India – Litigation & Dispute Resolution Laws And Regulations 2024.
Efficiency of process
With 688 District Courts, 25 High Courts and around 51.25 million pending cases, the Indian diaspora seems to have a penchant for litigation. Out of these, 81,386 cases are pending in the Supreme Court of India, and 6,186,863 cases are pending in High Courts across the country, as per the information available on the National Judicial Data Grid (NJDG) on May 16, 2024. Even though every High Court has a high disposal rate compared to the number of cases instituted, courts cannot reduce this huge pendency of cases. This is mostly because a large number of new cases are filed each day, and unless judicial infrastructure is expanded, the mounting pendency continues to challenge the judicial system.
The lack of Judges required to dispose of cases turns out to be the major reason for this problem, thereby affecting the efficiency of courts. However, in 2023, the Supreme Court of India took several measures to reduce pendency at the Apex Court, such as constituting Special Benches to expedite the disposal of three-judge bench matters. Approximately 166 such sittings were held in 2023. The impact is evident from the disposal rate, which rose to 52,220 cases in 2023 compared to 39,800 cases in 2022, 20,670 cases in 2021, and 24,586 cases in 2020.
However, the scenario for matters relating to intellectual property (IP) and alternative dispute resolution (ADR) is different. These matters take less time to dispose of and proceed more efficiently. High Courts are creating independent divisions with dedicated rules for IP matters that ensure all proceedings are completed more efficiently and expeditiously. Delhi High Court and Madras High Court have already constituted an IP division, and Calcutta High Court and Bombay High Court are on their way to creating such dedicated divisions. Generally, IP matters are contested heatedly only until the interim stage, when either the injunction is allowed or refused, and parties settle their matters soon after, avoiding prolonged trials.
If IP matters are disposed of expeditiously because of higher instances of settlement, ADR mechanisms, on the other hand, have inherent mechanisms to dispose of the cases at a faster pace. The ADR mechanisms available in India are mediation, settlement conferences, conciliation, arbitration, etc. For instance, over the last few years, the National Lok Adalat, organised by the National Legal Services Authority (NALSA), has also contributed to reducing the number of pending cases through ADR mechanisms. In the fourth National Lok Adalat held on December 9, 2023, 11,743,465 cases were resolved, including 1,198,278 pending cases and 10,545,187 pre-litigation cases.
To summarise, although courts are the preferred forum for litigation, the process is less efficient than ADR mechanisms available in the country. The Government of India has revamped the criminal substantive and procedural laws, which will come into force from July 1, 2024. Bharatiya Nyaya Sanhita, 2023 will replace the Indian Penal Code, 1860, whereas the Bharatiya Nagarik Suraksha Sanhita Bill, 2023 will replace the Code of Criminal Procedure, 1973 and the Bharatiya Sakshya Bill, 2023 will replace the Indian Evidence Act, 1872 (Evidence Act). These laws are being brought in to tackle many issues, the major one being the pendency of criminal cases to the tune of approximately 3 million before courts. Thus, it is expected that in the coming years, the efficiency of the courts will likely increase with the modernisation of laws.
Integrity of process
Indian courts believe in the dictum laid down by Lord Hewart in the Rex. v. Sussex Justices case of 1924, which states that “[j]ustice must not only be done but must also be seen to be done”. The courts follow processes that are clear, transparent, and consistent, and they build trust and faith in the judicial system. The courts are considered institutions of high integrity, and people have supreme faith in the processes of the judicial system, including ADR. There is a well-structured hierarchy of courts established under the Constitution of India, and the decisions of lower courts are guided by the precedents established by the High Courts and the Supreme Court of India, which is the Apex Court in India. In fact, Article 141 of the Constitution stipulates that the law declared by the Supreme Court shall be binding on all courts within the territory of India.
This ensures the integrity of decisions, and, in case any court deflects from such judicial precedent, such decisions are easily challengeable before the higher court. Judicial decisions show the courts’ commitment to lawfulness and justice, and they do not condone or associate themselves with unlawful acts, even those of the Government or government agents. Although there is no single uniform code for judicial ethics in India, three prime documents followed by Judges are essential for an independent, strong and respected judiciary and are indispensable for the impartial administration of justice. These documents are the Restatement of Values of Judicial Life adopted by the Chief Justices’ Conference of India, 1999, the Bangalore Principles of Judicial Conduct, 2002, and the Oath of a Judge, as contained in the Third Schedule of the Constitution of India.
The Supreme Court of India has highlighted how judicial ethics and the independence of the judiciary play an important role in dispensing justice in multiple judicial precedents. In S.P. Gupta v. Union of India, it was observed by the Supreme Court “that the concept of independence of the judiciary is a noble concept which inspires the constitutional scheme and constitutes the foundation on which rests the edifice of our democratic polity. If there is one principle that runs through the entire fabric of the Constitution, it is the principle of the rule of law. Under the Constitution, it is the judiciary that is entrusted with the task of keeping every organ of the State within the limits of the law and thereby making the rule of law meaningful and effective. It is to aid the judiciary in this task that the power of judicial review has been conferred upon the judiciary. It is by exercising this power, which constitutes one of the most potent weapons in the armoury of the law, that the judiciary seeks to protect the citizen against violation of his constitutional or legal rights or misuse or abuse of power by the State or its officers”.
Civil and criminal procedures are well-defined and coded laws passed by the Parliament of India and are required to be adhered to by civil and criminal courts. Courts are always guided by judicial principles and cannot arbitrarily stray from natural justice and judicial precedents. Because of these procedural laws, the integrity of the processes followed by courts is secured. Similarly, ADR processes are also well defined and guided by set rules, ensuring procedural integrity.
