Kerala HC Closes Suo Moto Proceedings On Demonetisation Impact On Subordinate Courts [Read Judgment]

Asks courts to follow Centre’s directive in this regard.

In view of a Central Government notification, the Kerala High Court has closed a suo moto proceeding initiated by it to fix modalities and to deal with the unforeseen situation that was faced by subordinate courts in the State of Kerala pursuant to the recent demonetisation move.

The suo moto proceedings were initiated after it was brought to the notice of the high court that properties produced in the form of cash of the above denominations seized by the police and other law enforcement authorities were kept in the custody of subordinate courts and these would cease to be legal tender if not exchanged within the prescribed cut-off date.

A division bench of Chief Justice Navaniti Prasad Singh and Justice Raja Vijayaraghavan observed that the notification issued by the Central Government in exercise of powers conferred by sub (1) of Section 11 read with clause (c) of the proviso to section 5 of the Specified Bank Notes (Cessation of Liabilities) Act, 2017 would save the situation faced by the courts in this state.

The court observed that these new rules would enable the litigant, the government, or the person in custody to deposit or exchange the specified bank notes subject to the condition that the law enforcement agency, which confiscated or produced them before the court, has noted the serial numbers and the court mentions the same in the direction or order that is issued for production at any office of the Reserve Bank or a nationalised bank designated by the Reserve Bank for the said purpose.

The courts shall follow the procedure as noted above in the matter of disposal of the specific bank notes, the bench observed.