Parliament & the State Legislature — Constitutional Law II Notes

Parliament — Bicameralism, Composition, Bills & Money Bill

In 2016, the government pushed the Aadhaar Bill through as a Money Bill — so the Rajya Sabha could only suggest, not block it. Opposition members cried foul: was it really a Money Bill? The Speaker’s certificate said yes, and that certificate is nearly the last word. This single episode shows why the “Money Bill” label is not a technicality — it decides how much power the Upper House has over a law.

The law-making machine

What Parliament is (Article 79). Parliament consists of the President and two Houses — the Council of States (Rajya Sabha) and the House of the People (Lok Sabha). Having two Houses is called bicameralism.

Why two Houses (the point of bicameralism). One House (Lok Sabha) is directly elected by the people and represents the nation; the other (Rajya Sabha) represents the States and provides a second, more reflective look at every law — a check against hasty legislation by a single chamber. The Rajya Sabha is a permanent body (it is never dissolved; one-third of its members retire every two years), giving continuity.

Composition.

Lok Sabha — up to 550 members, directly elected from territorial constituencies for a five-year term (extendable during an emergency).
Rajya Sabha — up to 250 members: 238 elected by the elected members of the State Assemblies (by proportional representation) and 12 nominated by the President for distinction in art, science, literature and social service.

Functions of Parliament. Legislation (making laws on Union and Concurrent subjects); control over the executive (the Council of Ministers is responsible to the Lok Sabha — no-confidence motions, questions, debates); financial control (no tax without its sanction; passing the Budget); constituent power (amending the Constitution under Article 368); and electoral/judicial functions (electing the President, impeachment, removal of judges).

Note on the State Legislature. Each State has its own Legislature (Legislative Assembly, and in some States a Legislative Council) that mirrors Parliament at the State level — directly elected Assembly, five-year term, and the same kind of law-making and financial functions within the State field. It has never been asked separately in the exam, so hold it as a parallel to Parliament.

A. Kinds of Bills

A Bill is a draft law placed before Parliament. It becomes an Act only after both Houses pass it and the President assents. Bills come in four kinds:

Ordinary Bills — any Bill other than Money/Financial or Constitution-amendment Bills. They can start in either House and need the agreement of both; a deadlock can be resolved by a joint sitting (Article 108).
Money Bills (Article 110) — Bills dealing only with the matters in Article 110 (taxation, borrowing, the Consolidated Fund, etc.).
Financial Bills — Bills that contain some provisions of Article 110 but also other matters; they follow the ordinary procedure in part but need the President’s recommendation.
Constitution-Amendment Bills (Article 368) — studied in Unit V.

B. The Money Bill — and why it is special

A Money Bill is defined by Article 110(1): a Bill is a Money Bill only if it contains only provisions dealing with matters such as the imposition or regulation of a tax; the borrowing of money by the Government; the custody of the Consolidated Fund or Contingency Fund and payments into or withdrawals from it; the appropriation of money out of the Consolidated Fund; and matters incidental to these.

How a Money Bill is passed (Article 109). A Money Bill can be introduced only in the Lok Sabha, and only on the President’s recommendation. After the Lok Sabha passes it, it goes to the Rajya Sabha, which may only make recommendations and must return it within 14 days; the Lok Sabha may accept or reject those recommendations. So the Rajya Sabha cannot block or amend a Money Bill — the Lok Sabha (the people’s House) has the final say on money. Whether a Bill is a Money Bill is certified by the Speaker of the Lok Sabha, and that certificate is (per Article 110(3)) “final.”

Money Bill vs Financial Bill. A Money Bill contains only Article 110 matters. A Financial Bill contains Article 110 matters plus other provisions — so it is passed like an ordinary Bill (both Houses have full power) but still needs the President’s recommendation to be introduced. Get this distinction and you have the recurring 10-mark question.

Article 110(1): “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 … by the Government of India; (c) the custody of the Consolidated Fund or the Contingency Fund …; (d) the appropriation of moneys out of the Consolidated Fund …” and matters incidental thereto.

In Simple Terms: A Money Bill is a law that deals only with the government’s money — taxes and spending. It starts in the Lok Sabha; the Rajya Sabha can only suggest changes and cannot stop it. If a Bill mixes money with other things, it is a Financial Bill and both Houses have full power over it.

🧩 WORKED EXAMPLE — is this a Money Bill?

Facts. A government Bill proposes (i) a new tax on services, and (ii) also creates a regulatory authority with power to license service providers.

Rule. Under Article 110(1) a Bill is a Money Bill only if it contains only the matters listed there. A tax provision fits (a); but creating a licensing authority is not one of the Article 110 matters.

Apply. Because the Bill mixes a tax (a Money-Bill matter) with a non-money matter (a licensing regime), it is not a Money Bill — it is a Financial Bill.

Conclusion. The Bill must go through the ordinary procedure where the Rajya Sabha has full power to amend or reject; it cannot be pushed through as a Money Bill. (The Speaker’s certificate settles the label, but it must reflect the Article 110 test.)

flowchart TD
    ROOT["Parliament (Art 79)<br/>President + 2 Houses"]:::root
    ROOT --> LS["Lok Sabha — directly elected, 5 yrs"]:::leaf
    ROOT --> RS["Rajya Sabha — States' House, permanent"]:::leaf
    ROOT --> B["Bills"]:::leaf
    B --> B1["Ordinary — both Houses equal"]:::leaf
    B --> B2["Money (Art 110) — LS supreme, RS advises only"]:::leaf
    B --> B3["Financial — mixed; ordinary procedure"]:::leaf
    B --> B4["Amendment (Art 368) — Unit V"]:::leaf
    classDef root fill:#FFF8DC,stroke:#000,stroke-width:1px,color:#000;
    classDef leaf fill:#E6F3FF,stroke:#1E3A8A,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

Case Laws

Mohd. Saeed Siddiqui v State of U.P. (2014) — the Speaker’s certificate that a Bill is a Money Bill is final and its validity cannot ordinarily be questioned in court.
Rojer Mathew v South Indian Bank (2019) — a larger Bench doubted the width of the “Money Bill” route and referred the question of judicial review of the Speaker’s certificate to a seven-judge Bench.
Kihoto Hollohan v Zachillhu (1992) — on the analogous Speaker’s certificate under the Tenth Schedule, the Speaker acts as a tribunal and his decision is subject to judicial review.

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