SC asks Centre to consider individual demonetisation grievances within 3 months

The Court allowed the affected individuals to move representations to the Centre if they desire and directed the government to decide on the same in a time-bound manner, within 12 weeks.

The Supreme Court on Tuesday provided a final window of opportunity for persons stuck with demonetised currency notes of 2016 to pursue their request with the central government to be allowed a window to deposit even as it refused to entertain individual claims after the scheme was upheld in its entirety by a Constitution bench of the top court in January this year.

The Court also segregated certain petitions that did not challenge the demonetisation policy as such. (Representative file image)

A bench of justices BR Gavai and Vikram Nath said, “Some martyrs have to be there. We cannot help it. in our judgment (of January 2), we held that some people have to suffer.”

Having upheld the demonetisation scheme, the Court was not willing to keep the matter pending for making exceptions to the scheme for affected individuals.

At the same time, the Court noted that the power to grant such exemptions lies with the Centre.

This fact was noted in the judgment too which said, “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.”

The Court allowed the affected individuals to move representations to the Centre if they desire and directed the government to decide on the same in a time-bound manner, within 12 weeks.

If the individuals are further aggrieved by the Centre’s order, the top court allowed them to approach the respective high courts.

Disposing the individual cases, the bench said, “In view of the upholding of the enactment - Specified Bank Notes (Cessation of Liabilities) Act, 2017 – no relief can be granted by this Court.

However, if petitioners so desire, they can approach the government by moving a representation. Such representation may be decided within a period of 12 weeks from the date on which the representation is made.”

Advocate Prashant Bhushan who appeared for one such individual seeking deposit of the old currency notes said, “There is a clear bonafide reason for individuals who could not deposit cash. We are not asking the Centre or the Reserve Bank of India (RBI) to frame general exemptions but to consider our individual requests.”

The Court also segregated certain petitions that did not challenge the demonetisation policy as such but the action of the respective banks in refusing to accept the old currency notes to pursue their matter separately before the apex court.

The November 8, 2016 decision of the government to declare old ₹500 and ₹1,000 currency notes as illegal tender allowed citizens to deposit the currency notes by December 30.

From December 31, the RBI had no liability for exchanging these notes.

By the 2017 Act, possession of the illegal tender notes beyond a certain number was a punishable offence.

Senior advocate Jaideep Gupta who appeared for RBI submitted to the Court that most petitioners before the top court did not challenge the November 2016 notification or the 2017 Act but wanted their money back.

He was not in favour of entertaining individual requests and pointed out that after considering the individual hardships, the Constitution bench concluded in favour of the scheme.

Advocate Shailesh Madiyal who appeared for Centre told the Court that as per the judgment, the Centre will consider the individual representations and take a decision.

Bhushan pointed out that there could be instances where it is found that the decision of the Centre is arbitrary or discriminatory in allowing relief in one case while denying benefit to a similarly-placed individual. He requested the Court to modify an earlier order passed while deciding the petitions on demonetisation restricting access to high courts.

The bench accepted the suggestion in its order and said, “We clarify that in the event of any person not being satisfied by orders of the Centre, they will always be at liberty to bring the matter before the jurisdictional high courts.”

The 2017 Act allowed further grace period beyond December 30 for certain category of citizens. Indian residents who were outside India between November 9 and December 30, 2016 were allowed to deposit the notes till March 31, 2017. Even non-residents who were outside India during the relevant period were allowed limited deposit of the old notes till June 30, 2017.