Which of the following statements is/are correct with regard to the ef

Which of the following statements is/are correct with regard to the effect of dissolution of Lok Sabha ?
1. Supplementary Demands for grants do not lapse.
2. A motion given in pursuance of Section 3(1) of Judges (Inquiry) Act, 1968 for presenting an address to the President praying for removal of a Judge, if admitted, will not lapse on the dissolution of the Lok Sabha.
3. Anything said or done during the existence of a House, can be raised as a privilege issue after that House has been dissolved.
Select the correct answer using the code given below :

1,2and 3
1 and 2 only
2 only
1 and 3 only
This question was previously asked in
UPSC SO-Steno – 2017
Statement 1 is incorrect. Supplementary Demands for Grants are items of financial business pending before the Lok Sabha. As with most pending business, they lapse upon the dissolution of the Lok Sabha. The new Lok Sabha will need to deal with financial matters, possibly through a vote on account or fresh demands.
Statement 2 is correct. Matters relating to impeachment or removal of constitutional functionaries (like Judges) are typically considered proceedings of a quasi-judicial nature and are treated as not lapsing upon the dissolution of the Lok Sabha. A motion for presenting an address for the removal of a Judge under the Judges (Inquiry) Act, 1968, once admitted, falls into this category.
Statement 3 is incorrect. Privilege issues relate to contempt or obstruction of the House or its members in their capacity as members. Once the House is dissolved, it ceases to exist, and its privileges cannot be violated or asserted in the same manner. While contempt of the *previous* House might be investigated by the *new* House, actions or statements purely related to the proceedings *within* the dissolved House or impacting members *of that dissolved House* during its tenure generally cannot be raised as a fresh privilege issue after dissolution. Parliamentary privilege is primarily the privilege of the House in existence.
While most pending business lapses upon dissolution of Lok Sabha, certain matters of a constitutional or quasi-judicial nature, like proceedings for the removal of a Judge, are exceptions and do not lapse. Privilege issues are generally related to the House in existence.
The principle is that dissolution wipes the slate clean for the Lok Sabha regarding its legislative and most deliberative functions. However, processes initiated under specific constitutional provisions or statutes that have a character beyond ordinary legislative business may survive dissolution.