Draft Issues in Stage of case

The Plaintiff files the plaint, to which the Defendant files his Written Statement. Plaintiff's response to the Written Statement is known as Replication. These are collectively known as pleadings. When pleadings are complete, the Court formulates the questions which arise from the facts of the case and on which evidence has to be led, facts have to be proved and arguments addressed. These 'questions' are the 'issues'. Draft issues, in the manner you state, suggests that the parties were granted opportunity to settle the case but that failed so now issues have to be framed and the Court has asked the parties to suggest the issues, i.e. the draft issues.