2016 Demonetization: SC Rejects Individual Grievances But Allows Representations Before Centre

The Supreme Court on Tuesday refused to issue directions in individual applications stemming from alleged hardships caused by the Union Government’s decision to demonetise high-value currency notes of Rs 500 and Rs 1000.

While denying relief to the aggrieved petitioners, a division bench of Justices BR Gavai and Vikram Nath clarified that they would be at liberty to submit representations to the central government, which would have to be disposed of within 12 weeks.

The bench pronounced, “The petitioners may have genuine grievances, but in light of the enactment’s upholding, no relief could be granted by this court. However, if the petitioners so desired, they could make a representation to the Union of India to have their individual grievances considered. If such requests are made, they must be considered and decided within 12 weeks.”

This directive was passed despite the petitioners’ counsel’s vehement contended that the Supreme Court consider the applications individually. Advocate Prashant Bhushan asked, “Why should such people be made to suffer? He was representing a bereaved wife who wanted to exchange her deceased husband’s savings, which she discovered only after the expiry of the window for exchanging old notes.

Justice Gavai stated emphatically, “The Constitution Bench has upheld the law. Genuine hardships may be caused, but that alone cannot justify this court’s intervention. These requests will be investigated by the government.”

Refusing to be swayed, the bench finally stated that following the Constitution Bench’s decision, it was not permissible for them to exercise their jurisdiction under Article 142 to issue directions in individual cases allowing the petitioners’ demonetised currency to be exchanged for valid currency.

“If any of the persons are not satisfied with the orders passed by the Union of India in their individual cases, they would always be at liberty to bring a respective challenge before the jurisdictional high court,” Justice Gavai stated.

This decision comes nearly three months after the Supreme Court upheld the validity of the union government’s controversial decision by a 4:1 majority on the first working day of the new year.

Justices S Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian, and BV Nagarathna were on the Constitution Bench hearing a batch of 58 petitions challenging the November 8 circular, which effectively removed 86% of the currency in circulation overnight.

While the majority ruled that both the central government’s notification and the subsequent Specified Bank Notes (Cessation of Liabilities) Act, 2017 were valid, Justice Nagarathna was the lone dissenter on the bench. She stated that, while demonetisation was well-intended, it had to be declared illegal on legal grounds.