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Exploring the National Litigation Policy (NLP)

An overview of the objectives and revisions of the National Litigation Policy

Exploring the National Litigation Policy (NLP)

  • 11 Nov, 2025
  • 367

What is the National Litigation Policy (NLP)?

The National Litigation Policy (NLP) aims to reduce government-related litigation and promote efficient legal case management across government bodies. Initially launched in 2010, the policy was revised in 2017 by the Committee of Secretaries to emphasize alternative dispute resolution (ADR), swift decision-making, and minimizing unnecessary appeals and repetitive cases.

Why Was the National Litigation Policy Revised?

The revision was necessitated by the continued high volume of government litigation, which contributed to judicial delays and heavy financial costs. The updated policy introduces clear accountability mechanisms and streamlined guidelines to prevent frivolous, repetitive, or avoidable legal actions by ministries and departments.

What Changes Have Been Implemented Recently?

As of April 2025, ministries are mandated to follow a detailed Standard Operating Procedure (SOP) for litigation management. Key changes include:

  • Appeals involving amounts below ₹10 crore in commercial disputes now require explicit approval from the Expenditure Secretary.
  • Each ministry must appoint a Joint Secretary-level Nodal Officer to oversee litigation processes.
  • Integration of real-time monitoring systems and advanced technologies such as Artificial Intelligence (AI) for case tracking and assessment.

How Significant is Government Litigation in India?

The government continues to be one of India’s largest litigants. In FY 2024–25, litigation expenses alone amounted to nearly ₹80 crore. Over the past decade, approximately ₹4,400 crore has been spent on government-related cases. Former Chief Justice NV Ramana notably described the government as the “biggest litigant” in India.

What Technological Solutions Are Proposed Under the New Guidelines?

The revised NLP incorporates significant technological reforms, including:

  • Legal Information Management and Briefing System (LIMBS) for real-time case tracking.
  • Integration with the e-Courts system for digital case management.
  • Use of AI-driven tools to identify weak or meritless cases and support faster decision-making.

What Role Does Alternative Dispute Resolution (ADR) Play?

ADR mechanisms—such as mediation, arbitration, and conciliation—are now a core feature of the policy. Ministries are instructed to identify disputes suitable for ADR early in the process, reducing court burdens and enabling quicker, mutually beneficial resolutions.

How Does This Policy Impact Governance and the Business Environment?

Effective litigation management will strengthen governance efficiency, reduce administrative delays, and improve India’s ease-of-doing-business rankings. By reducing pending cases and ensuring predictable dispute outcomes, the policy aims to enhance investor confidence and citizen trust in government institutions.

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