SC Strikes Balance: No Interference in Economic Policy Unless Constitutional Rights Violated
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New Delhi, Chief Justice of India B R Gavai emphasized the Supreme Court's commitment to upholding the rule of law while avoiding interference in economic policy matters, except in cases where fundamental rights or constitutional provisions are violated. Speaking at the Sixth Full Meeting of the Standing International Forum of Commercial Courts, Gavai highlighted the Court's efforts to maintain transparency and integrity in commercial and corporate dealings. The SC has ensured that it does not intervene in policy decisions that involve economic considerations unless there is a breach of constitutional rights or other provisions. This approach has been consistent in commercial and corporate matters, where the Court has been vigilant in preventing the misuse of legal and corporate structures for fraudulent gain. Gavai noted that the Court has struck a delicate balance between economic freedom, regulatory discipline, and fairness. It has reinforced the importance of a clear statutory foundation for State power, particularly in taxation and regulation, and emphasized that regulatory measures must be proportionate and reasonable. In commercial and corporate matters, the Court has prioritized transparency and integrity, rejecting attempts to exploit legal or corporate structures for personal gain. The CJI stressed that timely resolution and accountability are essential for a healthy financial system, while also recognizing that commerce must ultimately serve human welfare and social justice. As India transitions to a digital and green economy, the Court is promoting sustainability and ethical enterprise through commercial law. Gavai highlighted the importance of Environmental, Social, and Governance (ESG) norms, which he said resonate with Article 48A and the spirit of trusteeship in India's constitutional philosophy. The increasing integration of ESG principles in corporate reporting by Indian companies is a welcome trend, according to Gavai. This approach aligns with the idea that markets function best when anchored in responsibility, and profit must be aligned with purpose.
