Friday, May 27 2022
Chennai: To monitor all high-risk litigations related to taxation, land matters, procurement issues among others, Tamil Nadu has formed a Litigation Risk Management System (LRMS). A Litigation Advisory and Oversight Committee (LAOC), comprising a retired judge and senior legal experts practising in the field of taxation and civil litigation, has also been appointed.
Justice K Kannan, retired judge of Punjab and Haryana high court, assisted by advocates Joseph Prabhakar, K Ravi, experts in indirect and direct taxation and advocate V Lakshminarayanan, expert in civil litigation, will be the legal experts part of LAOC.
One of the principal responsibilities of the committee will be to suggest strategies to reduce financial risk due to litigation and to anticipate litigation among others.
All taxation cases where the claim against an individual or a government entity exceeds Rs 100 crore or cases where an adverse judicial decision can cause a revenue loss of Rs 500 crore, contractual disputes and wage settlements before arbitration tribunals where loss of case can cause expenditure of Rs 500 crore or more, cases relating to land acquisition where combined higher claims of compensation pending before high court exceed Rs 500 crore and cases relating to public procurement where process is challenged before high/supreme court, wherein procurement value exceeds Rs 1000 crore are all classified as High risk litigation, according to a government order.
The Litigation risk management system formed by the government will form a mechanism to identify and bring high risk litigations from the financial impact angle to the notice of the finance department, which will be the nodal department for high risk litigations.
Organisations covered under LRMS will include all government departments, public sector undertakings, statutory boards, universities, municipal corporations and other local bodies. “It can later be expanded to major co-operatives and major societies controlled by the government,” the GO stated. The office of advocate-general and additional chief secretary, finance department will have power to classify any litigation in any department as high risk litigation.
Previous

Portable Power Banks market revenue, consumption, growth rate by major manufacturers such as Mophie, Samsung, Mipow, Sony, Maxell, etc.

Next

Attend the Sri Lankan Farmworkers Action Committee and demand the reinstatement of all victimized workers

Check Also