Shivashakthi Sugar Limited vs Shee Renuka Sugar - Supreme Court
Shivashakthi Sugar Limited vs Shee Renuka Sugar - Supreme Court Important Judgment 2017 -
On 9th May, 2017, in the case of Shivashakthi Sugar Limited v. Shee Renuka Sugar Limited & Ors. [Civil Appeal No. 5040 of 2014], the Supreme Court observed that interface between law and economics is much more relevant in today’s time when the country has ushered into the era of economic liberalization, which is also termed as ‘globalisation’ of economy and India is on the road of economic growth” and further that it has become the bounden duty of the Court to have the economic analysis and economic impact of its decisions. It was however clarified that while taking into account these considerations specific provisions of law are not to be ignored.
It was held that the “first duty of the Court is to decide the case by applying the statutory provisions. 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. Likewise, in a situation 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. Conversely, 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. It is in this context that economic analysis of the impact of the decision becomes imperative.”