With many proposals getting stuck due to inter-ministerial litigations, government is bringing a new policy to ensure that departments do not sue each other and cases are settled through arbitration and reconciliation.
Along with the National Litigation Policy that the government plans to bring, the ministries and departments are being encouraged to amend laws to reduce court cases.
In this direction, the Finance Ministry is likely to amend the Negotiable Instruments Act to reduce burden on courts with regard to litigations related to cheque bounce cases.
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The Transport Ministry is also likely to amend the Motor Vehicles Act to reduce ligitations related to challans.
Giving this information here, Law Minister D V Sadananda Gowda also said the draft of the new policy will be taken to the Cabinet after feedback from various ministries.
The proposed policy makes it clear that government departments should avoid going to court against each other. It also states that courts should only be approached once the government department is fully satisfied that litigation is the only resort left, Gowda told a press conference.
He said government also proposes to amend the Arbitration Act with an aim of making India an arbitration hub. "After enhancing cap on FDI, we think the Act needs to be amended and India can become a hub of international arbitration," Gowda said.
The plan to bring a litigation policy was initially mooted by then Law Minister M Veerappa Moily in UPA II period but it could not take off.
Though there are no official figures available as of now, Law Ministry believes that government is a litigant in 46 per cent of the cases in higher judiciary. As in 2010, 57,179 cases were pending in the Supreme Court and 42,17,903 were pending in the 24 High Courts at the end of 2011.
