12/10/2022
Demonetisation : Supreme Court will be strict on 2016 currency ban, investigation will be done
New Delhi: The Supreme Court has become strict on the decision of demonetisation made by the Central Government in the year 2016. The Constitution Bench of the Supreme Court has issued notice to the Central Government and the RBI on all the intervening applications and fresh petitions challenging the Centre's decision to demonetise Rs 500 and Rs 1,000 notes in 2016.
During the hearing, the Supreme Court on Wednesday said it is aware of the "Lakshman Rekha" for judicial review of policy decisions of the government, but will examine the 2016 demonetisation verdict to find that the matter is only "academic". There was no exercise. On the notice of the court, the central government and the RBI have sought time to file the affidavit. Now the next hearing will be on November 9.
A five-member bench headed by Justice S Abdul Nazeer said that when a matter is brought before a Constitution Bench, it becomes the responsibility of the Bench to respond. The Constitution Bench also included Justice BR Gavai, Justice AS Bopanna, Justice V Ramasubramaniam and Justice BV Nagarathna. Attorney General R Venkataramani said that unless the Act relating to demonetisation is challenged in proper perspective, the issue will essentially remain academic.
The High Value Bank Notes (Demonetization) Act was passed in 1978 to put certain high denomination banknotes out of circulation in the public interest and to check illegal transfer of money harmful to the economy. The Supreme Court said that the investigation of the matter is necessary to declare the exercise as academic or infructuous, as both the parties are not agreeable.
The Constitution Bench said that to answer the aspect whether this exercise is academic or not or is outside the scope of judicial review, we have to hear it. Government policy and its wisdom is one aspect of the matter. The bench further said that we always know where the Lakshman Rekha is, but the way it was implemented should be investigated. We'll have to hear a lawyer to decide that.
Solicitor General Tushar Mehta, appearing for the Centre, said that the time of the court should not be wasted on academic issues. Objecting to Mehta's submission, senior advocate Shyam Divan, appearing for petitioner Vivek Narayan Sharma, said he was surprised by the words "waste of time of the Constitutional Bench" as the previous bench had said that these matters should be referred to a Constitution Bench. should be placed in front of.
Senior advocate P Chidambaram, appearing for another side, said the issue is not academic and it is for the Supreme Court to decide. He said such demonetisation required a separate Act from Parliament. On December 16, 2016, a bench headed by the then Chief Justice TS Thakur referred questions related to the validity of the demonetisation decision and other issues to a five-judge constitution bench.