TMI Blog2023 (1) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... the word any in the context would mean all , this Court observed that a right of appeal is always conferred by a statute. It has been held that, while conferring such right, a statute may impose restrictions, like limitation or pre-deposit of penalty or it may limit the area of appeal to questions of law or sometime to substantial questions of law. It has been held that whenever such limitations are imposed, they are to be strictly followed. It has been held that in a case where there is no limitation, the right of appeal cannot be curtailed by this Court on the basis of an interpretative exercise. It is clear that it is a settled principle that the modern approach of interpretation is a pragmatic one, and not pedantic. An interpretation which advances the purpose of the Act and which ensures its smooth and harmonious working must be chosen and the other which leads to absurdity, or confusion, or friction, or contradiction and conflict between its various provisions, or undermines, or tends to defeat or destroy the basic scheme and purpose of the enactment must be eschewed. The primary and foremost task of the Court in interpreting a statute is to gather the intention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take recourse to plenary power of legislation, this, by itself, cannot be a ground to give a restricted meaning to the word any in sub-section (2) of Section 26 of the RBI Act. As already discussed herein above, the legislative intent could not have been to give a restricted meaning to the word any in sub-section (2) of Section 26 of the RBI Act - we are unable to accept the contention that the word any has to be given a restricted meaning taking into consideration the overall scheme, purpose and the object of the RBI Act and also the context in which the power is to be exercised. We find that the word any would mean all under sub-section (2) of Section 26 of the RBI Act. In the event it is held that the power under sub-section (2) of section 26 of the RBI Act is construed to mean that it can be exercised in respect of all series of Bank notes, whether the power vested with the Central Government under the said sub-section would amount to conferring excessive delegation and as such, liable to be struck down? - HELD THAT:- Though the Court found the power under Section 5(2)(b) of the Gold (Control) Act, 1968 suffered from excessive delegation and, therefore, consti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 186 of the Finance Act, 2017. Status of the RBI - HELD THAT:- This Court has noted that the RBI, which is a bankers' bank, is a creature of statute. It has large contingent of expert advice relating to matters affecting the economy of the entire country. It has been held that the RBI plays an important role in the economy and financial affairs of India and one of its important functions is to regulate the banking system in the country. It has been held that it is the duty of the RBI to safeguard the economy and financial stability of the country - It can thus be seen that this Court has held that the RBI is the sole repository of power for the management of currency. It is also vested with the sole right to issue bank notes and to issue currency notes supplied to it by the Government of India. It has been held that the RBI has an important role to play in evolving the monetary policy of the country. The RBI is an expert body entrusted with various functions with regard to monetary and economic policies. Perusal of the scheme of the RBI Act would reveal that it has a primary role in the matters pertaining to the management and regulation of currency. We, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The Court must defer to legislative judgment in matters relating to social and economic policies and must not interfere unless the exercise of executive power appears to be palpably arbitrary. The Court does not have necessary competence and expertise to adjudicate upon such economic issues. It is also not possible for the Court to assess or evaluate what would be the impact of a particular action and it is best left to the wisdom of the experts. In such matters, it will not be possible for the Court to assess or evaluate what would be the impact of the impugned action of demonetization - the legislative and quasi-legislative authorities are entitled to a free play, and unless the action suffers from patent illegality, manifest or palpable arbitrariness, the Court should be slow in interfering with the same. It can thus be seen that confidentiality and secrecy in such sort of measures is of paramount importance. When demonetization was being done in the year 1978, R. Janakiraman, who had drafted the Ordinance, was not permitted to communicate with anyone including the Bank s central office at Bombay. It would thus show as to what great degree of confidentiality was maintai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, demonetized notes have ceased to be a legal tender and have ceased to be the liabilities of the RBI under Section 34 of the RBI Act and the guarantee of the Central Government under sub-section (1) of Section 26 of the RBI Act, a window is provided by Section 4 of the 2017 Act. Clause (i) of sub-section (1) of Section 4 of the 2017 Act deals with a citizen of India who makes a declaration that he was outside India between 9th November 2016 and 30th December, 2016, subject to such conditions as may be specified, by notification, by the Central Government. Accordingly, a notification is issued by the Central Government on 30th December 2016 - The provisions of sub-section (2) of Section 4 of the 2017 Act are somewhat analogous to the provisions in sub-sections (1) and (2) of Section 8 of the 1973 Act. Sub-section (3) of Section 4 of the 2017 Act provides that any person, aggrieved by the refusal of the RBI to credit the value of the notes under sub-section (2), can make a representation to the Central Board of the RBI within fourteen days of the communication of such refusal to him. This provision is somewhat analogous with sub-section (3) of Section 8 of the 1973 Act. The RBI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it may issue a notification in the Gazette of India specifying the date w.e.f. which any specified series of bank notes of any specified denomination shall cease to be legal tender and shall cease to have the guarantee of the Central Government. (vi) The provisions of the Act do not bar the Central Government from proposing or initiating demonetisation. It could do so having regard to its plenary powers under Entry 36 of List I of the Seventh Schedule of the Constitution of India. However, it has to be done only by an Ordinance being issued by the President of India followed by an Act of Parliament or by plenary legislation through the Parliament. The Central Government cannot demonetise bank notes by issuance of a gazette notification as if it is exercising power under subsection (2) of Section 26 of the Act. In such circumstances when the Central Government is initiating the process of demonetisation, it would not be acting under subsection (2) of Section 26 of the Act but notwithstanding the said provision through a legislative process. (vii)When such power is exercised by the Central Government by means of a legislation, it is by virtue of Entry 36, List I of the Sevent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law made herein would apply prospectively and would not affect any action taken by the Central Government or the Bank pursuant to the issuance of the Notification dated 8th November, 2016. This direction is being issued having regard to Article 142 of the Constitution of India. Hence, no relief is being granted in the individual matters. SLP disposed off. - WRIT PETITION (CIVIL) NO.906 OF 2016 - - - Dated:- 2-1-2023 - T.P.(C) No. 1958-1967/2016, W.P.(C) No. 1011/2016, SLP(C) No. 36757/2016, W.P.(C) No. 40/2017, W.P.(C) No. 47/2017, W.P.(C) No. 41/2017, W.P.(C) No. 260/2017, T.P.(C) No. 607/2017, T.P.(C) No. 588/2017, T.P.(C) No. 626/2017, T.P.(C) No. 585/2017, T.P.(C) No. 582/2017, T.P.(C) No. 638/2017, W.P.(C) No. 568/2018, W.P.(C) No. 1018/2019, W.P.(C) No. 683/2020, T.C.(C) No. 9/2017, W.P.(C) No. 908/2016, W.P.(C) No. 913/2016, W.P.(C) No. 916/2016, W.P.(C) No. 1026/2016, W.P.(C) No. 943/2016, W.P.(Crl.) No. 162/2016, W.P.(C) No. 951/2016, W.P.(C) No. 929/2016, W.P.(C) No. 930/2016, W.P.(C) No. 944/2016, T.P.(C) No. 1982-1996/2016, W.P.(C) No. 952/2016, W.P.(C) No. 953/2016, W.P.(C) No. 958/2016, W.P.(C) No. 957/2016, SLP(C) No. 35356/2016, T.P.(C) No. 2030-2038/2016, W.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eserve Bank of India Act, 1934 whether it is ultra vires Articles 14 and 19 of the Constitution; (iv) Whether the limit on withdrawal of cash from the funds deposited in bank accounts has no basis in law and violates Articles 14, 19 and 21; (v) 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? (vi) 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; (vii) What is the scope of judicial review in matters relating to fiscal and economic policy of the Government; (viii) Whether a petition by a political party on the issues raised is maintainable under Article 32; and (ix) Whether District Co-operative Banks have been discriminated against by excluding them from accepting deposits and exchanging demonetized notes. 4. Vide the said order dated 16th December 2016, this Court also directed that, if any other writ petitions/proceedings were pending in any High Court, further hearing of those matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase of petrol, etc. The said relaxations were to be valid till 11th November 2016. Thereafter, various notifications came to be issued from time to time granting further relaxations. 8. On 30th December 2016, the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 (hereinafter referred to as the 2016 Ordinance ) was promulgated by the Hon ble President of India. Subsequently, the Parliament enacted the Specified Bank Notes (Cessation of Liabilities) Act, 2017 (hereinafter referred to as the 2017 Act ), which received the assent of the then Hon ble President of India on 27th February 2017. 9. Section 3 of the 2017 Act provides that, on and from the appointed day, notwithstanding anything contained in the RBI Act or any other law for the time being in force, the SBNs which had ceased to be legal tender in view of the impugned Notification of the Government of India, shall cease to be liabilities of the RBI under Section 34 of the RBI Act and shall cease to have the guarantee of the Central Government under sub-section (1) of Section 26 of the RBI Act. 10. Section 4 of the 2017 Act provides for a grace period in case of certain classes of persons holding such S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en this Court passed the following order: 1. Issue notice. 2. On our asking, Mr. R. Balasubramanyam, learned counsel, accepts notice on behalf of the Union of India and Mr. H.S. Parihar, learned counsel, accepts notice on behalf of the Reserve Bank of India. 3. Having heard submissions, which remained inconclusive, and before proceeding further with the matter, it was felt, that this Court should ascertain from the Union of India (a) whether the Central Government intends to exercise the power conferred by clause (4)(1)(ii) of Ordinance 10 of 2016; and (b) if the answer to (a) is in the negative, the reason why the Central Government chose not to exercise its jurisdiction. An affidavit may accordingly be filed by the Central Government, explaining its position to this Court. 4. Needful be done within two weeks from today. 5. Post for hearing on 11th April, 2017. 14. In pursuance of the directions issued by this Court, a short affidavit came be to be filed on behalf of the Union of India on 7th April, 2017. It was stated in the said affidavit thus: 26. In view of the above and those to be urged at the time of hearing, it is most humbly submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issued in different series, the words any series before the words of bank notes of any denomination appearing in sub-section (2) of Section 26 of the RBI Act, will have to be construed as limiting the power of the Government to declare only a specified series of notes to be no longer legal tender. He submits that it will have to be held that the words any series mean any specified series and not all series of bank notes. 20. Shri Chidambaram submits that, if it is held that the Central Government is conferred with the power under sub-section (2) of Section 26 of the RBI Act to demonetize currency notes of all series , then a situation may arise wherein the bank notes issued on the previous day can be demonetized on the very next day. He submits that, as a result of the demonetization done on 8th November 2016, even the currency notes issued on the previous day of the denominational value of Rs.500/- and Rs.1,000/- had become illegal tender. 21. Shri Chidambaram submits that if sub-section (2) of Section 26 of the RBI Act is not read down in the aforesaid manner, then the said Section would be vulnerable to be challenged on the ground that it confers an unguided, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he pros and cons, consider the impact of the proposed measure on the people of the country and the consequences on the economy before making a recommendation. It is submitted that, on a plain reading of sub-section (2) of Section 26 of the RBI Act, it is clear that the Central Government is not bound to accept the recommendation of the Central Board. The word may used therein, postulates exercise of discretion and, therefore, the discretion so exercised by the Central Government must be exercised after considering the matter carefully, as to whether the recommendation of the RBI is required to be accepted or not. 25. Learned Senior Counsel, therefore, submits that it is implicit in sub-section (2) of Section 26 of the RBI Act that the Central Board constituted under Section 8 of the RBI Act must devote sufficient time to apply their mind while making a recommendation, particularly when a major step like demonetization is to be taken. 26. Learned Senior Counsel submits that, however, in the present case, the decision-making process is deeply flawed. He submits that, under Section 8 of the RBI Act, the only channel for non-government Directors to come on the Central Board of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g dated 8th November 2016, of the Central Board, it could be seen as to whether the requisite quorum was there or not and as to whether one director from the category under Section 8(1)(c) of the RBI Act as required under the Reserve Bank of India (General) Regulations, 1949 (hereinafter referred to as the 1949 Regulations ) was present in the meeting or not. 30. Shri Chidambaram submits that there is no record available to show that there was application of mind to the relevant factors by the Central Board, so also by the Central Government. He submits that it is also not clear as to whether there was any Cabinet note based on the recommendation of the Central Board, which was placed before the Cabinet for consideration. He submits that the Hon ble Prime Minister went on National Television at 8.00 p.m. on 8th November 2016, in a slot that had already been booked by the Government since all channels telecasted the speech at 8.00 p.m., and announced the decision on demonetization. He submits that the decision-making process was pre-meditated and rushed, which depicted a non-application of mind and was deeply and fatally flawed. It is thus submitted that the procedure adopted wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forsaking their livelihood at considerable expense. 34. Learned Senior Counsel submits that, without taking into consideration all these factors, the Central Board made the recommendation and the Central Government took the decision of demonetization. It is submitted that the consequence thereof is that demonetization cost the economy about 1-2% of the GDP, i.e. about Rs.1,50,000 crore. 35. Shri Chidambaram further submits that the objectives stated in the impugned Notification were false and illusory which could not have been achieved and which, in fact, were not achieved. He submits that one of the objectives was to weed out fake currency notes that were causing adverse effect on the economy. Another objective was to stop the use of high denomination bank notes for the storage of unaccounted wealth. Learned Senior Counsel submits that, when a fake currency note is detected by a Bank Officer, he is obliged to impound it, report it and give the same to the RBI. The RBI is required to destroy the note, thus taking the fake currency note out of possible circulation. It is submitted that the Annual Report of the RBI for the year 2016-2017 reported that only fake currency of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an intolerable and horrendous burden upon the people of the country, especially the poor. It is submitted that, before resorting to such a drastic step, the Central Board as well as the Central Government ought to have taken into consideration as to whether an alternative method could have been resorted to achieve the purpose for which the exercise of demonetization was done. In this respect, learned Senior Counsel relied on the judgment of this Court in the case of K.S. Puttaswamy (Retired) and another (Aadhaar) v. Union of India and another (2019) 1 SCC 1 and Internet and Mobile Association of India v. Reserve Bank of India (2020) 10 SCC 274. 40. Learned Senior Counsel submitted that though, while exercising the power of judicial review, it may not be permissible for this Court to examine the correctness of the decision, however, this Court can very well exercise its powers to examine the correctness of the decision-making process. He submits that the decision-making process in the present case is totally flawed. He submits that neither the Central Board while making the recommendation nor the Central Government while taking the decision have followed the procedure as prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of the applicant-Malvinder Singh, submitted that, apart from the guarantee given by the Central Government with regard to exchange of every bank note as legal tender at any place in India, they are also the liabilities of the Issue Department under Section 34 of the RBI Act to an amount equal to the total of the amount of the currency notes of the Government of India and bank notes for the time being in circulation. 44. Learned Senior Counsel submitted that the Hon ble Prime Minister, in his speech on 8th November 2016, gave a categorical assurance that the rights and interests of honest, hard-working people would be fully protected. A specific assurance was also given that if there may be some who, for some reason, are not able to deposit their old five hundred or one thousand rupee notes by 30th December 2016, they could go to specified offices of the RBI upto 31st March 2017 and deposit the notes after submitting a declaration form. He submits that a person of a stature no less than the Hon ble Prime Minister of India has given an assurance that such persons would be able to go to specified offices of the RBI upto 31st March 2017 and deposit the notes after submitting a de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He submits that, only on account of the number of days residing abroad, the applicant was categorized as non-resident Indian and as such, he was only entitled to exchange currency notes to the extent as provided in the proviso to the Notification dated 30th December 2016. Learned Senior Counsel submits that, however, the applicant had not carried the cash while travelling abroad and as such, there was no question of making a declaration under clause (i) of sub-section (1) of Section 4 of the 2016 Notification. 