R.P.Mookerjee, J. - (1.) On the 12th January, 1946 the Governor General of India in Council promulgated two Ordinances demonitising currency notes of the value of Rs. 10,000/-, Rs. 1000/- and Rs. 500/-. Ordinance No. 2 of 1946 (Bank Notes (Declaration of Holdings) Ordinance) required banks and Government Treasuries to furnish information concerning bank notes valued over Rs. 100/- held by them. Ordinance No. 3 of 1946 (High Denomination Bank Notes (Demonitisation) Ordinance) provided for the procedure to be followed for the demonitisa-lion of High Denomination Bank Notes above the value of Rs. 100/-. These two Ordinances were published in the papers the next day, the 13th January, 1946. Under different provisions of these Ordinances, the 13th and the 15th January, 1946 were declared to be Bank Holidays under the Negotiable Instruments Act. January 14th was a Sunday.
(2.) Under section 4 of the Ordinance 2 of 1946 every Bank and every Government Treasury was required to prepare and send to the Reserve Bank of India-- (1) first return showing separately under each denominational value, the total value of Bank notes held by it at the close of business on the 11th January, 1946. (2) A second return giving particulars of Bank notes, if any, were received by it by post in the ordinary course of business on or after the 12th of January, provided such notes appeared to have been posted on or before the 11th January, 1946.
(3.) The first return was to be submitted not later than 3 P.M. on the 12th January, 1946 and the second return not later than the 16th January, 1946. The returns were to be presented either to the Manager of a Branch of the Reserve Bank. of India or to the District Magistrate or Sub-Divisional Magistrate or in their absence to the senior-most Revenue or Police officer available. If such authorities were not available they might be presented to a telegraph office for despatch by express telegram to the Reserve Bank. Section 5 of Ordinance 2 of 1946 vested the authority to hold inspection where Bank failed to file the statement as required under section 4. Section 6 provided for the penalty on the failure of the Banks to make the declaration as required under section 4.;