AIR 2006 SC 980
ARTICLE 174(2)(B), ARTICLE 361 OF THE CONSTITUTION OF INDIA
Elections for Legislative Assemblies took place in Bihar in 2005. No party was unable to form the government. So, a notification was issued on 7th March,2005 imposing a President’s rule in the state till a government is formed.President’s rule was to be temporary. But Governor issued a report on 27th April,2005 in which it expressed that there is a possibility of horse trading in the state and another chance needs to be given to form a government. Another report was issued on 21st May, 2005 in which Governor reiterated its above stand and desired that the suspended Assembly be dissolved so that afresh chance is given to the electorate to prove their government in the Assembly. As a result of this report, the Legislative Assembly of Bihar was dissolved on 23rd May, 2005. This was challenged before the Supreme Court.
· Is it permissible to dissolve the Legislative Assembly under Article 174(2)(b) of Constitution of India without its first meeting?
· Whether the proclamation is illegal?
· What is the scope of powers under Article 361?
It was held that dissolving of Legislative Assembly was unconstitutional.
Article 226 of the Constitution.
Part XIV of the Finance Act, 2017