Tackling the Backlog of Cases in the Courts

Huge backlog and pendency has been a matter of concern as it delays the disposal of cases in the courts.  Of the 3 crore cases pending, 74% are less than 5 years old.  The Chief Justice of India has expressed the need of making the judicial system 5+ free by addressing 26% of the old cases which are of more than 5 years. The Government has been constantly endeavouring and working towards improvement in judicial system in the country jointly with the judiciary. In this direction the Government has been undertaking computerization of courts since 2007 and has been investing on improving infrastructure in the judiciary since 1993-94. Of late, establishment of National Court Management System has been notified by the Chief Justice of India.  This would be addressing issues of case management, court management, setting standards for measuring performance of the courts and a national system of judicial statistics in the country.

In order to free the criminal justice system of clogging, which is taking place on account of cases under the Negotiable Instruments Act, 1881 and the Motor Vehicle Act, 1988 serious efforts are being made to dispose them of on priority through special courts, Lok Adalats and Alternate Dispute Resolution (ADR) mechanisms.  Instructions have also been given to the States to utilize funds under the Thirteenth Finance Commission for this purpose as well as for setting up special courts and morning/ evening courts to dispose of such cases.

Reducing the delay and arrears in courts has been the constant endeavour of the Government.  For this, several steps have been taken in the past both for making structural changes as well as for monitoring the performance of the courts in so far as their disposal are concerned.  The disposal has been accelerated by undertaking special drives, the recent one being from 1^st July, 2011 to 31^st December, 2011.  Of late, the Government has set up a National Mission for Justice Delivery and Legal Reforms which will be addressing the issues of delays and arrears in the judicial system as well enforcing better accountability at all levels through a variety of methods which will include setting and monitoring of performance standard, enhancement of capacity through training at various levels etc.

Besides, the Government has been assisting the States in many ways:

·         The 13^th Finance Commission has recommended a grant of Rs. 5,000 crore for the states over a period of 5 years between 2010-2015.  The amount is being provided as a grant to the States for various initiatives like – Increasing the number of court working hours using the existing infrastructure by holding morning/ evening/ shift courts; Enhancing support to Lok Adalats to reduce the pressure on regular courts; Providing additional funds to State Legal Services Authorities to enable them to enhance legal aid to the marginalized and empower them to access justice; Promoting the Alternate Dispute Resolution (ADR) mechanism to resolve part of the disputes outside the court system; Enhancing capacity of judicial officers and public and public prosecutors through training programmes; and Creation of the post of Court Managers in every judicial district and High Courts buildings.  An amount of Rs. 1,353.62 crore has already been released to the States on this account.

·         Under the Central Sector Scheme, 100% funds are being provided by Central Government for computerization of the District and Subordinate Courts (e-Courts project) in the country and for upgradation of the ICT infrastructure of the Supreme Court and the High Courts.  Out of 14,229 courts, 9697 courts have been computerized in the country as on 31 March, 2012.  The balance courts would be computerized by 31 March, 2014.

·         The Gram Nyayalayas Act, 2008 has been enacted for establishment of Gram Nyayalayas at the grass roots level for providing access to justice to citizens at their doorstep.  The Central Government is providing assistance to States towards non-recurring expenses for setting up of Gram Nyayalayas subject to a ceiling of Rs. 18.00 lakh per Gram Nyayalaya.   The Central Government also provides assistance towards recurring expenses for running these Gram Nyayalayas subject to a ceiling of Rs. 3.20 lakh per Gram Nyayalaya per year for the first three years.  As informed by the State Governments, 153 Gram Nyayalayas have been notified already.  Out of these 151 Gram Nyayalayas have started functioning.

·         A Centrally Sponsored Scheme for development of infrastructure facilities for the judiciary is being implemented since 1993-94 under which central assistance for construction of court buildings and residential quarters for judicial officers is released to augment the resources of the State Governments.  The expenditure on the scheme is shared by the Centre and the State Governments on 75:25 basis, except for States in North East Region, which is on 90:10 basis.  An expenditure of Rs. 1841 crore has been incurred on this scheme up to 31.3.2012 since inception.

