SUO MOTU Vs. UNION OF INDIA

JUDGEMENT

(1.) The instant Suo moto proceeding was initiated to fix the modalities and to deal with the unforeseen situation that was faced by Subordinate courts in the State of Kerala pursuant to demonetization of certain specified bank notes.

(2.) By virtue of Notification dated 8.11.2016, the Central Government in exercise of its powers conferred by subsection (2) of Section 26 of the Reserve Bank of India Act, 1934 had declared that Bank Notes of denominations of the existing series of the value of Rs.500/- and Rs. 1000/- would cease to be legal tender with effect from 9.11.2016. However, opportunity was granted, subject to various conditions, to exchange the specified Bank Notes for notes having legal tender for a period upto and including 30th December, 2016.

(3.) Immediately thereafter, it was brought to the notice of this Court that properties produced in the form of cash of the above denominations, seized by the police and other law enforcement authorities are kept in the custody of Subordinate courts. They would cease to be legal tender if not exchanged within the prescribed cutoff date. Instructions were sought to deal with the unforeseen situation.