New Delhi: Justice B V Nagarathna dissented from the majority judgment on the point of the Centre’s powers under section 26(2) of the RBI Act and said the scrapping of the Rs 500 and Rs 1,000 series notes had to be done through a legislation and not through a notification. Justice Nagarathna, in her minority verdict, called demonetisation of Rs 500 and Rs 1,000 currency notes was “vitiated” and “unlawful”.
She is the only judge in the five-member Bench which upheld the Centre’s decision on demonetisation.
“Parliament should have discussed the law on demonetisation, the process should not have been done through a gazette notification. Parliament cannot be left aloof on an issue of such critical importance for the country,” Justice Nagarathna said.
She also said there was no independent application of mind by the Reserve Bank of India (RBI) and only its opinion was sought, which cannot be said to be a recommendation.
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