A slew of petitions on demonetisation came up before the apex court
A slew of petitions on demonetisation came up before the apex court

#Demonetisation: Constitution Bench of Supreme Court to hear nine questions of law [Read order]

Murali Krishnan

A Constitution Bench of the Supreme Court will hear the questions of law relating to demonetisation of Rs. 500 and 1000 notes.

The order referring the case to a larger Bench was passed today by a 3-judge Bench comprising Chief Justice TS Thakur and Justices AM Khanwilkar and DY Chandrachud.

The Court also transferred all the cases pending in various High Courts to itself and restrained all courts from entertaining any case relating to demonetisation.

When the matter was heard on December 9, the Court had framed the following questions of law:

  1. Whether the notification of November 8 is ultra vires Section 26(2) and Sections 7, 23, 24, 29 and 42 of the RBI Act.
  1. Whether the notification of November 8 and all subsequent notifications is contrary to Article 300(A) of the Constitution.
  1. Assuming that the notifications have been issued validly under S. 26(2), whether it falls foul of Articles 14 and 19(1)(g).
  1. Whether restrictions on withdrawal of money has any basis and whether it violates Articles 14, 19 and 21.
  1. Whether the implementation of the impugned notification(s) suffers from procedural and/or substantive unreasonableness and thereby violates Articles 14 and 19 and, if so, to what effect?
  2. In the event that Section 26(2) is held to permit demonetization, does it suffer from excessive delegation of legislative power thereby rendering it ultra vires the Constitution?
  1. What is the scope of judicial review in a matter touching fiscal/economic policy?
  2. Whether a petition by political party on the issue is maintainable under Article 32.
  1. Whether District Co-operative Banks have been discriminated against by excluding them from accepting deposits, exchanging old notes and denying withdrawal of money.

These questions will now be considered by the Constitution Bench. The Court, however, refused to allow any other interim relief prayed for by the parties.

Read the order below.

Bar and Bench - Indian Legal news