While Deciding Cases, Adopt A View Which Subserves Nation’s Economic Interest: SC [Read Judgment]

"Courts are increasingly receptive to economic arguments while deciding these issues. However, on the application of law and while interpreting a particular provision, economic impact/effect of a decision, wherever warranted, has to be kept in mind" Where two views are possible or wherever there is a discretion given to the Court by law, the Court needs to lean in favour of a particular view which subserves the economic interest of the nation, the Supreme Court has observed in Shiva Shakthi Sugar Ltd Vs Shri Renuka Sugar Mills Ltd. A bench comprising Justice AK Sikri and Justice AM Sapre observed that the court needs to avoid that particular outcome which has a potential to create an adverse affect on employment, growth of infrastructure or economy or the revenue of the state and it is very important to have an economic analysis of the decision. “On the application of law and while interpreting a particular provision, economic impact/effect of a decision, wherever warranted, has to be kept in mind,” the court said while disposing of an appeal preferred by Shivashakti Sugar Mills against a Karnataka High Court judgment. “These factors, particularly, bank loans, employment, generation and production at the factory serve useful public purpose and such economic considerations cannot be overlooked, in the context where there is hardly any statutory violation,” the court said while allowing the appeal. The court further elaborated: “Interface between law and economics is much more relevant in today‘s time when the country has ushered into the era of economic liberalisation, which is also termed as ‘globalisation’ of economy.