjects.
    · For example, the Finance Bill, which only contains provisions related to tax proposals, would be a Money Bill.
    What is article 110 of the constitution about?

    A) Money bill and Finance Bill

    B) Finance bill only

    C) When a finance bill is to be considered as money bill

    D) Provisions when a bill can be considered a money bill

    Correct Answer: D

    Solution :

    Rationale: (d) Article 110 (1) of the constitution is as follows:
    (1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely
    (a) the imposition, abolition, remission, alteration or regulation of any tax;
    (b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;
    (c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;
    (d) the appropriation of moneys out of the consolidated Fund of India;
    (e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;
    (f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or
    (g) any matter incidental to any of the matters specified in sub clause (a) to (f)

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