R.K. Garg and Ors. vs Union of India
FACTS
The current petition challenges the constitutional validity of two acts set out to control black money, Special Bearer Bonds (Immunities and Exemptions) Ordinance, 1981 and the Special Bearer Bonds (Immunities and Exemptions) Act 1981 on the primary basis that the law violates Article 14 of the Indian Constitution and the President had no power to promulgate an ordinance under Article 123.
The impugned sections are Section 3 Sub-section (1) provides certain immunities to a person who subscribed to or otherwise acquired Special Bearer Bonds. Clause (a) protects such a person from being required to disclose, for any purpose whatsoever, the nature and source of acquisition of the Special Bearer Bonds. Clause (b) prohibits the commencement of any inquiry or investigation against a person on the ground of his having subscribed to or otherwise acquired the Special Bearer Bonds. And Clause (c) provides that the fact of subscription to or acquisition of Special Bearer Bonds shall not be taken into account and shall be inadmissible in evidence in any proceedings relating to any offence or the imposition of any penalty
LAWS INVOLVED
Article 14-
Article 123-
ISSUES
Whether the impugned law violates article 14?
Whether the impugned law violate Article 123?
JUDGEMENT
The constitutional validity of the laws were upheld by the Apex court and it was observed that the classification was based upon reasonable classification and intelligible differentia and therefore did not violate article 14. Further, the President had the power conferred under Article 123 to promulgate the impugned ordinance and it was also ruled that economic laws must not be declared invalid only because they are controversial or experimental rather only if it is arbitrary and or unconstitutional it may be struck down.
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