NEW DELHI: The Supreme Court on Monday by a majority view upheld validity of the central government's November 8, 2016 decision to demonetise currency notes of Rs 1,000 and Rs 500 denominations.
A five-judge Constitution bench headed by Justice S A Nazeer, B R Gavai, A S Bopanna, V Ramasubramanian, and B V Nagarathna by a majority view of 4:1 pronounced the judgment on over 50 petitions filed by advocate Vivek Narayan Sharma and others.
Justice Gavai, who pronounced the majority judgment, said that decision making process cannot be faulted merely because the proposal emanated from the central government. He said the decision was not flawed, unreasonable or hit by proportionality.
The bench said there has to be great restraint in matters of economic policy and court cannot supplant, or supplement the wisdom of executive with its own views.
Justice Nagarathna, however, differed from the majority view, and delivered a dissenting judgment. She said the proposal for demonetisation has to be undertaken by a legislative measure not through gazette notification.
She also faulted the proposal for having been advanced by the central government in the case. She also said demonetisation cannot be undertaken of all series of currency notes.
Justice Gavai added that there was consultation between the Centre and the RBI for a period of six months.
We hold that there was a reasonable nexus to bring such a measure, and we hold that demonetisation was not hit by doctrine of proportionality, Justice Gavai said.
Justice Nagarathna differed from the majority judgment on the point of powers of central government under Section 26(2) RBI Act.
The top court also declared that 52 window for exchange of notes cannot be said to be unreasonable and can't be extended now.
The detailed judgment will be uploaded later in the day.
