"We should encourage arbitration so that the cases which can be settled through arbitration are settled outside courts," he told reporters on the sidelines of an event here.
He said if arbitration is encouraged, it will help reduce number of cases pending in various courts.
Earlier, addressing a workshop on Legal Information Management and Briefing System (LIMBS), he said it will help authorities to take "data driven decision making" and to evaluate performance of various stake holders and to conduct legal audit.
LIMBS helps in monitoring court cases in a transparent manner which has never been done before, he said according to a statement issued by the Law Ministry.
The Law Minister expressed hope that it will help in organising otherwise scattered information at one single database and also create a professional base which will help in building pool of experts available for expert advice.
"Also with a concurrent watch and regular monitoring of the court cases by the senior officials, the transparency and accountability will improve, and thus all the ministries must make an attempt to ensure that none of the cases goes unnoticed," he added.