TMI Blog2021 (7) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... ional problems cannot be studied in a socio-economic vacuum, since socio culture changes are the change of the new values and slogging of old legal thought will be part of the process of the new equity loaded legality. The Judge is a social scientist in the role as a constitutional invigilator. This Court is of the view that the directions with respect to the Accountability in Government litigation are in the nature of PIL and therefore, it would be appropriate to list this matter before the PIL Bench - Subject to the orders of Hon ble the Chief Justice, list this matter before Division Bench on 15th July, 2021. - W.P.(C) 7553/2015, FAO 265/2014, 403/2017, 22/2015, CM Appls. 39547/2019, 18352/2021 & RFA 457/2017 - - - Dated:- 24-6-2021 - HON'BLE MR. JUSTICE J.R. MIDHA Respondent: Mr. Kirtiman Singh, CGSC for UOI with Mr. Waize Ali Noor, Advocate Mr. A.S. Chandhiok, Senior Advocate as amicus curiae with Ms. Neelam Deol, Advocate, Ms. Shanta Devi Raman, Advocate And Ms. Punam Kumari, Advocate Appellant: Mr. Jagjit Singh, Senior Standing Counsel for Railways with Mr. Preet Singh, Ms. Shipra Shukla and Mr. Vipin Chaudhary, Advocates, Mr. Manish Mohan and Ms. Manish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... managed and conducted in the State. The national concern of pendency and delays in Courts needs to be reduced proactively. It states that the objective is to transform Government into an efficient and responsible litigant so that it manages and conducts litigation in coordinated and time bound manner; ensure that good cases are won and bad cases not pursued needlessly and to reduces overall government litigation load in Courts thereby providing relief to the judiciary. It further states that the objective is to provide for a substantive mechanism which would inter-alia serve to monitor and control the implementation of the Policy, enforce accountability on and provide clarifications, to the implementers and stakeholders of the policy and to consider changes in the policy, depending on its performance and effectiveness. 5. As per Legal Information Management Briefing System (LIMBS) which is a web-based portal developed by Department of Legal Affairs, Ministry of Law Justice for monitoring and handling of various Court cases of Government Departments and Ministries 4,79,236 cases of Government, 2055 cases for compliance and 975 cases of contempt were pending as on June 08, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he FIR being followed up by the High Court and the role of Government of NCT of Delhi should be eliminated. The note further recorded that the action has been taken on the said advice. 15. The aforesaid noting in the Railway record shocked the conscience of this Court and notice was issued to the officers. This Court appointed Mr. A.S. Chandhiok, learned senior counsel as amicus curiae to assist this Court on 31st May, 2016. Learned amicus curiae submitted comprehensive submissions and the relevant judgments before this Court. 16. Vide judgment dated 17th April, 2017, this Court awarded compensation of ₹ 18 lakh along with interest @ 9% per annum to the petitioners. Railways complied with the said judgment and deposited ₹ 20,81,540/- which was disbursed to the petitioners on 21st July, 2017. 17. On 26th May, 2017, DGM (Law) and Senior Division Operational Manager of Railways regretted the notings made in the official records whereupon notice dated 09th August, 2016 was discharged. 18. Learned amicus curiae has given comprehensive suggestions for directing the Government to frame a policy for holding the government officials for raising false claims before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal whereupon this Court directed the DGM (Law), Northern Railway to disclose on affidavit the names of the officers who dealt with this matter and raised a false defence. The affidavit dated 16th March, 2018 was filed in which three names of the officers were disclosed who had all retired from the service. Railway tendered an unconditional written apology on affidavit on 22nd May, 2018. Geeta Devi v. Union of India, FAO 22 of 2015 23. In Geeta Devi v. Union of India, this Court noted that false claims have been raised in Kiran Kanojia case. This Court considered the need of accountability of Government officer(s) in Court cases. It was suggested by the Amicus Curiae that Railways should appoint a designated Law officer by name who shall take a decision and if it is found that he raised false claims, the adverse entry be made in his ACR record. This Court constituted a Committee on 02nd August, 2017 to consider framing the policy in respect of the legal cases of Railways before Railway Claims Tribunal. The relevant portion of the order dated 02nd August, 2017 is reproduced hereunder: 3. FAO 265/2014 titled Union of India vs. Kiran Kanojia is listed before this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the alleged untoward incident and is, therefore, not entitled to any compensation. (v) The applicant s claim is exorbitant, imaginary and without any basis. (vi) Even otherwise, the application is wholly misconceived, groundless and unsustainable in law. (vii) The applicant has no legal or valid cause of action against the respondent and as such, the application is bad and deserves dismissal. (viii) The application is totally baseless, false and it is a fit case where the Hon ble Tribunal should exercise the jurisdiction vested under the law and dismiss the application while imposing costs on the applicant. (ix) The Hon ble Tribunal has no territorial jurisdiction to entertain and try the present application. (x) It is denied that the applicant was travelling from Secundrabad to Nizamuddin by A.P. Sampark Kranti Express and was sitting on the lower berth next to the exit gate while the train was passing slowly through Palwal Railway Station, one unknown gunda boy snatched her bag which contained her railway ticket and valuable and she was dragged towards the exit gate because of the force of snatching the bag or the other gunda boy pushed her from behi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould have gracefully assisted the Railway Claims Tribunal to expeditiously pass the order. 