Trial courts have to mention serial numbers of old currencies in their orders of releasing notes seized prior to demonetisation: Karnataka High Court

‘Recipients of such old notes will not be able to exchange them for new ones if serial numbers are not mentioned in court orders’

The trial courts and the investigating agencies will have to mention the serial numbers of the old demonetised currency notes while releasing such notes, which were seized in connection with criminal cases or any other proceedings prior to demonetisation, to enable the recipients of seized notes to exchange them for new ones, the High Court of Karnataka has said.

Non-mentioning of the serial numbers of old notes, which were demonetised subsequent to the seizure, while releasing such notes to its lawful recipients would cause them irreparable prejudice as they would not be able to exchange them as per the condition imposed in the notification issued in 2017 for exchange of notes seized prior to demonetisation, the court said.

A Division Bench comprising Justice S. Sunil Dutt Yadav and Justice Ramachandra D. Huddar issued the direction while noticing that a litigant, Sanjukumar of Kalaburagi, would not be able to receive new notes for 1,700 old notes of the denomination of ₹500 and 134 old notes of the denomination of ₹1,000, valued at ₹9.84 lakh, which were seized during 2015 in relation to a criminal case.

The Bench noted that though the trial court had ordered the release of these seized old notes in his favour, the release order does not contain the serial numbers of the released notes in terms of the 2017 notification.

While permitting Mr. Sanjukumar to approach the trial court to seek a fresh order containing the serial number of the notes, the Bench also asked the Union government to consider his representation for exchange once he gets an order from the trial court containing the serial numbers of the old notes that were released in his favour.

While a judge, on a petition filed by Sanjukumar, had directed the Reserve Bank of India (RBI) to consider his plea for new notes, the RBI had filed an appeal before the Division Bench stating that it is not the authority for exchange but the Central government, provided serial numbers are mentioned in the trial court’s order.

Published - October 03, 2024 11:58 pm IST