Article 207 of the Costitution of India with Case law
Article 207 of the Constitution of India
— Special provisions as to financial Bills in the States
📜 Text of Article 207 – Summary:
Article 207 lays down the procedure for the introduction and passing of financial Bills (including Money Bills) in State Legislatures, similar to the provisions applicable at the Union level under Articles 110 and 117.
🧾 Clauses of Article 207:
Clause (1):
A Money Bill cannot be introduced in a State Legislature without the recommendation of the Governor.
Clause (2):
A Money Bill can only be introduced in the Legislative Assembly, not in the Legislative Council (in states with a bicameral legislature).
Clause (3):
A Bill shall not be deemed to be a Money Bill unless it contains only provisions dealing with matters listed in Article 199(1) (like taxation, borrowings, consolidated fund, etc.).
Clause (4):
The Speaker of the Legislative Assembly shall decide whether a Bill is a Money Bill, and his decision is final.
🧠 Important Related Articles:
| Article | Relevance |
|---|---|
| 199 | Defines a Money Bill at the state level. |
| 200 | Assent to Bills by the Governor. |
| 208 | Rules of procedure for the Legislature. |
| 110/117 | Analogous provisions for Union-level financial Bills. |
⚖️ Key Case Laws Related to Article 207 and Money Bills:
🧑⚖️ 1. Mohd. Saeed Siddiqui v. State of U.P.
Citation: (2014) 11 SCC 415
Issue: Whether a bill wrongly certified as a Money Bill can be challenged in court.
Held:
The Speaker’s decision is final under Article 207(4) and cannot be questioned in a court of law.
Criticism: Later judgments questioned this blanket immunity.
🧑⚖️ 2. K.S. Puttaswamy v. Union of India (Aadhaar case)
Citation: (2019) 1 SCC 1
Though primarily related to the Centre (Article 110), the interpretation of Money Bills applies similarly to states under Article 207.
Minority view (Chandrachud J.): Wrong certification of a Bill as a Money Bill can be subject to judicial review.
🧑⚖️ 3. Rojer Mathew v. South Indian Bank Ltd.
Citation: (2020) 6 SCC 1
Held:
The classification of a Money Bill is justiciable.
Courts can review the Speaker’s decision if it violates constitutional limits.
🧑⚖️ 4. Pandit M.S.M. Sharma v. Shri Krishna Sinha
Citation: AIR 1959 SC 395
While not about Article 207 specifically, this case examined the powers and privileges of Speakers and their immunity—providing early context for limits to legislative finality.
✅ Key Takeaways:
| Topic | Summary |
|---|---|
| Applies to | Financial/Money Bills in State Legislatures |
| Governor’s Role | Prior recommendation required for introduction |
| Only in Assembly | Money Bills can’t originate in Legislative Council |
| Speaker’s Certification | Final under Article 207(4), but subject to judicial review post recent rulings |
| Justiciability | Once considered non-justiciable; now courts can review improper certification |
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