India's government focuses on reducing litigation through reforms like the Mediation Act 2023, Arbitration amendments, and promoting ADR mechanisms, but a National Litigation Policy remains pending.
The government of India is taking significant steps to address the growing problem of high-volume litigation, which has increasingly burdened the judiciary. While a National Litigation Policy has yet to be finalized, various initiatives and legislative reforms over the past few years have laid the groundwork for more efficient dispute resolution processes. The focus has been on reducing litigation through the promotion of Alternative Dispute Resolution (ADR) mechanisms, such as mediation and arbitration, alongside introducing targeted amendments to existing laws. As the nation strives for a more streamlined and effective legal system, these reforms are expected to significantly impact how disputes are resolved in the future.
Government's Approach to Reducing Litigation
- The government has been promoting Alternative Dispute Resolution (ADR) methods to reduce court cases, focusing on mediation and arbitration.
Key Initiatives Taken in the Last Three Years:
- Arbitration and Conciliation Act, 1996 Amendments:
- Amended in 2015, 2019, and 2020 to enhance cost-effectiveness and efficiency in arbitration.
- Aimed to reduce court intervention in arbitration and improve the overall process for dispute resolution.
- Commercial Courts Act, 2015 Amendments:
- 2018 amendments introduced the Pre-Institution Mediation and Settlement (PIMS) mechanism.
- Encourages parties to resolve disputes through mediation before approaching the court, providing an alternative to traditional litigation.
- India International Arbitration Centre Act, 2019:
- Establishment of the India International Arbitration Centre (IIAC), which is designed to facilitate world-class arbitration.
- Recognizes IIAC as an institution of national importance for promoting institutional arbitration in India.
- Mediation Act, 2023:
- Provides a statutory framework for institutional mediation in India.
- Focuses on encouraging parties to resolve disputes amicably through mediation, emphasizing a party-drivenapproach to dispute resolution.
Key Reforms in Legal Infrastructure
- The Mediation Act, 2023 is a major step in institutionalizing mediation as a key method of dispute resolution.
- The law aims to create a robust mediation ecosystem in India, allowing disputes to be settled outside the courtroom in a timely and effective manner.
The Status of the National Litigation Policy
- As of February 13, 2025, the National Litigation Policy remains in development and has not been finalized.
- Shri Arjun Ram Meghwal, Minister of State for Law and Justice, confirmed in the Rajya Sabha that while discussions continue, the policy framework has not yet been concluded.
No Immediate Reforms in the Code of Civil Procedure, 1908
- No legislative proposals for reforms to the Code of Civil Procedure 1908 are currently pending with the government.
- The government has shifted its focus to ADR reforms instead, particularly arbitration and mediation, to manage litigation volumes.
Impact of These Reforms
- The ADR reforms, especially the Mediation Act, 2023, are expected to improve dispute resolution, reducing caseloads in the judicial system.
- The reforms will help facilitate quicker resolution of commercial disputes, creating a more favorable environment for business and individual dispute resolution.
- These reforms also aim to make India more competitive in terms of the ease of doing business by reducing the time and costs associated with legal proceedings.
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