RK GARG V/S UNION OF INDIA

This case is popularly known as Bearer Bond's Case. as Art 14 guarentees 'equlity before law & equal protection of law'. but there is exception to this rule on the 2 grounds 1. there should be intelligible differntia & 2. there should be relation bet differntia and object sought to be achieved by Act. Now coming to the case, the constitutional validity of Special Bearer Bonds(Immunities and exemption) Ordinance 1981 and the Act which replaced it was challenged on rational basis & violative to Art.14. Sec.3 of the Act granted certain immunities to a person who had invested his unaccontable money in the Special Bearer Bond. They were not required to disclose the nature and source of acquisition of the SBBs. It prohibited any enquiry or investigation against such person. The Court by 4-1 majority upheld the validity of ordinance,and the ground for classification made by the Act bet persons having black money and persons not having black money was based on intelligible differntia having rational relation with the object of the Act. I found the citation of tis case i s AIR 1981 SC 2138.