Sanjeev Sanyal: Judiciary now India’s Biggest Roadblock to Viksit Bharat

Sanjeev Sanyal discusses the critical role of the judiciary in India's economic growth, emphasizing the need for legal reform to overcome systemic hurdles. He critiques the current legal ecosystem, highlighting issues like mandatory mediation and the outdated structure of the legal profession, urging a cultural shift to facilitate progress towards becoming a developed nation.

In a recent address, Sanjeev Sanyal, a prominent economist and policy maker, shared his insights on the role of the judiciary in India's economic landscape. He emphasized that the legal system is currently the most significant barrier to achieving the goal of Viksit Bharat, or a developed India. This blog post will explore Sanyal's arguments regarding the legal ecosystem, the challenges it presents, and the necessary reforms to facilitate India's growth.

India’s Economic Context

India has recently emerged as the world's fourth-largest economy and is on track to become the third-largest within the next two years. With a demographic window of 20 to 25 years to capitalize on this growth, Sanyal argues that it is crucial for India to accelerate its development during this period. However, he warns that the current state of the judiciary poses a substantial threat to this ambition.

The Judiciary as a Roadblock

Sanyal asserts that the inability to enforce contracts and deliver timely justice is a major constraint on economic progress. He believes that without a significant overhaul of the legal system, other improvements in infrastructure and governance will be rendered ineffective.

The 99-1 Problem

One of the key issues Sanyal highlights is the so-called "99-1 problem." This refers to the tendency of legal frameworks to be shaped by the problems faced by a small minority (1%) of cases, rather than addressing the needs of the majority (99%). As a result, the legal system becomes overly complicated, creating further complications and inefficiencies.

Cultural Change in the Legal Profession

Sanyal calls for a cultural shift within the legal profession. He criticizes the self-congratulatory tone often found in legal conferences and urges legal professionals to acknowledge the systemic issues they face. He emphasizes the need for a more realistic understanding of the legal ecosystem's challenges.

The Issue of Mandatory Mediation

Sanyal points to the introduction of mandatory pre-litigation mediation under the Commercial Courts Act of 2015 as an example of a misguided reform. He notes that between 98% to 99% of these mediations fail, leading to unnecessary delays and costs. Instead of alleviating the burden on the courts, this requirement adds to it, ultimately failing to serve the interests of justice.

Reforming the Legal Framework

Sanyal proposes several reforms to improve the legal system:

Voluntary Mediation: He advocates for making mediation a voluntary process rather than a mandatory one, allowing parties to choose this route without the added pressure of legal requirements.

Simplifying Legal Structures: Sanyal suggests moving away from the hierarchical structure of the legal profession, which resembles a medieval guild. He argues for standardized operating procedures that would allow anyone to represent themselves in legal matters without needing a formal legal degree.

Judicial Appointments: To attract talent to the judiciary, Sanyal recommends a system where judges can rise through the ranks based on merit, rather than being limited to those who have been senior advocates.

Cultural Shift in Legal Language: He criticizes the archaic language used in legal proceedings, such as referring to judges as "my lord" and petitions as "prayers," arguing that this is inappropriate in a democratic society.

Judicial Vacations: Sanyal questions the long vacations taken by the judiciary, suggesting that the court system should not shut down for extended periods, as this hampers access to justice.

The Call to Action

Sanyal concludes his address with a passionate plea for legal professionals to take responsibility for reforming the system. He emphasizes that the time for change is now, as India has a limited window to achieve its developmental goals. He expresses confidence in the ability of citizens and legal professionals to work together towards a more efficient and just legal system.

Conclusion

Sanjeev Sanyal's insights shed light on the critical intersection of law and economic growth in India. By addressing the systemic issues within the judiciary and advocating for meaningful reforms, he believes that India can overcome its current obstacles and move towards becoming a developed nation. The responsibility lies with both the legal profession and the citizens to push for these necessary changes, ensuring that the country does not miss its opportunity for growth and development.