New Delhi, Aug. 24 -- Three weeks ago, I met a senior executive of one of India's best-funded startups at a swanky rooftop bar in one of Delhi's finest hotels. It was a relaxed, informal meeting, towards the end of five months of marathon Supreme Court hearings. Amid a light, breezy drizzle that fogged up the glass walls of the bar, I asked him what would happen if the Supreme Court didn't rule in his company's favour? After all, tax demands of over 5x the company's reported revenue were at stake-not just for him, but his entire industry.

"Well, I've done this for more than a decade now. If things go south, I guess we'll all be out looking for other jobs-with a chunk of my life potentially accounting for nothing," he said. "But, I hope t...