BS Number Wise: India's justice system picks up some speed, shows data

The Ease of Doing Business reports had their misgivings, but they captured how well the legal system did to enforce contracts. India ranked lower than most economies — 163 out of 190 countries — on the parameter despite jumping 67 positions on the main index in 2020.

The government’s Department of Justice and the Supreme Court’s eCommittee set up dedicated commercial courts to improve India’s performance. Doing business reports were discontinued in 2021, but efforts to settle commercial cases seem to be paying off. 

Data released by the department shows that the time for settling commercial cases in Delhi and Mumbai has reduced by half. It took 1,445 days for a case to reach resolution. Now, a case is resolved in 744 days in Delhi and 626 days in Mumbai.

A Business Standard analysis shows that besides commercial courts, the settlement time for all cases has improved in high courts as well. Case clearance rate — the number of cases disposed of against those instituted in a year — has increased. 

The average clearance rate across high courts declined during the coronavirus pandemic but is now higher. In 2019, the average clearance rate in high courts was 93.6 per cent. For the first six months of 2022, the average was 94.9 per cent.

A higher clearance rate does not guarantee pendency declining unless courts clock over 100 per cent clearance. Institution of cases remains higher than disposal, but only 10 of the 25 high courts had a clearance rate of over 100 per cent. Nine states had an over 100 per cent clearance rate in 2019.

It is still not enough as some of the most burdened courts, like Allahabad High Court, had a lower than 100 per cent clearance rate.

Dedicated commercial courts can serve as an example for reducing pendency. Besides ease of doing business, the government must also focus on ease of living.