47. Learned Senior Counsel further submitted that, in view of clause (ii) of sub-section (1) of Section 4 of the 2017 Act, the Central Government is empowered to provide a grace period to such class of persons and for such reasons as may be specified, by notification. He submits that the said power is coupled with a duty. It is, therefore, submitted that when there are genuine cases, the Central Government is bound to exercise the power under clause (ii) of sub-section (1) of Section 4 of the 2017 Act and provide grace period to the applicant and persons like him. 48. Shri Divan further submits that the Circular of the RBI dated 31st December 2016 is also discriminatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h dignity also includes the right to travel abroad, especially to visit the son of the petitioner/applicant in the USA. He, therefore, submits that when the applicant/petitioner had gone to the USA to visit his son during the period wherein the currency notes could have been exchanged, he will be deprived of his right under Article 21 of the Constitution of India if he is not granted an opportunity now to exchange the demonetized notes with the new notes. IV. SUBMISSIONS OF UNION OF INDIA 52. Shri R. Venkataramani, learned Attorney General ( A.G. for short), at the outset, submits that the action taken vide the impugned notification stands ratified by the 2017 Act. It is, therefore, submitted that with the executive action being validated by the will of Parliament, the challenge to the same would not survive. 53. The learned A.G. submits that the word any appearing before the words series of bank notes in sub-section (2) of Section 26 of the RBI Act should be construed as all . Learned A.G. relies on the following judgments of this Court in support of his submission that the word any will have to be construed to be all . (i) The Chief Inspector of Mines and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for all series. It is submitted that if such process is held to be permitted, it would lead to chaos and uncertainty. 58. The learned A.G. further submits that the word any has been used at two places in sub-section (2) of Section 26 of the RBI Act. It is submitted that the word any preceding the words series of bank notes has to be construed to mean all , whereas the word any preceding the word denomination may be construed to be singular or otherwise. He submits that the same word used in the same provision twice could be permitted to have a different meaning. He relies on the judgment of this Court in the case of Maharaj Singh v. State of Uttar Pradesh and others (1977) 1 SCC 155 in support of his submission. 59. The learned A.G. submits that the alternative submission that if the word any is not given any restricted meaning then sub-section (2) of Section 26 of the RBI Act will have to be held to be invalid on the ground of vesting of excessive delegation, is also without substance. The learned A.G. submits that the RBI is not just like any other statutory body created by an Act of legislature. It is submitted that it is a creature created with a mandate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the present case. 62. The learned A.G., in addition to the reliance placed on the judgment of this Court in the case of Birla Cotton, Spinning and Weaving Mills Delhi (supra) also relies on the judgments of this Court in the following cases: (i) Delhi Laws Act, In Re AIR 1951 SC 332: 1951 SCC 568 (ii) M.P. High Court Bar Association v. Union of India and others (2004) 11 SCC 766 (iii) Kerala State Electricity Board v. The Indian Aluminium Co. Ltd. (1976) 1 SCC 466 (iv) Ajoy Kumar Banerjee and others v. Union of India and others (1984) 3 SCC 127 (v) Gwalior Rayon Silk Mfg. (Wvg.) Co. Ltd. v. The Asstt. Commissioner of Sales Tax and others (1974) 4 SCC 98 (vi) Ramesh Birch and others v. Union of India and others 1989 Supp. (1) SCC 430 (vii) M/s Gammon India Limited Etc. v. Union of India Others (1974) 1 SCC 596 (viii) Prabhudas Swami and Another v. State of Rajasthan and Others AIR 2003 RAJ 190 (ix) Rojer Mathew v. South Indian Bank Ltd. represented by its Chief Manager and Ors. (2020) 6 SCC 1 (x) The Registrar of Co-operative Societies, Trivandrum and another vs. K. Kunjabmu and others (1980) 1 SCC 340 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be applicable. However, in a case of classificatory arbitrariness, the only test that will have to be satisfied is the rational nexus test, i.e. whether the action taken has a reasonable nexus with the object to be achieved. In such a case, the proportionality test would not be applicable. It is submitted that the present case would fall in the latter category and not in the former category. 66. Countering the argument made on behalf of the petitioners that the power exercised under sub-section (2) of Section 26 of the RBI Act has not been exercised in the manner as provided therein and further that the decision-making process is flawed on account of patent arbitrariness, the learned A.G. submitted that in view of the settled legal position, the said contention is also not tenable. It is submitted that what is postulated under sub-section (2) of Section 26 of the RBI Act is that the Central Government may take a decision on the recommendation of the Central Board. It is submitted that in the present case, there was, in fact, a recommendation by the Central Board recommending demonetization. The decision by the Central Government has been taken after considering the said rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioners that demonetization has utterly failed to achieve its objectives as stated in the impugned Notification is also without substance. The learned A.G. submits that the repercussion of an action like the one under consideration can be best understood by considering the legal tender cessation measure not in isolation but by looking at the overall benefits flowing from such a measure. The learned A.G. submits that the benefits and advantages of such an action are direct as well as indirect. The learned A.G. submits that, as a result of the impugned action, there are direct benefits, like: (i) significant reduction in fake currency; (ii) significant increase in the number of tax payers; (iii) 25% growth in filing income-tax returns; (iv) significant increase in returns filed by corporate tax payers; (v) substantial growth in new PAN numbers. 70. The learned A.G. submits that, whereas self-assessment tax in the year 2015-16 was Rs.55,000 crore and Rs.68,000 crore in the year 2016-2017, it has jumped to Rs.1,00,000 crore in the year 2017-18. The learned A.G. further submitted that, as a direct benefit of demonetization, the volume of Unified Payments Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that, for the reasoning adopted by the Constitution Bench in the said case, the impugned notification, which now stands ratified by the 2017 Act, also deserves to be upheld. 75. In respect of the submission made on behalf of the petitioners, that in order to address concern of the genuine difficulties of various persons who could not deposit the demonetized bank notes within the limited period, a window should be opened for a limited period; the learned A.G. submitted that if such is permitted, it would amount to devising a norm which will alter the essential character of the enactment. It is submitted that, firstly, it is difficult to ascertain genuineness of the money. Such a request will have to be based on certain declarations being made by the party whose veracity cannot be verified. It is submitted that this would also provide a loophole for non-genuine bank note holders to channelize their unaccounted money through the window. It is submitted that, incidentally, the law enforcing agencies are still recovering significant amount of SBNs from the individuals. 76. The learned A.G. further submitted that, as of now, Rs.10,719 crore of SBNs are still in circulation. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cised on the recommendation of the Central Board. It is, therefore, submitted that there is an inbuilt safeguard in the provision itself. 80. Relying on the judgment of this Court in the case of Peerless General Finance and Investment Co. Limited and another v. Reserve Bank of India (1992) 2 SCC 343, it is submitted that the RBI, which is a bankers bank, has a large contingent of experts to render advice relating to matters affecting the economy of the entire country. It is submitted that the RBI plays an important role in the economy and financial affairs of India and one of its important functions is to regulate the banking system in the country. It is submitted that the recommendation of the Central Board is based upon the advice of the experts that the RBI has in its contingent. Shri Gupta also relies on the judgment of the Constitution Bench of this Court in the case of Joseph Kuruvilla Velukunnel v. Reserve Bank of India and others 1962 Supp (3) SCR 632 in support of this submission. 81. Shri Gupta further submitted that the contention that the decision-making process is faulty on account of not following the procedure under sub-section (2) of Section 26 of the RBI Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tization, has a reasonable nexus for the fulfillment of the purpose of aforesaid three objectives and, as such, the second test is also fulfilled. Insofar as the third test is concerned, it is submitted that it is a matter of economic policy as to what measure is found to be appropriate for achieving the objective of dealing with the menace of aforesaid three evils. It is submitted that it is for the experts in the economic and monetary fields to take a decision in that regard and, as such, the third test, as to whether there was no alternative less invasive measure, would not be applicable to a decision pertaining to economic policy. Insofar as the fourth test is concerned, it is submitted that, as a matter of fact, there has been no infringement of the rights of the citizens. As a matter of fact, no currency is being taken away. Full value of the legitimate currency has been exchanged. It is submitted that non-cash transactions such as credit card, debit card, on-line transaction, etc. were permitted even during the period between 8th November 2016 and 31st December 2016. In any case, it is submitted that immediately after the demonetization was notified, in spite of enormity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s provided under sub-section (1) of Section 4 of the 2017 Act. It is submitted that the power vested in the Central Government under clause (ii) of sub-section (1) of Section 4 of the 2017 Act is to provide grace period to such class of persons and for such reasons as may be specified by notification. However, such power has not been exercised by the Central Government and, therefore, it cannot be construed that the RBI will have an independent power in this regard. 86. Shri Gupta reiterated the submission made by the learned A.G. that since the relief sought in the petitions cannot be granted, no declaration as sought should be granted by this Court. In this respect, he relies on the judgment of this Court in the case of Bholanath Mukherjee and others v. Ramakrishna Mission Vivekananda Centenary College and others (2011) 5 SCC 464. VI. SUBMISSIONS IN REJOINDER 87. Shri P. Chidambaram, learned Senior Counsel, in rejoinder, almost reiterated his earlier submissions. He submitted that there are two methods of demonetization of currency, one is by legislative method and the other under sub-section (2) of Section 26 of the RBI Act. He reiterated that the word any will alwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-section (2) of Section 26 of the RBI Act was not valid in law. In this respect, he relies on the judgment of this Court in the case of S.R. Bommai and others v. Union of India and others (1994) 3 SCC 1. 91. Shri Shyam Divan, learned Senior Counsel, in rejoinder, submits that the perusal of sub-section (1) of Section 26 of the RBI Act would reveal that, though the tendering of any series of bank notes of any denomination ceases to be a legal one under sub-section (2) of Section 26 of the RBI Act, the guarantee of the Central Government continues to exist. It is submitted that it would be clear from the provisions contained in the 2016 Ordinance, which became the 2017 Act, that Section 3 of the 2017 Act which provides that the SBNs which have ceased to be legal tender in view of the impugned notification, shall cease to be liabilities of the RBI under Section 34 of the RBI Act and shall cease to have the guarantee of the Central Government under sub-section (1) of Section 26 of the said Act. It is submitted that this is also clear from the affidavit dated 16th November 2022 filed on behalf of the Union of India. 92. Shri Divan further submitted that the 2017 Act can neither ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? (ii) In the event it is held that the power under sub-section (2) of Section 26 of the RBI Act is construed to mean that it can be exercised in respect of all series of bank notes, whether the power vested with the Central Government under the said sub-section would amount to conferring excessive delegation and as such, liable to be struck down? (iii) As to whether the impugned Notification dated 8th November 2016 is liable to be struck down on the ground that the decision making process is flawed in law? (iv) As to whether the impugned notification dated 8th November 2016 is liable to be struck down applying the test of proportionality? (v) As to whether the period provided for exchange of notes vide the impugned notification dated 8th November 2016 can be said to be unreasonable? (vi) As to whether the RBI has an independent power under sub-section (2) of Section 4 of the 2017 Act in isolation of provisions of Section 3 and Section 4(1) thereof to accept the demonetized notes beyond the period specified in notifications issued under sub-section (1) of Section 4? VIII. STATUTORY SCHEME 96. Before we proceed to consider the various issues reframed by us, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l have the sole right to issue bank notes in India and may, for a period which shall be fixed by the Central Government on the recommendation of the Central Board, issue currency notes of the Government of India supplied to it by the Central Government. It further provides that the provisions of the RBI Act applicable to bank notes shall, unless a contrary intention appears, apply to all currency notes of the Government of India issued either by the Central Government or by the RBI in like manner as if such currency notes were bank notes. Sub-section (2) of Section 22 of the RBI Act specifically provides that on and from the date on which Chapter III of the RBI Act comes into force, the Central Government shall not issue any currency notes. 102. Section 23 of the RBI Act would reveal that the issue of bank notes shall be conducted by the RBI through an Issue Department which shall be separated and kept wholly distinct from the Banking Department, and the assets of the Issue Department shall not be subject to any liability other than the liabilities of the Issue Department as defined in Section 34. Sub-section (2) of Section 23 provides that the Issue Department shall not issue b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender save at such office or agency of the Bank and to such extent as may be specified in the notification. 107. Section 34 of the RBI Act provides that the liabilities of the Issue Department of the RBI shall be an amount equal to the total of the amount of the currency notes of the Government of India and bank notes for the time being in circulation. 108. Perusal of the aforesaid provisions of the RBI Act would reveal that insofar as monetary policy and specifically with regard to the matters of management and regulation of currency are concerned, the RBI plays a pivotal role. As a matter of fact, both the sides are ad idem on the said issue. 109. The importance of the role assigned to the RBI in such matters would be amplified from the various judgments of this Court, which we will refer to in the paragraphs to follow. In this background, we will consider the issues that fall for our consideration. ISSUE NO. (i) : WHETHER THE POWER AVAILABLE TO THE CENTRAL GOVERNMENT UNDER SUB-SECTION (2) OF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver capable of no other meaning? If it is not, the courts cannot look further, and must interpret these words in that meaning only, irrespective of what the intention of the legislature might be believed to have been. If however the phrase is capable of another meaning, as suggested, viz., every one of the directors it will be necessary to decide which of the two meanings was intended by the legislature. If one examines the use of the words any one in common conversation or literature, there can be no doubt that they are not infrequently used to mean every one - not one, but all. Thus we say of any one can see that this is wrong, to mean everyone can see that this is wrong . Any one may enter does not mean that only one person may enter , but that all may enter. It is permissible and indeed profitable to turn in this connection to the Oxford English Dictionary, at p. 378, of which, we find the meaning of any given thus: In affirmative sentences, it asserts, concerning a being or thing of the sort named, without limitation as to which, and thus collectively of every one of them . One of the illustrations given is - I challenge anyone to contradict my assertions . