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1998 Supreme(SC) 939

1998(7) Supreme 209
Supreme Court of India
(From Madras High Court)
S. Saghir Ahmad & K.T. Thomas, JJ.
N. Balakrishnan -Appellant
versus
M. Krishnamurthy -Respondent
Civil Appeal Nos. 4575-76 of 1998
(@ SLP (Civil) No. 8712-13 of 1998)
Decided on 3-9-1998
Counsel for the Parties :
For the Appellant : Krishnaswami, Advocate.
For the Respondent : Gaurav Jain and Ms. Abha Jain, