While rejecting the central govt’s argument that its note ban decision is beyond judicial scrutiny, the Supreme Court decided to set up a five-judge Constitution bench to examine the validity of the government’s November 8 decision to scrap high currency notes.
A bench of Chief Justice T S Thakur and Justices A M Khanwilkar and D Y Chandrachud disregarded the Centre’s argument that the note ban decision was a executive matter in which judiciary has no role to play.
But in a relief to the govt the court restrained all other courts from entertaining from now on any plea opposing the note ban decision. The order also marked a big respite for the government as the bench refused to stop or interfere with the implementation of its contentious policy.
However, the chief justice -led bench has framed nine questions for the constitution bench which will go into the legality of the demonetisation decision. These include issues like whether the government’s decision was a violation of the RBI Act and various constitutional provisions, whether its implementation suffers from procedural unreasonableness and whether curbs on withdrawal of cash from bank accounts has any legal foundation.
The apex court also refused to extend the December 31 deadline for accepting Rs 500 and Rs 1,000 notes outside RBI.
This Constitutional issue can be expected to result in to a threadbare analysis of the Executive Action and Constitutional imperatives with regard thereto. It should be an exercise akin to Fundamental features of Constitution which are beyond tinkering by the Legislature. It should also touch upon Judicial overreach and “Executive Indifference to national issues” and hopefully lay down a guideline for both. It will be worth considering if these proceedings are telecast live for education across India.