Call to discourage untenable claims

"In Madras, civil litigation takes about 10 years to be disposed of, at the trial stage", said Ajit Prakash Shah, chief justice, Madras High Court. He stressed the need for bringing in drastic changes in the present system of judicial procedures, particularly with regard to the costs and case management.

Speaking at the inauguration of Nani Palkhivala Arbitration Centre, he said it was high time that the judges took collective decision to award substantial costs especially in "untenable claims and unmeritorious defences."

As a matter of practice, at least in commercial cases, quantum of costs should be raised to at least Rs 10,000 - Rs 20,000 per day of trial, he added.

He also stressed the need to find ways to ensure that commercial matters are disposed of within 24 months of filing, as against 10-15 years.

If the litigant is aware that suite is likely to be disposed of within a short time and the court will be awarding costs on the basis of actual costs incurred or at least Rs 10,000 to Rs 20,000 or more per day, there will be a strong incentive to resolve the matters through alternative dispute resolution (ADR) or not to persist with untenable claims, he added.

Faster, cheaper and flexible ADR is the ideal solution to those who do not wish to entangle themselves in litigation, he said. He added that a successful ADR would provide the much-needed relief to courts.

Stating that Lok Adalats was the only ADR which had really worked so far in India, he said that conciliation and mediation was the most effective ADR in today's context.

"Conciliation and mediation has been successfully implemented in several countries, especially in the US. It is said to be a win-win situation, as both the parties would arrive at an equitable solution," he added.

Pointing out that about 27 million cases (2/3rd of which are criminal cases) were pending in various courts in the country, M N Venkatachaliah, former chief justice of India, also stressed the need for a speedy and inexpensive arbitration mechanism.

An institutional centre for arbitration will give industry and commerce a forum for quick resolution of disputes at a fraction of what it would cost in a court.

Time taken for the arbitration is also expected to be 1/10th of the time taken in civil disputes.

Nani Palkhivala Arbitration Centre, set up by Palkhivala Foundation as a non-profit outfit, will provide infrastructure for conducting arbitration proceedings.