Dissenting note: 'No application of mind by RBI'

New Delhi, January 2

Justice BV Nagarathna, who was part of the five-judge Constitution Bench that rejected pleas challenging demonetisation by a 4:1 majority verdict, delivered a dissenting note as she found fault with the process.

There was no independent application of mind by the RBI in recommending the cancellation of entire Rs 500 and Rs 1,000 notes as proposed by the Central Government, she said, adding that “Parliament was a miniature of the country…. Parliament which is the centre of democracy cannot be left aloof in a matter of such critical importance.”

She noted that Parliament, which is the fulcrum in our democratic system of governance, must be taken into confidence because it was the representative of the people of the country. While declaring the action of demonetisation as “an exercise of power contrary to law and therefore unlawful”, Justice Nagarathna said, “The status quo ante cannot be restored at this point of time.”