"I took the decision two days ago not to pursue such cases because of which about 4,000 cases will automatically get dropped" he told reporters here.
He said the ministry wanted to challenge an adverse court order in this regard but he has ordered it not to be pursued.
However, a lawyer said the government was left with no choice but to accept.
"Even MoD's review petition in a similar case was dismissed in January 2014 by the apex court. The new regime should have ideally taken suo moto action of withdrawing appeals and thereby earning goodwill of disabled soldiers," Maj (retd) Navdeep Singh, advocate of Punjab & Haryana High Court, told PTI.
More From This Section
He said some of the appeals filed by the MoD involved petty amounts of Rs 155 or Rs 310 per month.
There are three bands to judge disability across the board.
Up to 50 per cent disability, a person was to be given the benefits of a 50 per cent disability holder while a person with 51-75 per cent disability was to be given 75 per cent disability benefits. A person with 76-100 per cent disability was to be given 100 per cent disability benefits.
However, the benefits were granted to only those who were removed from service by the government on medical grounds, and not to those who retired after their full service.