Acres of contention
👉The judiciary doesn’t seem to fully appreciate the economic consequences of its judgments👈 The number of legal disputes involving property, contract, labour, tax and corporate laws is bound to increase with an expanding economy. How they are adjudicated by courts not only has direct consequences for the disputants, but also shapes the behaviour of individuals and entities involved in production, commerce and banking. Judicial findings also influence decision-making of government agencies, which are major actors in a developing economy. Yet, the Indian judiciary doesn’t seem to fully appreciate the economic consequences of its judgments. 👉Case studies A case in point is a May 31, 2018 order of the Allahabad High Court — Independent Power Producers Association of India v. Union of India and Ors. The court has ruled that bankruptcy proceedings cannot be started against a power company unless the company is a wilful loan defaulter. It did not factor in the issue of viabilit...