2024-25 Budget and Judiciary, Arbitration and Mediation

Back
Judiciary Budget

On the Twenty Third of July, Union Minister NirmalaSitharaman presented the Union Budget for the financial year 2024-2025. TheMinistry of Law and Justice was granted ₹ 6,788.33 for the upcoming financial year which isabout ₹ 2000 crore more than its allocation in theprevious financial year and ₹ 327 croremore than interim budget

The Ministry was granted, among other things, ₹ 228.18 crores for the establishment ofautonomous bodies. They also added the funds for LegalAid Defense Counsel System (LADCS) and expansion of Supreme Court building of ₹286.63 crore which was not in the interimbudget presented in February. Furthermore, The Supreme Court’s expenditurecharged on the Consolidated Fund is ₹ 525.49 crores which is 40 crore more than theinterim budget, and Fast Track Special Courts expenditure charged from theNirbhaya Fund is ₹ 200 crores. Lastly, the estimatedstrength of establishment is over ₹ 1250 croresdivided among the Ministry itself, the Supreme Court, and the ElectionCommission, with the largest share being that of the apex court itself.  

Let's look at the implications of this budget on theMinistry of Law and Justice. The Arbitration Council of India and the MediationCouncil of India were allotted ₹ 50 lakh each.These bodies are yet to form and this new allocation again gives us a positiveoutlook to hope for their formation this year. The fast-track special courtswhich were to be established by the year 2026 have also received funding of ₹ 200 crores to aid the states and unionterritories. These courts aim to swiftly resolve cases, with a few of thecourts specializing in POCSO, to provide a remedy to the aggrieved. Thisallocation is made from the Nirbhaya fund, to honour the rape victim and ensurethat the victims of such heinous acts receive justice without any proceduraldelay. The expenditure charged on the Supreme Court in the final budget isincreased to equate with previous financial year, and the overall strength ofits establishment and other provisions only shows a marginal increase, howeverthe same is said to not hinder the Apex Court in its functioning by any means.The estimated strength and provisions of the Ministry itself and the ElectionCommission also only show a marginal increase which will not hinder theirfunctioning but will not have a positive impact either. The Supreme Court willalso receive ₹ 800 crores for the expansion of itscomplex which is the largest capital expenditure allocation it has received inthe last 10 years and ₹ 1000 croreshas been allocated in general to improve the judicial infrastructure and gramnyayalays.

Let's look at the implications of the new budget onthe Alternative Dispute Resolution (ADR) and Online Dispute Resolution (ODR)facilities in our country. As stated the increase in funding for theArbitration and Mediation Councils of India is a welcome step that canfacilitate their establishment in the coming year. The India InternationalArbitration Centre received an allocation of ₹ 4 crores which will aid in its functioning and thethird phase of the e-courts program was allocated ₹ 1500 crores which along with the first two phases ofthe project will help digitize the different facets of Indian Judiciary frominitiation to judgment.  

The Minister of MSME had launched the Raising andAccelerating MSME Performance (RAMP) project which received an allocation of ₹ 1170 crores. A part of the RAMP project,which is also funded by the World Bank is the inclusion of ODR in the cases ofrecovery of delayed payments from MSME which is a positive step in theacceptance of ODR for dispute resolution.  

Lastly, the Department of Consumer Affairs has alsotaken steps towards the facilitation of ADR and ODR, however, it only budgeted ₹ 5 crores towards Strengthening ConsumerForum, Consumer Counselling and Mediation’ which aims toassist in the establishment of consumer counselling and mediation centres.