INTRODUCTION
Soon after assuming charge in the newly formed cabinet, the Law Minister Arjun Ram Meghwal signed the National Litigation Policy document and finally turned this long pending demand to reach before the Cabinet for deliberation. The National Litigation Policy has been pending for a long time and was a part of the BJP’s manifesto.[1]
Thirteen years have passed since the first proposal for the National Litigation Policy was mooted in 2010. An initiative was undertaken to reduce the number of pending cases involving either the Central government, State governments, or Public Sector Undertakings.[2] The United Progressive Alliance government promulgated the National Litigation Policy, heralding it as a significant reform aimed at optimizing the management of government litigation.[3] In the recent past, we have seen the Parliamentary Standing Committee for Law and Justice and the Parliamentary Standing Committee on Railways have summoned various ministries to address issues related to litigation management, and the ministries were reproached for the absence of established criteria for the employment of advocates.[4]
The National Litigation Policy finds itself as a part of the ‘100-day Agenda’ under the ‘Modi 3.0’ government and the objective of the policy is to reform the government into an accountable litigant.[5]
BACKGROUND
According to the Government of India (Allocation of Business) Rules, 1961, the Department of Legal Affairs is mandated to represent the Central Government in cases before the Supreme Court, High Courts, and all other courts.[6] In the case of Dilbag Rai, Justice Iyer underscored the necessity for a more refined litigation policy by the State, noting the State’s position as the predominant litigant and the associated rising expenditures. Furthermore, in State of Punjab v. Geeta Iron & Brass Works Ltd., (1978), the Supreme Court observed that Governments should be held accountable for wasteful litigation expenditures through a Parliamentary social audit.[7] The Court emphasized the State’s responsibility to implement measures for the expeditious disposal of cases rather than perpetuating them in court. The Law Commission, in its 126th Report on “Government and Public Sector Undertaking Litigation Policy and Strategies,”[8] asserted the need for a National Litigation Policy aimed at reducing government litigation to alleviate the burden on the judicial system.
In 2009, the Ministry of Law and Justice convened a “National Consultation for Strengthening the Judiciary, Towards Reducing Pendency and Delays.” During this consultation, the then Minister of Law and Justice presented a resolution advocating for the development of a National Litigation Policy. Subsequently, the Department of Legal Affairs formulated the National Litigation Policy in 2010 under the UPA government. [9]This Policy aimed to transform government litigation into an accountable process. However, the Policy was not successfully implemented. Following a review, the National Litigation Policy of 2015 was formulated to reduce the pendency of government litigation. In June 2017, the Law Ministry developed the “Action Plan to Reduce Government Litigation,” emphasizing that appeals should be filed primarily in cases involving significant policy matters.[10]
STAND OF THE GOVERNMENT IN RECENT YEARS
In December 2022, the then Minister of Law and Justice, Kiren Rijiju, responded to an inquiry stating that the implementation of the National Litigation Policy was halted based on the recommendation of the Committee of Secretaries (CoS). Rijiju further noted that the revised Policy had been discussed at various levels and subsequently submitted to the CoS, which recommended issuing guidelines rather than adopting a formal Policy.[11] However, it has been observed that the newly appointed Minister of Law and Justice, upon assuming office, immediately proceeded to sign the draft of the National Litigation Policy.
THE NEED FOR THE NATIONAL LITIGATION POLICY
In the 2020-21 edition of the ‘Economic Survey of India’, it was highlighted under one of its chapters that the Government in matters about taxation-related litigation loses around 73% of all its cases in the Supreme Court of India and around 87% of them in the High Courts. However, it still does not deter them from pursuing appeals.[12] Therefore, the National Litigation Policy is essential to address the issue of backlog and pendency of lawsuits in the Indian courts where the government is a litigant. Considering that the government and its departments are the primary litigants, the policy aims to reform the government into a more accountable litigant. A responsible litigant would mean where the emphasis is on welfare legislation and core issues are focused on in the litigation. The significance of the Policy resides in the necessity for proper management of government litigation and the pursuit of transparency. In a response from the then Minister of State in the Ministry of Law and Justice in 2010, Dr Veerappa stated that the National Litigation Policy is crucial for making government litigation more ‘focused, cohesive, and coordinated’, and timely resolution of the litigation.[13] In response to an unstarred question in 2023, the then Minister of Law and Justice, Kiren Rijiju, clarified that the Union Government does not collect data on the percentage of cases in which it acts as a litigant. Instead, he referenced data available on the LIMBS portal. According to the ‘LIMBS’ portal, the Ministries of Finance, Railways, and Labour account for more than half of the caseload. The data collected pertains solely to the Union Government and depends on inputs from various ministries and their advocates. It remains unclear whether this data includes litigation involving Public Sector Undertakings (PSUs). The necessity for a National Litigation Policy is evident, as per the ‘National Judicial Data Grid’ portal, which reports a total of 4,87,99,450 pending cases in the country’s courts. According to ‘LIMBS’, the Central Government is a litigant in 5,94,584 of these pending cases.[14]
JUDICIAL STAND ON THE NATIONAL LITIGATION POLICY
In September 2023, the Supreme Court dismissed an appeal by the Karnataka Government and further decreed compensation to be provided to the landowners who had been unjustly denied payment. In its judgment, the Supreme Court referenced the filing of frivolous petitions by officials of State Governments, who incur no personal financial responsibility for the associated costs. This decision underscores the inherent nature and weight of the burden imposed by government litigation.[15]
Further in August 2023, the Supreme Court verbally observed that the government was responsible for around 40% of the frivolous litigation. Even the Bombay High Court in October 2023 stated “We are no strangers to repeated assertions from the Union government itself regarding pendency of cases, mounting arrears, frequent adjournments, and impediments allegedly caused by our courts to what the government calls ‘the ease of doing business’”. Even in 2016, Justice Thakur expressed his frustration at the ‘avalanche of litigation’ considering the number of judges to reduce the pendency.[16]
CONCLUSION
The execution of the draft of the National Litigation Policy by the recently inaugurated Law and Justice Minister, Arjun Ram Meghwal, is significant for the advancement of government-related litigation. This measure addresses a longstanding request from the judiciary concerning the backlog of cases. This policy underscores the government’s intention to act with accountability in legal proceedings, ensuring that cases are pursued only when necessary and with a genuine intention to resolve disputes justly.