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... difference. We think it will be wrong to put too much emphasis on the word one here. It may be pointed out in this connection that the Permanent Edition of Words and Phrases, mentions an American case Front Hintingdon Building Loan Association v. Berzinski where the words any of them were held to be the equivalent of any one of them . After giving the matter full and anxious consideration, we have come to the conclusion that the words any one of the directors is ambiguous; in some contexts, it means only one of the directors, does not matter which one , but in other contexts, it is capable of meaning every one of the directors . Which of these two meanings was intended by the legislature in any particular statutory phrase has to be decided by the courts on a consideration of the context in which the words appear, and in particular, the scheme and object of the legislation. [emphasis supplied] 113. The Constitution Bench found that the words any one has been commonly used to mean every one i.e. not one, but all. It found that the word any , in affirmative sentences, asserts, concerning a being or thing of the sort named, without limitation. It held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned above, we think the phrase any one of the directors is capable of meaning every one of the directors , the fact that in other statutes, different words were used to express a similar meaning is not of any significance. We have, on all these considerations come to the conclusion that the words any one of the directors has been used in Section 76 to mean every one of the directors , and that the contrary interpretation given by the High Court is not correct. [emphasis supplied] 116. It could thus be seen that though it was sought to be argued before the Court that since the rule of strict interpretation of penal statutes in favour of the accused has to be adopted and that the word any was suffixed by the word one , it has to be given restricted meaning; the Court came to the conclusion that the words any one of the directors used in Section 76 of the Mines Act, 1952 would mean every one of the directors . It is further to be noted that the word any in the said case was suffixed by the word one , still the Court held that the words any one would mean all and not one . It is to be noted that in the present case, the legislature has not employed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... selves without fear of legal consequences. What they say is only subject to the discipline of the rules of Parliament, the good sense of the members and the control of proceedings by the Speaker. The Courts have no say in the matter and should really have none. [emphasis supplied] 119. This Court held that the word anything is of the widest import and is equivalent to everything . The only limitation arises from the words in Parliament which means during the sitting of Parliament and in the course of the business of Parliament. It held that, once it was proved that Parliament was sitting and its business was being transacted, anything said during the course of that business was immune from proceedings in any Court. 120. This Court, in the case of Lucknow Development Authority (supra), was considering clause (o) of Section (2) of the Consumer Protection Act, 1986 which defines service , wherein the word any again fell for consideration. This Court observed thus: 4. The words any and potential are significant. Both are of wide amplitude. The word any dictionarily means one or some or all . In Black's Law Dictionary it is explained thus, word any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of filing a suit, unless it is barred by statute, as it is barred here under Section 34 of FEMA, is an inherent right (see Section 9 of the Civil Procedure Code) but a right of appeal is always conferred by a statute. While conferring such right a statute may impose restrictions, like limitation or pre-deposit of penalty or it may limit the area of appeal to questions of law or sometime to substantial questions of law. Whenever such limitations are imposed, they are to be strictly followed. But in a case where there is no limitation on the nature of order or decision to be appealed against, as in this case, the right of appeal cannot be further curtailed by this Court on the basis of an interpretative exercise. 20. Under Section 35 of FEMA, the legislature has conferred a right of appeal to a person aggrieved from any order or decision of the Appellate Tribunal. Of course such appeal will have to be on a question of law. In this context the word any would mean all . xxx xxx xxx 26. In the instant case also when a right is conferred on a person aggrieved to file appeal from any order or decision of the Tribunal, there is no reason, in the absence of a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a diversity of meaning and in Black's Law Dictionary it has been stated that this word may be employed to indicate all or every , and its meaning will depend upon the context and subject-matter of the statute . A reference to what has been stated in Stroud's Judicial Dictionary Vol. I, is revealing inasmuch as the import of the word any has been explained from pp. 145 to 153 of the 4th Edn., a perusal of which shows it has different connotations depending primarily on the subject-matter of the statute and the context of its use. A Bench of this Court in Lucknow Development Authority v. M.K. Gupta [(1994) 1 SCC 243] , gave a very wide meaning to this word finding place in Section 2(o) of the Consumer Protection Act, 1986 defining service . (See para 4) [emphasis supplied] 127. Shri Chidambaram rightly argued that the word any will have to be construed in its context, taking into consideration the scheme and the purpose of the enactment. There can be no quarrel with regard to the said proposition. Right from the judgment of the Constitution Bench of this Court in the case of The Chief Inspector of Mines and another v. Lala Karam Chand Thapar etc. (supra), the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has found approval by the Constitution Bench of this Court in the case of Modern Dental College and Research Centre and Others (supra), to which we will refer to in the forthcoming paragraphs, in his commentary on Purposive Interpretation in Law , has summarized the goal of interpretation in law as under: At some point, we need to find an Archimedean foothold, external to the text, from which to answer that question. My answer is this: The goal of interpretation in law is to achieve the objective in other words, the purpose of law. D. Brink, Legal Theory, Legal Interpretation, and Judicial Review, 17 Phil. And Pub. Aff. 105, 125 (1988) The role of a system of interpretation in law is to choose, from among the semantic options for a given text, the meaning that best achieves the purpose of the text. Each legal text will, contract, statute, and constitution was chosen to achieve a social objective. Achieving this objective, achieving this purpose, is the goal of interpretation. The system of interpretation is the device and the means. It is a tool through which law achieves self-realization. In interpreting a given text, which is, after all, what interpretation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruction based on the view that Parliament would legislate only for the purpose of bringing about an effective result . It is said in Craies on Statute Law, 5th Edn., at p. 82- Manifest absurdity or futility, palpable injustice, or absurd inconvenience or anomaly to be avoided. Lord Davey in Canada Sugar Refining Co. v. R. [(1898) AC 735] provides another useful guide of correct perspective to such a problem in the following words: Every clause of a statute should be construed with reference to the context and the other clauses of the Act, so as, so far as possible, to make a consistent enactment of the whole statute or series of statutes relating to the subject-matter. 136. A.K. Sarkar, J. in his concurring opinion observed thus: There is no doubt that the Act raises some difficulty. It was certainly not intended that the members elected to the Committee under the repealed Act should be given a permanent tenure of office nor that there would be no elections under the new Act. Yet such a result would appear to follow if the language used in the new Act is strictly and literally interpreted. It is however well established that Where the language ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a statute is to ascertain the intention of the legislature, actual or imputed. Having ascertained the intention, the court must then strive to so interpret the statute as to promote or advance the object and purpose of the enactment. For this purpose, where necessary the court may even depart from the rule that plain words should be interpreted according to their plain meaning. There need be no meek and mute submission to the plainness of the language. To avoid patent injustice, anomaly or absurdity or to avoid invalidation of a law, the court would be well justified in departing from the so-called golden rule of construction so as to give effect to the object and purpose of the enactment by supplementing the written word if necessary. 139. After referring to various earlier judgments of other jurisdictions, His Lordship observed thus: 16. Our own court has generally taken the view that ascertainment of legislative intent is a basic rule of statutory construction and that a rule of construction should be preferred which advances the purpose and object of a legislation and that though a construction, according to plain language, should ordinarily be adopted, such a constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te unworkable. In Whitney v. IRC [1926 AC 37] Lord Dunedin said: (AC p. 52) A statute is designed to be workable, and the interpretation thereof by a court should be to secure that object, unless crucial omission or clear direction makes that end unattainable. 141. In the case of State of Gujarat and another v. Justice R.A. Mehta (Retired) and others (2013) 13 SCC 1, this Court held as under: 98. The doctrine of purposive construction may be taken recourse to for the purpose of giving full effect to statutory provisions, and the courts must state what meaning the statute should bear, rather than rendering the statute a nullity, as statutes are meant to be operative and not inept. The courts must refrain from declaring a statute to be unworkable. The rules of interpretation require that construction which carries forward the objectives of the statute, protects interest of the parties and keeps the remedy alive, should be preferred looking into the text and context of the statute. Construction given by the court must promote the object of the statute and serve the purpose for which it has been enacted and not efface its very purpose. The courts strongly lean agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be eschewed. The primary and foremost task of the Court in interpreting a statute is to gather the intention of the legislature, actual or imputed. Having ascertained the intention, it is the duty of the Court to strive to so interpret the statute as to promote or advance the object and purpose of the enactment. For this purpose, where necessary, the Court may even depart from the rule that plain words should be interpreted according to their plain meaning. There need be no meek and mute submission to the plainness of the language. To avoid patent injustice, anomaly or absurdity or to avoid invalidation of a law, the court would be justified in departing from the so-called golden rule of construction so as to give effect to the object and purpose of the enactment. Ascertainment of legislative intent is the basic rule of statutory construction. Construction of sub-section (2) of Section 26 of the RBI Act. 144. Applying the aforesaid pronouncements on the construction of the term any and the principle of purposive construction, we will now consider the scope of the term any used in sub-section (2) of Section 26 of the RBI Act. 145. Sub-section (2) of Section 26 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect. 149. It can thus clearly be seen that a primary and very important role is assigned to the RBI in the matter of issuance of bank notes. As held by this Court in the case Peerless General Finance and Investment Co. Limited and another (supra), the RBI has a large contingent of expert advice available to it. The Central Government would exercise its power on the recommendation of the Central Board. When the legislature itself has provided that the Central Government would take a decision after considering the recommendation of the Central Board of the RBI, which has been assigned a primary role in matters with regard to monetary policy and management and regulation of currency, we are of the view that the legislature could not have intended to give a restricted power under sub-section (2) of Section 26 of the RBI Act. In any case, if the argument that the provisions of sub-section (2) of Section 26 of the RBI Act have to be interpreted in a restricted manner, is to be accepted, it may, at times, lead to an anomalous situation. 150. For example, if there are 20 series of a particular denomination, and if the argument of the petitioners is to be accepted, the Central Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould take place with the Governor and Deputy Governor. It appears that the RBI authorities were not enthusiastic about the scheme. It appears that in spite of the opposition by the then Governor of the RBI, Shri C.D. Deshmukh, the Government went ahead with the scheme and issued an ordinance on 12th January 1946. 153. Further, perusal of Volume III would reveal that the then Governor I.G. Patel was not in favour of the demonetization scheme of 1978. However, in spite of the opposition of the Governor of the RBI, the Government went ahead with the demonetization scheme and issued an ordinance in the early hours of 16th January 1978 and the news was announced on All India Radio s news bulletin at 9 am on the same day. 154. It could thus be seen that on earlier two occasions, since the RBI was not in favour of the demonetization, the Government resorted to promulgating ordinances for the said purpose. 155. It is to be noted that after the ordinance of 1946 was promulgated, the RBI Act was amended vide Act No.62 of 1956 and Section 26A was added, thereby specifically providing that no bank note of the denominational value of Rs.500/-, Rs. 1,000/- and Rs.10,000/- issued before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Constitution Bench of this Court while considering the validity of clause (d) of Section 3 of the Drug and Magic Remedies (Objectionable Advertisement) Act, (21 of 1954) observed thus: 33. The interdiction under the Act is applicable to conditions and diseases set out in the various clauses of Section 3 and to those that may under the last part of clause (d) be specified in the Rules made under Section 16. The first sub-section of Section 16 authorises the making of rules to carry out the purposes of the Act and clause (a) of sub-section (2) of that section specifically authorises the specification of diseases or conditions to which the provisions of Section 3 shall apply. It is the first sub-section of Section 16 which confers the general rule-making power i.e. it delegates to the administrative authority the power to frame rules and regulations to subserve the object and purpose of the Act. Clause (a) of the second sub-section is merely illustrative of the power given under the first sub-section; King-Emperor v. Sibnath Banerji [(1945) LR 72 IA 241] . Therefore, sub-section 2(a) also has the same object as sub-section (1) i.e. to carry out the purposes of the Act. Consequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l) Act, 1968. Section 5 of the Gold (Control) Act, 1968, which confers power on the Administrator to issue directions and orders, fell for consideration, which read thus: 5. Power of Administrator issue directions and orders.-- (1) The Administrator may, if he thinks fit, make orders, not inconsistent with the provisions of this Act, for carrying out the provisions of this Act. (2) The Administrator may, so far as it appears to him to be necessary or expedient for carrying out the provisions of this Act, by order- (a) regulate, after consultation with the Reserve Bank of India, the price at which any gold may be bought or sold, and (b) regulate by licences, permits or otherwise, the manufacture, distribution, transport, acquisition, possession, transfer, disposal, use or consumption of gold. [emphasis supplied] 165. It can be seen that under clause (b) sub-section (2) of Section 5 of the Gold (Control) Act, 1968, the Administrator was conferred with the power to regulate by licences, permits or otherwise, the manufacture, distribution, transport, acquisition, possession, transfer, disposal, use or consumption of gold. In this premise, this Court observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulate, after consultation with the RBI, the price at which any gold may be bought or sold. It was also argued before the Court that the said provision is also invalid amounting to excessive delegation inasmuch as the power conferred was unguided. This Court specifically rejected the said contention. It will be apposite to refer to the following observations of this Court: .. As the power to fix the price may also be exercised not only in respect of primary gold but also in respect of articles and ornaments the business of the petitioners and similarly other persons will be adversely affected. But the section provides the safeguard that the regulation of the price should be made by the Administrator after consultation with the Reserve Bank of India. It was argued that the phrase so far as it appears to him to be necessary or expedient for carrying out the provisions of this Act was a subjective formula and action of the Administrator in making the orders under Section 5 (2)(a) may be arbitrary and unreasonable. But in our opinion the formula is not subjective and does not constitute the Administrator the sole judge as to what is in fact necessary or expedient for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a meeting, pass a resolution for the levy of any of the taxes specified in sub-section (2) of Section 113, defining the maximum rate of the tax to be levied, the class or classes of persons or the description or descriptions of articles and properties to be taxed, the system of assessment to be adopted and the exemptions, if any, to be granted. (2) Any resolution passed under sub-section (1) shall be submitted to the Central Government for its sanction, and if sanctioned by that Government, shall come into force on and from such date as may be specified in the order of sanction. (3) After a resolution has come into force under sub-section (2), the Corporation may, subject to the maximum rate, pass a second resolution determining the actual rates at which the tax shall be leviable; and the tax shall come into force on the first day of the quarter of the year next following the date on which such second resolution is passed. (4) After a tax has been levied in accordance with the foregoing provisions of this section, the provisions of sub-section (2) of Section 109, shall apply in relation to such tax as they apply in relation to any tax imposed under sub-section (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its preamble. They further held that the nature of the body to which delegation is made is also a factor to be taken into consideration in determining whether there is sufficient guidance in the matter of delegation. The Court further held that what form the guidance should take is again a matter which cannot be stated in general terms. It will depend upon the circumstances of each statute under consideration. It further held that in some cases guidance in broad general terms may be enough, in other cases more detailed guidance may be necessary. 