With 50 million pending cases, India's judicial data gaps are scaring investors

With more than five crore legal cases pending across India’s courts, a recent paper by the Confederation of Indian Industry (CII) argues that strengthening the National Judicial Data Grid (NJDG) can significantly enhance judicial efficiency and, in turn, boost investor confidence. In the World Bank Group’s Doing Business Report 2020, India was ranked 163 out of 190 economies, as per CII’s report. “With over 5 crore cases pending across various courts and case disposal rates lagging behind the new admissions in many jurisdictions, urgent reforms are required to address the burgeoning pendency of cases,” it adds.

Launched in 2015 as part of the e-Courts Mission Mode Project, the NJDG is an online repository that tracks the status of cases from the Supreme Court, High Courts, and subordinate courts. It provides near real-time data on pending cases, case types, and age-wise backlogs. While the NJDG has made judicial data more accessible, the CII paper points out that much more can be done to turn it into a stronger tool for “systemic reforms”.

“The efficiency of dispute resolution is an important criterion for investors while deciding an investment location, as delays in enforcement of contracts result in higher uncertainty and cost of doing business,” the discussion paper notes. It adds that robust tracking and monitoring of dispute resolution data is essential to strengthen India’s business environment.  

One of the key recommendations is the categorisation of cases based on statutes and provisions. Currently, the NJDG distinguishes between civil and criminal cases but does not offer granular insights into the underlying laws. “Classifying “Classifying pending cases according to relevant statutes and provisions could enable policymakers to identify the most frequently invoked laws, assess average resolution times, and implement targeted reforms,” the report suggests.

Another area of concern is the lack of detailed classification of case types. While individual courts such as the Delhi and Bombay High Courts maintain extensive categorisation for matters like commercial disputes and appeals, NJDG only reflects a limited set. The paper recommends a standardised and detailed classification framework across jurisdictions. “Greater consistency in NJDG’s classification system can help in tracking how different courts handle similar matters, promoting accountability in case disposal rates,” it says.

Data reporting inconsistencies further reduce the NJDG’s effectiveness. For instance, in Tamil Nadu, NJDG only reports 15 pending commercial cases at the district level, while actual estimates are closer to 5,000. “It is essential to ensure that all courts, particularly subordinate courts, comprehensively report case data across all categories on a real-time basis,” notes the discussion paper.

The CII also proposes a more granular, stage-wise, time-linked tracking of cases to diagnose where bottlenecks occur — whether during final, hearings, or trials. Capturing both the procedural stage and the time consumed “would enable a more precise analysis of judicial delays and targeted corrective policy actions.”

Ultimately, an efficient and simpler system in place is good for India as an investment domain. “Strengthening NJDG as a comprehensive judicial performance tool will not only streamline case management but also enhance India’s attractiveness as an investment destination, supporting long-term economic growth and ease of doing business,” the report notes.