The Union government has decided against implementing a national litigation policy, opting instead to issue direct instructions to ministries and Public Sector Undertakings (PSUs) to reduce the number of court cases. This decision is motivated by the government's desire to shed its reputation as the "biggest litigant" by minimizing unnecessary appeals and addressing inconsistencies that lead to legal disputes. Currently, the government is involved in approximately seven lakh cases across the country.
The Union Law Ministry ultimately rejected the idea of a national litigation policy after considering that such a policy could not prevent individuals outside the government from filing lawsuits. A ministry official stated that the term "policy" is unsuitable when it applies only to the government and not to private litigation, arguing that curbing government litigation is essentially an "inward-looking move" and lacks universal applicability.
Instead of a policy, the government has chosen to issue directives, which carry a "sense of force," unlike more generic terms like "guidelines". Another reason for abandoning the policy approach was that it would have required Union Cabinet approval, and any future changes would also have necessitated Cabinet approval. The "Directive for the efficient and effective management of litigation by the Government of India," issued by the Department of Legal Affairs, was approved by a committee of secretaries and will be reviewed annually to assess progress and identify necessary changes. The objective is to promote public good and better governance through these directives.
In February, the Law Ministry informed the Rajya Sabha that the central government is a party in nearly seven lakh pending cases, with the Finance Ministry involved in approximately two lakh of them. A national litigation policy was initially formulated to reduce the backlog of cases in various Indian courts under the National Legal Mission, aiming to decrease the average pendency time from 15 years to three years. The 2010 policy recognized the government and its agencies as the primary litigants in courts and tribunals.
