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Report No. 145

3.7. Figures given in 126th Report.-

At this stage, reference may also be made to the Report of the Law Commission already mentioned by us1 (126th Report), where a tabular statement of the quantum of cases filed in courts by or against public sector undertakings is given, alongwith the expenditure incurred during five years i.e., 1981, 1982, 1983-85/1986/1987. The Commission pointed out2 that from amongst public sector undertakings, nationalised banks and financial institutions had been responsible for a large amount of litigation.3 The Commission stressed the factor of lack of responsibility on the part of the managerial executives in resolving disputes. Elsewhere in its Report,4 the Commission highlighted the major causes for mounting litigation in the public sector as under:

(i) lack of accountability;

(ii) corruption;

(iii) eccentric approach of officers in service matters.

In the same Report,5 several specific instances of litigation have been narrated, with detailed comments as to how the suits or proceedings could have been avoided by the public sector undertakings concerned.

1. Law Commission of India, 126th Report (Government and Public Sector Undertaking Litigation Policy and Strategies), Annexure V.

2. 126th Report, para. 7.3.

3. 126th Report, para. 2.261.

4. 126th Report, para. 7.1.

5. 126th Report, Chapter 4.

Article 12 of the Constitution and Public Sector Undertakings Back

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