The legislative procedure refers to the constitutional process through which a proposal (Bill) is introduced, debated, passed by Parliament, receives the President's assent, and becomes an Act of Parliament.
Types of Bills
- Ordinary Bill: Deals with all matters other than Money and Financial Bills. It can be introduced in either House and requires the approval of both Houses.
- Money Bill (Article 110): Deals exclusively with taxation and other financial matters specified in Article 110. It can be introduced only in the Lok Sabha on the President's recommendation.
- Financial Bill (Article 117): Relates to financial matters but is broader than a Money Bill. It is of two types—Category I (Art. 117(1)) and Category II (Art. 117(3)).
- Constitution Amendment Bill (Article 368): Seeks to amend the Constitution and must be passed by a special majority; in certain cases, ratification by at least half of the State Legislatures is also required.
Ordinary Bill Process in Parliament
An Ordinary Bill must pass through five stages in Parliament before it becomes an Act.
First Reading (Introduction)
- The Bill is introduced in either House of Parliament by a Minister or a Private Member (Article 107).
- Prior permission of the House is obtained for introduction.
- After introduction, the Bill is published in the Official Gazette (if not published earlier).
- No detailed discussion takes place at this stage.
Second Reading
The most important stage of the legislative process, consisting of three sub-stages:
(a) General Discussion
- The principles and objectives of the Bill are discussed.
- At the end of the discussion, the House may:
- Take the Bill into consideration immediately.
- Refer it to a Department-related Standing Committee or Select Committee.
- Circulate it for public opinion.
(b) Committee Stage
- The Committee examines the Bill clause-by-clause.
- Experts and stakeholders may be consulted.
- The Committee submits its report to the House.
(c) Consideration Stage
- The House discusses the Bill clause-by-clause.
- Members may move amendments.
- Each clause and amendment is put to vote.
Third Reading (Passing of the Bill)
- Debate is confined to the final form of the Bill.
- No major amendments are permitted.
- The Bill is passed by a simple majority of members present and voting.
Bill in the Second House
After being passed by the first House, the Bill is transmitted to the other House.
The Second House may:
- Pass the Bill without amendments → Sent to the President.
- Pass the Bill with amendments → Returned to the first House for approval.
- Reject the Bill.
- Take no action for more than six months.
If there is a deadlock between the two Houses, the President may summon a Joint Sitting under Article 108, where the Bill is decided by a simple majority.
Assent of the President (Article 111)
After being passed by both Houses, the Bill is presented to the President.
The President may:
- Give Assent → The Bill becomes an Act of Parliament.
- Withhold Assent (Absolute Veto).
- Return the Bill (if it is not a Money Bill) for reconsideration.
If Parliament passes the Bill again, with or without amendments, the President is constitutionally bound to give assent.
Money Bill (Article 110)
What is a Money Bill?
A Money Bill is a Bill that deals exclusively with financial matters specified under Article 110 of the Constitution. It primarily concerns taxation, government borrowing, the Consolidated Fund of India (CFI), the Contingency Fund of India, and expenditure from these funds. It enjoys a special legislative procedure, giving the Lok Sabha a dominant role in its passage.
Constitutional Provisions
| Article | Provision |
|---|---|
| Article 109 | Special procedure for the passage of Money Bills. |
| Article 110 | Defines a Money Bill. |
| Article 111 | President's assent to Bills. |
| Article 122 | Courts cannot question parliamentary proceedings on procedural irregularities. |
Definition of Money Bill (Article 110)
Under Article 110(1), a Bill is a Money Bill only if it contains provisions dealing exclusively with one or more of the following matters:
- Imposition, abolition, remission, alteration, or regulation of any tax.
- Regulation of the borrowing of money by the Government of India or giving government guarantees.
- Custody, operation, or withdrawal of money from the Consolidated Fund of India (CFI) or the Contingency Fund of India.
- Appropriation of money out of the Consolidated Fund of India.
- Declaration of any expenditure as charged on the Consolidated Fund of India or increasing such expenditure.
- Receipt, custody, issue, or audit of money belonging to the Government of India or the Consolidated Fund.
- Any matter incidental to the above subjects.
Article 110(2): A Bill is not a Money Bill merely because it provides for fines, penalties, licence fees, or fees for services rendered.
Features of a Money Bill
- Deals exclusively with matters mentioned in Article 110.
- Can be introduced only in the Lok Sabha.
- Can be introduced only on the recommendation of the President.
- The Lok Sabha enjoys overriding powers over the Rajya Sabha.
- The Speaker certifies whether a Bill is a Money Bill.
