Article 264 of the Costitution of India with Case law
🇮🇳 Article 264 of the Constitution of India
Subject: Interpretation – Definitions related to financial provisions
🔹 Bare Text of Article 264:
“In this Chapter, the expression ‘Finance Commission’ means a Finance Commission constituted under Article 280.”
🧩 Explanation:
Article 264 is part of Chapter I – Finance, in Part XII of the Constitution (Articles 264–291). It serves as a definitional clause, clarifying that whenever the term "Finance Commission" appears in this chapter, it refers only to the Finance Commission constituted under Article 280 of the Constitution.
🔍 Purpose of Article 264:
Ensures clarity and consistency in the interpretation of financial provisions in the Constitution.
Avoids ambiguity by specifying that "Finance Commission" is not any generic commission, but only the constitutional body created under Article 280.
🏛️ What is the Finance Commission (under Article 280)?
The Finance Commission is a constitutional body established by the President every 5 years or as necessary.
Its functions include:
Recommending distribution of tax revenues between Centre and States.
Determining principles of grants-in-aid.
Advising on financial matters referred to it.
🧑⚖️ Relevant Case Law Involving Article 264 / Finance Commission:
While Article 264 itself is not litigated directly (as it's definitional), several important cases interpret the powers and role of the Finance Commission as defined by Article 280, which Article 264 refers to.
🔸 **1. Union of India v. State of Rajasthan, AIR 1984 SC 1619
Issue: Scope of Finance Commission’s recommendations.
Held: Recommendations are advisory, but carry great weight. Article 264 confirms that only the Article 280 Finance Commission is constitutionally valid in financial distribution matters.
🔸 **2. State of Punjab v. Union of India, AIR 1986 SC 305
Held: Parliament and President must give due consideration to Finance Commission reports before allocating financial resources.
🔸 **3. M. Karunanidhi v. Union of India, AIR 1979 SC 898
Context: Federal relations and financial powers.
Relevance: Discussed the constitutional role of Finance Commission in financial balance, relying on the definitions in Article 264 and 280.
🧾 Key Takeaways:
| Aspect | Detail |
|---|---|
| Article | 264 |
| Purpose | Defines "Finance Commission" for the Finance Chapter |
| Refers to | Only the Commission under Article 280 |
| Nature | Definitional (no operative power) |
| Case law relevance | Indirect – through interpretation of Article 280 |
🧭 Related Articles:
Article 266 – Consolidated and Contingency Funds
Article 268–272 – Distribution of taxes
Article 275 – Grants-in-aid
Article 280 – Constitution and functions of Finance Commission
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