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2025 Supreme(Online)(Ker) 43988
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.M. MANOJ, J
K.Jagadeesh – Appellant
Versus
Union of India – Respondent
WP(C) NO. 4590 OF 2017
For the Appellants/Petitioners: Sri.P.B.Sahasranaman, Sri.T.S.Harikumar
For the Respondents: Sri.Millu Dandapani, Smt.O.M.Shalina
The Reserve Bank's authority to accept demonetized notes is limited by notifications, and grace periods must be strictly adhered to unless otherwise granted by the Central Government.
Headnote:This case involves a Writ Petition for directing the Reserve Bank of India to allow the exchange of Specified Bank Notes (SBNs) of Rs.1,000/- strictly adhering to the stipulated temporal framework set out in the governmental notifications. The petitioner argues for the validity of exchange despite exceeding initial deadlines, citing hardships due to his father's illness and death. The court ultimately instructs the 1st respondent to reevaluate previous representations while considering all cited notifications regarding grace periods for exchange. Finally, the petitioner’s representation is to be decided upon within three months following due process and considerations detailed in prior judgments.
| Table of Content |
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| 1. petitioner seeks exchange of demonetized notes citing personal circumstances. (Para 1 , 2 , 3 , 4 , 7) |
| 2. government response and prior judicial decisions limit options for petitioners. (Para 8 , 9) |
| 3. petition is guided by precedent and public interest considerations. (Para 10 , 11 , 12 , 13) |
| 4. a sympathetic consideration for the petitioner’s situation is warranted. (Para 14 , 16) |
| 5. court directs further consideration of the petitioner’s representation. (Para 15) |
JUDGMENT
The Writ Petition is preferred to direct the 4th respondent and such other person concerned to permit the petitioner to tender 50 number of Specified Bank Notes (SBNs) of Rs.1,000/- denomination, valuing Rs.50,000/- and get it exchanged with new valid notes of the same value within the stipulated time and to quash Ext.P7 whereby the 4th respondent has declined his request.
2. It is the case of the petitioner that his father, Sri. C.Divakara Menon died on 22.12.2016, as evident in his death certificate produced as Ext.P1. However, about one and half years prior to that date, he was bedridden, moreover, was not in a mental condition to understand things happening around him. After the death of his father, while sorting his personal belongings on 07.01.2017, the petitioner came across 50 notes having a denomination of Rs.1,000/- valued at Rs.50,000/-.
3. By that time, by a Notification by the Central Government dated 08.11.2016, it was declared that SBNs of denomination Rs.500/- and Rs.1,000/- shall cease to be legal tender with effect from 09.11.2016. However, the Central Government has provided for exchange of SBNs at Public Sector and Private Sector and Co- operative Banks etc. for a specified period up to 30.12.2016 (that date includes). As per sub-clause (ix) of Clause (2) of the Notification dated 08.11.2016 “any person who is unable to exchange or deposit the specified bank Notes in their bank accounts on or before the 30th December, 2016 shall be given an opportunity to do so at the specified office of Reserve Bank or such other facility until a later date may be specified by them.” By notification dated 30.12.2016, i.e. the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016, the Reserve Bank was absolved from the guarantee of the Central Government with respect to SBNs having a denomination of Rs.500 and Rs.1000. However, a grace period was provided to certain persons to tender SBNs before the Reserve Bank who are :
(i). a citizen of India who makes a declaration that he was outside India between 9th November 2016 to 30th December 2016 subject to such conditions as may be specified by the Notification by the Central Government or ii. such class of persons and for such reason as may be specified, by Notification, by the Central Government.
4. This exemption was granted by Clause (4) (1) of Ordinance 2016 dated 30.12.2016 with a non-obstante Clause that notwithstanding anything contained in Section 3, the following persons holding SBNs on or before 8th day of November, 2016 shall be entitled to tender within the grace period with such declaration or statement at such offices of the Reserve Bank or in such other manner as may be specified by them.
5. The grace period mentioned in the said provision is defined under Clause 2(a) as the period to be specified by the Central Government by Notification during which specified bank notes can be deposited in accordance with the Ordinance.
6. The notification also provides that if the Reserve Bank is satisfied after making such verification as to the reason for failure to deposit SBNs within the specified period as per Ordinance dated 30.12.2016, the credit value of the notes will be credited in his Know Your Customer complaint bank account.
7. By the time the petitioner recovered 50 SBNs of Rs.1000 denomination, the time limit had already expired on 08.11.2016.
Thereby, those currencies became invalid. The petitioner, having sufficient reason to satisfy as contemplated under the Notification,
