Context: Recently, the Government think tank NITI Aayog has decided to conduct a study on the “economic impact” of various judgments delivered by the judiciary.
Background

• The first study is on the economic impact of the ban that was imposed by the apex court in March 2019 on the construction of a greenfield airport at Mopa in Goa.
• The top court had suspended an economic clearance granted for the airport and had then asked the Expert Appraisal Committee to revisit its decision.
• The ban on construction was lifted by an order of the top court in January 2020 but had several revised conditions.

The four other judgments, for which the economic impact assessment study will be carried out by CUTS International, include:

• The SC’s February 2018 ban on iron ore mining in Goa,
• A 2013 NGT ban on sand mining in the Yamuna River in Gautam Buddha Nagar,
• The recurring SC ban on construction of buildings in Delhi and National Capital Region and
• The apex court’s decision rejecting the opening of Vedanta’s Sterlite copper plant

Key Highlights

• The study will be conducted by the Jaipur-headquartered research organisation Consumer Unityand Trust Society (CUTS) International.
• The study will be conducted on the “economic impact” of various judgments delivered by Supreme Court, the high courts, and quasi-judicial bodies such as the National Green Tribunal (NGT).

Need for Study on Economic Impact of Judgements

• The absence of ex-ante analysis of the economic costs associated with a decision is further exacerbated when judicial activism by courts and tribunals is also in play.
• The study is a part of the larger umbrella project undertaken by NITI Aayog under which it wants to establish a judicial performance index.
• The judicial performance index would measure the performance of judges at district courts and subordinate levels.

Objectives of Study on Economic Impact of Judgements

• The objective of the study aims at a narrative building for sensitising the judiciary on the economic impact of their decisions.
• The findings will be used as a training input for judges of commercial courts, NGT, HCs, and SC etc.
• The study is to do an objective cost-benefit analysis of the economic impact of the decisions.
• It would contribute to public discourse among policymakers for promoting an “economically responsible approach by judiciary” in its decisions.
• The study is also a part of the larger umbrella project undertaken by NITI Aayog under which it wants to establish a judicial performance index, which would measure the performance of judges at district courts and subordinate levels.