Lok Sabha Question No. 349 (STARRED), answered on 2019-07-17
Subject: Dispute Resolution
Ministry: LAW AND JUSTICE
Asked by: M. K. Raghavan

## GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFAIRS ****

## LOK SABHA

STARRED QUESTION NO. 349 TO BE ANSWERED ON WEDNESDAY, THE 17 TH  JULY, 2019

## DISPUTE RESOLUTION

*349. SHRI M.K. RAGHAVAN:

Will the Minister of LAW AND JUSTICE be pleased to state:

- (a)   whether  the  Government  has  taken  note  of  the  Economic  Survey  of the Ministry of Finance which has pointed out that the slow resolution of economic and commercial cases was one of the biggest stumbling blocks  in  reviving  the  investment  cycle  in  the  country  and  if  so,  the details thereof;
- (b) whether it is also a fact that these are hampering dispute resolution and contract enforcement, discouraging investment, stalling projects, hampering  tax  collections,  stressing  taxpayers  and  escalating  legal costs and if so, the details thereof; and
- (c) the details of  the  coordinated action taken between the Government and the judiciary including a kind of horizontal Cooperative Separation of Powers to complement vertical Cooperative Federalism between the Central and State Governments to address the Law's delay and boost economic activity?

## ANSWER

## MINISTER OF LAW AND JUSTICE, COMMUNICATIONS AND ELECTRONICS & INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

****

- (a) to (c) A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (c) OF LOK SABHA STARRED  QUESTION  NO.*349  FOR  17.07.2019,  REGARDING  'DISPUTE RESOLUTION'  BY SHRI M.K. RAGHAVAN, HON'BLE M.P

(a): Yes  Sir,  the  Government  is  aware  of  the  position  as  stated  in  the Economic Survey.

(b)& (c):The Government in its endeavour to ensure resolution of Commercial cases expeditiously, fairly and at reasonable cost to the litigant, has  enacted  the  Commercial  Courts,  Commercial  Division  and  Commercial Appellate  Division  of  High  Courts  Act,  2015,  and  the  act  was  further amended in 2018, which facilitates the fast tracking of Commercial disputes by reducing the specified value of a commercial dispute to Rs. 3 lakh from the earlier Rs. 1.00 Crore and establishment of Commercial Courts at District Judge level in the jurisdiction of High Courts enjoying Ordinary Original Civil Jurisdiction. A mandatory provision of 'Pre-Institution Mediation and Settlement' (PIMS) (an Alternative Dispute Resolution Mechanism) in cases which do not contemplate urgent interim relief has also been introduced by the amended Act to facilitate out of court settlement and ease the work load of the Courts. The Government also amended the Arbitration and Conciliation Act, 1996, by the Arbitration and Conciliation (Amendment) Act, 2015, which, inter-alia, provides time limit for arbitral award, incentivizing quick  disposal  of  disputes,  neutrality  of  arbitrator,  timely  execution  of arbitral  award  by  restricting  the  scope  for  challenging  it.  The  Government has  also  taken  steps  to  promote  institutional  arbitration  in  the  country.In this  regard,  the  New  Delhi  International  Arbitration  Centre  Ordinance2019 has  been  promulgated  on  2 nd   March,  2019.  The  Government  has  also amended the Specific Relief Act, 1963, which inter-alia empowers the State Government  in  consultation  with  the  Chief  Justice  of  the  High  Court  to designate certain civil courts as Special Courts within the local limits of the area  to  exercise  jurisdiction  and  to  try  a  suit  under  the  Act  in  respect  of contracts relating  to  infrastructure  projects.  As  a  results  of  the  continuous efforts of the Government, India inDoing Business Report 2019 released on 31 st  October 2018, achieved 77 th  position out of the 190 economies, a jump of 23 positions from the 100 th position in the previous report. In Enforcing Contracts indicator, India's ranking improved by 1 position - from 164 in the 2018 Report to  163  Rank  in  the  2019  report.  Further,  the  Government  is also fully committed to speedy disposal of cases and reducing pendency and has,  in  conjunction  with  the  judiciary,  taken  many  corrective  steps.    The Government has taken several initiatives to provide an ecosystem for faster disposal of cases by the judiciary. The National Mission for Justice Delivery and Legal Reforms established by the Government has adopted a coordinated  approach  for  phased  liquidation  of  arrears  and  pendency  in judicial administration through various strategic initiatives, including improving infrastructure for courts, leveraging Information and Communication Technology (ICT) for better justice delivery, and filling up of vacant positions of Judges in High Courts and Supreme Court.

****