Staffing
We help you build a strong, capable workforce without the hassle, ensuring you have the expertise you need to tackle any project.
Read more
.jpg)
Demonetization in India
The Ordinance was challenged by a person acting as an accountant for a temple trust before the Allahabad High Court in B Ram Lal v. State (AIR 1954 All 758) on the grounds that the right to acquire, hold and dispose of property under the Constitution of India was violated. Specifically, the constitutional validity of sections 3 and 4 of the 1946 ordinance was challenged alleging that these provisions were in violation of article 19(1)(f) of the Constitution. The court held that
The court upheld the constitutionality of the Ordinance by concluding that “[o]nce the high denomination bank notes ceased to be legal tender, any restriction on their transfer to another person cannot be said to be unreasonable.” Moreover, the Court held that since the Ordinance provided for the exchange of high denomination notes for smaller denominations, it could be considered a reasonable restriction.
The Supreme Court emphasized that the time limit imposed for exchange of the high denomination notes was necessary in order to cease their circulation as early as possible. The Court held that “if the time for such exchange was not limited the high denomination bank notes could be circulated and transferred without the knowledge of the authorities concerned from one person to another and any such transferee could walk into the Bank on any day thereafter and demand exchange of his notes.
What was the purpose of the demonetization decision?
The Supreme Court emphasized that the time limit imposed for exchange of the high denomination notes was necessary in order to cease their circulation as early as possible. The Court held that “if the time for such exchange was not limited the high denomination bank notes could be circulated and transferred without the knowledge of the authorities concerned from one person to another and any such transferee could walk into the Bank on any day thereafter and demand exchange of his notes.
DThrill Software © 2025 All Rights Reserved. Developed By DThrill