The policy is designed to promote alternative dispute resolution methods and encourage the early settlement of disputes, thereby reducing the financial burden on the state’s resources. Furthermore, the National Litigation Policy is expected to significantly reduce the backlog of lawsuits pending in the courts. This objective will be achieved through systematic reforms and streamlined processes aimed at expediting the resolution of cases. The policy includes measures for improving the coordination between various government departments and the judiciary, ensuring timely submission of documents, and adherence to court schedules.
Overall, the National Litigation Policy represents a comprehensive strategy to enhance the efficiency of the legal system, promote responsible litigation practices, and address the issue of case pendency, thereby contributing to the delivery of timely justice.
Author(s) Name: Aishwarya Agnihotri (Institute of Law, Nirma University, Ahmedabad)
References:
[1] Bhavani Mishra, ‘Law Minister Signs National Litigation Policy Document after Taking Charge’ (Business Standard, 11 June 2024) <https://www.business-standard.com/india-news/law-minister-signs-national-litigation-policy-document-after-taking-charge-124061101005_1.html >accessed 15 June 2024
[2] Soibam Rocky Singh, ‘Over 13 Years on, India’s National Litigation Policy Remains in Draft Limbo’ (The Hindu, 5 October 2023)<https://www.thehindu.com/news/national/over-13-years-on-indias-national-litigation-policy-remains-in-draft-limbo/article67365778.ece >accessed 15 June 2024
[3] Jain C and Reddy P, ‘Why Legal Experts Are Sceptical about the BJP’s Promise to Bring Back a National Litigation Policy’ (Scroll.in, 27 April 2024) < https://scroll.in/article/1066968/why-legal-experts-are-sceptical-about-the-bjps-promise-to-bring-back-a-national-litigation-policy >accessed 15 June 2024
[4] Ibid
[5] Bhavani Mishra, ‘Law Minister Signs National Litigation Policy Document after Taking Charge’ (Business Standard, 11 June 2024) <https://www.business-standard.com/india-news/law-minister-signs-national-litigation-policy-document-after-taking-charge-124061101005_1.html >accessed 15 June 2024
[6] ‘Status Note on National Litigation Policy’ (Department of Legal Affairs) <https://legalaffairs.gov.in/sites/default/files/status note on nlp_0_0.pdf > accessed 14 June 2024
[7] Ibid
[8] ‘Government and Public Sector Undertaking Litigation Policy and Strategies: Law Commission of India’ (Law Commission of India, 1988) < https://lawcommissionofindia.nic.in/cat_public_sector_undertaking/> accessed 15 June 2024
[9]‘Status Note on National Litigation Policy’ (Department of Legal Affairs) <https://legalaffairs.gov.in/sites/default/files/status note on nlp_0_0.pdf > accessed 14 June 2024
[10] Soibam Rocky Singh, ‘Over 13 Years on, India’s National Litigation Policy Remains in Draft Limbo’ (The Hindu, 5 October 2023)<https://www.thehindu.com/news/national/over-13-years-on-indias-national-litigation-policy-remains-in-draft-limbo/article67365778.ece >accessed 15 June 2024
[11] Tripathi S, ‘MC Explains: The What, Why, When and How of National Litigation Policy’ (Moneycontrol, 13 June 2024) < https://www.moneycontrol.com/news/opinion/the-what-why-when-and-how-of-national-litigation-policy-explained-12747955.html> accessed 15 June 2024
[12]Ministry of Finance, ‘Economic Survey 2020-21’ (India Budget,2021)<https://www.indiabudget.gov.in/budget2021-22/economicsurvey/doc/echapter.pdf> accessed 15 June 2024
[13]‘National Litigation Policy’ (Parliament Digital Library, 2010)<https://eparlib.nic.in/bitstream/123456789/591041/1/94683.pdf> accessed 15 June 2024
[14] ‘Government of India Ministry of Law and Justice Department of Legal Affairs’ (Department of Legal Affairs, 2023) <https://legalaffairs.gov.in/sites/default/files/AU1878.pdf >accessed 15 June 2024
[15] Rangarajan L, ‘More Courtrooms, Judges & Tech Won’t Reduce India’s Pending Cases When the Biggest Litigator Is the Govt’ (Article 14, April 2024) < https://article-14.com/post/more-courtrooms-judges-tech-won-t-reduce-india-s-pending-cases-when-the-biggest-litigator-is-the-govt-661877a4a0ef4 >accessed 15 June 2024
[16] Ibid
