SC: The judiciary must not create an anti-investment atmosphere

NEW DELHI: The Supreme Court has said that the Constitutional Court must be careful while conducting judicial review of laws to avoid creating an anti-investment atmosphere and should weigh national interest against hypothetical concerns about the legislation.CJI Surya Kant and Justice Joymalya Bagchi made these oral observations during the preliminary hearing of the PIL in EAS Sarma on Friday, with counsel Prashant Bhushan Bhushan pointed out that the responsibility of private companies operating nuclear power plants under the Sustainable Utilization and Advancement of Nuclear Transformation in India (SHANTI) Act passed by Parliament in December last year was wrong. Bhushan said that while nuclear power plant accidents could cost billions of rupees, the liability of private companies was capped at 3,000 billion rupees, citing the Chernobyl and Fukushima nuclear disasters. The government allowed private companies to participate in the nuclear energy sector but exempted them from strict civil liability provisions, he said, adding that the government’s liability was also capped at Rs 4,500 crore.“There must be an atmosphere in the country that encourages investors to invest,” CJI Kant said. SC says regulations must be in sync with other countries CJI Kant said: “Today, coal-fired power plants are no longer encouraged. We cannot do without nuclear power. Therefore, the approach has to maintain a balance – national interest versus hypothetical fears.” “We should not create an atmosphere where people are afraid to invest in India because the courts here interfere with everything. Despite huge investments, litigation drags on and projects become unviable.”“These are policy decisions — what our energy basket should be. Whether the policy is prejudicial or unconstitutional can be determined by review,” Judge Budge said.“Show us the regulatory framework for civil liability in countries like the United States, Europe and Japan. When electricity is traded across borders, India’s regulatory framework must be compatible with those of other countries. “Senior advocate Kapil Sibal tried to interject in support of Bhushan, but the bench stopped him, saying “let Bhushan assist us”. The judge asked Bhushan to provide details of regulatory frameworks for civilian nuclear liability regimes in other countries and postponed the hearing until next month.