BREAKING: DEMONETISATION VALID: SUPREME COURT, JUSTICE BV NAGARATHNA DISSENTS-LIVE UPDATES

Justice Nagarathna : The measure was well-intentioned and well thought of. It targeted evils such as blackmoney, terror funding and counterfeiting. The measure is declared unlawful purely on legal grounds and not on the basis of objects.

Justice Nagarathna : Hence, no relief is being given in the petitions

Justice Nagarathna : Demonetisation of all currency notes of Rs 500 and Rs 1000 is unlawful and vitiated. However, having regard to the fact that the notification has been acted upon, this declaration of law will act only prospectively and will not affect actions already taken

J Nagarathna : The opinion of the Central Bank had to be a frank and independent opinion having regard to the ramifications.

J Nagarathna : It has been brought on record that 98% bank notes were exchanged. This suggests the measure itself was not effective as it was sought to be. But court cannot base its decision based on such consideration.

J Nagarathna : The problems associated with demonetisation make one wonder whether the Central Bank had visualised these.

J Nagarathna : "Any series" under Section 26(2) RBI Act cannot mean "all series".

J Nagarathna : The action of demonetisation initiated by the Central Govt as per Nov 8, 2016 notification is unlawful. But status quo ante cannot be restored at this point of time. What relief can be given now? Relief needs to be moulded.

J Nagarathana : Even assuming RBI had such a power, such recommendation is void as the power under Section 26(2) can be only for a particular series of currency notes & not for the whole series of currency notes of a denomination.

Justice Nagarathna : The proposal originated from the Central Government and the opinion of the RBI was sought. Such an opinion given by the RBI cannot be construed as a "recommendation" under Section 26(2) of the RBI Act.

Justice Nagarathna : The proposal originated from the Central Government and the opinion of the RBI was sought. Such an opinion given by the RBI cannot be construed as a "recommendation" under Section 26(2) of the RBI Act.