Demonetisation was unlawful, vitiated: Dissenting SC judge

Supreme Court Justice P V Nagaratna, who on Monday ruled against the demonetisation move, said that the complete demonetisation of Rs 500 and Rs 1,000 notes should be done by law and cannot be done by Parliament through a gazette notification. He stayed away from such an important matter.

Justice Nagaratna, who was the youngest judge on a constitution bench comprising Justices SA Naseer, PR Kavai, AS Bopanna and V Ramasubramanian, said demonetisation of the entire series of central government notes was a very serious issue which had wider implications. . on the country’s economy and citizens.

Observing that the RBI did not have independent use in mind, Justice Nagaratna said the entire exercise was carried out in 24 hours.

“In my view, since the power of the central government is wide, it should be implemented through an absolute law rather than through an executive law by issuing a notification. It is necessary for the parliament to be representative of the people. It discusses the matter and after that, approves the matter,” he said.

While the RBI’s opinion was sought, the judge said that the proposal originated from the Center and such an opinion given by the central bank could not be considered a “recommendation” under Section 26(2) of the RBI Act.

“Parliament is often referred to as a small nation. It is the basis of democracy. Parliament gives representation to the people of the country and makes their voice heard. Democracy cannot flourish without Parliament. Parliament, the center of democracy, cannot be sidelined in a matter of such vital importance,” he said.

In the minority judgement, Justice Nagaratna held that the invalidity of Rs 500 and Rs 1,000 notes was incorrect and illegal.

The Supreme Court, in a 4:1 majority judgment, upheld the government’s decision to demonetise Rs 1,000 and Rs 500 notes in 2016, saying the decision-making process was not flawed.

The judgment of the Supreme Court came in 58 petitions filed against the demonetisation measures announced by the Central Government on November 8, 2016.