"How much public money is spent on litigations by the government and its agencies? It is a matter of grave concern," a bench comprising Justices G S Singhvi and A k Ganguly said.
The court said the government prefers to fight a case upto the Supreme Court in matters which could be resolved at the secretariat.
"Several trivial matters which are required to be settled at the secretariat travel to the courts," the bench said adding "it is a collosal loss to the public exchequer."
The Bench gave the example of noted cardiac surgeon P Venugopal who had to fight a lengthy legal battle in the Delhi High Court and later on in the Supreme Court against the decision of the government for removing him as a Director of AIIMS a few years back.
"We have the best example of Venugopal who had to spend his time in the corridors of courts instead of conducting operations and heart surgery," the court said.
"We are fed up with these matters," the court said adding the issues of casual labours and small matters were reaching courts.
The remarks by the Bench came during the hearing of the petition filed by a doctor against Delhi government.