Jan 2, 20231 min
The Apex Court in the instant case, deliberated upon the elementary question requiring determination with respect to the nature of relief that could be granted by the Court on whether the challenge to the validity of the Central Government’s decision dated 8th November, 2016 to demonetize all Rs.500/ and Rs.1,000/ bank notes, having been adjudicated upon, at this juncture, i.e., after a lapse of over six years since the impugned action was carried out.
The Court held that there is a direct and proximate nexus between the restrictions imposed and the objectives sought to be achieved by placing reliance on the case of M.R.F. Ltd. v. Inspector Kerala Govt. and Others. i.e if there is a direct nexus between the restrictions and the object of the action, then a strong presumption in favour of the constitutionality of the action naturally arises. The court therefore, held that the impugned notification dated 8th November 2016 does not violate the principle of proportionality and as such, is not liable to be struck down on the said ground.