‘Well-intentioned and well thought of’: Top quotes from Supreme Court’s ruling on noteban

A bench constituting five judges pronounced the verdict on 58 petitions challenging the Centre's decision, and asserted that the notification did not suffer from any flaw and satisfies the proportionality test.

Vijay Malhotra standing to exchange his old currencies in front of Reserve bank of India building in New Delhi in 2017. (Express photo by Prem Nath Pandey)

Listen to this article

00:00

1x 1.5x 1.8x

The Supreme Court Monday upheld the Centre’s decision to demonetise Rs 500 and Rs 1000 currency notes in November 2016. A bench constituting five judges pronounced the verdict on 58 petitions challenging the Centre’s decision, and asserted that the notification did not suffer from any flaw and satisfied the proportionality test. The apex court upheld the decision taken by the Central Government six years ago to demonetise these currency notes in a 4:1 majority judgement.

The apex court, in its verdict, held that:

“The measure was well-intentioned and well thought of.”

“It targeted evils such as black money, terror funding, and counterfeiting.”

“It is not relevant whether the objective behind the decision was achieved or not.”
“There was consultation between the Centre and RBI for a period of six months.”
“There was a reasonable nexus to bring such a measure, and we hold that demonetisation was not hit by the doctrine of proportionality.”

Justice Nagarathna, who differed from Justice Gavai, held the demonetisation of Rs 500 and Rs 1000 currency notes had to be done through legislation, and not through a gazette notification. She said:

“The measure is declared unlawful purely on legal grounds and not on the basis of objects.”
“When the proposal for demonetisation originates from the Central Government, it is not under Section 26(2) RBI Act. It is to be a way of legislation…”

“Demonetisation of all series of notes at the instance of Central Government is a far more serious issue than the demonetisation of particular series by the bank.”

“Parliament is a miniature of the country. Parliament, which is the centre of democracy, cannot be left aloof in a matter of such critical importance.”
“… there are words ‘as desired by the Central Government’… this demonstrates there was no independent application by RBI. The entire exercise was carried out in 24 hours.”
The “opinion given by RBI cannot be construed as a ‘recommendation’ under Section 26(2) of the RBI Act.”

With inputs from LiveLaw, Bar and Bench

Stay updated with the latest - Click here to follow us on Instagram