176. The Court further observed thus: The first circumstance which must be taken into account in this connection is that the delegation has been made to an elected body responsible to the people including those who pay taxes. The councillors have to go for election every four years. This means that if they have behaved unreasonably and the inhabitants of the area so consider it they can be thrown out at the ensuing elections. This is in our opinion a great check on the elected councillors acting unreasonably and fixing unreasonable rates of taxation. This is a democratic method of bringing to book the elected representatives who ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legislative will has been exercised or not. Once it is established that the legislature itself has willed that a particular thing be done and has merely left the execution of it to a chosen instrumentality (provided that it has not parted with its control) there can be no question of excessive delegation. If the delegate acts contrary to the wishes of the legislature the legislature can undo what the delegate has done. Even the courts, as we shall show presently, may be asked to intervene when the delegate exceeds its powers and functions .. To insist that the legislature should provide for every matter connected with municipal taxation would make municipalities mere tax collecting departments of the Government and not self-governing bodies which they are intended to be. The Government might as well collect the taxes and make them available to the municipalities. That is not a correct reading of the history of Municipal Corporations and other self-governing institutions in our country. [emphasis supplied] 182. Observing thus, M. Hidayatullah, J. also rejected the contention that provisions of Section 150 suffer from excessive delegation. His Lordship has observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities, however competent they may be, for that of the popular will as expressed by the representatives of the people. [emphasis supplied] 184. The Court observed that the growth of the legislative powers of the Executive is a significant development of the twentieth century. The theory of laissez faire has been given a go-by and large and comprehensive powers are being assumed by the State with a view to improve social and economic well-being of the people. It has been held that most of the modern socio-economic legislations passed by the Legislature lay down the guiding principles and the legislative policy. It is not possible for the Legislatures to go into matters of detail. Therefore, a provision has been made for delegated legislation to obtain flexibility, elasticity, expedition and opportunity for experimentation. It has been held that the practice of empowering the Executive to make subordinate legislation within a prescribed sphere has evolved out of practical necessity and pragmatic needs of a modern welfare State. It has been observed that the role against excessive delegation of legislative authority flows from and is a necessary postulate of the sovereignty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delegation. It observed that an over-burdened Legislature or one controlled by a powerful Executive may unduly overstep the limits of delegation. It may not lay down any policy at all; it may declare its policy in vague and general terms; it may not set down any standard for the guidance of the Executive; it may confer an arbitrary power on the Executive to change or modify the policy laid down by it without reserving for itself any control over subordinate legislation. It has been held that it is for the Court to hold on a fair, generous and liberal construction of an impugned statute to examine whether the Legislature exceeded such limits. 187. We may gainfully refer to the following observations in the concurring judgment of K.K. Mathew, J.: 57. Delegation of law-making power, it has been said, is the dynamo of modern Government. Delegation by the Legislature is necessary in order that the exertion of legislative power does not become a futility. Today, while theory still affirms legislative supremacy, we see power flowing back increasingly to the Executive. Departure from the traditional rationalization of the status quo arouses distrust. The Legislature comprises a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal reality, i.e. Parliament cannot go into the details of all legislative matters. The learned Judge observed that the aim of Government is to gain acceptance for objectives demonstrated as desirable and to realise them as fully as possible. The learned Judge observed that there are many topics or subjects of legislation which are such that they may require expertise, technical knowledge and a degree of adaptability to changing situations which Parliament might not possess and, therefore, this end is better secured by extensive delegation of legislative power. It has been held that the legislative process would frequently bog down if a Legislature were required to appraise beforehand the myriad situations to which it wishes a particular policy to be applied and to formulate specific rules for each situation. The Court further emphasized for a guidance for the delegate to exercise the delegated power. 189. This Court, in the case of The Registrar of Co-operative Societies, Trivandrum and another v. K. Kunjabmu and others (supra), while reversing the judgment of the Kerala High Court, which had held Section 60 of the Madras Co-operative Societies Act, 1932 to be unconstitutional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Principles of State Policy. [emphasis supplied] 190. This Court has observed that the executive activity in the field of delegated or subordinate legislation has increased in direct, geometric progression. The Court observed that Parliament and the State Legislatures are not bodies of experts or specialists. It is observed that the legislative bodies function best when they concern themselves with general principles, broad objectives and fundamental issues instead of technical and situational intricacies which are better left to better equipped full time expert executive bodies and specialist public servants. It has been held that Parliament and the State Legislatures cannot visualize and provide for new, strange, unforeseen and unpredictable situations arising from the complexity of modern life and the ingenuity of modern man. It has been further reiterated that guidance could be found from various factors and once it is found, the delegation is valid. It has been held that a good deal of latitude has to be held to be permissible in the case of taxing statutes and welfare legislations. 191. This Court in the case of Ramesh Birch and others (supra) again, after referring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not satisfy the said test, the legislation can be struck down without affecting the constitutionality of the rule-making power conferred under Section 186 of the Finance Act, 2017. Status of the RBI 194. Having adverted to the various judgments on the issue of delegated legislation, we find it necessary to refer to certain judgments of this Court outlining the status of the RBI. 195. The Constitution Bench of this Court in the case of Joseph Kuruvilla Velukunnel (supra) was considering a challenge to Section 38(1) and (3)(b)(iii) of the Banking Companies Act, 1949 being violative of Articles 14, 19 and 301 of the Constitution of India, and was, therefore, ultra vires the Constitution of India. Though this Court held that Section 38 is an unreasonable restriction on the right of the Palai Bank to carry on its business and, therefore, unconstitutional, it will be relevant to refer to paragraph 46 of the said judgment, which is as follows: 46. In the present case, in view of the history of the establishment of the Reserve Bank as a central bank for India, its position as a Bankers' Bank, its control over banking companies and banking in India, its position as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the economy of the entire country. It has been held that the RBI plays an important role in the economy and financial affairs of India and one of its important functions is to regulate the banking system in the country. It has been held that it is the duty of the RBI to safeguard the economy and financial stability of the country. 199. It will also further be relevant to refer to the following observations of this Court in the case of Peerless General Finance and Investment Co. Limited and another (supra): The function of the Court is not to advise in matters relating to financial and economic policies for which bodies like Reserve Bank are fully competent. The Court can only strike down some or entire directions issued by the Reserve Bank in case the Court is satisfied that the directions were wholly unreasonable or violative of any provisions of the Constitution or any statute. It would be hazardous and risky for the courts to tread an unknown path and should leave such task to the expert bodies. This Court has repeatedly said that matters of economic policy ought to be left to the government. [emphasis supplied] 200. The Court has held that it is not permissible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sub-section (2) of Section 26 of the RBI Act is concerned, it is to be taken on the recommendation of the Central Board. We, therefore, find that there is an inbuilt safeguard in sub-section (2) of Section 26 of the RBI Act inasmuch as the Central Government is required to take a decision on the recommendation of the RBI. 204. As already discussed hereinabove, the RBI has large contingent of expert advice available to it. It has a pivotal role in issuance and management of and all other matters relating to currency and also in evolving monetary policy of the country. We may gainfully refer to the Constitution Bench Judgment of this Court in the case of Harakchand Ratanchand Banthia and others (supra) wherein, though the Constitution Bench found clause (b) sub-section (2) of Section 5 of the Gold (Control) Act, 1968 to be unconstitutional on the ground of vice of excessive delegation, it upheld the provisions of clause (a) sub-section (2) of Section 5 of the Gold (Control) Act, 1968, finding that there was an inbuilt safeguard inasmuch as the Administrator was required to take a decision after consultation with the RBI. 205. For considering the question as to whether the RB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot has to be decided on the basis of the scheme, the object and the purpose of the statute under consideration. 208. One another aspect that needs to be taken into consideration is the nature of the body to which the delegation is to be made. In the present case, the delegation is made to the Central Government and not to any ordinary body. 209. In the case of Birla Cotton, Spinning and Weaving Mills Delhi (supra), the seven-Judge Bench of this Court held that the delegation was made to an elected body, responsible to the people including those who pay taxes. It observed that the councillors have to go for election every four years. It was also observed that if the councillors behave unreasonably, and the inhabitants of the area so consider it, they can be thrown out at the ensuing elections. This Court found that this was a great check on the elected councillors acting unreasonably and fixing unreasonable rates of taxation. It has been held that this was a democratic method of bringing to book the elected representatives who act unreasonably in such matters. 210. In the present case also, the delegation is to the Central Government, i.e. the highest executive body of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no quorum as required in the 1949 Regulations. 214. On the contrary, it is the submission of the respondents that there are twin requirements in sub-section (2) of Section 26 of the RBI Act, viz., (i) recommendation of the Central Board; and (ii) the decision of the Central Government. It is submitted that both these requirements are satisfied in the present case. It is submitted that, in an action like the present one, confidentiality and speed are of utmost importance. Scope of Judicial Review 215. The law with regard to scope of judicial review has been very well crystalized in the case of Tata Cellular (supra). In the said case, it has been held by this Court that the duty of the court is to confine itself to the question of legality. Its concern should be whether a decision-making authority exceeded its powers, committed an error of law, committed a breach of the rules of natural justice, reached a decision which no reasonable tribunal would have reached or abused its powers. The Court held that it is not for the court to determine whether a particular policy or particular decision taken in the fulfillment of that policy is fair. It is only concerned with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Tata Cellular (supra). Scope of Judicial Interference in matters pertaining to economic policy 219. Since the issue involved is also related to monetary and economic policy of the country, we would also be guided by certain other pronouncements of this Court. 220. We may gainfully refer to the following observations of the Seven-Judge Bench in the case of M/s. Prag Ice Oil Mills and Another v. Union of India (1978) 3 SCC 459: 24. We have listened to long arguments directed at showing us that producers and sellers of oil in various parts of the country will suffer so that they would give up producing or dealing in mustard oil. It was urged that this would, quite naturally, have its repercussions on consumers for whom mustard oil will become even more scarce than ever ultimately. We do not think that it is the function of this Court or of any Court to sit in judgment over such matters of economic policy as must necessarily be left to the Government of the day to decide. Many of them, as a measure of price fixation must necessarily be, are matters of prediction of ultimate results on which even experts can seriously err and doubtlessly differ. Courts can certainly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers have been excluded from determination. [emphasis supplied] 223. Recently, this Court in the case of Small Scale Industrial Manufactures Association (Registered) v. Union of India and Others (2021) 8 SCC 511 had an occasion to consider the issue with regard to scope of judicial review of economic and fiscal regulatory measures. This Court observed thus: 69. What is best in the national economy and in what manner and to what extent the financial reliefs/packages be formulated, offered and implemented is ultimately to be decided by the Government and RBI on the aid and advice of the experts. The same is a matter for decision exclusively within the province of the Central Government. Such matters do not ordinarily attract the power of judicial review. Merely because some class/sector may not be agreeable and/or satisfied with such packages/policy decisions, the courts, in exercise of the power of judicial review, do not ordinarily interfere with the policy decisions, unless such policy could be faulted on the ground of mala fides, arbitrariness, unfairness, etc. 70. There are matters regarding which the Judges and the lawyers of the courts can hardly be expected to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith regard to the prediction of ultimate results, even the experts can seriously err and doubtlessly differ. The Courts can certainly not be expected to decide them without even the aid of experts. Application of the aforesaid principles to the present case 226. Therefore, while exercising the power of judicial review in a matter like the present one, the scope of interference would be still narrower. Applying the principles laid down in the aforesaid judgments, we will have to examine as to whether the decision-making process in the present case is flawed or not. Our inquiry has to be limited only to find out as to whether there is an illegality in the decision-making process, i.e. whether the decision makers have understood the law correctly which regulates the decision-making power and as to whether the decision-making process is vitiated by irrationality, i.e. the Wednesbury principles. The test that would have to be applied is that the decision is such that no authority properly conducting itself on the relevant law and acting reasonably could have reached thereat, and as to whether there has been a procedural impropriety. 227. The learned Senior Counsel for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e steps taken by the Government to reduce black money in the economy. After pointing out the aforesaid factors, the communication advises the Central Board to take note of the above and consider making necessary recommendations. It also requests the RBI to prepare a draft scheme to implement the above in a non-disruptive manner with as little inconvenience to the public and business entities as possible. 231. We have also perused the Minutes of the Five Hundred and Sixty First (561st) Meeting of the Central Board of Directors of the RBI held on 8th November 2016. The said Minutes would show that the communication dated 7th November 2016 was placed before the Central Board by the Deputy Governor. There was an elaborate discussion on the said proposal. The Central Board has considered the pros and cons of the measure. The Central Board has also considered that the proposed step presents a big opportunity to take the process of financial inclusion further by incentivizing the use of electronic modes of payment, so that people see the benefits of bank accounts and electronic means of payment over use of cash. The Central Board has taken into consideration that the matter had been un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, in both the affidavits of the RBI dated 15th November 2022 and 19th December 2018, a categorical statement has been made that the requisite procedure as laid down under sub-section (2) of Section 26 of the RBI Act read with Regulations 8 and 10 of the 1949 Regulations was duly followed. 236. A perusal of the Minutes of the Meeting of the Central Board would also show that eight Directors were present in the Meeting whereas the quorum for the meeting is four Directors of whom not less than three shall be Directors nominated under Section 8(1)(b) or Section 8(1)(c) or Section 12 (4) of the RBI Act. In the affidavit filed before this Court on 6th December 2022, it is specifically averred as under: 6. That the 561st meeting of the Central Board of the answering respondent was held on 08.11.2016 at New Delhi and business was transacted therein with the requisite quorum. During the said meeting, apart from the then Governor and two Deputy Governors, one director nominated under Section 8(1)(b) of RBI Act, two directors nominated under section 8(1)(c) of RBI Act and two directors nominated under section 8(1)(d) of RBI Act were present. Thus, the requisite quorum of fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct was breached. The two requirements of sub-section (2) of Section 26 of the RBI Act are (i) recommendation by the Central Board; and (ii) the decision by the Central Government. As already discussed hereinabove, both the Central Board while making recommendation and the Central Government while taking the decision, have taken into consideration all the relevant factors. 241. The dictionary meaning of the word recommend is to advise as to a course of action , or to praise or commend . In P. Ramanatha Aiyar's Law Lexicon, the meaning of the word recommendation is a statement expressing commendation or a message of this nature . The word recommendation , therefore, will have to be construed in the context in which it is used. Reference in this respect would be made to the judgments of this Court in the cases of V.M. Kurian v. State of Kerala and others (2001) 4 SCC 215 and Manohar s/o Manikrao Anchule v. State of Maharashtra and another (2012) 13 SCC 14. 