The law officers will ensure that courts are approached only as a last resort and cases where chances of winning are lean are not pursued, sources said.
Though there are no official figures available as of now, the Law Ministry believes that government is a litigant in 46 per cent of the cases in higher judiciary, which puts burden on the national exchequer and diverts attention of government from meaningful governance.
The philosophy behind the new policy is to approach courts once the government department is fully satisfied that litigation is the only resort left.
Majority of the cases in which government is a party relate to service disputes and indirect taxes.
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The pendency of cases in courts besides being burden upon public exchequer also diverts attention of government from meaningful governance, the draft policy states.
The Parliamentary Standing Committee on Law and Personnel, in its latest report. Has quoted Law Secretary P K Malhotra as informing the panel that government is perceived as the largest litigant in various courts and tribunals.
"To reverse this image, the government is proposing a new National Litigation Policy, whereby every court case/order will be closely scrutinised within the department itself with a view to determine as to whether the matter be agitated further or the department should accept the decision of the court and implement it," the committee quoted Malhotra.