The Government is also conscious of the need to recruit talented and experienced persons including lawyers as Judges as this goes a long way in disposing of cases in courts. The Constitution was amended in 1977 to provide for an All India Judicial Service (AIJS) under Article 312 of the Constitution.  There has been overwhelming support in favour of AIJS later also by the Law Commission in its Reports, the First National Judicial Pay Commission, Committee on Centre State Relations and Department Related Parliamentary Standing Committee.  However, consensus on having AIJS has not been possible in the consultations held with the State Governments and the State High Courts.  But the Government proposes to pursue it by offering a more plausible and acceptable formulation of AIJS.

source-PIB

National Strategy for Financial Education

The first decade of the 21st century has seen a universal recognition for spreading financial literacy among people.   Most of the countries  are adopting a unified and coordinated national strategy for financial education.  Given the fact that India is having large population, a fast growing economy with national focus on inclusive growth and an urgent need to develop a vibrant and stable financial system, it has become all  the more necessary to quickly formulate and  implement a national strategy.

Also since a large number of stakeholders including the central and state governments, financial regulators, financial  institutions, civil society, educationists and others are involved in spreading financial literacy; a broad national strategy is a prerequisite to ensure that they  work in tandem according to the strategy and not at cross purposes.

The National Strategy, thus, seeks to create a financially aware and empowered India. It aims at undertaking a massive Financial Education campaign to help people manage money more effectively to achieve financial well being by accessing appropriate financial products and services through regulated entities

What is Financial Literacy?

Organization for Economic Cooperation & Development  defines Financial Literacy as  a combination of financial awareness, knowledge, skills, attitude and behaviour necessary  to make sound financial decisions and ultimately achieve individual financial well being. People achieve financial literacy through a process of financial education.

Financial Inclusion : A Top Policy Priority of Government

Government of India has recognized the importance of spreading financial literacy to intensify efforts to channelize domestic savings to investments. However, increasing range and complexity of products has  made it very difficult for an ordinary person to take an informed decision. Financial literacy develops confidence, knowledge and skills to manage financial products and services enabling them to have more control of their present and future circumstances. Financial literacy will also help in protecting society and individuals against exploitative financial schemes and  exorbitant interest rate charged by moneylenders.

It is expected that financial education can lead to multiplier effects in the economy. A well educated household would resort to regular savings, which in turn would lead to investment in right channels and income generation. Thus, the financial well  being of individuals, will in turn increase the welfare of the society.

International Experience and the Lessons for India

Globally, Countries like Czech Republic, Netherlands, New Zealand, Spain, and UK have already implemented National Strategy for Financial Education, while many other countries are in the process of formulation and implementation.

In India, we need a tiered approach under National  strategy in view of our diversity.  The draft National Strategy has been prepared with the objectives  of i) Creating awareness and educating consumers on access to financial services, various types of products and their features, ii)changing attitudes to translate knowledge into behavior and  iii) Making consumers understand their rights and responsibilities as clients of  financial services.

Given the fast pace of changes in the financial  world, it has been envisaged to have a five year timeframe for implementing the strategy, using Strategic Action Plans.

Sample Survey to Assess the State of Financial Literacy and Inclusion

The Strategy provides for conduct of a nation wide sample survey for assessing the state of financial inclusion and financial literacy. The survey, inter-alia will assess the level of financial inclusion, level of financial awareness about various financial products, level of financial competency to make informed decisions, people’s attitude towards money as well as their attitude towards risk taking.

Based on the assessment of the survey, various financial regulators would develop their financial education modules to address the needs of their clients. It would then be delivered through school curriculum, social marketing, advertising through radio, television, print and outdoor and by setting up dedicated financial education websites. There is also a proposal to rope in Self-Help Groups, Micro-Finance Institutions, investors and consumer associations etc.

Financial Education in School Curriculum

Governments have recognized that financial education should start at school and that people should be educated about financial matters as early as possible in their lives. Organization for Economic Cooperation & Development has developed Guidelines to assist policymakers and interested stakeholders in designing, introducing and developing efficient financial  education programmes in schools.

