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5-Judge Constitution Bench To Look Into Demonetisation 

Apex court refuses to extend deadline for use of old notes. 



A vendor counts Indian rupee banknotes at a stall outside a Hindu temple in Mumbai (Photographer: Dhiraj Singh/Bloomberg)
A vendor counts Indian rupee banknotes at a stall outside a Hindu temple in Mumbai (Photographer: Dhiraj Singh/Bloomberg)

The Supreme Court stayed all cases related to demonetisation in other courts and set up a five-judge constitution bench to hear the pleas challenging the government’s November 8 decision to de-legitimise old Rs 500 and Rs 1,000 notes.

The apex court also refused to extend the exemptions for the use of old currency for essential services. The court left it up the the government to decide whether exemptions need to be given, but added that it hoped the government would look at the matter sympathetically.

The Centre had set a December 15 deadline for citizens to use old Rs 500 notes for certain activities such as paying utility and hospital bills and purchasing cooking gas cylinders. The old Rs 500 and Rs 1,000 notes can be deposited at bank branches till December 30.

The apex court also declined the prayer made by district cooperative banks to allow them to accept deposits in old currency. On Thursday, the government had informed the court, that such banks could deposit only the Rs 8,000 crore they received between November 11 and 14.

Key Questions

Apart from staying the proceedings against demonetisation in various high courts, the Supreme Court also directed lower courts to not entertain fresh petitions. The Centre had filed a transfer petition in the apex court where it sought that all cases pending in various high courts be transferred to a single court.

The top court also framed the set of questions on which further hearings will be conducted when the court resumes after the winter vacation. The court will deliberate on a range of issues, from the constitutionality of the demonetisation order to the inconvenience caused to the public. It will also deliberate on the power of judicial review vis-a-vis fiscal policy.