Move to curb litigations is timely

Government departments must cease to be compulsive litigants. The casual approach of “let the court decide” must be eschewed and condemned. The approach has a high financial cost, leads to pendency of cases and demoralises the staff. These apart, employees at different levels too are fighting legal battles with the Government, in most cases for arbitrary or biased decisions. In many cases, the employees are told to go to the court to seek redressal or even reinstatement.

However, most cases could be avoided if these are handled with a judicious and sympathetic approach at the top. But the approach in most cases is either “to teach a lesson” or to avoid taking a decision. The perpetrator, a high official, goes scot-free and even gets cushy re-employment after retirement but the employees continue to suffer for life in terms of financial cost and demoralisation.

Between 1985 and September 2010, a total of 566,706 cases have been filed in the Central Administrative Tribunal (CAT), according to official data. The NDA government as per a Cabinet note has called for curbing litigation. The Supreme Court has passed severe strictures against State-run corporations fighting long battles with each other “at the cost of taxpayers”.

How much is the cost of such litigations? There is no precise estimate as different departments spend it and it is not easy to compile such data. Besides, each individual employee also spends a whopping amount in terms of fees for lawyers, courts and other expenses. Even at the minimum, the government everyday spends lakhs of rupees on counsel fees.

The Modi government’s move to curb litigation can save the country about one-third of the total expenses over Rs 30 lakh crore. The cases, the Supreme Court has observed, are often frivolous. LIC, ONGC and other government departments are regularly approaching the court against various tax demands. These issues can be resolved through negotiations.

Over 50 per cent of the cases in higher judiciary pertain to government appeals, including tax cases. A March 2016 report of Central Board of Direct Taxes (CBDT) notes that in more than 30 percent tax-related litigations, appeals were filed mechanically, “without appreciation of the maintainability of the issues involved”.

Nudged by the Prime Minister’s Office, the Law Ministry has sent a 10-page note to the CAS, enumerating various flaws and deliberate omissions which are adversely affecting the government’s cases in the top court. A committee of the Law Ministry for strengthening judiciary towards reducing the pendency and delays in 2009 of cases has suggested having a National Litigation Policy.

Analysis of cases disposed of by the CAT by Krishna Tangirala, legal intern National Law University, Jodhpur in December, 2013 finds that 40 per cent of the cases were filed by group C employees. Interestingly, about 43 percent of cases filed even by Group A, B and even C employees sought relief for promotion, pay fixation and increments or anomalies in implementation of Pay Commission recommendations.

If moves of the Modi government are implemented, it would save not only money but also precious man-hours lost. This apart, it would ensure healthy atmosphere and is likely to improve and speed up government functioning.

By Shivaji Sarkar