However, it needs to clearly be specified that the financial education would not be another subject  taught in the schools. What is needed is its  appropriate integration in the school curriculum. For example, compound interest is taught in Arithmetic as an abstract concept of, A lending to B at some interest rate compounded annually. This can be turned into an opportunity of financial education by weaving into a problem of a company that borrows from a bank or a bank customer who opens a Cumulative Deposit Account instead of a simple Fixed Deposit Account. Similarly, moral science courses could have content which are based on day to day financial transactions

CBSE has agreed, in principle, to introduce it in an integral manner in school education at the post primary level and to facilitate the process, a committee of experts has been constituted.

Synergizing the Efforts of Regulators in Spreading Financial Literacy.

In India, various financial regulators including Reserve Bank of India, Securities Exchange Board of India, Insurance Regulatory & Development Authority etc have already embarked upon massive financial literacy programmes adopting multi-pronged approach.

Reserve Bank of India has undertaken a project titled ‘Project Financial Literacy’ to disseminate information regarding the central bank and general banking concepts to various target groups, including school and college students, women, rural and urban poor, defense personnel and senior citizens.

Securities Exchange Board of India has empanelled Resource Persons throughout India who organize workshops to target segments on various aspects viz. savings, investment, financial planning, banking, insurance, retirement planning etc. More than 3500 workshops have been already conducted in various states covering nearly 3 lakh participants.

Insurance Regulatory & Development Authority has been disseminating simple messages about the rights and duties of policyholders, channels available for dispute redressal etc through radio, TV and print media in English, Hindi and 11 other Indian languages.

The Pension Fund Regulatory and Development Authority(PFRDA) has been engaged in spreading social security messages to the public.  PFRDA has developed FAQ on pension related topics on its website, and has been associated with various non government organizations in India in taking the pension services to the disadvantaged community.

Similarly, commercial banks, Stock Exchanges, Broking Houses and Mutual Funds have the initiatives in the field of financial education that spawns conducting of seminars, issuance of do’s and don’ts, and newspaper campaigns.

It will be necessary to collate and classify the vast amount of material developed by these institutions, that can serve as the knowledge base for financial education in India.

Institutional arrangements envisage creation of the National Institute of Financial Education(NIFE), with representatives of various regulators as members. The main role of NIFE shall be to create financial education material for respective financial sectors. NIFE shall also create and maintain a website exclusively for financial education.

The entire policy is sought to be implemented through existing institutional mechanism.  The Technical Group of Sub-Committee of Financial Stability & Development Council on Financial Inclusion and  Financial Literacy shall be made responsible for periodic monitoring and implementation of the strategy.
-PIB

Improving Access to Justice – National Mission for Justice Delivery and Legal Reforms

The National Mission for Justice Delivery and legal Reforms was set up in June, 2011 to achieve the twin goals of increasing access by reducing delays and arrears; and enhancing accountability through structural changes and by setting performance standards and capacities. The Mission has become fully functional from 2012-13 and is pursuing strategic initiatives: outlining policy and legislative changes; re-engineering of procedures and court processes; focussing on Human Resource Development; and leveraging Information and Communication Technology & tools for better justice delivery. The Mission will adopt a coordinated approach for phased liquidation of arrears and pendency in judicial administration which would, inter alia, involve better infrastructure for courts including computerisation, increase in strength of subordinate judiciary, policy and legislative measures in the areas prone to excessive litigation, re-engineering of court procedure for quick disposal of cases.

Policy and Legislative Changes

In short span of its existence, the Mission has taken several steps in each of the strategic areas towards fulfillment of its objectives. Judicial Standards and Accountability Bill has been prepared.  The Bill has already been passed by the Lok Sabha and is now before the Rajya Sabha for consideration.  Constitution amendment bill for raising the retirement age of High Court Judges is also before the Parliament.

A comprehensive proposal has been formulated for constitution of All India Judicial Service and the proposal is before Committee of Secretaries. 25 States have formulated their Litigation Policies with a view to reduce the Governmental litigation.  Litigation Policy at the national level is also on the anvil.

