Demonetised currency not to be deposited in treasury: HC

The Delhi High Court has directed that demonetised currency notes of Rs 1,000 and Rs 500 will not be deposited in court treasury and asked judicial officers not to grant any relaxation in this regard.
The bench passed the direction while expressing displeasure over a trial court special judge' decision allowing a convict to deposit the fine amount in demonetised currency, which became an illegal tender from the midnight of November 8-9.
"It is directed that this order shall be communicated by the registry forthwith to the learned special judge as well as to all the district judges for being circulated amongst all the judicial officers within each of the districts, so that similar relaxation is not granted to any person to permit deposit in the treasury of any amount in the form of demonetised currency notes," a bench of Justice Vipin Sanghi said.

Holding that the special judge's reasoning was "clearly beyond the judicial competence", the high court said, "The issuance of currency notes and their demonetisation are purely an executive act and it is not open to the courts to step into the said arena. The aforesaid direction issued by the learned special judge is a clear transgression of his authority."
The bench said it appeared that such directions may have been issued by the special judge in other cases also and since the demonetised currency notes are still being accepted as legal tender, though for very limited purposes, it is likely that such directions may be issued by the special judge in other cases as well.

The high court was hearing an appeal filed by a convict in a corruption case challenging the trial court's judgement sentencing the man to three years jail and a fine of Rs 75,000 and seeking suspension of the punishment.

The high court said Rs 1,000 and Rs 500 notes became
illegal tender on the midnight of November 8-9 and the order on sentence was passed by the trial court on November 16 post demonetisation.
It said once the currencies are demonetised, the court could not have enlarged the category of goods, services and purposes for which, and where the same could be offered as legal tender.

While permitting the convict to deposit the fine amount in demonetised currency, the special judge had said the government has permitted some limited use of old notes for certain urgent and essential purposes and also the exchange and deposits thereof, subject to certain conditions and guidelines imposed by it.
The convict had submitted that it would not be possible to arrange the fine amount of Rs 75,000 under the given scenario.
The high court, however, said the reasoning given by the special judge was "misplaced".
It said no doubt, there was a restriction on exchange of demonetised currency and also on withdrawal of fresh currency from one's bank account. However, there is no restriction on deposit of the demonetised notes in one's bank account and transferring the amount from the account through other means like cheque, pay order, RTGS, NEFT or electronic modes.

"Any person who is obliged to, or wishes to, deposit any amount in the treasury can do so by procuring a pay order, or other such modes, and it is not necessary for him to deposit the same in cash.
"Thus, the liberty granted by the learned special judge to the appellant to deposit the fine amount in the demonetised currency notes is clearly bad and is set aside. The deposit so made by the appellant cannot be considered as a valid tender. The appellant has submitted that he shall deposit the amount again in a legal manner. He may do the same, if he so chooses," the high court said.