The High Court of Chhattisgarh considered two writ petitions challenging restrictions on depositing coins. Finding that RBI circulars instructing banks to accept coins redressed the grievance, the Court held the constitutional challenge to the Coinage Act was academic and disposed of the matter accordingly.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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NAFR
HIGH COURT OF CHHATTISGARH, BILASPUR
WPC No. 1473 of 2019
---- Petitioners
Versus
---- Respondents
WPC No. 2266 of 2019
Touchstone Services Pvt. Ltd. Through Director, Mr. Shrenik Parekh, S/o Mr. Udayraj Parekh, 1st Floor, Priyanshu Tower, Near Siddheswari Temple, Bhatagaon, Raipur, Chhattisgarh.
---- Petitioner
Versus
---- Respondents
| ______________________ For Petitioner |
__________________________________________ : Shri Siddharth Shukla, Advocate |
|---|---|
| For Respondent/UOI | : Shri B.Gopa Kumar, Assistant Solicitor General |
| For Respondents/RBI | : Shri B.P. Sharma, Advocate |
| For Respondent/SBI | : Shri Prafull N. Bharat, Advocate |
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Hon'ble Shri P. R. Ramachandra Menon, Chief Justice Hon'ble Shri Parth Prateem Sahu, Judge
Judgement on Board
P. R. Ramachandra Menon, Chief Justice
11.11.2019
“10.1 To declare the limitation for using the coins of any denomination in payment and on accounts stipulated under Section 6(1)(a)(b)(c) as unconstitutional and ultra-vires being in violation of the fundamental rights of the petitioners.
10.2 Pass any other relief/order or direction, as this Hon'ble Court may deems fit and Proper looking to the facts and circumstance of the case and in the interest of justice, along with cost of the proceedings.”
“10.1 To direct the Respondents to permit depositing the complete amount of coins accumulated with the petitioner during the course of business transactions in its Bank Accounts.
10.2 To direct the Respondents to formulated the long-term policy for deposition of coins into bank accounts for any sum.
10.3 Pass any other relief/order or direction, as this Hon'ble Court deems fit and proper looking to the facts and circumstance of the case and in the interest of justice, along with cost of the proceedings.”
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wherein the average daily collection is about 80 lakhs out of which 60% of the same is in the forms of coins. It is the further case of petitioner that when he made an attempt to deposit large volume of coins with res. no.3, it was denied on the ground that res.no.2 had issued certain directions to accept coins to a certain extent only.
a. Reserve Bank of India has advised all the banks to accept coins of all denomination at all their branches for transactions and exchange vide its Master Circular on " Facility for Exchange of Notes & Coins" dated July 02, 2018. A copy of the said
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Master Circular dated July 2, 2018 is annexed herewith as Annexure R-2.
b. Reserve Bank of India has issued a press release on June 26, 2019 appealing to the members of public to accept coins as legal tender in all their transactions without any hesitation. A copy of the said press release dated June 26, 2019 is annexed herewith as Annexure R-3.
c. Reserve Bank of India has reiterated its instructions to banks to accept coins for transactions and exchange at all their branches vide its circular on "Acceptance of coins" dated June 26,2019. A copy of the said Circular dated June 26, 2019 is annexed herewith as Annexure R- 4.
d. The above instructions have also been incorporated in the Master Circular on "Facility for Exchange of Notes & Coins" issued on July 1, 2019. A copy of the said Master Circular dated July 1, 2019 is annexed herewith as Annexure R-5.”
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Sd/Sd/-
(P.R. Ramachandra Menon) (Parth Prateem Sahu) Chief Justice Judge
Anu
2 issues framed by the court
Whether Section 6(1) of the Coinage Act, 2011 regarding limitations on coin usage is unconstitutional and ultra-vires fundamental rights.
Whether the RBI circular permitting banks to accept coins addresses the petitioner's grievance regarding coin deposits.
1 provisions across 1 enactments
Vikas Soni and others
Touchstone Services Pvt. Ltd.
Union of India
Reserve Bank of India
State Bank of India
P. R. Ramachandra Menon
Parth Prateem Sahu
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
