1981 (11) TMI 57 - SUPREME COURT

Whether the Special Bearer Bonds (Immunities and Exemptions) Ordinance, 1981 and the Special Bearer Bonds (Immunities and Exemptions) Act, 1981 are violative of the equality clause contained in art. 14 of the Constitution?

Held that:- The immunities provided by the impugned Act are clearly for the benefit of those who have acquired the bonds with black money. Clauses (a), (b) and (c) of s. 3(1) provide for these immunities "notwithstanding anything contained in any other law for the time being in force ". Clause (a) states that no holder of Special Bearer Bonds shall be required to disclose for any purpose the nature and source of acquisition of the bonds. Clause (b) forbids commencement of any enquiry or investigation under any law against a person on the ground that he has subscribed to or otherwise acquired the bonds. Under cl. (c) the fact that a person has subscribed to or otherwise acquired the Special Bearer Bonds shall be inadmissible in evidence and cannot be taken into account in any proceeding relating to any offence or to the imposition of any penalty under any law. None of these immunities is required by a person who has paid "white" money, that is, money that has been accounted for, to acquire the bonds. To a person who has disclosed the source of acquisition of the bonds, these immunities are of no use. Section 4 makes it clear that the immunities conferred by the Act are of use only to those who have acquired the Bonds with unaccounted money.

Having held that the Special Bearer Bonds (Immunities and Exemptions) Ordinance, 1981, and the Special Bearer Bonds (Immunities and Exemptions) Act, 1981, are invalid on the ground that they infringe art. 14 of the Constitution, do not find it necessary to consider whether the Special Bearer Bonds (Immunities and Exemptions) Ordinance, 1981, is outside the Ordinance making power of the President under art. 123 of the Constitution.