242. The power to be exercised by the Central Government under sub-section (2) of Section 26 of the RBI Act is for effecting demonetization. The said power has to be exercised on the recommendation of the Central B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 936] and Union of India v. Madras Bar Assn. [(2010) 11 SCC 1] 26. In Chandramouleshwar Prasad v. Patna High Court [(1969) 3 SCC 56 : AIR 1970 SC 370] (SCC p. 63, para 7), this Court held that consultation or deliberation can neither be complete nor effective before the parties thereto make their respective points of view known to the other or others and discuss and examine the relative merits of their views. If one party makes a proposal to the other, who has a counter-proposal in mind which is not communicated to the proposer, a direction issued to give effect to the counter-proposal without any further discussion with respect to such counter-proposal with the proposer cannot be said to have been issued after consultation. 244. As such, the enquiry would be limited to find out whether both the Central Board and the Central Government had made their respective points of view known to each other and discussed and examined the relative merits of their views. It will have to be considered whether each of the party had disclosed to the other all relevant facts and factors for due deliberation, or not. The limited enquiry would be whether the recommendation by the Central Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we may assume, as complainants assert, that the court considered the ordinance as a revenue measure only. The court said: 'The ordinance may be sustainable under the taxing power alone, without reference to its reasonableness as a regulatory measure.' And, regarding it as a revenue measure, complainants attack it as unreasonable in basing its classification upon the price of admission of a particular theater, and not upon the revenue derived therefrom; and to exhibit the discrimination which is asserted to result, a comparison is made between the seating capacity of complainants' theaters and the number of their performances within given periods, and the theaters of others in the same respects, and the resulting revenues. But these are accidental circumstances and dependent, as the supreme court of the state said, upon the advantages of the particular theater or choice of its owner, and not determined by the ordinance, It will immediately occur upon the most casual reflection that the distinction the theater itself makes is not artificial, and must have some relation to the success and ultimate profit of its business. In other words, there is natural relation between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed void. 250. We may gainfully refer to the following observations of this Court in the case of R.K. Garg (supra), wherein this Court observed that it should constantly remind itself of what the Supreme Court of the United States said in the case of Metropolis Theater Company (supra): 19. The Court would not have the necessary competence and expertise to adjudicate upon such an economic issue. The Court cannot possibly assess or evaluate what would be the impact of a particular immunity or exemption and whether it would serve the purpose in view or not. There are so many imponderables that would enter into the determination that it would be wise for the Court not to hazard an opinion where even economists may differ. The Court must while examining the constitutional validity of a legislation of this kind, be resilient, not rigid, forward looking, not static, liberal, not verbal and the Court must always bear in mind the constitutional proposition enunciated by the Supreme Court of the United States in Munn v. Illinois [94 US 13], namely, that courts do not substitute their social and economic beliefs for the judgment of legislative bodies . The Court must defer to legi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As already discussed hereinabove, the Central Government had advised the Central Board to draft a scheme to implement demonetization in a non-disruptive manner with as little inconvenience to the public and business entities as possible. Accordingly, a draft scheme was also submitted by the Central Board along with its recommendations for demonetization. It is stated in the affidavit that the RBI has subsequently issued relaxations from time to time taking into consideration the difficulties of the people and availability of the new notes. No doubt that on account of demonetization, the citizens were faced with various hardships. However, we may again gainfully refer to the following observations of this Court in the case of R.K. Garg (supra): 8. The Court must therefore adjudge the constitutionality of such legislation by the generality of its provisions and not by its crudities or inequities or by the possibilities of abuse of any of its provisions. If any crudities, inequities or possibilities of abuse come to light, the legislature can always step in and enact suitable amendatory legislation. That is the essence of pragmatic approach which must guide and inspire the leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Act was enacted to implement one of the most important constitutional directives contained in Part IV of the Constitution of India. It further observed that, if in this process, a few individuals suffer severe hardship, that cannot be helped. It further held that individual interests must yield to the larger interests of the community or the country as indeed every noble cause claims its martyr. 258. In any case now, the action which was taken by the Central Government by the impugned Notification, has been validated by the 2016 Ordinance and which has fructified in the 2017 Act. The Central Government is answerable to the Parliament and the Parliament, in turn, represents the will of the citizens of the country. The Parliament has therefore put its imprimatur on the executive action. This is apart from the fact that we have not found any flaw in the decision-making process as required under sub-section (2) of Section 26 of the RBI Act. 259. The decision-making process is also sought to be attacked on the ground that the decision was taken in a hasty manner. We find that the hasty argument would be destructive of the very purpose of demonetization. Such measures ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore taking such a drastic measure, which caused enormous hardship to a number of citizens, the government ought to have found out as to whether there was an alternate course of action which could have resulted in lesser hardship to the citizens. In this respect, reliance is placed on the judgment of this Court in the case of Internet and Mobile Association of India (supra) and K.S. Puttaswamy (Retired) and another (Aadhaar) (supra). 264. In the case of Internet and Mobile Association of India (supra), the RBI had issued a directive to the entities regulated by RBI (i) not to deal with or provide services to any individual or business entities dealing with or settling virtual currencies and (ii) to exit the relationship, if they already have one, with such individuals/business entities, dealing with or settling virtual currencies. 265. The said action came to be challenged by writ petition filed under Article 32 of the Constitution of India. The challenge was on several grounds, including the ground of proportionality. Though the Court did not find favour with the other grounds raised on behalf of the petitioners therein, it held that the concern of the RBI is and ought to be ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achieve that same purpose with a lesser degree of limitation; and finally (iv) there needs to be a proper relation ( proportionality stricto sensu or balancing ) between the importance of achieving the proper purpose and the social importance of preventing the limitation on the constitutional right. 267. The Constitution Bench held that while examining as to whether the impugned provisions of the statute and rules amount to reasonable restrictions and are brought out in the interest of the general public, the exercise that is required to be undertaken is balancing of the fundamental right to carry on occupation on the one hand and the restrictions imposed on the other hand. The Court refers to four tests of proportionality which need to be satisfied. The first one is that it should be designated for a proper purpose. The second one is that the measures undertaken to effectuate such a limitation are rationally connected to the fulfilment of that purpose. The third one is that the measures undertaken are necessary in that there are no alternative measures that may similarly achieve that same purpose with a lesser degree of limitation. Finally, the fourth one is that there nee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court was considering the validity of the Act and the Rules which regulated primarily the admission of the students in post-graduate courses in private educational institutions and the provisions made thereunder. Applying the test of proportionality, the Court held that the larger public interest warrants such a measure. It held that, having regard to the malpractices which are noticed in the Common Entrance Test (CET) conducted by such private institutions themselves, it is, undoubtedly, in the larger interest and welfare of the student community to promote merit and excellence and to curb malpractices. The Court held that the impugned provisions which may amount to restrictions on the right of the appellants therein to carry on their occupation , are clearly reasonable and satisfy the test of proportionality. 269. The proportionality doctrine is sought to be placed in service on the ground that in the case of Jayantilal Ratanchand Shah (supra), the Court held the bank notes to be property and as such, impugned Notification imposed unreasonable restrictions, violative of Article 300-A of the Constitution of India. 270. Let us test the four-pronged test culled out by Ahar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the measure undertaken is necessary in that there are no alternative measures that may similarly achieve the same purpose with the lesser degree of limitation. As held in the case of M.R.F. Ltd. v. Inspector Kerala Govt. and Others (1998) 8 SCC 227, to judge the reasonableness of the restrictions, no abstract or general pattern or a fixed principle can be laid down so as to be of universal application and the same will vary from case to case. As to what measure is required to meet the aforesaid objectives is exclusively within the domain of the experts. The RBI, as already held, plays a material role in economic and monetary policy and issues relating to management and regulation of currency. The Central Government is the best judge since it has all the inputs with regard to fake currency, black money, terror financing drug trafficking. As such, what measure is required to be taken to curb the menace of fake currency, black money and terror financing would be best left to the discretion of the Central Government, in consultation with the RBI. Unless the said discretion has been exercised in a palpably arbitrary and unreasonable manner, it will not be possible for the Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of K.S. Puttaswamy (Retired) and another (Aadhaar) (supra) is concerned, in the facts of the said case, the Constitution Bench found that, on account of various measures taken by the Government to give a boost to digital economy, millions of persons, who are otherwise poor, had opened their bank accounts. They were also becoming habitual to the good practice of entering into transactions through their banks and even by using digital modes for operation of their bank accounts. The Court, in this background, found that making the requirement of Aadhaar compulsory for all such and other persons in the name of checking money laundering or black money was grossly disproportionate. The observations made therein were in the context of the factual background that fell for consideration in the said case. In our view, the said observations would not be applicable to the facts of the present case. We have already considered in detail as to how, upon application of the four-pronged test of proportionality, the impugned notification cannot be struck down. 280. In any case, in our view, there is a direct and proximate nexus between the restrictions imposed and the objectives sought to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons for not submitting the same within three days. As such, the period available to everyone was three days which could be further extended by five days. A challenge was raised on the ground that the period was unreasonable and violative of the fundamental rights. Rejecting the said contention, the Constitution Bench in the case of Jayantilal Ratanchand Shah (supra) observed thus: 10. It was, however, contended on behalf of the petitioners that even if it was assumed that Article 31 had not been violated, the time prescribed for exchange of the high denomination banknotes under Sections 7 and 8 of the Demonetisation Act was unreasonable and violative of their fundamental rights. When the above provisions of the Act are considered in the context of the purpose the Demonetisation Act sought to achieve, namely, to stop circulation of high denomination banknotes as early as possible, the above contention of the petitioners cannot be accepted. Consequent upon the high denomination banknotes ceasing to be legal tender on the expiry of 16-1-1978 and in view of the prohibition in the transfer of possession of such notes from one person to another thereafter as envisaged under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the time and the manner in which the high denomination banknotes could be exchanged were unreasonable, unjust and violative of the petitioners' fundamental rights. [emphasis supplied] 286. The Constitution Bench found that if the time for such exchange was not limited, the high denomination bank notes could be circulated and transferred without the knowledge of the authorities concerned, from one person to another and any such transferee could walk into the Bank on any day thereafter and demand exchange of his notes. It was held that, in such an eventuality, the very object which the Demonetization Act sought to achieve would have been defeated. The Court found that between 16th January 1978 and 19th January 1978, the holder was entitled to get the exchange value of his notes from the Bank without any limit or hindrance. The challenge that the period of three days was unreasonable, unjust and violative of the petitioners fundamental rights, stood specifically rejected. 287. In the present case, the period for exchanging any amount of SBNs and depositing the same in the KYC compliant bank account without any limit or hindrance was 52 days, whereas the said period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... makes a declaration that he was outside India between the 9th November, 2016 to 30th December, 2016, subject to such conditions as may be specified, by notification, by the Central Government; or (ii) such class of persons and for such reasons as may be specified by notification, by the Central Government. (2) The Reserve Bank may, if satisfied, after making such verifications as it may consider necessary that the reasons for failure to deposit the notes within the period specified in the notification referred to in section 3, are genuine, credit the value of the notes in his Know Your Customer compliant bank account in such manner as may be specified by it. (3) Any person, aggrieved by the refusal of the Reserve Bank to credit the value of the notes under sub-section (2), may make a representation to the Central Board of the Reserve Bank within fourteen days of the communication of such refusal to him. Explanation.- For the purposes of this section, the expression Know Your Customer compliant bank account means the account which complies with the conditions specified in the regulations made by the Reserve Bank under the Banking Regulation Act, 1949 (10 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve otherwise ceased to be a legal tender to such class of persons and for the reasons as may be specified in the notification. Sub-section (2) of Section 4 of the 2017 Act provides that the RBI, if satisfied with the reasons for failure to deposit the notes within the period specified in the impugned Notification, i.e., prior to 30th December 2016, are genuine, credit the value of the notes in his KYC compliant bank account in such manner as may be specified by it. However, prior to doing so, the RBI is required to make such verifications as it may consider necessary for finding out the genuineness of the reasons for failure to deposit the notes prior to 30th December 2016. The provisions of sub-section (2) of Section 4 of the 2017 Act are somewhat analogous to the provisions in sub-sections (1) and (2) of Section 8 of the 1973 Act. Sub-section (3) of Section 4 of the 2017 Act provides that any person, aggrieved by the refusal of the RBI to credit the value of the notes under sub-section (2), can make a representation to the Central Board of the RBI within fourteen days of the communication of such refusal to him. This provision is somewhat analogous with sub-section (3) of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such context, its scheme, the sections, clauses, phrases and words may take colour and appear different than when the statute is looked at without the glasses provided by the context. With these glasses we must look at the Act as a whole and discover what each section, each clause, each phrase and each word is meant and designed to say as to fit into the scheme of the entire Act. No part of a statute and no word of a statute can be construed in isolation. Statutes have to be construed so that every word has a place and everything is in its place. . 297. The interpretation which makes the textual interpretation match the contextual has to be preferred. A statute is best interpreted when the reason and purpose for its enactment is ascertained. The statute must be read first as a whole, and then section by section, clause by clause, phrase by phrase and word by word. It has been held that if the statute is looked at in the context of its enactment with the glasses of the statute-maker, provided by such context, its scheme, the sections, clauses, phrases and words may take colour and appear different than when the statute is looked at without the glasses provided by the context ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the powers under Article 142 of the Constitution of India to provide a window so as to enable genuine persons to exchange their demonetized notes. We have already referred to the judgment of this Court in the case of Km. Sonia Bhatia (supra) hereinbefore. 301. As such, the contention that the impugned notification is liable to be set aside on the ground that it caused hardship to individual/citizens will hold no water. The individual interests must yield to the larger public interest sought to be achieved by impugned Notification. 302. Insofar as the suggestion to frame a scheme and provide a window for a limited period so as to enable citizens having genuine reasons to exchange the notes is concerned, we do not find that it will be appropriate for us in the absence of any expertise in economic, monetary and fiscal matters to frame such a scheme. In our view, it will be encroaching upon the areas reserved for the experts. If the Central Government finds that there exists any such class of persons and there are any reasons for extending the benefit under Section 4 of the 2017 Act, it is within its discretion to do so. In our view, it cannot be done by a judicial mandate. