Lok Sabha Question No. 835 (UNSTARRED), answered on 2025-02-07
Subject: Expenditure on Litigation
Ministry: LAW AND JUSTICE
Asked by: Shri Raja Ram Singh

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

## LOK SABHA UNSTARTED QUESTION NO. 835

## TO BE ANSWERED ON FRIDAY, THE 7-2-2025

## Expenditure on Litigation

835. Shri Raja Ram Singh:

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

- (a)  the  details  of  the  total  expenditure  incurred  on  litigation  carried  out  by  the  Union  Government during the last ten years, year-wise;
- (b) the details of the breakup for the same, ministries, department and year-wise;
- (c) the steps taken by the Government to reduce litigation and the costs associated with; and
- (d) whether the remedial results envisaged therein have been achieved, if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF LAW AND JUSTICE; AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS

## (SHRI ARJUN RAM MEGHWAL)

- (a) & (b): The requisite data is not maintained by the Government in the form and manner sought. However, the expenditure incurred on litigation during the last ten years, year-wise is as follows:

|   S. No. | Financial Year   | Expenditure (in ₹)   |
|----------|------------------|----------------------|
|        1 | 2014-15          | 26,64,66,066         |
|        2 | 2015-16          | 37,43,25,971         |
|        3 | 2016-17          | 48,12,92,060         |
|        4 | 2017-18          | 65,83,50,532         |
|        5 | 2018-19          | 51,85,65,364         |
|        6 | 2019-20          | 61,08,76,154         |
|        7 | 2020-21          | 58,43,62,137         |
|        8 | 2021-22          | 48,56,53,683         |
|        9 | 2022-23          | 57,45,33,707         |
|       10 | 2023-24          | 66,57,83,403         |

(c)  &  (d):  The  reduction  of  pendency  in  court  cases  is  within  the  domain  of  the  judiciary  as  the adjudication  of  cases  is  done  by  the  Courts.  The  Government  has  no  role  in  the  adjudication  and timely disposal of cases in courts. However, the Central Government is fully committed to aid the speedy disposal of cases in accordance with Article 21 of the Constitution and reducing pendency. In order to  provide  an  ecosystem  for faster  disposal  of cases  by  the  judiciary, the  Government set-up National Mission for Justice Delivery and Legal Reforms in August, 2011 with the twin objectives of increasing access by reducing delays and arrears in the system and enhancing accountability through structural  changes  and  by  setting  performance  standards  and  capacities.  The  Mission  has  been pursuing  a  co-ordinated  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  areas  prone  to excessive litigation, re-engineering of court procedure for quick disposal of cases and emphasis on human resource development.

Some of  the  initiatives  taken  by  Department  of  Justice  to  aid  the  cause  of  justice  delivery  are  as under:-

Under  the  Centrally  Sponsored  Scheme  for  Judicial  Infrastructure,  funds  are  being  released  to States/UTs  for  construction  of  court  halls,  residential  quarters  for  judicial  officers,  lawyers'  halls, toilet complexes and digital computer rooms that would ease the life of lawyers and litigants, thereby aiding justice delivery. As on date, Rs. 11167.36 crores have been released since the inception of the Centrally Sponsored Scheme (CSS) for Development of Infrastructure Facilities for the Judiciary in 1993-94.  The  number  of  court  halls  has  increased  from  15,818  as  on  30.06.2014  to  23,020  as  on 30.06.2024, and number of residential units has increased from 10,211 as on 30.06.2014 to 20,836 as on 30.06.2024, under this scheme.

Further under the e-Courts Mission Mode Project, information and communication technology (ICT) has been leveraged for IT enablement of the Indian Judiciary. The number of computerised district & subordinate courts has increased to 18,735 so far. WAN connectivity has been provided to 99.4% of court complexes. Video conferencing facility has been enabled between 3,240 court complexes and 1,272  corresponding  jails.  As  on  30.04.2024,  1050  e-Sewa  Kendras  have  been  set  up  at  court complexes to facilitate citizen centric services to lawyers and litigants. As on 31.05.2024, 28 virtual courts have been set up in 21 States/UTs and these courts have handled more than 5.08 crore cases and realized more than Rs. 561.09 crores in fines.

