Can there be any judicial review of the economic policy of the government?

The Supreme Court recently in Bajaj Hindustan Ltd. v. Sir Shadi Lal Enterprises Ltd. declared that the interference of a court in a matter relating to economic policy of the Government was unwarranted. In Balco Employees’ Union (Regd.) v. Union of India the Supreme Court observed that, “In a democracy, it is the prerogative of each elected Government to follow its own policy. Unless any illegality is committed in the execution of the policy or the same is contrary to law or mala fide, a decision bringing about change cannot per se be interfered with by the court”. The Court also held that “Wisdom and advisability of economic policies are ordinarily not amenable to judicial review unless it can be demonstrated that the policy is contrary to any statutory provision or the Constitution. In other words, it is not for the courts to consider relative merits of different economic policies and consider whether a wiser or better one can be evolved”.

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