Raibagh sugar factory can operate: SC

Court uses extraordinary power to issue directions

 The judiciary has resorted to economic analysis of law on an ad hoc basis. Time has come to consider the interdiscipline between law and economics as a profound movement on a sustainable basis. So, the court needs to lean in favour of a particular view which subserves the economic interest of the nation, the Supreme Court has said.

A bench of Justices A K Sikri and Abhay Manohar Sapre made the observations while allowing a sugar factory to continue its operations in Belagavi district’s Saundatti village.

The apex court used its extraordinary power to do complete justice as given under Article 142 of the Constitution to issue directions for operation of the sugar factory in Raibagh region, though two other factories function in the vicinity.

It noted that there were certain economic factors which tilted the balance in favour of Shivashakti Sugars Limited. These included an expenditure of Rs 300 crore for establishing the factory, generation of employment of 377 people on a regular basis and indirect employment of more than 7,000 people and setting up of a co-generation plant to produce 37 MW of electricity.

“These factors serve useful public purpose and such economic considerations cannot be overlooked, in the context where there is hardly any statutory violation,” the bench said.

Among others, the court also said there is ample sugarcane supply in Karnataka and in the Raibagh region, and therefore there would be no adverse effects on the operation of any other sugar mills including M/s Raibagh Sahakari and M/s Doodhganga Sahakari.

In its judgement, the bench said it was required to undertake an economic analysis of law. “India is on the road of economic growth. It has been a developing economy for a number of decades and all efforts are made, at all levels, to ensure that it becomes a fully developed economy. Various measures are taken in this regard by the policy makers. The judicial wing, while undertaking the task of performing its judicial function, is also required to perform its role in this direction,” the court said.