JUDGMENT

(Prayer: Petition filed under Article 226 of the Constitution of India praying for a writ of declaration to (i) Declare sections 128 to 146 of the FINANCE ACT , 2021 as ultra vires Article 110 of the Constitution of India or (ii) Alternatively declare Section 5 (9) of the LIC Act 1956 and Section 128 to 130 Section 132 to 146 of the FINANCE ACT , 2021 as ultra vires Article 110 of the Constitution of India or (iii) Alternatively declare Section 140 of the FINANCE ACT , 2021 as ultra vires Article 110 of the Constitution of India.)

Munishwar Nath Bhandari, CJ.

1. By this writ petition a challenge is made to Sections 128 to 146 of the FINANCE ACT , 2021 [for brevity, “the Act of 2021”], with an alternative prayer to declare Section 5 (9) of the Life Insurance Corporation Act, 1956 [for brevity, “the Act of 1956”] and Sections 128 to 130 and Sections 132 to 146 of the Act of 2021 as ultra vires Article 110 of the Constitution of India. An alternative prayer is also made to declare Section 140 of the Act of 2021 as ultra vires Article 110 of the Constitution of India.

2. Learned counsel submits that the petitioner is a policyholder of the Life Insurance Corporation (for brevity, “the LIC”) and being aggrieved by Sections 128 to 146 of the Act of 2021, as also Section 5 (9) of the Act of 1956, she has filed this writ petition. It is mainly on the premise that the provisions aforesaid were introduced by a Money Bill under Article 110 of the Constitution of India, though the amendment does not fall in the category of Money Bill.

3. Coming to the facts of the case, it is submitted that every participating policyholder was entitled to a minimum of 90% of the surplus arising from non-participating policies, but the amendment under challenge has reduced their entitlement to nil and, therefore, being a policyholder, she has challenged Sections 128 to 146 of the Act of 2021, apart from Section 5 (9) of the Act of 1956.

4. Narrating the facts further, it is submitted that by virtue of Part III of Chapter VI of the Act of 2021, the Parliament has amended the Act of 1956 and made substantial changes to various facets of the LIC. The amendment by way of the Act of 2021 was brought after the Finance Bill, 2021 was classified by the Speaker of the House of the People under Article 110 of the Constitution of India as a Money Bill. The certificate for it was issued by the Speaker of the House of the People under clause (4) of Article 110 of the Constitution of India and has been appended along with the writ petition. The Speaker of the House of the People has issued the certificate even though the Finance Bill, 2021 contained matters other than those specified in sub-clauses (a) to (f) of clause (1) of Article 110 of the Constitution of India. The challenge to the amendments has been made primarily on the ground that the subject-matter therein does not fall in the specified matters given under Article 110 of the Constitution of India and it would otherwise result in reduction in the share of surplus allocated to participating policyholders.

5. Learned counsel for the petitioner, referring to the constitutional provisions, submitted that there are different types of Bills under the Constitution of India which are as under:

(a) Ordinary Bills governed by Article 107 of the Constitution of India;

(b) Financial Bills governed by Article 117 of the Constitution of India; and,

(c) Money Bills governed by Article 109 of the Constitution of India.

6. Referring to the features of the Money Bill in reference to Articles 109 and 110 of the Constitution of India, it is submitted that definition of “Money Bills” has been given under Art