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for the valuable assistance rendered by Shri R. Venkataramani, learned Attorney General, Shri P. Chidambaram, Shri Shyam Divan and Shri Jaideep Gupta, learned Senior Counsel and all other counsel appearing for the parties. .........................J. [S. ABDUL NAZEER] .........................J. [B.R. GAVAI] .........................J. [A.S. BOPANNA] .. .........................J. [V. RAMASUBRAMANIAN] JUDGMENT NAGARATHNA, J. JUDGMENT I have had the benefit of reading the judgment proposed by His Lordship, B.R. Gavai, J. 2. However, I wish to differ on the reasoning and conclusions arrived at in his judgement with regard to exercise of power by the Central Government under subsection (2) of Section 26 of the Reserve Bank of India Act, 1934 (hereinafter referred to as the Act for the sake of brevity) by issuance of the impugned notification dated 8th November, 2016. Hence, my separate judgment. Preface: 3. By way of a preface, I state that the judgment proposed by His Lordship, Gavai, J. does not recognise the essential fact that the Act does not envisage initiation of demonetisation of bank notes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing implications which the answers to the questions may have, we consider it proper to direct that the matters be placed before the larger Bench of five Judges for an authoritative pronouncement. The Registry shall accordingly place the papers before Hon ble the Chief Justice for constituting an appropriate Bench. 5. His Lordship, Gavai, J. has reframed the questions referred to this Constitution Bench and culled out six questions, which have been answered in the erudite judgment proposed by him. My views on each of such questions, as contrasted with those of His Lordship s have been expressed in a tabular form hereinunder, for easy reference. Question, as reframed by His Lordship, B.R. Gavai, J. His Lordship s views My views 1. Whether the power available to the Central Government under subsection (2) of Section 26 of the RBI Act can be restricted to mean that it can be exercised only for one or some series of bank notes and not all series in view of the word any appearing before the word series in the subsection, specifically so, when on earlier two occasions, the demonetis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the RBI Act cannot be struck down on the ground of conferring excessive delegation. i) This question does not arise for consideration as it has been held that the power under subsection (2) of Section 26 of the Act cannot be construed to mean all series or all denominations. ii) In my view, if the Central Board of the Bank is vested with the power to recommend demonetisation of all series or all denominations of bank notes, the same would amount to a case of excessive vesting of powers with the Bank. 3. Whether the impugned notification dated 8th November, 2016 is liable to be struck down on the ground that the decisionmaking process is flawed in Law? The impugned Notification dated 8th November, 2016, does not suffer from any flaws in the decisionmaking process. i) That the measure of demonetisation ought to have been carried out by the Central Government by way of enacting an Act or plenary legislation. ii) The proposal for demonetisation arose from the Central Government and therefore, could not be given effect to by way of issuance of a Notification as contempla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (1) of Section 4 of the 2017 Act. This question need not be answered in view of the above answers. The reasons for the aforesaid conclusions shall now be discussed. Controversy in these cases: 6. Practices such as hoarding black money, counterfeiting, etc., when coupled with corruption, are eating into the vitals of our society and economy. Any measure intended to strike at such practices, and thereby eliminate off shoots thereof, such as, terror funding, drug trafficking, emergence of a parallel economy, money laundering including Havala transactions, must be commended. Such measures are necessary to sanitize the economy and society, and enable it to recover from the plague caused by the evils listed hereinabove. Therefore, it cannot be denied that demonetisation in the instant case was a wellintentioned proposal. However, in my separate opinion I shall proceed to legalistically examine whether demonetisation, as wellintentioned as it may have been, was carried out in accordance with the procedure established under law. 6.1 The controversy in these cases revolves around the exercise of power by the Central Government u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to maintain price stability while keeping in mind the objective of growth. The monetary policy framework in India shall be operated by the Reserve Bank of India. 7.3 The following provisions of the Act are relevant for the purposes of this case and are extracted as under: Section 2Definitions: In this Act, unless there is anything repugnant in the subject or context, xxxx [a(ii)] the Bank means the Reserve Bank of India constituted by this Act; [a(iii)] Bank for International Settlements mean the body corporate established with the said name under the law of Switzerland in pursuance of an agreement dated the 20th January, 1930, signed at the Hague;] [a(iv)] bank note means a bank note issued by the Bank, whether in physical or digital form, under section 22;] xxxxx (b) the Central Board means the Central Board of Directors of the Bank; xxxx (cc) International Monetary Fund and International Bank for Reconstruction and Development means respectively the International Fund and the International Bank , referred to in the International Monetary Fund and Bank Act, 1945;] xxxx (d) rupee coin means (***) ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sand rupees, five thousand rupees and ten thousand rupees or of such other denominational values, not exceeding ten thousand rupees, as the Central Government may, on the recommendation of the Central Board, specify in this behalf. (2) The Central Government may, on the recommendation of the Central Board, direct the nonissue or the discontinuance of issue of Bank notes of such denominational values as it may specify in this behalf.] 25. Form of Bank notes The design, form and material of Bank notes shall be such as may be approved by the [Central Government] after consideration of the recommendations made by Central Board. 26. Legal tender character of notes (1) Subject to the provisions of subsection (2), every Bank note shall be legal tender at any place in [India] in payment or on account for the amount expressed therein, and shall be guaranteed by the [Central Government]. (2) On recommendation of the Central Board the [Central Government] may, by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of Bank notes of any denomination shall cease to be legal tender [save at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsection (2) of Section 24 which states that the Central Government may on the recommendation of the Central Board of the Bank, direct the nonissue or the discontinuance of issue of bank notes of such denominational values as it may specify in that behalf. The Central Government has to approve the design for all the bank notes after consideration of the recommendation made by the Central Board vide Section 25 of the Act. 7.9 Subsection (1) of Section 26 of the Act states that every bank note shall be legal tender at any place in India in payment, or on account for the amount expressed therein and shall be guaranteed by the Central Government. This is, however, subject to subsection (2) of Section 26 of the Act, which states that the Central Government on the recommendation of the Central Board may, by issuance of a notification in the Gazette of India, declare that with effect from such date as may be specified in the notification, any series of Bank notes of any denomination shall cease to be legal tender, save at such office or agency of the Bank and to such extent as may be specified in the notification. Further discussion on this provision shall be made at a later stage as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the Central Board of the Bank. In other words, the expression any series of bank notes of any denomination cannot be understood as all series of bank notes of all denominations. That the expression any occurring twice in the section must be given the intended meaning and not supposed meaning and interpretation. 8.3 Shri Chidambaram submitted that in the instant case, the Central Government without complying with the procedure envisaged under subsection (2) of Section 26 of the Act, simply issued a notification in the Gazette of India on 8th November, 2016 demonetising all series of bank notes of the denominations of Rs.500/and Rs.1,000/. Consequently, approximately 86 per cent of all notes in circulation were demonetised. The serious effects of demonetisation are wellknown and judicial notice of the same may be taken. Even otherwise, carrying out the demonetisation by simply issuing a notification, in the absence of a recommendation made by the Central Board of the Bank, which is a condition precedent, is unlawful. Further, all series of bank notes of Rs.500/and Rs.1,000/could not have been demonetised by a stroke of a pen. The expression any in subsection (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Government with regard to every bank note as a legal tender at any place in India, such notes are also the liabilities of the Issue Department of the Bank under Section 34 of the Act to the extent of an amount equal to the total of the value of the currency notes of the Government of India and bank notes for the time being in circulation. 8.7 Learned senior counsel submitted that in the absence of a specific duty with regard to mitigating the longlasting effects of demonetisation on the Indian economy, the decision of the Central Government to demonetise about 86.4% of the total currency in circulation is vitiated on account of manifest arbitrariness. 8.8 The learned senior counsel further contended that by applying the test of proportionality, the impugned notification dated 8th November, 2016, is liable to be set aside. 8.9 Reliance was placed on K.S. Puttaswamy (Retired) (Aadhaar) vs. Union of India (2019) 1 SCC 1 to contend that the classical equality test can be applied to the present case to come to the conclusion that the decision of demonetisation had no nexus to the objective sought to be achieved. 8.10 It was further contended that the circular dated 31st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordance with subsection (2) of Section 26 of the Act. 9.2 Learned Attorney General contended that the impugned gazette notification was issued having regard to the salient objectives that had to be achieved by the demonetisation of Rs.500/and Rs.1,000/currency notes which are set out clearly in the notification dated 8th November, 2016. The salient objectives of demonetisation in the year 2016 were to eradicate black money, to eliminate fake currency from the Indian economy and to prevent terror funding. He therefore, contended that there is no merit in the submissions made by the learned senior counsel appearing for the petitioners as the impugned notification dated 8th November, 2016 is in accordance with subsection (2) of Section 26 of the Act and therefore, is valid. 9.3 Shri R.Venkataramani, learned Attorney General, next submitted that the action taken by way of the impugned notification stands ratified by the 2017 Act and as the executive action has been validated by the will of the Parliament, the challenge to the notification would not survive. 9.4 The learned Attorney General contended that the word any appearing before the words series of bank notes in subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it must be allowed to carry out its functions as it deems fit. The learned Attorney General further placed reliance on Rajbir Singh Dalal (Dr.) vs. Chaudhari Devi Lal University, Sirsa (2008) 9 SCC 284 and Secretary and Curator, Victoria Memorial Hall vs. Howrah Ganatantrik Nagrik Samity (2010) 3 SCC 640 to contend that it is settled law that the courts should not interfere with the opinion of experts. 9.8 Shri Jaideep Gupta, learned senior counsel for the Bank contended that the withdrawal of all series of bank notes of the two denominations of Rs.500/and Rs.1,000/was well within the jurisdiction and power conferred upon the Bank and the Central Government under subsection (2) of Section 26 of the Act and it is incorrect to say that the process under subsection (2) of Section 26 of the Act had not been followed. Thus, the process cannot be criticized on the ground of procedural lapse on part of the Bank or the Central Government. 9.9 Learned senior counsel for the Bank further contended that the submission of the petitioners that unless the phrase any in subsection (2) of Section 26 of the Act is read as some or one , the power conferred upon the Bank and the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India (1996) 9 SCC 650 to contend that a similar provision providing for a specified time for exchange of notes was found to be valid by a Constitution Bench of this Court, while adjudicating on the legality of the 1978 demonetisation. He submitted that the time provided in the present case is similar to the time provided under the 1978 Act and the time period provided in the said act was found to be reasonable, having regard to the purpose sought to be achieved by the said Act. The learned senior counsel further submitted that everybody had sufficient opportunity either to deposit the notes in their banks or to exchange the same. 9.13 Learned senior counsel for the Bank submitted that demonetisation was carried out in furtherance of national economic interest and the same ought to be given deference. That the inconvenience caused to the public cannot be a ground to challenge the validity of such actions, particularly when prompt and adequate measures were taken by the Bank to mitigate the temporary hardships expected to be caused. 9.14 Learned senior counsel for the Bank submitted that the Specified Bank Notes (Cessation of Liabilities) Act, 2017, has given relief to certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he currency withdrawn may be supplanted with new currency. 10.2 The French were the first to use the term Demonetise in the years between the years 18501855. In world history, one can see several instances of demonetisations as many countries have adopted the policy of demonetisation. Some instances of demonetisation globally, may be recorded as under: a) United States of America: One of the oldest examples of demonetisation may be found in the United States, when the Coinage Act of 1873, ordered the elimination of silver as legal tender in favour of the gold standard. Again, in the year 1969, to combat the existence of black money in the country and to restore the country s economy, President Richard Nixon declared all currencies over $100 to be null. b) Britain: Before the year 1971, the currency of pound and penny used to be in circulation in Britain but to bring uniformity in currency, the government stopped circulation of old currency in 1971, and introduced coins of 5 and 10 pounds. c) Congo: Mobutu Sese Seko made some changes with respect to the currency in circulation in Congo, for the smooth running of its economy during the Nineties. d) Ghana: In the year 1982, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, 1978, under the High Denomination Bank Notes (Demonetisation) Ordinance, 1978 (No. 1 of 1978) and people were allowed three days time to exchange their notes. During this demonetisation exercise, out of a value of Rs.146 Crores demonetised notes, currency notes of value of Rs.124.45 Crores were exchanged and a sum of Rs.21.55 Crores, or 14.76% of the demonetised currency notes, were extinguished. 11. It would be useful at this stage to discuss briefly the Acts of 1946 and 1978 and the impugned demonetisation having regard to subsection (2) of Section 26 of the Act. 11.1 The Ordinance of 12th January, 1946 stated that on the expiry of the 12th Day of January, 1946, all high denomination bank notes shall, notwithstanding anything contained in Section 26 of the Act, cease to be legal tender in payment or on account at any place in British India. A provision was made for the exchange of the high denomination bank notes which had ceased to be legal tender, with bank notes of the denominational value of Rs.100/which continued to be legal tender. 11.2 The High Denomination Bank Notes (Demonetisation) Act, 1978 was enacted in public interest and provided demonetisation of cert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itiated the process chose the route through legislation for carrying out the demonetisation rather than by issuing an executive notification in the Gazette of India. 11.5 The above is in contrast with the issuance of the gazette notification dated 8th November, 2016, which was followed by the Ordinance of 2016 and then the Act of 2017 was enacted. The said Act, inter alia, provides that the specified bank notes would cease to be the liability of the Reserve Bank of India or the Central Government. 11.6 The demonetisation carried out in the year 2016, of all series of bank notes of denomination Rs.500/and Rs.1,000/which forms the subject matter of the controversy at hand was, on the other hand, carried out by the Central Government by issuance of a notification in the Gazette of India on 8th November, 2016. For ease of reference, the impugned notification dated 8th November, 2016 is extracted as under: MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 8th November, 2016 S.O. 3407(E). - Whereas, the Central Board of Directors of the Reserve Bank of India (hereinafter referred to as the Board) has recommended that ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Urban Cooperative Banks and State Cooperative Banks for a period up to and including the 30th December, 2016, subject to the following conditions, namely: - (i) the specified bank notes of aggregate value of Rs.4,000/or below may be exchanged for any denomination of bank notes having legal tender character, with a requisition slip in the format specified by the Reserve Bank and proof of identity; (ii) the limit of Rs.4,000/for exchanging specified bank notes shall be reviewed after fifteen days from the date of commencement of this notification and appropriate orders may be issued, where necessary; (iii) there shall not be any limit on the quantity or value of the specified bank notes to be credited to the account maintained with the bank by a person, where the specified bank notes are tendered; however, where compliance with extant Know Your Customer (KYC) norms is not complete in an account, the maximum value of specified bank notes as may be deposited shall be Rs.50,000/; (iv) the equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith bank notes having legal tender character prior to reactivation of the machines on 11th November, 2016. (5) All banks referred to in subparagraph (1) of paragraph 1 shall ensure that their ATMs and White Label ATMs shall dispense bank notes of denomination of Rs.100/or Rs.50/, until further instructions from the Reserve Bank. (6) The banking company referred to in subparagraph (1) of paragraph 1 and Government Treasuries shall resume their normal transactions from 10th November, 2016. 