An Inter-Ministerial Group has been constituted to suggest necessary amendments to the Negotiable Instruments Act along with other policy and administrative measures to check increasing litigation relating to cheque bounce cases. First meeting of IMG was held on 30th, May 2012 and decisions taken in the meeting are being pursued for follow up action with Department of Financial Services, Reserve Bank of India and Indian Banks Association for reducing the burden of cheque bouncing cases on our criminal justice system.

Re-Engineering Court Procedures and Court Processes

An important aspect of the judicial reforms relates to re-engineering court procedures and court processes for early disposal of cases.  A National Court Management System has been recently notified by the Supreme Court for addressing the issues of case management, court management, setting measurable standards for performance of the courts and the National System of Judicial Statistics in the country. The National Mission would coordinate with NCMS and would render necessary assistance in achieving the goal of reducing pendency in courts.

A Sub Group on improving the court procedure and court processes for better criminal justice system has been constituted under Chairman, Law Commission to suggest necessary changes in this regard. The Commission has already prepared a Report on inordinate delays in investigation and prosecution of criminal cases against influential persons and measures needed to reform the criminal justice system.

Infrastructure Development

Infrastructure development for the subordinate judiciary is a major thrust area of the National Mission.  With a view to enhancing the resources of the State Governments, the Government has increased the central share by revising the funding pattern from 50:50 to 75:25 (for States other than North Eastern States) under modified Centrally Sponsored Scheme for development of infrastructure facilities for the judiciary from the year 2011-12 onwards.  The funding pattern for North-Eastern States has been kept as 90:10 from 2010-11.  Central assistance amounting to over ` two thousand crore has been released to States and Union Territories since inception of the scheme out of which an amount of over ` two hundred crore has been released so far during current financial year.

Gram Nyayalayas

The Gram Nyayalayas Act, 2008 has been enacted for establishment of Gram Nyayalayas at the grass roots level for providing access to justice to citizens at their doorstep.The Central Government provides assistance to States for non-recurring expenses for setting up of Gram Nyayalayas and for meeting the cost of recurring expenses for running these Gram Nyayalayas for the first three years.

At the time of enactment of Gram Nyayalayas Act it was envisaged that 5067 Gram Nyayalayas would be set up throughout the country for which Central Government would provide recurring and non-recurring assistance to States as per prescribed norms. The progress of the Gram Nyayalayas Scheme has not been up to expectations so far.

To further incentivize the State Governments for early operationalisation of Gram Nyayalayas, a comprehensive proposal for merger of Gram Nyayalayas scheme with the Centrally sponsored Scheme for development of infrastructure facilities for the subordinate judiciary has been prepared.  The norms for providing central assistance towards recurring expenditure are also proposed to be revised upwards. The proposal is presently awaiting approval of Planning Commission and Ministry of Finance.

Pendency Reduction Drive

The Government had launched a pendency reduction drive from July 2011 to December, 2011.  Chief Justices of the High Courts were requested by the Minister of Law and Justice to initiate a campaign mode approach towards clearing long pending cases and cases relating to marginalized sections of the society.  As per feedback received from various High Courts, total pendency was reduced by over 6 lakh cases out of which about 1.36 lakh cases belonged to targeted groups such as senior citizens, disabled, minors and marginalized sections of society.

One of the important components of pendency reduction drive related to release of under-trial prisoners from jail. In terms of the extant provisions of Criminal Procedure Code, the under-trials who have completed half of the maximum specified punishment for various offences in jail need to be released on personal bond.  As per the information received from various High Courts, around 3.16 lakh under-trial prisoners were released from the prisons during the campaign period.

A similar drive has been launched by the Minister of Law and Justice this year as well from July, 2012 to December, 2012. The main focus of pendency reduction drive this year is to make our judicial system ‘five plus’ free. Simultaneously emphasis is being laid on increasing the number of judges in subordinate judiciary by filling the existing vacancies and creating additional posts so that disposal of cases is expedited by setting up of additional courts.