New Delhi, October 12
The Supreme Court said on Wednesday it was aware of the “Lakshman rekha” on judicial review of the government’s policy decisions but would have to examine the 2016 demonetisation decision to come to a conclusion whether the issue had become a mere “academic” exercise.
Observing that when an issue arises before a Constitution Bench, it is its duty to answer, a five-judge Bench headed by Justice SA Nazeer directed the Centre and the RBI to file a comprehensive affidavit on the petitions challenging demonetisation of Rs 500 and Rs 1,000 notes.
Attorney General R Venkataramani submitted that unless the Act on demonetisation was challenged in a proper perspective, the issue would essentially remain academic.
The High Denomination Bank Notes (Demonetisation) Act was passed in 1978 to provide in public interest for demonetisation of certain high denomination bank notes in order to check illicit transfer of money harmful to the economy which such currency notes facilitate.
The top court said in an order to declare whether the exercise was academic or had become infructuous, it needed to examine the matter since both sides were not agreeable.
“To answer that issue, we will have to hear and give an answer whether it’s academic, not academic or beyond the scope of judicial review. The point in the case is the government policy and its wisdom which is one aspect of the matter. We always know where the ‘Lakshman rekha’ is, but the manner in which it was done has to be examined. We have to hear the counsel to decide that,” the Bench said.
