Noting that the judiciary is considered "divine" and next only to God, he advised it to have an internal mechanism for self-assessment, which he said, is a "difficult" task.
After Modi raised the issue, Chief Justice of India H L Dattu said the judiciary already had an in-house mechanism in place that is “effectively functioning”.
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He was asked whether the government thinks the Judiciary lacks its system of checks and balances.
Addressing a joint conference of Chief Justices of High Courts and Chief Ministers, Modi said that while the judiciary is getting powerful, it is necessary that it also becomes "perfect" to live up to the expectations of the people.
"It is easy to deliver judgements based on the law and the Constitution. There is a need to be cautious against perception-driven verdicts," he said, adding that "perceptions are often driven by five star activists".
"We (the political class) are lucky that people watch us, assess us and rip us apart. You (Judiciary) are not as lucky.
"If you order a person to death, he also comes out and says that he believes in the judiciary...When there is little scope for criticism, the need of the hour is to develop an internal mechanism for self-assessment where the government and the politicians have no role," the Prime Minister said.
He said if such a mechanism is not evolved and the faith in the judiciary is affected even a little bit, it will hurt the nation.
"If the politicians or the government make a mistake, there is a scope to repair the damage by the judiciary. But if you commit a mistake, then everything will end," he said.
The previous UPA government had brought a bill on judicial standards and accountability where a common man was free to complain against a judge of the higher judiciary. Amid opposition by the judges, the measure lapsed with the dissolution of the 15th Lok Sabha.
Viewing Judiciary and Legislature as "siblings", Justice Dattu pressed for coordination as well as correcting each other in case the path laid down by the Constitution is deviated from.
He emphasised that issues related to the delivery of justice including the pendency of court cases cannot be handled by the Judiciary alone and the Executive must extend a helping hand besides granting financial autonomy to allow spending of allocated funds and better pay packages for judicial officers to attract the best minds.
Chief Ministers from states ruled by non-NDA parties demanded substantial support from the Centre for improving judicial infrastructure even as they resolved to address the issue of pendency of cases.
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