Supreme Court Live Updates : Challenge Against Demonetisation

Chidambaram: No demonetisation is not followed by re-monetisation. Otherwise, the country will come to a grinding halt. 

Chidambaram: Then the Parliament should specify and delineate the grounds or circumstances under which such power may be exercised.

Chidambaram: If S 26 interprets 'any' as 'all', then I would argue that there are no guidelines.

Justice BVN: That depends on the economic situation of the country, any financial emergency...

Chidambaram: Power to demonetise under this Act by notification in the Gazette only relates to demonetisation of any particular series of banknotes of any denomination. Not all series of banknotes. 

Chidambaram: Saving provision was always there, maybe not to such an extent. Even in 1946 and 1978, a window to exchange notes was provided.

Justice Ramasubramian: This was not an exact case of demonetisation like in 1946 and 1978. There was a window for exchange. Here, when you talk of the power of the RBI and the lack of guidelines...the Act itself confers a limited power.

Chidambaram: Which means if you want to demonetise all series of banknotes, then a separate law must be passed. This is how it must be read down. This is how the power was interpreted in 1946 and 1978.

Chidambaram: There must be guidelines and objects and principles wrt S 26. This section ought to be read down. Any series of banknotes means 'any' particular series of banknotes of that denomination, but not 'all'.

Chidambaram: The RBI Board is not alien to the govt or removed from the needs of the govt. But there must be some discussion, application of mind.

Justice Gavai: Isn't there an inbuilt safeguard in S 26(2)?

Chidambaram: Yes, that is exactly the pt, the recommendation must come from the RBI.

Justice BVN: What if no recommendation comes from RBI, is the govt helpless?