SC doesn’t interfere in policy matters of economic considerations, says CJI

The Supreme Court has ensured that it does not interfere in policy matters involving economic considerations unless there is a violation of fundamental rights or other provisions of the Constitution, Chief Justice of India BR Gavai said on Saturday.

Addressing the sixth full meeting of the Standing International Forum of Commercial Courts here, the CJI said in commercial and corporate matters, the top court has been vigilant in ensuring transparency and integrity, rejecting attempts to misuse legal or corporate structures for fraudulent gain.

“Similarly, the court has reaffirmed that any interpretation of a commercial statute must be in consonance with the legislative intent while maintaining fairness and public interest,” the CJI said.

Noting that the judiciary has been a steady guardian of the rule of law, Justice Gavai said the Supreme Court has consistently upheld the delicate balance between economic freedom, regulatory discipline and fairness.

“It has reinforced that the power of the state, particularly in matters of taxation and regulation, must rest on a clear statutory foundation and operate within the limits of the Constitution,” he said.

“The court has emphasised that while regulatory bodies must preserve financial stability and public confidence, their measures must always be proportionate and reasonable,” the CJI said.

“In commercial and corporate matters, the court has been vigilant in ensuring transparency and integrity, rejecting attempts to misuse legal or corporate structures for fraudulent gain. It has underscored that the discipline of timely resolution and accountability is vital for the health of the financial system, while also recognising that commerce must ultimately serve human welfare and social justice,” he said.

The CJI said across diverse areas, such as corporate governance, insolvency, arbitration and environmental accountability, the court’s approach has been principled rather than interventionist.

As India transitions to a digital and green economy, commercial law must promote sustainability and ethical enterprise, he emphasised.

“Environmental, social and governance norms are not foreign imports. They resonate with Article 48A and the spirit of trusteeship in our constitutional philosophy. Increasingly, Indian companies are integrating ESG principles in corporate reporting. This is a welcome trend, for markets function best when anchored in responsibility. Profit must be aligned with purpose,’ the CJI said.