Interim relief and parallel proceedings in demonetization litigation: limited directions issued, with High Court matters stayed and transferred.
Interim substantive relief was declined in the challenge to restrictions affecting District Cooperative Banks, use of demonetized notes, and withdrawal limits, because the Court considered the issues to involve broad public importance and competing concerns of financial policy, audit and orderly implementation. The Court recorded assurances on withdrawal facilities and periodic review, but left any extension of the exemption period for demonetized currency to the Government. To prevent multiplicity of proceedings and conflicting rulings, the Court ordered connected writ petitions in High Courts to be withdrawn for hearing with the matters before it, stayed further High Court proceedings, and restrained other courts from entertaining similar matters, while preserving intervention rights.
Issues: (i) Whether interim relief should be granted in relation to the restrictions on District Cooperative Banks, the use of demonetized notes, and the withdrawal limits pending final adjudication; (ii) Whether the connected writ petitions pending in High Courts should be transferred or stayed to avoid parallel adjudication.
Issue (i): Whether interim relief should be granted in relation to the restrictions on District Cooperative Banks, the use of demonetized notes, and the withdrawal limits pending final adjudication.
Analysis: The matter raised questions of broad public importance and the Court declined to grant immediate interim suspension of the restriction on District Cooperative Banks. The Court recorded the competing concerns of financial policy, audit and supervision, and the need to ensure orderly implementation of the demonetization measures. On the withdrawal issue, the Court accepted the assurance that the notified withdrawal facility would be implemented to the extent possible and directed periodic review, but declined to issue any further interim direction. The request to extend the exemption period for use of demonetized currency was left to the Government.
Conclusion: Interim substantive relief was declined, with only limited directions and assurances recorded.
Issue (ii): Whether the connected writ petitions pending in High Courts should be transferred or stayed to avoid parallel adjudication.
Analysis: To avoid multiplicity of proceedings and the possibility of conflicting decisions on the same subject matter, the Court directed that the connected writ petitions/proceedings pending in the High Courts be withdrawn for hearing along with the matters already before the Court. The Court also stayed further proceedings in the concerned High Courts and restrained other courts from entertaining or deciding similar matters arising from the demonetization decision, while preserving the liberty of affected parties to intervene in the proceedings before the Court.
Conclusion: Transfer and stay of the parallel proceedings were ordered.
Final Conclusion: The order is interlocutory in nature and preserves the demonetization challenges for authoritative determination by the larger Bench while preventing parallel adjudication in other forums.
Ratio Decidendi: Parallel proceedings on the same subject may be stayed and transferred to secure consistency and avoid conflicting adjudication in matters of broad public importance.
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