New Delhi: Supreme Court upheld demonetization. The four judges of the five-judge constitution bench opined that demonetization was right. The Supreme Court issued different judgments against the central government’s decision. Justice BR Gavai upheld demonetization while Justice BV Nagaratna dissented. Upholding the demonetization, Justice BR Gavai said that 6 matters came under the consideration of the court.
While delivering the judgment, Justice BR Gavai said that interpretation that leads to absurdity should be avoided and while interpreting, the intention of the law should be considered. Greater restraint is required in matters of economic policy. BR Gavai judges that demonetization cannot be revoked in the current situation.
BR Gavai clarified that the power under Section 26(2) of the RBI Act can be used to invalidate the entire series of banknotes and not any particular series. BR Gavai said whether the ban achieved its goal is not relevant. But Justice BV Nagaratna disagreed with the judgment of Justice BR Gavai.
BV Nagaratna opined that demonetization should be enacted through legislation. The demonetization was implemented in just 24 hours. Nagaratna clarified that the central government has no power to ban the currency. Nagaratna pointed out that his views on each question in the petition differed from the reply prepared by Justice BR Gavai. Nagaratna also pointed out that if demonetization is done by the central government, such power comes from Schedule 36, which deals with currency, coinage, legal tender, and foreign exchange.
A five-judge constitution bench headed by Justice SA Nazir heard the demonetization petitions before the winter break. The other members of the bench are Justices BR Gavai, BV Nagaratna, AS Bopanna, and V Ramasubramanian.
The central government had told the court that demonetization was part of its strategy to fight black money, terrorism financing, money laundering, and tax evasion. But the court cannot interfere in financial matters. The central government followed the procedures. Justice BR Gavai also stated that whether the target was achieved is not relevant.
58 petitions have reached the Supreme Court questioning the demonetization process. The petitioners argued that the government has no right to decide to ban currency. 58 petitions were considered. On November 8, 2016, the central government banned 500 and 1000 rupee notes in the country.
