Supreme Court Justice BV Nagaratna said the decision to demonetise the Rs 500 and Rs 1,000 series notes should have been taken through a law rather than a gazette notification as Parliament cannot be kept aloof from such an important matter. However, on the basis of majority, the court has upheld the government’s decision.
A Constitution bench of the Supreme Court on Monday upheld the central government’s decision to demonetise Rs 500 and Rs 1,000 series notes in 2016 with a majority of 4:1, even as Justice BV Nagaratna questioned the government’s decision. .
The bench, headed by Justice SA Nazeer, also included Justice BV Nagaratna, besides Justice BR Gavai, Justice AS Bopanna and Justice V. Ramasubramanian.
Justice Nagaratna said demonetisation of an entire series of currency notes at the behest of the Center is a serious issue which has had a cascading effect on the economy and citizens of the country.
Justice Nagaratna said that the Reserve Bank of India (RBI) did not consider the matter independently, only its opinion was sought which cannot be said to be a recommendation of the central bank. He said that the entire exercise was done in 24 hours.
He said that I believe that the powers of the central government are wide, but they should be used through law and not by issuing notification. It is necessary that the Parliament, which represents the people of the country, should discuss the matter and approve it.
The judge said that the Center has prepared its proposal and the RBI’s opinion has been sought on it and such suggestion given by the central bank cannot be considered as a recommendation under Section 26(2) of the RBI Act. He said that the Parliament is often considered as the reflection of the country.
Justice Nagaratna said that this is the basis of democracy. Parliament represents the people of the country and raises their voice. Democracy cannot flourish without parliament. Parliament which is the center of democracy cannot be kept aside in such an important matter. He said in a minority judgment that the decision to demonetise the 500 and 1000 series notes was wrong and illegal.
The Constitution Bench of the Supreme Court on Monday upheld the central government’s decision to demonetise the Rs 500 and Rs 1,000 series notes in 2016 with a 4:1 majority, saying there was no flaw in the decision-making process. Was. The top court was hearing 58 petitions challenging the Centre’s demonetisation decision.