Procedure for Passing a Money Bill
Introduction: A Money Bill can be introduced only in the Lok Sabha with the prior recommendation of the President.
- Can be introduced only by a Minister after obtaining the President's recommendation.
Passage in Lok Sabha: Debated and passed by a simple majority of members present and voting.
Transmission to Rajya Sabha
- Sent to the Rajya Sabha for recommendations only.
- Rajya Sabha cannot amend or reject a Money Bill.
- Rajya Sabha must return the Bill within 14 days.
- If it fails to do so, the Bill is deemed to have been passed by both Houses in the form approved by the Lok Sabha.
Consideration of Recommendations
- Lok Sabha may accept or reject any or all recommendations made by the Rajya Sabha.
- The decision of the Lok Sabha is final.
President's Assent (Article 111)
- After being passed, the Bill is presented to the President.
- The President may give assent or withhold assent, but cannot return a Money Bill for reconsideration.
Role of the Speaker
The Speaker of the Lok Sabha plays a crucial constitutional role in the case of a Money Bill.
- Article 110(3) provides that if any question arises whether a Bill is a Money Bill, the decision of the Speaker is final.
- Every Money Bill carries the Speaker's certification before being transmitted to the Rajya Sabha.
- The Speaker's certification determines whether the special procedure under Article 109 will apply.
- Although Article 110(3) declares the Speaker's decision as final, the Supreme Court has held that it is subject to limited judicial review in cases of constitutional violations or mala fide action.
Powers of Rajya Sabha over a Money Bill
- Cannot introduce a Money Bill.
- Cannot amend or reject it.
- Can only recommend amendments.
- Must return the Bill within 14 days.
- Recommendations are not binding on the Lok Sabha.
Powers of the President
- Prior recommendation is mandatory before the introduction of a Money Bill.
- After passage, the President may grant or withhold assent.
- The President cannot return a Money Bill to Parliament for reconsideration.
Financial Bill
What is a Financial Bill?
A Financial Bill is a Bill that deals with financial matters. It is governed by Article 117 of the Constitution and is classified into Financial Bill-I and Financial Bill-II.
Financial Bill–I (Article 117(1))
A Financial Bill-I contains all or some provisions of a Money Bill (Article 110) along with other non-financial provisions. Although it includes Money Bill provisions, it is not a Money Bill.
Features
- Can be introduced only in the Lok Sabha.
- Can be introduced only on the President's prior recommendation.
- Can be introduced only by a Minister.
- The Rajya Sabha has equal legislative powers and may amend or reject the Bill.
- In case of a deadlock, a Joint Sitting (Article 108) may be held.
Financial Bill–II (Article 117(3))
A Financial Bill-II contains provisions involving expenditure from the Consolidated Fund of India, but does not contain any matter specified in Article 110. Therefore, it is not a Money Bill.
Features
- Can be introduced in either House of Parliament.
- May be introduced by a Minister or a Private Member.
- President's recommendation is required only before the Bill is taken up for consideration, not for its introduction.
- Both Houses enjoy equal legislative powers.
- A Joint Sitting (Article 108) may be convened in case of disagreement between the Houses.
President's Assent
- After being passed by both Houses, the Bill is presented to the President.
- The President may:
- Give assent.
- Withhold assent.
- Return the Bill (since it is not a Money Bill).
- If Parliament passes the Bill again, the President is constitutionally bound to give assent.
Constitution Amendment Bill (Article 368)
- A Constitution Amendment Bill is introduced to amend the provisions of the Constitution. Depending on the subject matter, it may require:
- Simple Majority in each House,
- Special Majority in each House, or
- Special Majority in Parliament along with ratification by at least one-half of the State Legislatures.
- House of Introduction: Under Article 368, a Constitution Amendment Bill may be introduced in either House of Parliament by a Minister or a Private Member.
- Passing the Bill: It must be passed separately by each House with the prescribed majority. In cases affecting the federal structure, it must also be ratified by at least half of the State Legislatures.
- Joint Sitting: No provision exists for a Joint Sitting in the case of a Constitution Amendment Bill (similar to a Money Bill). If one House rejects the Bill, it lapses.