4. Every banking company referred to subparagraph (1) of paragraph 1, shall at the close of business of each day starting from 10th November, 2016, submit to the Reserve Bank, a statement showing the details of specified bank notes exchanged by it in such format as may be specified by the Reserve Bank. [F.No.10/03/2016Cy.I] Dr. SAURABH GARG, Jt. Secy. (underlining by me) The said Notification was thereafter followed by an Ordinance issued by the President on 30th December, 2016 and subsequently an Act of Parliament namely, the 2017 Act. The Actual Controversy : 12. The contention of the leaned senior counsel for the petitioners is twofold: firstly, that subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 38 any money from being put into circulation by the Central Government, except through the Bank. In short, it was held that the operation/regulation of the credit/financial system of the country rests, almost entirely, on the Bank. c) That the Bank is the sole repository of power for the management of currency in India. As regards the nature, amplitude and inalienability of the power that the Bank wields in the field of currency management, it was observed that what the Bank can do in this regard, the executive acting dehors the aid of the Bank, is not adequately equipped to do. Recognising the importance of the role played by the Bank in matters pertaining to currency management, this Court declared that any observations/recommendations made by the Bank to the Central Government in this regard, have to be accorded due deference. The pertinent observations of the Court on this aspect have been usefully extracted hereinunder: 192. But as we have pointed out above, RBI is not just any other statutory authority. It is not like a stream which cannot be greater than the source. The RBI Act, 1934 is a preconstitutional legislation, which survived the Constitution by virtue o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce to the institution as such. Therefore, we do not accept the argument that a policy decision taken by RBI does not warrant any deference. d) This Court acknowledged the pivotal position of the Bank in the economy of the country. That the powers of the Bank, may be exercised by way of preventive as well as curative measures. That such powers may be exercised to take preemptive action. However, such measures must be proportional and must be prompted by some semblance of any damage suffered by its regulated entities. The relevant observations have been reproduced as under: 224. It is no doubt true that RBI has very wide powers not only in view of the statutory scheme of the three enactments indicated earlier, but also in view of the special place and role that it has in the economy of the country. These powers can be exercised both in the form of preventive as well as curative measures. But the availability of power is different from the manner and extent to which it can be exercised. While we have recognised elsewhere in this order, the power of RBI to take a preemptive action, we are testing in this part of the order the proportionality of such measure, for the determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a creature of statute. That the Reserve Bank of India has a large contingent of expert advice relating to the matters affecting the economy of the entire country. It was further observed that the Reserve Bank has an important role in the economy and financial affairs of India and one of its many important functions is to regulate the banking system in the country. The aforesaid discussion is relevant for the purpose of interpreting subsection (2) of Section 26 of the Act. The said provision clearly states that it is only on the recommendation of the Central Board of the Bank, that any series of bank notes of any denomination shall be declared to have ceased to be legal tender. Economic/Fiscal Policies: Interference by Courts 13.3 Before proceeding to interpret the said provision, it would be necessary to consider another aspect of the matter which has been emphasized by the learned Attorney General, i.e., with regard to the Court s deference to the economic and monetary policies of the government and restraint that the Court must exercise in interfering with the said policies, unless the same are so irrational or unreasonable, so as to be declared to be unconstituti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Government, in consultation with experts in the field and that it is not the function of the courts to sit in judgment over matters of economic policy and it must necessarily be left to the expert bodies. (e) The validity of the decision of the Government to grant licence under the Telegraph Act, 1885 to nongovernment companies for establishing, maintaining and working of telecommunication system of the country pursuant to government policy of privatisation of telecommunications was challenged in Delhi Science Forum vs. Union of India AIR 1996 SC 1356. It was contended that telecommunications were a sensitive service which should always be within the exclusive domain and control of the Central Government and under no situation should be parted with by way of grant of license to nongovernment companies and private bodies. While rejecting this contention, this Court observed that: ... The national policies in respect of economy, finance, communications, trade, telecommunications and others have to be decided by Parliament and the representatives of the people on the floor of Parliament can challenge and question any such policy adopted by the ruling Government.... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 SC 1343, the Supreme Court held as under: An executive order termed as a policy decision is not beyond the pale of judicial review. Whereas the superior courts may not interfere with the nittygritty of the policy, or substitute one by the other but it will not be correct to contend that the court shall lay its judicial hands off, when a plea is raised that the impugned decision is a policy decision. Interference therewith on the part of the superior court would not be without jurisdiction as it is subject to judicial review. Broadly, a policy decision is subject to judicial review on the following grounds: (a) if it is unconstitutional; (b) if it is dehors the provisions of the Act and the regulations; (c) if the delegate has acted beyond its power of delegation; (d) if the executive policy is contrary to the statutory or a larger policy. (j) In Small Scale Industrial Manufacturers Association (Regd.) vs. Union of India (2021) 8 SCC 511, a writ petition was preferred under Article 32 of the Constitution of India by the SmallScale Industrial Manufactures Association, Haryana for an appropriate writ, direction or order directing the Union of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r would not amount to interfering with, or sitting in judgment over the merits of the policy of demonetisation, and is therefore well within the limits of the Lakshmanrekha that this Court has carefully drawn for itself. 14. Bearing in mind the important role played by the Bank in shaping the economy of the country, and also the principle that the Constitutional Courts should refrain from interfering in financial and economic policy decisions of the government unless such policies are so irrational as to warrant interference and also having regard to the provisions of the Constitution, the relevant statutes, and considerations of public interest, the two contentions raised by the petitioners shall now be considered in analysing and interpreting Section 26 (2) of the Act. Section 26 of the Act: Interpretation: 15. With a view to lend perspective to the discussion to follow, a bird s eye view of my analysis and conclusions has been expressed in a tabular form as under: Sl. No. Parameters for distinction When the proposal for demonetisation originates by way of a recommendation by the Central Board of the B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o promote general health of the Country s economy; ii) Fiscal policy considerations; iii) Monetary policy considerations. Considerations which could guide the Bank s recommendation are limited or narrow in compass. i) Sovereignty and Integrity of India; ii) Security of the State; iii) To promote general health of the Country s economy; iv) Other aspects of governance. Considerations which could guide the Central Government s proposal to carry out demonetisation are broad or wide. 5 Process/Route to be followed to carry out demonetisation Issuance of a Notification in the Gazette of India indicating therein that any specified series of any specified denomination has ceased to be legal tender, from such date as specified in the Notification. Legislation, which may or may not be preceded by an Ordinance issued by the President of India. 6 Applicability of subsection (2) of section 26 of the Reserve Bank of India Act, 1934 Notification issued by the Central Government, giving effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould act qua the aforestated matters, on the strength of the respective provisions. It need not be emphasised that the Bank, being the only institution, which carries out the function of currency management and formulates credit rules in the country, is recognised as having a say in the issuance of currency notes, and also in specifying the denominations of the notes, as well as the design and form of the bank notes. 15.3 Further, although, subsection (1) of Section 26 states that every Bank note shall be legal tender at any place in India, it acquires legal sanctity because the Central Government has guaranteed the bank note which has legal tender. Thus, a bank note statutorily has dual characteristics when it is issued by the Bank, namely, being a legal tender coupled with the guarantee of the Central Government and the said qualities go hand in hand. This would mean that it is only when the Bank which has the sole right to issue a currency note in India, issues the note and the same has been guaranteed by the Central Government, that such a note is legal tender. Therefore, the Issue Department of the Bank is not subject to any liabilities other than the liabilities under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notification, any series of bank notes of any denomination shall cease to be a legal tender, save at such office or agency of the Bank and to such extent as may be specified in the said notification. The Central Government derives the power to issue a notification in the Gazette only on the recommendation of the Central Board of the Bank. The issuance of such a notification is an executive act which is backed by the recommendation of the Central Board of the Bank which has been accepted by the Central Government. The notification has to indicate the date from which any series of bank notes of any denomination shall cease to be a legal tender, save at such office and to such extent as may be specified in the notification. 15.6 The essential ingredients of subsection (2) of Section 26 of the Act can be epitomised as under: i) on the recommendation of the Central Board of the Bank; ii) the Central Government by notification in the Gazette of India; iii) may declare any series of bank notes of any denomination to cease to be legal tender; iv) with effect from such date as may be specified in the notification; v) to such extent as may be specified in the notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y concerned with the regulation of currency notes, monetary policy framework, maintaining price stability and allied matters. Therefore, if the Central Government is of the considered opinion that in order to meet certain objectives such as the ones stated in the impugned notification, namely, to eradicate black money, fake currency, terror funding etc., it is necessary to demonetise the currency notes in circulation, then the Central Government may initiate a proposal for demonetisation. 15.9 The second prong of the Learned Attorney General s contention qua the interpretation of subsection (2) of Section 26 of the Act was that the Central Government has the power to demonetise not just any one series of currency of any one denomination but it has the power to demonetise all series of currencies of all denominations at a time. It was argued that the expression any in subsection (2) of Section 26 of the Act must mean all . 15.10 Per contra, it was the submission of the learned senior counsel for the petitioners that, as the said provision stands, in the absence of there being any guidance vis vis the power of the Central Government to issue a notification to demonetise the cur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isation, proceed to issue a gazette notification to demonetise any or all series of any or all denomination of bank notes, on the strength of subsection (2) of Section 26 of the Act. Consideration of this issue would also answer the contention of learned senior counsel for the petitioners regarding subsection (2) of Section 26 of the Act being unguided and arbitrary in nature and hence, unconstitutional. To this end, the following aspects have to be examined: (a) Whether demonetisation can be initiated and carried but by the Central Government by issuing a notification in the Gazette of India as per subsection (2) of Section 26 of the Act? (b) Extent of the Central Government s power to carry out demonetisation, i.e., whether all series of all denominations may be demonetised. 15.13 As held hereinabove, the proposal for demonetisation can emanate either from the Central Government or from the Central Board of the Bank. It is however necessary to contrast the proposal for demonetisation initiated by the Central Government, with that initiated by the Central Board of the Bank. When the Central Board of the Bank recommends demonetisation, it is in my view, only for a part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to demonetise the bank notes but only through a legislative process, either through an Ordinance followed by a legislation, if the Parliament is not in session; or by a plenary legislation before the Parliament and depending upon the passage of the Bill as an Act, carry out its proposal of demonetisation. Of course, depending upon the urgency of the situation and possibly to maintain secrecy, the option of issuance of an Ordinance by the President of India and the subsequent enactment of a law is always available to the Central Government by convening the Parliament. Such demonetisation of currency notes at the instance of the Central Government cannot be by the issuance of an executive notification. The reasons for stating so are not far to see (i) Firstly, because the Central Government is not acting under subsection (2) of Section 26 of the Act. When the Central Government initiates the process of demonetisation it is de hors subsection (2) of Section 26 of the Act. (ii) Secondly, the Central Government has the power to demonetise all series of bank notes of all denominations unlike the narrower powers vested with the Central Board of the Bank under the aforesaid provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discuss on the proposal for demonetisation made by the Central Government. In such an event, demonetisation would be by an Act of Parliament and not a measure carried out by the issuance of a gazette notification by the Central Government in exercise of its executive power. Such demonetisation through an Ordinance or a legislation through the Parliament would be notwithstanding what is contained in subsection (2) of Section 26 of the Act . This is because in such a situation, the Central Government is not acting on the basis of a recommendation received from the Central Board of the Bank but it would be proposing the demonetisation. Precedent for the same may be found in the earlier demonetisations which were also through a legislative process and not through the issuance of a gazette notification by the Executive/Central Government. When the process of demonetisation is carried out through a Parliamentary enactment and after being the subject of scrutiny by the Members of Parliament, any opinion sought by the Central Government from the Central Board of the Bank before initiating the promulgation of the Ordinance or placing the Bill before the Parliament may also be additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at issuance of such a notification under subsection (2) of Section 26 of the Act must be preceded by a recommendation of the Central Board of the Bank and such recommendation is a condition precedent. The Central Government in its wisdom may accept the recommendation of the Central Board of the Bank and issue a notification in the Gazette of India or it may decline to do so. This position is evident from the use of the word may in subsection (2) to Section 26 of the Act. However, what is significant is that if demonetisation of any bank note is to take place under subsection (2) of Section 26 of the Act, it is only by issuance of a notification in the Gazette of India and not by any other method or manner. In other words, the Central Board of the Bank must first initiate the process by recommending to the Central Government to declare that any series of bank notes of any denomination shall cease to be a legal tender by the issuance of a notification. If the Central Government accepts the recommendation of the Central Board of the Bank, it issues a notification in the Gazette of India carrying out the same, which is in the nature of an executive function and the publication of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any currency note is initiated by the Central Government with or without the concurrence of the Central Board of the Bank, it is not an exercise of the executive power of the Central Government under subsection (2) of Section 26 of the Act. In such a situation, as already held, the Central Government would have to resort to the legislative process by initiating a plenary legislation in the Parliament. 