Chief Justice of India B.R. Gavai said the Supreme Court respects the government’s economic policy decisions and maintains judicial restraint, intervening only when fundamental rights or constitutional provisions are violated, ensuring balance between law and economic governance.
Thank you for reading this post, don't forget to subscribe!
NEW DELHI: Chief Justice of India (CJI) B.R. Gavai on Saturday emphasized that the Indian judiciary has played a stabilizing and constitutional role in India’s economic transformation, ensuring that commercial growth remains firmly anchored in the rule of law and constitutional principles.
Speaking at the 6th Full Meeting of the Standing International Forum of Commercial Courts (SIFoCC) in New Delhi, the CJI said that the Supreme Court of India has maintained a careful balance between economic freedom, regulatory discipline, and fairness, even as India transitioned from a controlled economy to one deeply integrated with global markets.
“Throughout this transformation, the judiciary has been a steady guardian of the rule of law. The Court has ensured predictability and certainty, which are core elements of the rule of law,”
CJI Gavai said.
CJI Gavai reiterated that the Supreme Court has consistently refrained from interfering in economic and policy matters, except where such policies violate fundamental rights or other constitutional provisions.
“The Supreme Court has ensured that it does not interfere in policy matters with economic considerations unless there is a violation of fundamental rights or other provisions of the Constitution,”
he said.
He cited Article 19(1)(g), which guarantees the freedom to carry on trade or business, and Article 14, which mandates fairness and non-arbitrariness in state actions, as the constitutional foundation of India’s economic activity.
The Chief Justice highlighted that the Court has reinforced the need for the State’s regulatory power, particularly in taxation and financial matters, to rest on a clear statutory foundation and operate within constitutional limits. He added that regulatory bodies must act proportionately and reasonably, ensuring that financial stability and public confidence are maintained.
“Timely resolution and accountability are vital for the health of the financial system,” CJI Gavai said, noting that “commerce must ultimately serve human welfare and social justice.”
ALSO READ: All Three Pillars of Democracy Must Work Together for Welfare of Citizens: CJI BR Gavai
In commercial and corporate matters, the Supreme Court has been vigilant in promoting transparency, integrity, and ethical governance, rejecting any misuse of legal or corporate structures for fraudulent gain.
Looking ahead, CJI Gavai said that as India transitions to a digital and green economy, the law must encourage sustainability and responsible enterprise.
“Environmental, Social, and Governance (ESG) norms are not foreign imports. They resonate with Article 48A and the spirit of trusteeship in our constitutional philosophy. Profit must be aligned with purpose,”
he said.
He also cautioned that emerging sectors such as fintech, blockchain, and artificial intelligence pose new regulatory challenges.
“Courts and regulators alike will have to balance efficiency with rights, and speed with scrutiny,”
he added.
CJI Gavai credited India’s modern commercial legal architecture to post-1991 economic reforms. He highlighted key developments such as:
- Establishment of the Securities and Exchange Board of India (SEBI);
- The Arbitration and Conciliation Act for institutional arbitration;
- The Competition Act;
- Corporate Social Responsibility (CSR) and board diversity mandates under the Companies Act;
- The creation of specialized commercial courts; and
- The Insolvency and Bankruptcy Code (IBC).
These reforms, he said, have strengthened the partnership between law, economy, and justice, ensuring that India’s rapid growth remains constitutionally grounded.
Union Law Minister Arjun Ram Meghwal, who also addressed the gathering, said that India is committed to developing a world-class commercial dispute resolution ecosystem.
He pointed to several recent initiatives:
- Repeal of over 1,500 obsolete laws;
- Introduction of new criminal law codes;
- Reduction in regulatory compliance burden;
- Digitization of judicial processes; and
- Efforts to establish India as a global arbitration hub.
Referring to the India International Arbitration Centre Act (2019), the Commercial Courts Act (2015), and amendments to the Arbitration and Conciliation Act, Meghwal said these measures enhance ease of doing business, ease of justice, and ultimately, ease of living.
He also hailed the Bar Council of India’s rules allowing foreign lawyers and firms to practice foreign law and international arbitration in India as a “pivotal moment” for global legal collaboration.
Click Here to Read More Reports On CJI Gavai
