On the TRS Podcast, Sanjeev Sanyal, member of the advisory council to the PM, gave a very fundamental perspective about how a slow judiciary acts as a bottleneck for the economy.
First, we have to understand that the basis of any business or economic transaction is a — CONTRACT.
First, we have to understand that the basis of any business or economic transaction is a — CONTRACT.
A contract is defined as a written or spoken agreement that is intended to be enforceable by law.
‘Enforceable by Law’ — basically implies that all contracts are created on the backing of the law and protected by the courts of our country.
‘Enforceable by Law’ — basically implies that all contracts are created on the backing of the law and protected by the courts of our country.
Now, just think about how would businesses work & economic activity flourish if their deals (contracts) are backed by a clogged judiciary which isn't able to give timely resolution.
Because of this, the system becomes less dependent on the law & the society becomes low on trust.
Because of this, the system becomes less dependent on the law & the society becomes low on trust.
Judicial systems enforce the credibility of commitments and contracts.
Right now, we have around 4.47 crore cases pending in district and taluka courts, 60.64 lakh in high courts, and about 69,000 in the Supreme Court.
Out of which, 27% come under the Ministry of Finance.
Right now, we have around 4.47 crore cases pending in district and taluka courts, 60.64 lakh in high courts, and about 69,000 in the Supreme Court.
Out of which, 27% come under the Ministry of Finance.
Few years back, Singapore was going through the same problem as India.
But now, Singapore is known for its ease of doing international business.
The companies who invest in Singapore partly base their decision on the legal framework and commercial mindedness of the judges.
But now, Singapore is known for its ease of doing international business.
The companies who invest in Singapore partly base their decision on the legal framework and commercial mindedness of the judges.
They know that when they go to enforce their contract, they will be treated fairly and not made to wait indefinitely.
But until 1990, this was not the case. Back then, Singapore courts moved slowly.
Giving timely justice wasn’t prioritized by the senior judges and leaders.
But until 1990, this was not the case. Back then, Singapore courts moved slowly.
Giving timely justice wasn’t prioritized by the senior judges and leaders.
All of this caused delays and backlogs in the courts.
This was a time when Singapore was emerging as a regional commercial hub.
Foreign investments were coming in as the confidence in the public sector infrastructure, corruption-free government & business environment increased.
This was a time when Singapore was emerging as a regional commercial hub.
Foreign investments were coming in as the confidence in the public sector infrastructure, corruption-free government & business environment increased.
So in 1991, the government produced a policy document called — ‘The Strategic Economic Plan: Towards a Developed Nation.’
It outlined a vision of Singapore as a developed country & formulated several key strategies for achieving the growth & development to reach that goal.
It outlined a vision of Singapore as a developed country & formulated several key strategies for achieving the growth & development to reach that goal.
And they needed a modern judiciary to keep up with the fast paced socio-economic development.
Then PM Lee Kuan Yew said, ‘If we want to be a top financial center, we must have lawyers & courts to match.’
Hence, these are the strategies they focused on for their judicial reform:
Then PM Lee Kuan Yew said, ‘If we want to be a top financial center, we must have lawyers & courts to match.’
Hence, these are the strategies they focused on for their judicial reform:
1️⃣Using Leadership
The leadership at the Supreme Court was used to set an example & ensure that the organization functioned efficiently and the professional standards remain high.
Judges were asked to submit their written decisions within two months of the conclusion of a case.
The leadership at the Supreme Court was used to set an example & ensure that the organization functioned efficiently and the professional standards remain high.
Judges were asked to submit their written decisions within two months of the conclusion of a case.
Failure to do so could affect their annual bonus. Judges’ salary was also increased to make them more competitive.
2️⃣Refining Models of Justice
Constant effort is required to promote & sustain improvements, refine plans and learn in the process.
2️⃣Refining Models of Justice
Constant effort is required to promote & sustain improvements, refine plans and learn in the process.
Senior leaders recognized that this task is one of their main challenges.
So, after the backlog of cases was cleared, an exercise was carried out to review the judiciary setup & develop new models to reflect more closely on the needs of their population & the evolving judiciary.
So, after the backlog of cases was cleared, an exercise was carried out to review the judiciary setup & develop new models to reflect more closely on the needs of their population & the evolving judiciary.
