BIMLA DEVI Vs. UNION OF INDIA

JUDGEMENT

(1.) This judgment will dispose of Civil Writ Petitions Nos. 1009 to 1012 of 1980 and 1141 and 1669 of 1979 wherein the validity of some of the provisions of the High Denomination Bank Notes (Demonetisation Act') has been challenged. The petitioners arc aggrieved because they had not been paid the exchange value of the high denomination notes which were held by them and which had been demonetised.

(2.) Apart from challenging the validity of sections 7 and 8 of the demonetisation Act, the petitioners are also aggrieved by the orders, passed under the Demonetisation Act, declining to pay them the exchange value of the demonetised notes held by them. The reasons for this refusal vary from case to case and the petitioner's contention in this regard will be dealt with separately.

(3.) As the Parliament was not in session the President promulgated the High Denomination Bank Notes (Demonetisation) Ordinance, 1978 which came into effect on 16th January, 1978. It is not necessary to refer to the terms of this Ordinance because with the enactment of the Demonetisation. Act the Ordinance stands repealed. The Act, which received the assent of the President on 30th March, 1978, was given retrospective effect from 16th January, 1978. The high denomination notes which were sought to be demonetised by the Act were the bank notes of the value of one thousand rupees, five thousand rupees and ten thousand rupees which had been issued by the Reserve Bank of India. Section 3 of the Demonetisation Act provided that the High denomination bank notes shall cease to be legal tender. The said section reads as under :-