New Delhi: The Supreme Court said on Wednesday it has to examine the Centre’s 2016 demonetisation move to ascertain whether the exercise is “academic or infructuous” while stressing that its aware of the “Lakshman Rekha” on judicial review of government policy decisions.
A five-judge bench headed by Justice SA Nazeer said when an issue arises before a constitution bench, it is its duty to answer.
“In order to answer that issue, we will have to hear and give an answer whether it’s academic, not academic or beyond the scope of judicial review. The point in the case is the government policy and its wisdom which is one aspect of the matter.
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“We always know where the Lakshman Rekha is, but the manner in which it was done has to be examined. We have to hear the counsel to decide that,” the bench, also comprising Justices BR Gavai, AS Bopanna, V Ramasubramanian, and BV Nagarathna said, PTI reported.
On November 8, 2016, Prime Minister Narendra Modi, in a televised address to the nation, had declared that high denomination notes of Rs 500 and Rs 1000 will no longer be legal tender from midnight. He had said the Central government has declared a “decisive war” against black money and corruption.
The constitution bench of the apex court today issued notice on all intervening applications and fresh petitions challenging the Centre’s demonetisation decision.
The top court, which was hearing 58 pleas challenging demonetisation, has asked the Centre and Reserve Bank of India to file detailed affidavits.
The apex court has fixed November 9 as the next date for the hearing.
Solicitor General Tushar Mehta, representing the Centre, said the court’s time should not be “wasted” on academic issues.
Senior lawyer P Chidambaram, appearing for one of the parties, said the issue has not become academic and it has to be decided by the top court.
Attorney General R Venkataramani said that unless the Act on demonetisation is challenged in a proper perspective, the issue will essentially remain academic.
The High Denomination Bank Notes (Demonetisation) Act was passed in 1978 to provide in public interest for demonetisation of certain high denomination bank notes in order to check illicit transfer of money harmful to the economy which such currency notes facilitate.
