Collusive Litigation

The recent Supreme Court's suo motu cognizance of collusive litigations involving officials of the Bengaluru Development Authority (BDA) underscores the seriousness with which the judiciary views the potential abuse of the legal system.

What is Collusive Litigation?

Collusive litigation refers to a situation where the parties involved in a lawsuit are not truly adversarial. Instead, they collaborate in order to achieve a desired outcome, often undermining the integrity of the judicial process. This is usually done to either challenge the constitutionality of a law or to manipulate the legal outcome for mutual benefit.

Features of Collusive Litigation:

1. Lack of Genuine Dispute: The parties involved may have a shared interest in the case's outcome, often in the form of a pre-arranged agreement or mutual benefit, making the litigation non-adversarial.

2. Manipulation of the Judicial Process: The primary risk is that the litigation could be used to manipulate judicial outcomes, bypassing legitimate legal procedures.

3. Undermining the Adversarial System: The legal system relies on the genuine contest between parties, and collusive litigation erodes this principle.

4. Circumventing the Legislative Process: Such suits may be used as a shortcut to achieving outcomes that would not be possible through proper legislative or legal channels.

Legal Principles Surrounding Collusive Litigation in India

1. Collusive Decrees: In cases where a decree (court order) is found to be collusive, it can be set aside, but only under specific circumstances:

   • A party not involved in the collusion can challenge the decree, provided they can prove collusion or fraud.

   • The burden of proof falls on the party challenging the decree to establish that collusion took place.

2. Role of the High Court: The High Court has the authority to intervene if it finds that a decree is collusive, under Article 227 of the Indian Constitution. This article allows the High Court to exercise its supervisory jurisdiction over inferior courts.

3. Impact of Collusive Decrees: A party involved in the collusion cannot seek to set aside the decree. Courts generally rule that only those not involved in the collusion can challenge the decision.

4. General Relief: Even if no specific prayer (request) for setting aside a decree is made, courts can still intervene and set aside a collusive decree under a general prayer for relief.