The  Cabinet  on  13.09.2023  has  approved  eCourts  Phase-III  with  a  budgetary  outlay  of  Rs.7,210. Taking the gains of Phase-I and Phase-II to the next level, the main objective of the Phase-III is to create a unified technology platform for the judiciary, which will provide a seamless and paperless interface  between  the  courts,  the  litigants  and  other  stakeholders.  The  proposed  timeframe  for  the Project is four years starting from 2023 onwards. It envisages digitization of the court records, both legacy  records  and  pending  cases;  state  of  the  art  and  latest  Cloud  based  data  repository  for  easy retrieval;  eSewa  Kendras  at  all  court  complexes  across  India;  paperless  courts;  video  conferencing facilities  to  be  expanded  to  also  cover  district  hospitals;  Live  Streaming  of  court  proceedings  and expansion of the scope of Virtual Courts. The project will help provide a smoother user experience by building  a  'smart'  ecosystem.  Registries  will  have  less  data  entry  and  minimal  file  scrutiny facilitating better decision-making and policy planning. The eCourts Phase-III will thus prove to be a game changer in ensuring ease of justice by making the Court experience convenient, inexpensive and hassle free to all the citizens of the country.

Under eCourts Phase III, out of Rs. 825 crores allotted in FY 23-24, highest ever funds amounting to 805.57 Crore were released in one single financial year under the Project. The funds were received in the month of October'23 and expenditure of Rs 768.25 Cr (93.11%) was made in the space of five months, which is the highest under eCourts Project till date. During FY 24-25 an allocation of Rs 1500 Cr. in the BE has been received, out of which Rs 464.98 Cr has already been released to the various High Courts.

Government  has  been  regularly  filling  up  the  vacancies  in  higher  judiciary.  From  01.05.2014  to 09.07.2024, 62 Judges   were   appointed   in   Supreme   Court. 976 new Judges were appointed and 745 Additional Judges were made permanent in the High Courts. Sanctioned strength of Judges of High Courts has been increased from 906 in May, 2014 to 1114 currently. sanctioned and working strength of judicial officers in district and subordinate courts has increased as follow:

| As on      | Sanctioned Strength   | Working Strength   |
|------------|-----------------------|--------------------|
| 31.12.2013 | 19,518                | 15,115             |
| 10.07.2024 | 25,523                | 20,414             |

However,  filling  up  of  vacancies  in  subordinate  judiciary  falls  within  the  domain  of  the  State Governments and high courts concerned.

In  pursuance  of  a  Resolution  passed  in  Chief  Justices'  Conference  held  in  April,  2015,  Arrears Committees have been set up in all 25 High Courts to clear cases pending for more than five years. Arrears Committees have been set up under District courts as well.

Under the aegis of the Fourteenth Finance Commission, the Government has established Fast Track Courts for dealing with cases of heinous crimes; cases involving senior citizens, women, children etc. As of 31.05.2024, 866 Fast Track Courts are functional for trying cases of heinous crimes, crimes against women and children etc. To fast-track criminal cases involving elected MPs / MLAs, ten (10) Special Courts are functional in nine (9) States/UTs. Further, the Central Government has approved a Scheme  for  setting  up  Fast  Track  Special  Courts  (FTSCs)  across  the  country  for  the  expeditious disposal of pending cases of Rape and POCSO Act. As of 31.05.2024, a total of 755 FTSCs including 410 exclusive POCSO (ePOCSO) Courts are functional in 30 States/UTs across the country which have disposed of more than 2,53,000 cases.

With a view to reduce pendency and unclogging of the courts, the Government has recently amended various  laws  like  the  Negotiable  Instruments  (Amendment)  Act,  2018,  the  Commercial  Courts (Amendment)  Act, 2018, the Specific Relief  (Amendment)  Act, 2018, the Arbitration and Conciliation (Amendment) Act, 2019 and the Criminal Laws (Amendment) Act, 2018.

Alternate  Dispute  Resolution  methods  have  been  promoted  whole  heartedly.  Accordingly,  the Commercial Courts Act, 2015 was amended on 20th August, 2018 making Pre-institution Mediation and Settlement (PIMS) mandatory in case of commercial disputes. Amendment to the Arbitration and Conciliation Act, 1996 has been made by the Arbitration and Conciliation (Amendment) Act 2015 for expediting the speedy resolution of disputes by prescribing timelines.

