Enforcing Rights in India’s Justice System | Doing Business in India | Episode 4

General

February 4, 2026

Is the Indian judicial system a hurdle or a manageable risk for your business?

In Episode 4 of the Doing Business in India series, Ajay Joseph (Partner at Veyrah Law) provides a ground-level look at the realities of enforcing legal rights in India. While India offers immense opportunity, the “timely” enforcement of contracts remains a significant challenge for foreign investors and local enterprises alike.

From staggering backlog statistics to the strategic use of “leverage” over “litigation,” this video moves beyond theory to explain how the Indian legal system works in practice and why a well-drafted contract is only the first step in effective risk management.

Enforcing Rights in India’s Justice System | Doing Business in India | Episode 4

Keywords

  • Enforcement (Enforcement of Contract): The legal process of enforcing rights under a contract before a court.
  • Interim Relief / Injunction: A temporary court order meant to protect a party’s interests while the main case is still being decided (e.g., freezing assets).
  • Execution Proceeding: A separate legal step taken after winning a case to actually collect the money or recover the property awarded by the court.
  • Arbitral Award: The final decision or “judgment” made by an arbitrator or an arbitration panel rather than a traditional judge.
  • Pendency / Backlog: Refers to the number of cases currently “pending” or waiting to be resolved within the court system.
  • Perjury: The offense of providing false statements in court under oath.
  • Limited Liability: A legal structure where a person’s financial liability is limited to a fixed sum, most commonly the amount invested by them.
  • Intermediary Entity: A “holding company” set up in a different jurisdiction (outside India) to channel investments and insulate the parent company from direct legal risks. Often used for tax structuring as well.
  • Risk Insulation: Structuring a business so that legal or regulatory issues in one area do not negatively impact the entire global organization.
  • Diligence (Due Diligence): An investigation into the business and dealings of an entity to understand nature of risks in the entity before an investor makes an investment or acquires the entity’s business.

Timestamps

Introduction
Structure of the Indian Judicial System
Data Points on Enforcement
India’s Rank in Enforcing Contracts
Comparison with OECD
Figures from the National Judicial Data Grid (Pendency)
Pending Cases Across All Courts
Backlog in Tribunals
Arbitral Awards
Structural Issues Causing Judicial Delays
Procedural and Behavioral Patterns
Ineffective Costs and Penalty Regime
Low Threshold for Admitting Claims
Perjury and False Pleadings
Criminal Justice System
Implications of Statistics for Businesses
Top 10 Points to Manage Potential Dispute Risks in India
Diligence
Intermediary Entity for Risk Insulation
Avoid Complicated Structures
Practical Contractual Risk Management
Prioritize Good Faith and Clarity
Operational Checks and Balances
Prepare for Litigation
Understand Interim Relief
Explore Settlements
Absorb Losses and Move On
Avoid Ego Litigation
Conclusion: Delays in Enforcement as Material Risk

Production Date:

Recorded on 20 December 2025