This led to the establishment of small-claims courts, night courts, a tourist court, & multi-door courthouses.
This helped in segregating cases by type & complexity, saving time & money for the parties involved, and resulted in a better value for money for the state as well.
This helped in segregating cases by type & complexity, saving time & money for the parties involved, and resulted in a better value for money for the state as well.
3️⃣Increasing Access
Singapore relies heavily on international trade, finance, banking and tourism. And the rule of law plays a crucial role in the investment decisions of both local and foreign investors.
So to address the needs of international business users,
Singapore relies heavily on international trade, finance, banking and tourism. And the rule of law plays a crucial role in the investment decisions of both local and foreign investors.
So to address the needs of international business users,
they created a separate Singapore International Arbitration Center.
Singapore has also promoted global learning & knowledge in partnership with judiciaries in Australia, NZ, Norway & many other countries & institutes such as the World Bank, the Asian Development Bank and the UN.
Singapore has also promoted global learning & knowledge in partnership with judiciaries in Australia, NZ, Norway & many other countries & institutes such as the World Bank, the Asian Development Bank and the UN.
4️⃣Improving Court Administration Capacity
Court administration was completely reorganized. Innovations in maintenance & space efficiency were made.
Since 1994, a 3-year maintenance contract, at an annual cost of $1.8M, has been used to outsource building maintenance and upkeep.
Court administration was completely reorganized. Innovations in maintenance & space efficiency were made.
Since 1994, a 3-year maintenance contract, at an annual cost of $1.8M, has been used to outsource building maintenance and upkeep.
Outsourcing has also been used in computer maintenance, materials support, and office supplies to improve the service.
The information technology master plan was implemented to optimize the use of resources, achieve system integration, & take advantage of technological advances.
The information technology master plan was implemented to optimize the use of resources, achieve system integration, & take advantage of technological advances.
5️⃣Improving Human Resource Management
The top team focused on upgrading the core competencies of people who run the system.
Resources were stretched and optimized to attract & retain the best talent. Incentives were developed to groom the future leadership that embraces change.
The top team focused on upgrading the core competencies of people who run the system.
Resources were stretched and optimized to attract & retain the best talent. Incentives were developed to groom the future leadership that embraces change.
6️⃣Emphasizing Performance and Results
Judicial reform is a long-term process that requires timely feedback on the impacts & results of change.
To address this need, Singapore’s courts introduced varied reviews & established milestones against which progress has been monitored.
Judicial reform is a long-term process that requires timely feedback on the impacts & results of change.
To address this need, Singapore’s courts introduced varied reviews & established milestones against which progress has been monitored.
A review was conducted, for example, to identify how the introduction of night courts improved case disposition time and user confidence.
And it was a huge success among people as people didn’t have to leave their day jobs to attend the hearing.
And it was a huge success among people as people didn’t have to leave their day jobs to attend the hearing.
Now coming back to India, India's rank in ‘ease of doing business’ according to the World Bank has improved from 142 in 2014 to 63 in 2022.
The Ministry of Law and Justice has been taking steps for timely enforcement of contracts to improve the ease of doing business, such as:
The Ministry of Law and Justice has been taking steps for timely enforcement of contracts to improve the ease of doing business, such as:
👉Commercial Benches have been set up in Delhi & Bombay HCs & separate commercial courts have been set up in district courts.
👉Money limit for cases in Dedicated Commercial Courts has been reduced from 1Cr to 3L to resolve more disputes faster.
👉Introduction of tools such as:
👉Money limit for cases in Dedicated Commercial Courts has been reduced from 1Cr to 3L to resolve more disputes faster.
👉Introduction of tools such as:
- Case Information System (CIS) to assign cases without manual intervention.
- Electronic Case Management Tools (ECMT) to improve the productivity of judges & lawyers.
- A software patch for sending e-summons through email & SMS to remove the logistic inconvenience & save time.
- Electronic Case Management Tools (ECMT) to improve the productivity of judges & lawyers.
- A software patch for sending e-summons through email & SMS to remove the logistic inconvenience & save time.
An effective judicial system acts as a catalyst for economic growth. And moving forward, we need that catalyst more than ever.
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