8. Mr. Anoop J. Bhambhani, learned amicus curiae, suggests that the Committee appointed by this Court be directed to consider the present litigation policy of the Railways and if there is no such policy, a fair policy be framed by the Committee appointed by this Court with provision of accountability. Learned amicus curiae further suggests that whenever an application for compensation is filed, the Railways should appoint a designated officer by name, who should apply his mind and pass a reasoned decision as has been directed by this Court in the Modified Claims Tribunal Agreed Procedure formulated by this Court in Rajesh Tyagi v. Jaibir Tyagi, FAO 842/2003 vide order dated 12th December, 2014. Reference be made to para 19 of the Modified Claims Tribunal Agreed Procedure which is reproduced hereunder: 19.Duty of the Insurance Company to appoint a Designated Officer within 10 days of the receipt of the copy of DAR Upon receipt of copy of the DAR, the Insurance Company shall appoint a Designated Officer within 10 days. The Designated Officer shall be responsible for dealing / p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation policy, if any, as well as the data with respect to the number of pending cases before the Committee. 12. Mr. Anup J. Bhambhani, learned amicus curiae (sic) shall convene the meeting in this month. 13. List for considering the report of the Committee on 15th September, 2017 at 2.30 p.m. (Emphasis Supplied) M/s Cement Corporation of India Ltd. vs Mohan Singh, RFA No.457/2017 24. In this case, Cement Corporation of India took a property on lease in Nehru Place on rent for three years by rent agreement dated 01st March, 2008. In the meantime, the owner sold the property and the purchaser intimated the same to the Cement Corporation whereupon the Cement Corporation paid the rent to the purchaser. The rent was revised from time to time. The owner terminated the lease by notice dated 28th August, 2010 and upon failure of the Cement Corporation of India to vacate the said property, the owner instituted a suit for possession, recovery of rent and mesne profits. 25. Cement Corporation contested the suit on various grounds inter alia that the respondent was not the owner; lease was perpetual; respondent has no right to terminate; no notice of termination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity it is unfair to expect final sense and sensibility in its litigation policy, the essence of which, in the present case, has led the railways callously and cantankerously to resist an action by its own employee, a small man, by arguing a mere technical plea which has been pursued right upto the summit court here and has been negatived in the judgement justice pronounced. 31. In State of Punjab v. Geeta Iron Brass Works Ltd., 1978 (1) SCC 68, the Supreme Court made the following remarks: We like to emphasise that Governments must be made accountable by Parliamentary social audit for wasteful litigative expenditure inflicted on the community by inaction...An opportunity for settling the dispute through arbitration was thrown away by sheer inaction. A litigative policy for the State involves settlement of governmental disputes with citizens in a sense of conciliation rather than in a fighting mood. Indeed, it should be a directive on the part of the State to empower its law officer to take steps to compose disputes rather than continue them in Court. We are constrained to make these observations because much of the litigation in which Governments are involved adds the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning judicial posts and other incidental expenses on staff, books, buildings, libraries, et. al. Avoid litigation or reduce it at any cost which would bring down the load on the court system, inevitably resulting in reduction of expenses of judicial set up. 1.10. The purpose of this report is to lay down broad guidelines on litigation policies and strategies of the public sector undertakings and the Government with a view to reducing litigation, saving avoidable costs on unproductive litigation, releasing the energies of officers held up in court work, reducing load on court system and thus realize the promise of Article 39A of the Constitution. 33. Thirteenth Finance Commission, 2010 2015 in Volume I of Report of December, 2009 noted that improvement of justice delivery system is a critical component. In context of the facts of abovementioned cases, it noted that the Government is the single largest litigant in the country and very large number of pending cases where either a State Government or the Central Government is a party, which significantly adds to the burden of arrears. It further noted the necessity of all State Governments frame state litigation policies ai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be eligible to draw down the instalment for the succeeding fiscal years. This condition will not apply to the first annual instalment (2010-11) which can be drawn down without the policy in place. A state will thereafter be entitled to the grants only prospectively after framing its policy. (Emphasis Supplied) 34. Keeping in view 126th Law Commission s Report, and the observations made by the Supreme Court inter-alia in the above two judgements, the Government of India took steps to have a National Consultation with intent to have a view of all the stakeholders as to how to reduce the pendency and delays. Ministry of Law Justice held a National Consultation for strengthening the judiciary towards reducing pendency and delays on 24th and 25th October, 2009 and had taken the opinion of all stakeholders to best tackle the problem. Resolution was presented post the said consultation and a National Litigation Policy, 2010 was formulated with a view to ensure conduct of responsible litigation by the Central Government and also urged the State Governments to evolve similar Policies. 