The Government suffered its second important legal defeat in 24 hours today when a High Court judge rejected an attempt by Des Browne, the Defence Secretary, to ban coroners using phrases such as "serious failure" in their verdicts on dead soldiers.

In a groundbreaking decision that could have important implications for military operations in Iraq and Afghanistan, Mr Justice Collins also ruled that sending soldiers out on patrol or into battle with defective equipment could amount to a breach of their human rights.

The Defence Secretary had complained that phrases such as "serious failures" or "serious failings" in verdicts on soldiers who have died on active service implied criticism of the Ministry of Defence and its agents.

MoD lawyers had argued that such language was tantamount to blaming the Government for the deaths of service personnel, potentially helping soldiers' families if they sued for compensation. The hearing had been seen as a test case for how much freedom coroners enjoyed in criticising the Government.

In the same judgment, the judge said that in such cases families should be entitled to legal aid and as full access as possible to military documents put before inquest hearings.

MoD lawyers had argued that it was “impossible to afford to soldiers who were on active service outside their bases the benefits of the Human Rights Act”. But Mr Justice Collins ruled that British servicemen and women were entitled to some measure of legal protection “wherever they may be” — possibly right on to the battlefield.

The decision was handed down as Gordon Brown came under pressure to reopen an inquiry into a £43 billion BAE arms deal with Saudi Arabia after the High Court ruled that the Serious Fraud Office acted unlawfully by dropping the inquiry into the al-Yamamah deal.

Yesterday's High Court ruling said that the decision by ministers and the SFO to halt the investigation into alleged corruption in the deal was unlawful, an "abject surrender" and a threat to the reputation of British justice.

The ruling prompted calls for a full public inquiry and the reopening of the investigation. The SFO, which is now under pressure to review its decision, said last night that it was “carefully considering the implications of the judgment and the way forward”.

Today's rejection of Mr Brown's attempt to "gag" the coroners will be welcomed by soldiers' families.

Lawyers for the Defence Secretary went to the High Court to challenge comments made by a coroner in Oxfordshire after an inquest of a Territorial Army soldier in Iraq. Private Jason Smith, 32, died of heatstroke in 2003.

Andrew Walker, the assistant deputy coroner of Oxfordshire, recorded at his inquest in November 2006 that Private Smith’s death was caused “by a serious failure to recognise and take appropriate steps to address the difficulty that he had in adjusting to the climate”.

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