A Call for "Reverse Engineering" in Indian Law: Sr Adv Pinky Anand

In a bold and thought-provoking speech, Supreme Court Senior Advocate Pinky Anand delivered a powerful critique of India's legal system, arguing that a fundamental re-evaluation is urgently needed. She framed her entire argument around a single, striking phrase: "reverse engineering." This isn't just about tweaking existing laws; it's about going back to the core principles and fixing a system she believes has been interpreted in the opposite way it was intended.

The Core Problem: A "Reversed" Interpretation

Ms. Anand pinpointed a central issue within Indian contract law, specifically concerning liquidated damages. While the law itself was designed to make things simple and avoid the need to prove a precise monetary loss, its application has been twisted. Instead of standing as a fixed, pre-agreed amount, it often gets tied up in complex litigation, requiring parties to prove their actual losses anyway. This process, she argued, completely undermines the original intent of the law and leads to an endless "trajectory of litigation."

The Solution: A Two-Pronged Approach

To correct this, Ms. Anand proposed two paths forward. The first is a substantive correction by the judiciary. She suggested that a larger bench of judges, possibly a seven- or nine-judge bench, could review and re-interpret the law to align with its original purpose. The second option is a legislative amendment to make the law's intent explicitly clear and remove any ambiguity that allows for the current "reversed" interpretation.

From a Socialist Past to a Modern Future

Ms. Anand provided a historical context for the current legal mindset. She explained that the older legal regime was based on a "socialist pattern of thought," designed to protect the "poor people" in a "David and Goliath fight." However, she argued that in a modern India, a "Viksit Bharat" (developed India) and the fourth-largest economy, this approach is outdated. Today, parties in business dealings often have "equal bargaining strength," and the legal system needs to reflect this reality.

The Economic Imperative

Ms. Anand stressed that the current state of legal uncertainty is a major hindrance to national progress. She directly linked legal reform to the country's economic goals, particularly the "ease of doing business" index. To improve this index and attract more foreign direct investment (FDI), India must reduce legal uncertainty, vagueness, and ambiguities. A clear, predictable legal framework is essential for a modern, global economy.

In conclusion, Ms. Anand's speech was a powerful call to action. She urged both the judiciary and the legislature to undertake a process of "reverse engineering" to fix the fundamental issues in India's legal system, ensuring it serves the needs of a modern, efficient, and economically powerful nation.