Of Law And Livelihood

The Shivashakti Sugars Limited vs Shree Renuka Sugars Limited judgment has very lucidly raised the importance of economic welfare of india to attain the status of a developed nation and that the Courts must contribute in the capacity best suited them.

Recently, the Hon’ble Supreme Court in Shivashakti Sugars Limited Vs Shree Renuka Sugars Limited and others [(2017) 7 SCC 729] revisited the jurisprudence on the interface between law and economics. The commercial impact of judicial decisions is important more than ever as our nation has stepped into an era of economic liberalization and is on the path of economic growth. The psyche behind the judgment can best be understood from the observation that India has been a developing country for a number of decades and efforts at all levels are being made to ensure that India becomes a developed economy. And, the judiciary while performing judicial functions is also required to perform its role in the direction of safeguarding India in all its national interests including the progression to a developed economy.

There is a rising consensus about the need to understand the economic implications of judicial decisions. No doubt, legal scholars and courts in various other nations have been spearheading the jurisprudence of law and economics. However, Indian courts are recognizing the importance of economic impact of judicial decisions more than ever. What else can be a better example of it than the above stated recent judgment wherein the Hon’ble Supreme Court observed that it is the bounden duty of the courts to have an economic analysis of its decisions.