40 Projects Worth Rs 4 Lakh Crore Under Litigation In India

In what could be dampener for the Modi government’s Make In India campaign, over 40 projects collectively valued at Rs 4 lakh crore are involved in legal disputes in different courts and tribunals.

According to a study done by ASSOCHAM, the delays in disposal of high value cases have adversely impacted the country’s GDP as well as has resulted in foreign courts intervening. “Further, the contention of the foreign courts in assuming jurisdiction in commercial disputes even where no cause of action arose in those countries is dilatory processes in India where disputes linger on for years together causing economic losses to the parties in the dispute and policy uncertainty among investors,” said DS Rawat, general secretary of the chamber.

If statistics are to be believed then the Supreme Court (SC) has 63,843 cases pending as on May1 , 2014 while lower courts have nearly 3 lakh cases pending as on December 2013.

“We have made some recommendations regarding the litigation processes in India. The government must create better infrastructure, quickly fill up vacancies of judges as well as provide clarity regarding the role of appellate tribunals. Since the IPR regime is gaining importance and has caught the attention of the global investors, there should be special benches for IPR cases,” he noted.

The chamber has also emphasized on amending the Arbitration Act in order to make it more credible and effective. It has suggested the government to set up an Arbitration centre in Delhi, similar to the ones existing in New York, London and Singapore.

“The SC of India in consultation with the government should come out with a policy under which Trial Courts are asked that the cases – civil or criminal, which are pending under the Trial Courts for more than 20 years be closed,” said Rawat.

The chamber also asserted that the cases filed under arbitration should be closed within a year; and if there is any further delay, then the case should be subject to the relevant High Court or the SC.