Open files limit error

I am using 1.6.16, I have deployed around 20 containers in single server and getting following error while deploying further container through catalogs

Expected state running but got error: open /etc/resolv.conf: too many open files

Docker is configured with default ulimit of 1024:65000, I guess its not an issue since it will only limit the process inside the an individual container. What can be the issue?

Its giving an error like below for some of the containers. Does this mean docker is unable to extract images too? I am just wondering is it due to the ulimit settings of the server or the ulimit settings in docker. I started to get this issues from 1.6.16 version of rancher only.

Get http://%2Fvar%2Frun%2Fdocker.sock/v1.22/images/ dial unix /var/run/docker.sock: socket: too many open files