Article 116 of the Costitution of India with Case law
Here is a detailed explanation of Article 116 of the Constitution of India, along with relevant case law:
🧾 Article 116 – Votes on Account, Votes of Credit and Exceptional Grants
đź“ś Text of Article 116:
(1) Notwithstanding anything in the foregoing provisions of this Chapter, the Lok Sabha shall have power—
(a) to make any grant in advance in respect of the estimated expenditure for a part of any financial year, pending the completion of the procedure prescribed in Article 113 for the voting of such grant and the passing of the law in accordance with the provisions of Article 114 in relation to that expenditure;
(b) to make a grant for meeting an unexpected demand upon the resources of India when, on account of the magnitude or the indefinite character of the service, the demand cannot be stated with the details ordinarily given in an annual financial statement;
(c) to make an exceptional grant which forms no part of the current service of any financial year;
and the provisions of Articles 113 and 114 shall have effect in relation to the making of any such grant and the law to be made authorising the appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or grant as they have effect in relation to the expenditure mentioned in the annual financial statement and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure.
🧩 Explanation of Key Terms:
Vote on Account (Clause 1(a)):
A temporary financial provision passed by Lok Sabha to cover government expenses for a short time (usually 2 months) until the main budget is passed.
Vote of Credit (Clause 1(b)):
A provision for emergency/unforeseen expenditure, where exact details cannot be provided in advance (e.g., war, natural disaster).
Exceptional Grant (Clause 1(c)):
For one-time expenditures not part of regular budgeting—for example, funding a special project or relief work.
⚖️ Relevant Case Law:
1. Sundararamier & Co. v. State of Andhra Pradesh, AIR 1958 SC 468
Context: Clarified the nature of parliamentary control over finances.
Relevance: The Supreme Court acknowledged the special financial powers of Parliament under Articles like 116 to ensure functioning of government even before full budget is passed.
2. State of Kerala v. Gwalior Rayon Silk Manufacturing (Wvg.) Co. Ltd., AIR 1973 SC 2734
Held: The legislature’s power to grant money includes the power to approve interim grants (vote on account).
Reiterated that vote on account is not a substitute for a full budget, but a temporary provision until full approval.
3. M. Karunanidhi v. Union of India, (1979) 3 SCC 431
While primarily a case of legislative competence, the Court recognized Article 116 as a tool of flexibility allowing financial governance during uncertain or exceptional situations.
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