35. On 23rd June, 2010, the Central Government launched a National Litigation Policy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I (v) Alternative Dispute Resolution Arbitration Chapter VII All the concerned are requested to go through the contents of the policy carefully and take necessary actions to implement the same in letter and spirit. All the Chief Secretaries of the States and Administrators of Union Territories are also requested to take appropriate steps to frame a State Litigation Policy to deal with State Litigation. Sd/- (D.R. Meena) Law Secretary 36. Thereafter in 2014-15, the Policy was sought to be reviewed and a new Litigation Policy, 2015 was sought to be formulated. The same has been observed by the Supreme Court in Union of India v. Pirthwi Singh, (2018) 16 SCC 363 that, the website of the Department of Justice shows that the National Litigation Policy, 2010 is being reviewed and formulation of the National Litigation Policy, 2015 is under consideration. When this will be finalized is anybody's guess. There is also an Action Plan to Reduce Government Litigation which was formulated on 13th June, 2017. 37. The aim of the National Litigation Policy is to transform the Government into an efficient and responsible litigant. The core issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. They are: (i) All claims against the Government/statutory authorities should be viewed as illegal and should be resisted and fought up to the highest court of the land. (ii) If taking a decision on an issue could be avoided, then it is prudent not to decide the issue and let the aggrieved party approach the court and secure a decision. The reluctance to take decisions, or tendency to challenge all orders against them, is not the policy of Governments or statutory authorities, but is attributable to some officers who are responsible for taking decisions and/or officers in charge of litigation. Their reluctance arises from an instinctive tendency to protect themselves against any future accusations of wrong decision-making, or worse, of improper motives for any decision-making. Unless their insecurity and fear is addressed, officers will continue to pass on the responsibility of decision-making to courts and tribunals. (para 10) 10. The objectives of the Litigation Policy inter alia should incorporate the following: (i) To ensure the Government is transformed from a compulsive litigation to an efficient and responsible litigant. (ii) Litigation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odal Officers and Heads of the Departments that all relevant data is sent to the Empowerment Committee. The Empowered Committee at the national was to be chaired by the Attorney General of India with Additional Secretary. Four Regional Empowerment Committees were constituted to be chaired by the then Attorney General of India nominated by the Ministry of Law Justice 17. The regional Empowerment Committees were to send monthly reports to the National Empowerment Committees which in turn were to be submitted to the Ministry of Law and Justice The Empowerment Committee was also to deal with suggestions and complaints including that of litigations and the government department and take appropriate decisions in relation thereto. The Policy also envisages training programs, seminars and workshops with an effort to cultivate and instill values for effective government representation. 18. Post pandemic 2020 the Bench and the Bar has responded to the new era. Now the National Litigation Policy must also encourage though not substituting to e-filing, Video Conferencing so that wherever it is possible and advisable physical appearance can be dispensed with. This would save preci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Business Application- all the appeals are now filed online-no manual intervention. Determined Monetary Threshold for Filing of Appeals. A Collegiums of two CCIT has been formed and on their recommendations the pending appeals which are considered irrelevant are being withdrawn from the High Courts. Central Committee to Decide on Settled Issues In this regard circulars have been issued to the officers directing them to withdraw cases/appeals if it involves the issues identified by the committee and that no further appeal are filed on the same. Notices/circulars have been issued for providing information on the same to general public. For the pending Appeal a two pronged approach is being followed: Based on the methods adopted 325 Cases of 100 crores and above were addresses and were disposed in the last 6-7 months. CBEC/Ministry of Finance - Threshold Limit Defined for Filing of Appeals (exception a challenge made on the constitutional validity of any legislative provision or against any circular/notification of the Department) Pre SCN (Show Cause Notice) Consultation Settlement Commission Authority of Advanced Ruling: Public Limited Companies, Public Sector Undertakin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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