Justice Hima Kohli underscored the crucial partnership between India and the USA, especially in terms of judicial collaboration and mutual respect for the rule of law, during her participation in the India Conference 2024 organized by the American Bar Association (ABA).
Speaking on the theme, ‘Role of the Judiciary and the Rule of Law in Advancing Economic Development,’ Justice Kohli emphasized the importance of legal frameworks and judicial actions in supporting economic stability, growth, and innovation.
She remarked, “The partnership between India and the USA, particularly through judicial collaboration and mutual respect for the rule of law, presents a significant opportunity to enhance economic development. By focusing on areas such as legal certainty, efficient dispute resolution, protection of property rights, contract enforcement, and digital transformation, both countries can create a more favorable environment for economic growth and innovation.”
“From India’s perspective, learning from the US experience and fostering closer judicial and legal cooperation will not only benefit our economic ties but also strengthen the very foundation of our democratic and legal systems,” she added.
Justice Kohli highlighted that the relationship between India and the United States represents democratic values and mutual respect for the rule of law.
She noted that both nations, with their robust judicial systems, play pivotal roles in upholding justice within their borders and driving economic growth and innovation.
The collaboration between these two great democracies, especially in the judicial domain, can catalyze economic development, providing a stable and predictable environment for businesses and investors, she added.
Justice Kohli explained that the judiciary’s role in economic development is based on legal certainty, property rights protection, contract enforcement, and safeguarding economic rights, which are essential for market economies to operate and provide stability for businesses and investors.
She emphasized that the judiciary’s role in upholding and reinforcing these principles directly impacts investment decisions, market confidence, and overall economic health.
Justice Kohli noted that the judiciary’s awareness and integration of considerations such as protection of individual rights, economic development, and sustainable growth within the framework of the rule of law are nuanced and significant.
She further stated, “Through its interpretations and rulings over the years, the judiciary has demonstrated a keen understanding of the delicate balance between protecting civil liberties and fostering economic progress. In striking this balance, courts have often navigated complex scenarios where economic policies and individual rights have intersected.”
“For instance, the USA judiciary’s approach to dispute resolution frequently considers not only the legal merits of a case but also the broader economic implications. This includes assessing the impact of decisions on the investment climate, market stability, and the overall economic well-being of the state and its people,” she added.
In the Indian context, Justice Kohli said that the judiciary has shown an increasing inclination towards endorsing sustainable growth models.
“This is evident from recent rulings that emphasize environmental protection, corporate social responsibility, and ethical business practices as integral to economic development. By upholding laws and principles that promote sustainability, the Indian judiciary reinforces the position that long-term economic prosperity cannot be separated from environmental stewardship and social welfare,” she added.
Further, Justice Kohli remarked that in recent years, India has made significant strides in establishing itself as a reliable partner in arbitration and mediation services.
She pointed out, “India’s transformation into a commercial arbitration hub, driven by the judiciary’s unwavering commitment to fast-tracking matters under the Arbitration and Conciliation Act, 1996, and fostering a pro-enforcement regime, is undeniable. The Indian Supreme Court, particularly by limiting judicial intervention and respecting arbitral awards, has bolstered India’s reputation as a favorable venue for dispute resolution. This judicial philosophy complements legislative reforms and signifies India’s ambition to become a global hub for arbitration.”
“The approach of the Indian judiciary is, therefore, of comprehensive consideration. It acknowledges that true economic development is not about immediate gains but involves a sustainable approach that benefits society at large. This approach reflects a judicial consciousness that acknowledges the fact that economic well-being and individual rights are not mutually exclusive but are, in fact, complementary forces which when balanced correctly, promote a more just, equitable, inclusive, and prosperous society,” Justice Kohli further pointed.
Elaborating on the judiciary’s role in protecting property rights, Justice Kohli said that it is the cornerstone of the nation’s economic development, and securing property rights is essential for fostering investment, innovation, and economic participation.
“Securing property rights are essential for fostering investment, innovation, and economic participation. Technical aspects of this role include enforcement of laws against unlawful expropriation, provision of legal remedies for property disputes, and maintenance of robust land registration systems. These judicial actions ensure that property rights are clear, enforceable, and protected, encouraging individuals and businesses to invest in and develop property assets,” Justice Kohli further added.
She also said, “Property rights, including intellectual property (IP) rights, foster innovation and attract investment. By collaborating on the protection and enforcement of IP rights, India and the USA can create a more conducive environment for innovation-driven economic development. This involves aligning policies and enforcement mechanisms and engaging in joint initiatives to combat counterfeiting and piracy, ensuring that innovators and creators are adequately rewarded for their contributions.”
Talking on the enforcement of Contract law, Justice Kohli states that it is fundamental to the functioning of modern economies, and it provides the legal framework for commercial transactions.
She further said, “The judiciary’s technical role in interpreting and enforcing contracts involves the application of principles that ensure that contracts are honored and breaches are remedied in ways that can maintain contractual integrity.”
“This includes enforcement of claims of specific performance, damages, and rescission. By upholding contractual laws, the judiciary facilitates trust among economic actors, ensures that commercial agreements are honored, and disputes are resolved in a timely manner thus upholding the rule of law,” Justice Kohli added.
Justice Kohli also said during her address that by sharing best practices in contract enforcement and exploring the adoption of uniform commercial codes, India and USA can reduce the cost and complexity of commercial transactions.
“This simplifies cross-border trade and enhances investor confidence, as industries and businesses have the confidence of a consistent legal framework for enforcing contracts,” she concluded.
