Lok Sabha Question No. 2855 (UNSTARRED), answered on 2023-03-17
Subject: Government Litigations in Courts
Ministry: LAW AND JUSTICE
Asked by: Sushil Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFIARS

## LOK SABHA

## Unstarred Question No. 2855 TO BE ANSWERED ON THURSDAY, THE 17.03.2023

## Government Litigations in Courts

## 2855. Shri Sushil Kumar Singh:

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

- (a) whether the Government is one of the biggest litigants in courts;
- (b) if so, the details thereof, along with the number of the cases of the Government which are pending before the SC,HCs, Lower courts and tribunals as on date;
- (c) the top five litigant ministries of the Union Government along with the number of their pending cases; and
- (d) the steps being taken by the Government to ensure that the Government does not get into the business of unnecessary litigation?

## ANSWER MINISTER OF LAW AND JUSTICE

## (SHRI KIREN RIJIJU)

- (a)  &(b):      As  per  data  available  on  National  Judicial  Data  Grid,  the  total  number  of pending  cases  in  High  Courts  (6050600)  &  District  Courts  (42718466)  are  48769066.

Number  of  cases  where  Government  is  party  including  the  estimated pending Criminal Cases are as under: -

|   S.N | Courts                  |   Criminal Cases |
|-------|-------------------------|------------------|
|     1 | High Courts             |          1699622 |
|     2 | District &Taluka Courts |         31847225 |

Number of cases where the Central Government is a party (As per data available on LIMBS Portal, which is entered by 57user Ministries /Departments):-

| Court wise Pending Cases   |   Court wise Pending Cases |
|----------------------------|----------------------------|
| Supreme Court              |                      16776 |
| High Court                 |                     242675 |
| Tribunals                  |                     257531 |
| Lower Court                |                     118390 |

## (c):    As per data available on the LIMBS portal, following Ministries /Departments are the top five litigants:-

| Top Five Litigants   | Top Five Litigants   | Top Five Litigants   | Top Five Litigants   | Top Five Litigants   | Top Five Litigants   | Top Five Litigants   |
|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|
| S.N .                | Ministry             | Pending Cases        | SC                   | HC                   | Tribunal             | Lower Court          |
| 1                    | Finance              | 173377               | 9062                 | 63030                | 97329                | 3956                 |
| 2                    | Railways             | 108287               | 554                  | 24925                | 53033                | 29775                |
| 3                    | Defence              | 85461                | 1235                 | 14984                | 56503                | 12739                |
| 4                    | Labour& Employment   | 78249                | 320                  | 23371                | 15424                | 39134                |
| 5                    | Home Affairs         | 23272                | 968                  | 18421                | 1657                 | 2226                 |

(d):With the objective to reduce litigation, Ministries and Departments like Railways and Department  of  Revenue,  involved  in  a  high  number  of  litigations,  have  been  taking several  measures  for  reducing  the  number  of  Court  cases.  Ministry  of  Railways  has issued instructions for effective monitoring of Court cases at all levels.  Zonal Railways and Production Units have been asked to take effective steps to reduce the number of cases  in  which  the  Government  is  a  party  and  reduce  the  burden  of  courts,  expedite finalization of all the cases in all courts at the earliest and to cut down the expenditure in  contesting  court  cases.    For  achieving  this,  emphasis  has  been  laid  on  effective monitoring of cases by having regular meetings with empanelled advocates, for briefing and  necessary  directions  to  be  given  at  the  highest  level,  besides  ensuring  timely submission of replies, Counter replies and necessary documents to the advocates.

The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) under the Department of Revenue, have issued a slew of instructions and brought in several measures, for reducing litigations and the resultant burden on Courts.    While  the  CBDT  has  issued  circulars  directing  the  field  Officers  that  pending appeals  before  Income  Tax  Appellate  Tribunals/High  Courts/Supreme  Court  with  tax effect  below  the  specified  limits  may  be  withdrawn/not  pressed,  and  in  the  process facilitating  a  better  and  concerted  focus  on  high  demand  litigations.    CBDT  has  also clarified  to  the  field  officers  that  appeals  should  not  be  filed  merely  because  the  tax effect  in  a  particular  case  exceeds the  prescribed  monetary limits and the filing of an appeal should be decided strictly on the merits of the case.

Similarly, the field formations under the CBIC have been instructed to withdraw appeals pending in High Courts/Customs Excise and Service Tax Appellate Tribunal, where the Supreme Court has decided on identical matter.  Besides, CBIC has also instructed its field formations not to contest further in appeal where the issue has been lost in two stages of appeals.  It has been decided, however, that in cases where it is felt that the issue  is  fit  for  further  appeal,  then  on  proper  justification  and  approval  of  the  Zonal Chief Commissioner, an appeal can be filed for the third time.  Also, the field formation have been instructed to forward only those SLP proposals where in the issue involves substantial  question  of  law  or  gross  perversity  or  illegality  in  the  appreciation  of evidence.

