SC signals it may examine constitutional validity of ban

New Delhi: The Supreme Court indicated on Friday that it will examine the constitutional validity of the demonetisaton of Rs 500 and Rs 1,000 currency notes, and if necessary, consider referring the batch of petitions against the move for adjudication by a five-judge Constitution Bench.

Senior counsel Kapil Sibal, appearing for the petitioners, insisted that he wanted to challenge the constitutional validity of the measure and not just be confined to the problems faced by the people. He suggested that a larger bench of five judges should hear the petitions as several constitutional issues are involved. RBI rules, Mr Sibal said, did not allow anybody to prevent anyone from withdrawing their money from their banks, which were only trustees of the money.

Attorney-General Mukul Rohatgi, appearing for the Centre, however said that it was not necessary to refer the matter to a Constitution Bench. He suggested that the hearing can be deferred so that the petitions transferred from various high courts can be heard together. He also rejected the charge that people were starving.

One of the petitioners, advocate Manohar Lal Sharma, also told the court that the new Rs 2,000 notes lose colour and could be easily faked.