Article 117 of the Costitution of India with Case law
Article 117 of the Constitution of India
Title: Special provisions as to Financial Bills
🔹 Text of Article 117
(1) A Bill or amendment making provision for any of the matters specified in sub-clauses (a) to (f) of clause (1) of Article 110 shall not be introduced or moved except on the recommendation of the President, and a Bill making such provision shall not be introduced in the Council of States.
(2) A Bill which, if enacted and brought into operation, would involve expenditure from the Consolidated Fund of India shall not be passed by either House of Parliament unless the President has recommended to that House the consideration of the Bill.
(3) A Bill which makes provision for any matter specified in sub-clauses (a) to (f) of clause (1) of Article 110 shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licenses or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration, or regulation of any tax by any local authority or body for local purposes.
🔹 Explanation
Article 117 lays down procedural requirements related to:
Financial Bills (Category I and II).
Distinguishing them from Money Bills (Article 110).
There are two kinds of Financial Bills:
Financial Bill (I) – Contains any of the matters of Article 110 (Money Bill) + other matters. Needs President’s recommendation, can be introduced only in Lok Sabha.
Financial Bill (II) – Only involves expenditure from Consolidated Fund but not Article 110 matters. Needs President’s recommendation but can be introduced in either House.
🔹 Key Differences: Article 110 vs Article 117
| Aspect | Article 110 (Money Bill) | Article 117 (Financial Bills) |
|---|---|---|
| Introduction | Only in Lok Sabha | In either House (in some cases) |
| President’s Recommendation | Required | Required |
| Rajya Sabha Role | Limited (can only suggest) | Full legislative power (in some cases) |
| Scope | Only matters in 110(1)(a)-(f) | May include other provisions |
🔹 Important Case Laws Related to Article 117
🧑‍⚖️ Mohd. Saeed Siddiqui v. State of U.P. (2014) 11 SCC 415
Issue: Whether a particular bill was a Money Bill or not.
Held: The court emphasized the importance of Article 117(3), distinguishing Money Bills from Financial Bills, especially if the bill includes penalties, fees, or taxes by local bodies.
🧑‍⚖️ Justice K.S. Puttaswamy (Retd.) v. Union of India (Aadhaar Case) (2018)
Issue: Whether Aadhaar Act, 2016 was rightly passed as a Money Bill.
Relevance to Article 117: The dissenting judgment (Justice Chandrachud) strongly argued that since the Aadhaar Bill contained provisions beyond Article 110, it should have been introduced as a Financial Bill under Article 117, not a Money Bill.
🧑‍⚖️ Rojer Mathew v. South Indian Bank (2019) 6 SCC 524
Held: The classification of Money Bills must be strictly interpreted, and misuse (introducing complex legislation as Money Bills to avoid Rajya Sabha scrutiny) violates the Constitution. Article 117(3) was discussed in this context.
🔹 Conclusion
Article 117 provides checks and balances:
Prevents misuse of Money Bill route.
Ensures Parliamentary procedure is followed when public money is involved.
It maintains legislative discipline and upholds federalism, especially by ensuring Rajya Sabha's role is not bypassed unless strictly under Article 110.
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