Govt shuns plan to bring national litigation policy

New Delhi: The Union government has decided to abandon its long-standing plan for a national litigation policy, opting instead to issue directives to ministries, departments, and public sector undertakings (PSUs) aimed at reducing the vast number of court cases involving the state.

The move comes after years of deliberation on how to reduce the government’s role as the country’s largest litigant. According to official figures, the Centre is currently a party to nearly seven lakh pending cases across various courts. Of these, close to 1.9 lakh involve the Ministry of Finance alone.

Law Minister Arjun Ram Meghwal had told the Rajya Sabha earlier this year, “There are about seven lakh cases pending where the Government of India is a party. Out of these, in about 1.9 lakh cases the Ministry of Finance is mentioned as a party.”

Officials said the Union Law Ministry finally shelved the idea of a national litigation policy after concluding that the government cannot prevent citizens from filing cases. “The term ‘policy’ cannot be used if it is applicable only on the government, its ministries and departments and not to private litigations. Something which is not universally applicable cannot be termed as policy... curbing government litigation is a very inward-looking move,” a senior ministry functionary explained. Another factor was procedural. A policy would have required approval by the Union Cabinet, with any subsequent changes also needing Cabinet clearance. Directives, in contrast, can be implemented more swiftly. “The term ‘directive’ has been used, as it has a sense of force. Words like “guideline” were avoided, as they are generic in nature,” the official added. The new set of instructions, titled Directive for the Efficient and Effective Management of Litigation by the Government of India, was cleared by a committee of secretaries in April and will be reviewed annually to track progress and consider modifications.

The directive acknowledges that decisions and actions of government agencies are intended to promote public good and improve governance, but gaps in implementation often lead to disputes. “Sometimes their ineffective implementation may lead to the exclusion of intended beneficiaries or the unintended ones being benefited. In some cases, affected parties may perceive certain decisions as unfair and pursue legal recourse through litigation,” it states.

Key measures include avoiding “unwarranted appeals”, resolving inconsistencies in notifications and orders, and streamlining legal procedures. By targeting these areas, the ministry hopes to curb the rising number of disputes involving central ministries, departments, and PSUs.

The idea of a national litigation policy is not new. The United Progressive Alliance (UPA) government had announced such a plan in June 2010 as part of its National Legal Mission. The stated aim then was to reduce average pendency in courts from 15 years to three. The 2010 policy explicitly recognised that government entities were the country’s predominant litigants.

However, the policy never moved beyond paper. The then law minister, M. Veerappa Moily, presented a draft but did not send it to the Cabinet. When the proposal eventually reached the Cabinet, no decision was taken. Over the years, successive governments redrafted the document but failed to finalise it. By formally closing the door on a national litigation policy, the present government has shifted to a more flexible model of directives. These instructions are designed to encourage ministries and PSUs to resolve disputes more efficiently and avoid actions that fuel unnecessary litigation.

The directive will be reviewed annually to assess progress and update strategies. Officials argue that this approach is better suited to the government’s role as the single largest litigant, allowing more adaptive management of cases.