Part XII: Finance, Property, Contracts and Suits

Article 284: Custody of Suitors' Deposits

Original Article:

All moneys received by or deposited with—

• Any officer employed in connection with the affairs of the Union or a State in his capacity as such, other than revenues or public moneys raised or received by the Government of India or the Government of the State, as the case may be; or
• Any court within the territory of India to the credit of any cause, matter, account or persons,

shall be paid into the public account of India or the public account of the State, as the case may be.

Explanations:

Article 284 mandates that all non-revenue financial transactions handled by government officers or courts be deposited into the public accounts of India or the respective State. This provision aims to ensure financial integrity and accountability in the management of non-revenue funds, bolstering public trust in both administrative and judicial entities.

Key Provisions:

Custody of Non-Revenue Funds

This clause ensures that funds handled by government officials in their professional capacities are directed into public accounts, maintaining transparency and preventing misuse.

Judicial Financial Management

Funds received by courts, including bail amounts or deposits for ongoing cases, must also be paid into the public account, ensuring proper custodial management and accountability.

Real-Life Example:

An example of Article 284 in action is the handling of bail deposits by courts. These funds are deposited into the public account until the completion of legal proceedings, ensuring transparent financial management.

Historical Significance:

By mandating stringent custodial rules for non-revenue funds, Article 284 reinforces the financial integrity of India's administrative and judicial systems. This framework has historically helped in preventing mismanagement and misuse of public funds.

Debates and Deliberations:

The Constituent Assembly extensively debated the safeguards required for managing non-revenue funds under Article 284. Dr. B.R. Ambedkar emphasized the importance of channeling funds into public accounts to avoid misuse and maintain accountability.

Shri K.T. Shah proposed additional layers of oversight, suggesting that judicial transactions should be independently audited to ensure transparency. He highlighted concerns over potential delays in financial reconciliation if protocols were not strictly followed.

Shri Alladi Krishnaswami Ayyar defended the article, stating that the prescribed framework struck an appropriate balance between flexibility and control, enabling courts and administrative officers to fulfill their financial obligations efficiently.

The discussions concluded with a consensus on the necessity of clear rules for fund management, ensuring the protection of public trust and resources.

References:

• Constitution of India: Primary text establishing protocols for financial management in judiciary and administration.
• Judicial Audit Reports: Insights from audit reports on the handling of suitors' deposits in courts.