Public sector undertakings to desist from frivolous litigation: High Court

In a recently reported decision [National Textile Corporation Limited v. Kunj Behari Lal, AIR 2010 Del 199] the Delhi High Court has cautioned the public sector undertakings from engaging in frivolous litigation. Imposing exemplary costs, the High Court declared that by pursuing frivolous litigation the undertakings were wasting "the time and public exchequer's money". Holding that such instances were "an apt example of being penny wise, pound foolish", the High Court went on to observe that "public Sector undertakings though having large number of legal personnel under their employment, do not examine the cases properly and force poor litigants to approach the court".

The Court inter alia observed as under;

18. Present petition is most bogus and frivolous one and has been filed just to squander public money and to harass a common man who committed blunder by giving his property on rent to the mighty public undertaking. It is a well known fact that courts across the country are saddled with large number of cases. Public Sector undertakings indulgences further burden them. Time and again, courts have been expressing their displeasure at the Governments / Public Sector undertakings compulsive litigation habit but a solution to this alarming trend is a distant dream. The judiciary is now imposing costs upon Government/Public Sector undertakings not only when it pursue cases which can be avoided but also when it forces the public to do so. 

19. Public Sector undertakings spent more money on contesting cases than the amount they might have to pay with regard to the premises which have been taken on rent by them. In addition there to, precious time, effort and other resources go down the drain in vain. Public Sector undertakings are possibly an apt example of being penny wise, pound foolish. Rise in friviolous litigation is also due to the fact that Public Sector undertakings though having large number of legal personnel under their employment, do not examine the cases properly and force poor litigants to approach the court. 

20. Frivolous litigation clogs the wheels of justice making it difficult for courts to provide easy and speedy justice to the genuine litigants. Public Sector undertakings should not indulge in mindless litigation and unnecessary waste the time and public exchequer's money. A strong message is required to be sent to those litigants (whether Government or Private) who are in the habit of challenging each and every order of the trial court even if the same is based on sound reasoning and also to those litigants who go on filling frivolous applications one after another. 

21. Under these circumstances, present petition which is meritless, bogus and most frivolous one, is hereby dismissed with costs of Rs.50,000/- (Fifty Thousand Only).

Have a look at the decision.