Lok Adalat is an important Alternative Disputes Resolution Mechanism available to common people. It is a forum where the disputes/ cases pending in the court of law or at pre-litigation stage are settled/ compromised amicably. Under the Legal Services Authorities (LSA) Act, 1987, an award made by a Lok Adalat is deemed tobe a decree of a civil court and is final and binding on all parties and no appeal lies against thereto before any court. Lok Adalat is not a permanent establishment. National Lok Adalats are organized simultaneously in all Taluks, Districts and High Courts on a pre-fixed date. The details of the case disposed off in National Lok Adalats during the last three years are as under:-

| Year                | Pre-litigation   | Pending Cases   | Total Cases   |
|---------------------|------------------|-----------------|---------------|
| 2021                | 72,06,294        | 55,81,743       | 1,27,88,037   |
| 2022                | 3,10,15,215      | 1,09,10,795     | 4,19,26,010   |
| 2023                | 7,10,32,980      | 1,43,09,237     | 8,53,42,217   |
| 2024 (upto June,24) | 2,86,75,168      | 56,88,231       | 3,43,63,399   |
| Total               | 13,79,29,657     | 3,64,90,006     | 17,44,19,663  |

The  Government  launched  the  Tele-Law  programme  in  2017,  which  provided  an  effective  and reliable  e-interface  platform  connecting  the  needy  and  disadvantaged  sections  seeking  legal  advice and consultation with panel lawyers via video conferencing, telephone and chat facilities available at the Common Service Centres (CSCs) situated in Gram Panchayat and through Tele-Law mobile App.

*Percentage Wise break-up of Tele - Law Data

| Till 30th June, 2024   | Cases Registered    | %Wise Break Up      | Advice Enabled      | %Wise Break Up      |
|------------------------|---------------------|---------------------|---------------------|---------------------|
| Gender Wise            | Gender Wise         | Gender Wise         | Gender Wise         | Gender Wise         |
| Female                 | 34,77,951           | 38.43               | 34,38,027           | 38.38               |
| Male                   | 55,73,180           | 61.57               | 55,19,687           | 61.62               |
| Caste Category Wise    | Caste Category Wise | Caste Category Wise | Caste Category Wise | Caste Category Wise |
| General                | 21,09,811           | 23.31               | 20,81,215           | 23.23               |
| OBC                    | 28,25,925           | 31.22               | 27,95,376           | 31.21               |
| SC                     | 29,01,087           | 32.05               | 28,74,044           | 32.08               |
| ST                     | 12,14,308           | 13.42               | 12,07,079           | 13.48               |
| Total                  | 90,51,131           |                     | 89,57,714           |                     |

Efforts have been made to institutionalize pro bono culture and pro bono lawyering the country. A technological framework has been put in place where advocates volunteering to give their time and services for pro bono work can register as Pro Bono Advocates on Nyaya Bandhu (Android &iOS and Apps). Nyaya Bandhu Services also available on UMANG Platform. Pro Bono Panel of advocates has been initiated  in  22  High  Courts  at  the  State  level.  Pro  Bono  Clubs  have  been  started  in  89  Laws Schools to instill Pro Bono culture in budding lawyers.

Some of the initiatives taken under the Alternative Dispute Resolution Mechanism are as under-

During the past decade, the Government of India has taken various initiatives to promote Alternative Dispute  Resolution  (ADR)  mechanisms  and  continues  to  take  further  policy  and  legislative intervention to strengthen these mechanisms and make them more efficacious and expeditious. ADR mechanisms including arbitration and mediation are less adversarial and are capable of providing a better substitute to the conventional methods of resolving disputes. The use of ADR mechanisms is also expected to reduce the burden on the judiciary and thereby enable timely justice dispensation to citizens of the country.

The  major  initiatives,  steps  and  measures  taken  by  the  Central  Government  over  the  years  in  this regard include;

The Arbitration and Conciliation Act, 1996 has been progressively amended in the years 2015, 2019 and 2020. These amendments aim at ensuring timely conclusion of arbitration proceedings, neutrality of arbitrators, minimizing judicial intervention in the arbitral process and efficacious enforcement of arbitral awards. The amendments are further aimed at promoting institutional arbitration, updating the law  to  reflect  best  global  practices  and  resolve  ambiguities  thereby  establishing  an  arbitration ecosystem where arbitration, domestic and international conducted by way of institutional arbitration can grow and flourish.