In  this  direction,  both  the  CBDT  and  the  CBIC  have  also  enhanced  the  threshold monetary limit for filing appeals, the details of which are as follows:

## CBDT:

| For filing appeals                   | Monetary limit   |
|--------------------------------------|------------------|
| Before Income Tax Appellate Tribunal | Rs. 50 lakhs     |
| Before High Court                    | Rs.1 Crore       |
| Before Supreme Court                 | Rs.2 Crore       |

## CBIC:

| Monetary limits for filing appeals in cases relating to Central Excise and Service Tax   | Monetary limits for filing appeals in cases relating to Central Excise and Service Tax   | Monetary limits for filing appeals in cases relating to Central Excise and Service Tax   | Monetary limits for filing appeals in cases relating to Customs   | Monetary limits for filing appeals in cases relating to Customs   | Monetary limits for filing appeals in cases relating to Customs   |
|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|
| Before CESTAT                                                                            | Before High Court                                                                        | Before Supreme Court                                                                     | Before CESTAT                                                     | Before High Court                                                 | Before Supreme Court                                              |
| Rs.50 lakhs                                                                              | Rs.1 Crore                                                                               | Rs.2 Crore                                                                               | Rs. 5 lakhs                                                       | Rs.10 lakhs                                                       | Rs.25 lakhs                                                       |

For  the  purpose  of  monitoring  of  litigation  of  Union  of  India,  a  web-platform namely, Legal Information Management & Briefing System (LIMBS) was created in the year 2016.  LIMBS Ver.2 has been launched in the year 2019 to overcome the then existing technological gaps in the application. The vision of LIMBS Ver.2 is ' to be a single platform  for Litigation of GoI  along with establishment  of a synchronized regime for monitoring of Litigation ' across all Ministries / Departments of Government of India. Details regarding Central Government cases are  updated  on  LIMBS  portal  by  the  57  user  Ministries  /  Departments.  Data  on LIMBS  portal  is  user  based  which  is  entered  by  user  of  respective  Ministry  / Department and not centrally by the Department of Legal Affairs. The  alternative  mechanism  for  the  resolution  of  Inter-Ministerial/Departmental disputes  also  provide  for  an  institutionalized  mechanism  for  resolution  of  such disputes,  namely,  Administrative  Mechanism  for  Resolution  of  Disputes  (AMRD). This was framed by the Department of Legal Affairs and circulated vide O.M. dated 31.03.2020.  This  mechanism,  applicable  to  disputes  other  than  taxation  disputes, will  reduce  litigations  in  courts  and  resolve  the  cases  outside  the  court  system, where both parties are Govt. Department or where one party is Govt. Department and other is its instrumentalities, (CPSEs/Boards/ Authorities, etc.). To resolve the commercial disputes between Central Public Sector Enterprises interse and CentralPublic Sector Enterprises and Government Departments/ Organizations in place of the earlier 'Permanent Machinery of Arbitration', a new scheme,  namely,  'Administrative  Mechanism  for  Resolution  of  CPSE  Disputes (AMRCD)'  evolved  by  Department  of  Public  Enterprises  has  been  brought  into effect w.e.f. 22.05.2018. The  Commercial  Courts  Act,  2015  was  amended  in  2018  to  inter-alia  provide  for Pre-Institution Mediation and Settlement (PIMS) mechanism. Under this mechanism a party which does not contemplate any urgent interim relief in a subject-matter of commercial dispute of specified value of Rs.3 lakh and above has to first exhaust the remedy  of  PIMS  to  be  conducted  by  the  authorities  constituted  under  the  Legal Services Authorities Act, 1987, before approaching the Court. Further for facilitating quick disposal of disputes outside the court systems by way of alternate dispute redressal mechanism of mediation, the Mediation Bill, 2021 has been  introduced  in  the  RajyaSabha  which inter-alia providing  for  pre-litigation mediation by the parties.

Also  the  National  Mission  for  Justice  Delivery  and  Legal  Reforms,  which  was  set  up  in August,  2021  with  the  twin  objective  of  increasing  access  by  reducing  delays  and arrears in the system and enhancing accountability through structural changes and by setting performance standers and capacities. The mission has being pursuing coordinate  approach  for  phased  liquidation  of  arrears  and  pendency  in  judicial administration, which, inter-alia ,  involves better infrastructure for courts including computerization, increase in strength of subordinate judiciary, policy and legislative measures  in  the  arrears  prone  to  excessive  litigation,  re-engineering  of  court procedure for quick disposal of cases and emphasis on human resource development.