Karnataka HC Backs Demonetisation Drive, Says ‘A Major Step Was Necessary’ [Read Order]

Karnataka HC Backs Demonetisation Drive, Says ‘A Major Step Was Necessary’ [Read Order]


It is true that there are initial problems. Any new system will have some initial problems. We do not think this would be perennial, the court said.


The Karnataka High Court has dismissed a plea by a lawyer against demonetisation of Rs. 500 and Rs. 1000 currency notes, observing that though there are initial problems, those would not be perennial.

A bench, in its order just couple of days after the government announced the move, said it had no reason to doubt the bona fide of the Central government for implementing demonetisation.

Mohammed Haroon Rasheed, a young lawyer, submitted before the court that there is no reasonable classification in attempting to demonetise the currency notes of 500/1000 denomination only. He said people, who are not computer savvy, were suffering difficulties in day-to-day affairs.

Countering these submissions, the Additional Solicitor General submitted before the court that there were large number of fake currencies in India and there is, already, a parallel economy running and it is in this context that the authorities thought it fit and proper to tackle with the situation by demonetisation.

The Bench headed by the Chief Justice Subhro Kamal Mukherjee, dismissing his petition, observed: “We are aware that in the wake of insurgencies and running of a parallel economy, which is ruining the backbone of the Indian economy, a major step was necessary. It is true that there are initial problems. Any new system will have some initial problems. We do not think this would be perennial.”

The Madurai bench of the Madras HC had also dismissed a petition seeking directions to the central government to reverse its decision and make 500 and 1,000 rupee notes legal tender again.  PILs have been filed in the Bombay High Court highlighting the common man’s problems post-demonetisation.

The petition in Supreme Court has called the Prime Minister’s decision a “Tuglaki farman” citing several inconveniences that the general public will face as a result of this decision. Recently, the Centre had urged the Supreme Court to bar high courts from entertaining public interest litigations pertaining to demonetisation of Rs 500 and Rs 1,000 currencies and wanted a stay on all pending proceedings before the high courts across the country. The apex court is considering transferring all matters to Delhi HC and a decision in this regard will be taken on November 25.

Read the order here.


This article has been made possible because of financial support from Independent and Public-Spirited Media Foundation.