15.21 What is being emphasised is that the Central Government cannot act in isolation in such matters. The Central Government has to firstly, take the opinion of the Central Board of the Bank for the proposed demonetisation. The Central Board of the Bank may not accept the proposal of the Central Government or may partially concur with the proposal on specific aspects. In fact, in 1978, when the then Governor of the Bank did not accept the proposal of the Central Government to demonetise Rs.5,000/and Rs.10,000/bank notes, the Central Government initiated the said process through the Parliament and this culminated in the passing of the Act of 1978. In drafting the said legislation, the expert assistance of two officers of the Bank was taken so as to fortify the legislation. The sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of Section 26 of the Act. The Central Government may act on such recommendation by issuing a gazette notification. On the other hand, when the Central Government is the originator of the proposal for demonetisation of any currency note as in the instant case, it has to seek the advice of the Central Board of the Bank, for, it cannot afford to proceed in isolation and without bringing the said proposal to the notice of the Central Board of the Bank having regard to the important position the Bank holds in the Indian economy. Irrespective of the opinion of the Central Board of the Bank to the Central Government s proposal, the legislative route would have to be taken by the Central Government for furthering its objective/s of demonetisation of bank notes. Thus, the same cannot be carried out by the issuance of a simple notification in the Gazette of India declaring that all bank notes or currency notes are demonetised. This is because when the Central Government is the originator of a proposal for demonetisation, it is acting de hors subsection (2) of Section 26 of the Act. 15.24 Such an interpretation is necessary as it is the contention of the Union of India that the Central G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hu Khan AIR 1957 SC 907 at Page 910 this Court observed that if the words used are capable of only one construction then it would not be open to the courts to adopt any other hypothetical construction on the ground that such hypothetical construction is more consistent with the purported object and policy of the Act. Reference was made to Section 162 of the Code of Criminal Procedure, 1898 and interpretation of the expression any person by Lord Atkin, speaking for the Privy Council who observed that the expression any person includes any person who may thereafter be an accused, and he observed that when the meaning of the words is plain, it is not the duty of Courts to busy themselves with supposed intentions vide Pakala Narayanaswami vs. Emperor AIR 1939 PC 47. (ii) Similarly, while construing Sections 223 and 226 of the Indian Succession Act, 1925 which contain a prohibition in relation to grant of Probate or Letters of Administration to any association of individuals unless it is a company , this Court in Illachi Devi vs. Jain Society Protection of Orphans India (2003) 8 SCC 413, applied the plain meaning rule and held that said expression would not include a society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urrency of all denominations . The interpretation suggested by learned Attorney General would lead to vesting of unguided power in the Central Board of the Bank whereas giving a wider power to the Central Government to initiate such a demonetisation wherein all series of a denomination could be demonetised is appropriate as it is expected to consider all pros and cons from various angles and then to initiate demonetisation on a large scale through a legislative process. Such a power is vested only in the Central Government by virtue of Entry 36 of List I of the Seventh Schedule of the Constitution which of course has to be exercised by means of a plenary legislation and not by issuance of a gazette notification under subsection (2) of Section 26 of the Act. Hence, the word any cannot be interpreted to mean all having regard to the context in which it is used in the said provision. 15.28 Secondly, any recommendation of the Central Board of the Bank under subsection (2) of Section 26 is not binding on the Central Government. If the Central Government does not accept the recommendation of the Bank then no notification would be published in the Gazette of India by it. In fact, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia in the Ministry of Finance, number S.O. 3407(E), dated the 8th November, 2016, issued under subsection (2) of section 26 of the Reserve Bank of India Act, 1934, shall cease to be liabilities of the Reserve Bank under section 34 and shall cease to have the guarantee of the Central Government under subsection (1) of section 26 of the said Act. (Emphasis by me) The said Section has an inherent contradiction inasmuch as the Section has a non obstante clause vis vis the Act or any other law for the time being in force but at the same time, the said provision refers to Sections 26 as well as Section 34 of the Act. A non obstante clause such as notwithstanding anything contained in the Act or in any law for the time being in force , is sometimes appended to a section, with a view to give the enacting part of that section in case of conflict, an overriding effect over the provision or Act mentioned in the non obstante clause. The following are the judicial dicta on the point which bring out the use of a nonobstante clause: a) In T.R. Thandur vs. Union of India (1996) 3 SCC 690, this Court observed that a nonobstante clause may be used as a legislative device to modify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is notwithstanding anything contained in the Act. If it is so, then the impugned notification could not have been issued invoking subsection (2) of Section 26 of the Act. The liability could have so ceased, if the power that had been exercised by the Central Government for the issuance of the notification dated 8th November, 2016 impugned herein, under subsection (2) of Section 26 of the Act on the recommendation made by the Central Board of the Bank. That is, when the initiation of demonetisation or the proposal came from the Central Board of the Bank, leading to the issuance of the notification by the Central Government. Had the measure of demonetisation been carried out by way of enactment of a plenary legislation, then the nonobstante clause could have been employed to exclude the applicability of the Act. However, having sought to rely on subsection (2) of Section 26 of the Act to issue the Notification, not only is the nonobstante clause misplaced but it also gives rise to a contradiction as to on what basis the Notification dated 8th November, 2016 has been issued. Affidavits and Record of the Case: 17. It has been observed in the preceding paragraphs that when th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he proposed measure of demonetisation, had arisen pursuant to the letter addressed to the Bank from the Central Government dated 7th November, 2016. The Draft Memorandum further records that the Government had recommended that the withdrawal of the tender character of existing Rs.500/and Rs.1,000/notes, is apposite. Further, the said document records that as desired by the Central Government, a draft scheme for implementation of the scheme of demonetisation had also been enclosed. 3) In view of the contents of the Draft Memorandum, the Central Board of the Bank in its 561st Meeting commended the Central Government s proposal for demonetisation and directed that the same be forwarded to the Central Government. 4) Accordingly, a letter was addressed by the Deputy Governor of the Bank to the Central Government on 8th November, 2016, stating therein that the proposal of the Central Government pertaining to withdrawal of legal tender of bank notes of denominational values of Rs. 500/and Rs. 1,000/was placed before the Central Board of the Bank in its 561st meeting. It was also stated that necessary recommendation to proceed with the said proposal, had been obtained from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard of the Bank made a specific recommendation to the Central Government on 8th November, 2016, for the withdrawal of legal tender character of the existing series of Rs.500/and Rs.1,000/bank notes which could tackle black money, counterfeiting and illegal financing. That the Bank also proposed a draft scheme for the implementation of the recommendation. 2) That the consultations between the Central Government and the Bank began in February, 2016; however, the process of consolidation and decision making were kept confidential. 3) That the Bank and the Central Government were together engaged in the finalization of new designs, development of security inks and printing plates for the new designs, change in specifications of printing machines and other critical aspects. 17.6 The following points emerge upon perusal of the affidavits submitted on behalf of the Bank: 1) That a letter dated 7th November, 2016 was received by the Bank, from the Ministry of Finance, Government of India, which contained a proposal to withdraw the character of legal tender of existing Rs.500/and Rs.1,000/bank notes. 2) The said proposal was considered, together with a draft scheme for implem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Existing Rs.500/and Rs.1,000/bank notes The object of the measure and the subject are of relevance, in assessing the resolution of the Bank dated 8th November, 2016 because, the said considerations would have a bearing on the question, whether, the Bank s opinion was in consonance with the object sought to be achieved through demonetisation by the Central Government s proposal. 17.9 On a close reading of the Notification dated 8th November, 2016, in juxtaposition with the records, the following aspects emerge: i) One aspect of the matter which emerges with no ambiguity is that the proposal for demonetisation originated from the Central Government, by way of its letter addressed to the Bank, dated 7th November, 2016. This aspect forms the central plank of the controversy at hand. That the recommendation did not originate from the Bank under subsection (2) of Section 26 of the Act, but was obtained from the Bank in the form of an opinion on the proposal for demonetisation submitted by the Central Government. Such an opinion, could not be considered to be a recommendation as required by the Central Government in order to proceed unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r thing to be done in a particular manner, it must be done in that manner or not at all and other methods of performance are necessarily forbidden, vide Nazir Ahmed vs. King Emperor (1936) L.R. 63 I.A. 372. 18.2 This Court too, has applied this maxim in the following cases: (i) Parbhani Transport Cooperative Society Ltd. vs. The Regional Transport Authority, Aurangabad (1960) (3) S.C.R. 177: AIR 1960 SC 801, wherein it was observed that the rule provides that an expressly laid down mode of doing something necessarily implies a prohibition of doing it in any other way. (ii) In Dipak Babaria vs. State of Gujarat AIR 2014 SC 1972, this Court set aside the sale of agricultural land, on the ground that the sale was not in compliance with the statutory procedure prescribed in that regard under the Bombay Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958. The matter was examined on the anvil of the aforestated maxim and it was held that alienation of agricultural land by adopting any alternate procedure to the one prescribed under the Act, was necessarily forbidden. (iii) In Kameng Dolo vs. Atum Welly AIR 2017 SC 2859, election of an unopposed candidate was declared a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, such procedure cannot be substituted by an alternative procedure which is not contemplated under the statute. Further, if an action is to be carried out by way of issuance of a particular statutory instrument on the basis of certain requirements, such action cannot be validly carried out by way of issuance of an instrument when the same is not contemplated under the Act. This is particularly so when the instrument enacted stands on a different footing than the one meant to be enacted. Applying the said principle to the facts of the present case, it is observed that what ought to have been done through a Parliamentary enactment or plenary legislation, could not have been carried out by simply issuing a notification under subsection (2) of Section 26 of the Act by the Central Government. As noted hereinabove, the said provision does not apply to cases where the proposal for demonetisation originates from the Central Government and the same is not envisaged under the Act. Hence, issuance a notification to give effect to the Central Government s proposal for demonetisation, was clearly based on an incorrect understanding of subsection (2) of Section 26 of the Act. The Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... care and consideration were bestowed on such a crucial matter by the Central Board of the Bank having regard to the severe ramifications that the proposed demonetisation would have on almost every citizen of the country. Possibly, the Central Board of the Bank acted on the assurances of the Central Government which is evident on a perusal of the records and not on an independent application of mind owing to lack of time. As noted from the records submitted by the Central Government as well as the Reserve Bank of India in the instant case, the Central Government wrote to the Central Board of the Reserve Bank of India on 7th of November, 2016 about its proposal to demonetise all series of bank notes of denominations of Rs.500/and Rs.1,000/, which were in circulation, and on the very next day i.e., 8th November, 2016, a meeting of the Central Board of the Bank was held at New Delhi at 05:30 p.m. and shortly thereafter, the gazette notification was issued. Such a swift action would indicate that the Central Board of the Bank had hardly twentyfour hours to consider the proposal of the Central Government and hence, hardly any time to apply its mind independently to the proposal. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment seeks the opinion of the Central Board of the Bank to its proposal for demonetisation, the latter would have to be given some time to consider the pros and cons and the impact that it would have on the citizens of India, as bank notes are a species of negotiable instruments and a medium through which goods and services are traded and therefore, they are the lifeline of the economy. The Central Government also failed to indicate that the demonetised currency had lost the guarantee provided vide subsection (1) of Section 26 of the Act in the impugned notification. Hence, an Ordinance had to be issued on 30th December, 2016. Moreover, it is not known whether the Bank had made arrangements for printing sufficient new notes for exchange of demonetised currency. It is also not known whether the Department of Legal Affairs was consulted in the matter as the procedure of demonetisation involves legal implications. 19.5 Hence, in my considered view, the action of demonetisation initiated by the Central Government by issuance of the impugned notification dated 8th November, 2016 was an exercise of power contrary to law and therefore unlawful. Consequently, the 2016 Ordinance and 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eral appearing on behalf of the Union of India also contended that the issues raised in these petitions have become infructuous and wholly academic as the action of demonetisation has been acted upon and therefore, the present cases are only of academic significance. It is necessary to examine the nature of relief that could be moulded by the Court in this matter. 20.2 There are several judgments which could be relied upon in this context: (i) This Court acknowledged in S.R. Bommai vs. Union of India AIR 1994 SC 1918, that although substantive relief may be granted only if the issue remains live in cases which are justiciable, this Court may prospectively declare a law, for posterity. Notwithstanding the fact that no substantive relief could be granted in the said case for the reason that following the Presidential proclamation, fresh elections had been held and new Houses had been constituted, this Court went on to declare the law, for posterity, as to the federal character of the Constitution, the nature of the power conferred on the President under Article 356 of the Constitution and the manner in which such power is to be exercised for imposing President s Rule in a State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaration would only have the effect of deterring future measures from being carried out in a like manner, in order to save such measures, from the vice of unlawfulness. Such declarations as to validity or invalidity of a measure, may be made by this Court in exercise of its power under Article 141 of the Constitution, and the effect of such declaration may be moulded or restricted by exercising the power vested with this Court under Article 142. 20.6 Reference may also be had to the decision of this Court in Jayantilal Ratanchand Shah, Devkumar Gopaldas Aggarwal vs. Reserve Bank of India AIR 1997 SC 370. The said case pertains to the challenge to the Constitutional validity of the High Denomination Bank Notes (Demonetisation) Act, 1978. Although the enactment related to the year 1978 and its effects were immediate, as in the present case, the validity of the same was conclusively declared by this Court only in the year 1997. This Court, while upholding the validity of the legislation impugned therein, authoritatively clarified and declared the law on the Parliamentary power to enact such a legislation. A declaration of a similar nature, i.e., as to the validity or invalidity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cease to be legal tender and shall cease to have the guarantee of the Central Government. (vi) The provisions of the Act do not bar the Central Government from proposing or initiating demonetisation. It could do so having regard to its plenary powers under Entry 36 of List I of the Seventh Schedule of the Constitution of India. However, it has to be done only by an Ordinance being issued by the President of India followed by an Act of Parliament or by plenary legislation through the Parliament. The Central Government cannot demonetise bank notes by issuance of a gazette notification as if it is exercising power under subsection (2) of Section 26 of the Act. In such circumstances when the Central Government is initiating the process of demonetisation, it would not be acting under subsection (2) of Section 26 of the Act but notwithstanding the said provision through a legislative process. (vii)When such power is exercised by the Central Government by means of a legislation, it is by virtue of Entry 36, List I of the Seventh Schedule of the Constitution of India which deals with currency, coinage and legal tender; foreign exchange which is a field of legislation. Hence, the pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation dated 8th November, 2016. This direction is being issued having regard to Article 142 of the Constitution of India. Hence, no relief is being granted in the individual matters. (xiii) In view of the above conclusions, I do not think it is necessary to answer the other questions raised in the reference order. 22. Before parting, I wish to observe that demonetisation was an initiative of the Central Government, targeted to address disparate evils, plaguing the Nation s economy, including, practices of hoarding black money, counterfeiting, which in turn enable even greater evils, including terror funding, drug trafficking, emergence of a parallel economy, money laundering including Havala transactions. It is beyond the pale of doubt that the said measure, which was aimed at eliminating these depraved practices, was wellintentioned. The measure is reflective of concern for the economic health and security of the country and demonstrates foresight. At no point has any suggestion been made that the measure was motivated by anything but the best intentions and noble objects for the betterment of the Nation. The measure has been regarded as unlawful only on a purely legalisti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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