Article 150 of the Costitution of India with Case law
🔹 Article 150 of the Constitution of India – Form of Accounts of the Union and of the States
📘 Bare Text of Article 150
"The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor-General of India, prescribe."
🔍 Explanation and Key Features
Article 150 gives constitutional authority for prescribing the format in which government accounts (both Union and States) are to be maintained.
The President of India determines the form after consulting the CAG (Comptroller and Auditor General of India).
Ensures uniformity, transparency, and accountability in the system of public finance.
It forms the legal foundation for how government accounts are kept and audited.
🔧 Practical Implementation
The CAG plays a pivotal role: though the President issues the format officially, it is essentially based on the CAG's advice.
Based on this provision, the Government Accounting Rules and General Financial Rules are framed.
Forms and procedures derived from Article 150 are used by:
Ministries and departments
State treasuries
Public sector undertakings
⚖️ Important Case Laws on Article 150
Though Article 150 does not frequently come up in litigation, it has been discussed in the context of financial accountability and audit powers.
1. Subramanian Swamy v. Manmohan Singh, (2012) 3 SCC 64
Issue: Delay in granting sanction for prosecution under Prevention of Corruption Act.
Relevance: SC observed the importance of institutional accountability, including through financial oversight mechanisms like those established under Article 150.
Note: While not directly interpreting Article 150, it underlined the importance of a strong audit and account system based on CAG’s role.
2. State of Punjab v. CAG, AIR 1996 SC 461
Issue: Whether the CAG could audit certain cooperative societies.
Held: The Court emphasized the powers and functions of the CAG in ensuring fiscal responsibility.
Link to Article 150: Reaffirmed that the CAG’s role in prescribing the form of accounts is vital for public accountability.
3. Comptroller and Auditor General of India v. State of Rajasthan, (2013) 2 SCC 533
Issue: Audit of public-private partnerships (PPPs).
Held: CAG can audit use of public funds even in private hands if there is substantial public interest.
Connection to Article 150: Showed how accounting formats and audits influence governance when public resources are involved.
📝 Summary Table
| Aspect | Details |
|---|---|
| Applies to | Union and State Government accounts |
| Prescribing Authority | President of India |
| On Whose Advice | Comptroller and Auditor General of India (CAG) |
| Purpose | Uniform, transparent, and accountable financial reporting |
| Legal Outcome | Basis for Government Accounting Rules, Audit Standards |
✅ Conclusion
Article 150 ensures a uniform and reliable system for maintaining the financial accounts of the Union and States. By giving a central role to the CAG, it strengthens the accountability framework of India’s public finance system. While not often litigated directly, it forms a cornerstone of fiscal governance in India.
RELATED Blog
0 comments