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Court has also asked Central Government to produce crucial documents such as their letter to the Reserve Bank dated November 7, the agenda of the Board meeting of the Reserve Bank of India conducted on the very next day, and the resolution passed by the Board of Directors.
A Constitution Bench of the Supreme Court today agreed to hear the challenge to demonetisation and the implementation of the same in November 2016.
The five-judge bench, comprising Justices S Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian, and BV Nagarathna, had earlier questioned if the present matter had become academic or it should be heard.
When the matter was taken up today, SG Tushar Mehta told court that there was no need to waste the Constitution Bench’s time in a matter concerning individual problems which could be handled alternatively.
Senior Advocate P Chidambaram opposed the SG's submissions and told Court that the matter had not become academic.
"....it will become academic always if a process like demonetisation takes place over night, but it is actually not.......withdrawing 86.6% of total currency requires a separate law debated upon by the Parliament", Chidambaram added.
Chidambaram further told court that the impugned policy decision must be examined in view of the powers under Sections 24 and 26 of the RBI Act.
Justice Nazeer has thus directed the Centre and RBI to file comprehensive affidavits in the matter. The matter will now be taken up on November 9.
Background:
The pleas challenging the demonetisation decision were filed way back in 2016 and sought quashing of the government’s decision to demonetise Rs 1,000 and Rs 500 currency notes on grounds that it infringed on citizens’ right to life and to trade.
In 2016, the Supreme Court had transferred all petitions pending before various High Courts to itself and had referred the matter to a 5-judge Constitution Bench.
The matters were not taken up since then and now have been finally listed by Chief Justice of India UU Lalit.
On November 8, 2016, Prime Minister Narendra Modi through a televised address declared that denomination notes of Rs 500 and Rs 1000 will no longer be legal tender.
Case Title: Vivek Narayan Sharma vs. Union of India
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