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Supreme Court has issued notice in a plea challenging Part VII Finance Act and has tagged it with a case on the aspect of whether the said amendment could have been passed at all, expected to be heard by a 7-judge bench.

A Division Bench of Justice L. Nageswara Rao and Justice Hrishikesh Roy, while hearing the plea today, said,

“Only the money bill part, we tag it with the matter pending before 7-judges bench”

It is the contention of the petitioner that the impugned part of the Finance Act seeks to repeal adjudicating authority under Section 7, Prevention of Benami Property Transactions Act, 1988, which effectively is in violation of Article 21 of the Constitution.

“The WP is filed u/a 32 of the Constitution challenging vires of Part VII of the Finance Act, 2021 as the same infringes and violates the Fundamental Right of Citizens of our country as guaranteed under Article 21 of the Constitution, who liberty are otherwise protected with the judicial decision supposed to be given by the Adjudicating authority under Section 7, PBPT Act, 1988, which is now repealed and amended as per the provisions of the PBPT Act provided under Part VII of the Finance Act, 2021,” the plea states.

The plea filed through Advocate on Record Mohit Paul further adds that the though the competence of the legislature to bring the said amendments is not challenged, its competence to shelter the same under a “Money Bill” is questionable.

Reliance is placed on the findings in Rojer Mathew v. South Indian Bank, (2020) 6 SCC 1.

“Article 110 of the Constitution has the effect of bypassing the right of the Rajya Sabha to block a bill from turning into a binding legislation in financial matters. However, the said power granted to the lower house by the framers of the Constitution, cannot be abused to bring into the scope of such exceptional power, matters which have, in substance, no connection to the matters listed under Article 110(1),” the plea further states.

Prayer is inter-alia made for the following:

1. Declare Part VII, Finance Act, 2021 ultra vires to the Constitution as the same infringes Article 21 of the Constitution.
2. Issue appropriate writ restraining respondents from abolishing the existing adjudicatory regime under the PBPT Act, 1988

Case Title: Rishabh Jain v. Union of India | WP 564 of 2021