New Delhi: The Economic Survey called for coordinated action between government and judiciary to reduce pendency of commercial litigation.
It said the initiative would help in improving ease of doing business and boost economic activities.
The survey said that there is a need to address the issues of pendency, delays and backlogs in the appellate and judicial arenas towards ease of doing business.
It said that the issues hamper dispute resolution, contract enforcement, discourage investment, stall projects, hamper tax collection, stress tax payers and escalate legal costs.
The survey emphasises on the importance of an effective, efficient and expeditious contract enforcement regime for economic growth and development.
“A clear and certain legislative and executive regime backed by an efficient judiciary that fairly and punctually protects property rights, preserves sanctity of contracts and enforces the rights and liabilities of parties, is a prerequisite for business and commerce,” it added.
The survey said that high number of delays and pendency of economic cases in the Supreme Court, Economic Tribunals and Tax department are taking “severe toll” on the economy, in terms of stalled projects, mounting legal costs, contested tax revenues and reduced investment.
Delays and pendency, it said, are caused due to the increase in overall workload of the judiciary, expanding jurisdictions and use of injunctions and stays,” it added.
It said that rise in tax cases mainly on account of government persisting with litigation despite high rates of failure at every stage of the appellate process.