Ordinary Bill vs Money Bill
| Basis | Ordinary Bill | Money Bill |
|---|---|---|
| Constitutional Provision | Article 107 | Article 110 |
| Subject Matter | Deals with all matters other than Money Bill provisions | Deals exclusively with matters specified in Article 110 |
| Introduction | Can be introduced in either House | Can be introduced only in the Lok Sabha |
| Introduced By | Minister or Private Member | Only a Minister |
| President's Recommendation | Not required (except in certain cases) | Mandatory before introduction |
| Speaker's Certification | Not required | Mandatory; Speaker's decision is final |
| Role of Rajya Sabha | Equal legislative powers; may amend, reject, or delay the Bill | Can only recommend amendments; cannot amend or reject |
| Time Limit for Rajya Sabha | No time limit | Must return the Bill within 14 days |
| If Rajya Sabha Takes No Action | Bill remains pending | Bill is deemed to have been passed after 14 days |
| Joint Sitting | Permitted under Article 108 in case of a deadlock | Not permitted |
| President's Power | May give assent, withhold assent, or return the Bill for reconsideration | May give assent or withhold assent; cannot return the Bill for reconsideration |
| Voting Requirement | Simple majority of members present and voting | Simple majority of members present and voting |
| Examples | Bharatiya Nyaya Sanhita Bill, Environment Protection Bill | Finance Bill (to the extent it is a Money Bill), Appropriation Bill, Taxation Bills |
Money Bill vs Financial Bill
| Basis | Money Bill | Financial Bill |
|---|---|---|
| Constitutional Provision | Article 110 | Article 117 |
| Subject Matter | Only matters under Article 110 | Financial matters beyond Article 110 |
| Introduction | Only in Lok Sabha | Category I: Only Lok Sabha; Category II: Either House |
| President's Recommendation | Mandatory | Mandatory in specified cases |
| Rajya Sabha's Power | Recommend only | Full legislative powers |
| Joint Sitting | Not permitted | Permitted in case of deadlock |
| Speaker's Certification | Mandatory | Not required |
Public Bill vs Private Bill
| Basis | Public Bill (Government Bill) | Private Bill (Private Member's Bill) |
|---|---|---|
| Meaning | Introduced by a Minister on behalf of the Government. | Introduced by a Member who is not a Minister. |
| Objective | Seeks to implement government policies and public administration. | Seeks to raise issues of public importance or propose legislative reforms. |
| Notice Period | As per government business schedule. | Requires one month's prior notice before introduction. |
| Day of Introduction | Can be introduced on any working day allotted for government business. | Normally introduced and discussed on Fridays. |
| Government Support | Enjoys full support of the Government. | Does not have official government support. |
| Probability of Passage | High. | Very low. |
| Examples | Finance Bill, GST Bill, Bharatiya Nyaya Sanhita Bill. | Transgender Persons (Protection of Rights) Bill, 2014 (introduced as a Private Member's Bill in the Rajya Sabha). |
| Purpose | Implements government programmes and policies. | Highlights alternative policies or reforms. |
Joint Sitting of Parliament (Article 108)
About: A Joint Sitting is a constitutional mechanism provided under Article 108 to resolve a deadlock between the Lok Sabha and the Rajya Sabha over the passage of a Bill.
- A Joint Sitting of both Houses is presided over by the Speaker of the Lok Sabha. In the Speaker's absence, the Deputy Speaker of the Lok Sabha presides. If both are absent, the Deputy Chairman of the Rajya Sabha presides over the Joint Sitting.
Note: The Chairman of the Rajya Sabha (Vice-President of India) does not ordinarily preside over a Joint Sitting because he is not a member of either House of Parliament.
Conditions for a Joint Sitting
A deadlock is deemed to exist if:
- The other House rejects the Bill.
- The two Houses finally disagree on the amendments to the Bill.
- The other House does not pass the Bill within six months from the date of its receipt.
In such a situation, the President summons a Joint Sitting of both Houses to deliberate and vote on the Bill for resolving the deadlock. 1
Applicability: A Joint Sitting is permitted only for Ordinary Bills and certain Financial Bills. It is not applicable to Money Bills or Constitution Amendment Bills. While the Lok Sabha enjoys overriding powers in the case of a Money Bill, a Constitution Amendment Bill must be passed separately by each House.
Presiding Officer
- Speaker of the Lok Sabha presides over the Joint Sitting.
- In the Speaker's absence, the Deputy Speaker of the Lok Sabha presides.
- If both are absent, the Deputy Chairman of the Rajya Sabha presides.
- If all three are absent, any other person as determined by the members present presides over the Joint Sitting.
Quorum: The quorum for a Joint Sitting is one-tenth of the total number of members of both Houses.
Decision: The Bill is passed by a simple majority of the members present and voting at the Joint Sitting.
Joint Sittings Held So Far
Since the Constitution came into force, a Joint Sitting has been convened only three times:
- Dowry Prohibition Bill, 1961
- Banking Service Commission (Repeal) Bill, 1978
- Prevention of Terrorism Bill (POTA), 2002