The  Commercial  Courts  Act,  2015  was  amended  in  the  year  2018,  to  provide  inter-alia  for  PreInstitution Mediation and Settlement (PIMS) mechanism. Under this mechanism, where a commercial dispute  of  specified  value  does  not  contemplate  any  urgent  interim  relief,  the  parties  have  to  first exhaust the mandatory remedy of PIMS before approaching the Court. This is aimed at providing an opportunity to the parties to resolve the commercial disputes through mediation.

The India International Arbitration Centre Act, 2019, was enacted to provide for the establishment of the  India  International  Arbitration  Centre  (Centre)  for  the  purpose  of  creating  an  independent, autonomous and world class body for facilitating institutional arbitration and to declare the Centre to be an institution of national importance. The Centre has since been established and aims to inspire confidence amongst parties, both domestic and international, by providing a neutral dispute resolution platform for resolution of commercial disputes through arbitration. The Centre has also notified the India International Arbitration Centre (Conduct of Arbitration) Regulations, 2023 to facilitate conduct of domestic and international arbitrations with a focus on efficient and time-bound arbitration process. The Chamber of Arbitration established under Section 28 of the India International Arbitration Centre Act, 2019 continues to empanel reputed arbitrators, both for domestic and international arbitrations. The Centre is envisaged to become a model arbitral institution in the country, thereby paving the way for enhancing the quality of institutional framework for arbitration.

The Mediation Act, 2023, lays down the statutory framework for mediation to be adopted by parties to a dispute, especially institutional mediation, wherein various stakeholders have also been identified to establish a robust and efficacious mediation ecosystem in the country.

Some other initiatives taken under by Government to reduce litigation and the costs associated with:

*  The  Direct  Tax  Vivad  se  Vishwas  (DTVSV)  Scheme,  2024  and  2020  were  introduced  by  the Finance Act, 2024 and 2020 respectively, to reduce the litigation.

*  The  CBDT has notified the e-appeals scheme, 2023 and 100 new posts of Addl./JCIT (Appeals) have been created.

*  The  Direct  Tax  Vivad  se  Vishwas  Scheme,  2024 and  2020 were introduced by the Finance Act, 2024 and 2020 respectively, to reduce the litigation.

*  The  CBDT has notified the e-appeals scheme, 2023 and 100 new posts of Addl./JCIT (Appeals) have been created.

* The CBDT has enhanced the monetary limits of filing appeals by the Department before the ITAT, HC and SC to Rs. 60 lacs, 2 Cr. And 5 Cr. in 2024. The revision of monetary limits of filing appeals has been undertaken from time to time.

* The CBDT has notified the e-Dispute Resolution Scheme, 2022 (e-DRS) on 30% August, 2024 with the aim to minimize litigation and provide relief to small taxpayers.

* The Central Action Plan 2024-25 has raised the appeal disposal targets for both the CIT(Appeals) and  Addl./JCIT(Appeals).  The  targets  have  been  fixed  at  600,  450  and  800  appeals  disposal  for CIT(A/AU), CIT(IT& TP) and Addl./ICIT(A) respectively.

* The CIT(Appeals) have been empowered under section 251 of the Income Tax Act,1961 to set aside appeals filed against ex-parte assessment orders for fresh examination by the assessing officer w.e.f 1.10.2024.

* The total of 44 PCsIT and 39 CIT(DR) have been assigned the additional charge of CIT(Appeals) as a measure to augment manpower at first appellate level.

(d). The following results, till date, are achieved after steps taken to reduce litigation:-

* 40,166 eligible assesses have opted for DTVSV, 2024, from 1.10.2024 to 31.01.2025.

* The disposal of appeals at first appellate level in the first nine months of the current year has already reached the appeals disposed in the entire previous year.

* By raising monetary limits for filing appeals by the Department, a total of 43,895 appeals have been withdrawn from the ITAT, HC and SC since 2015.

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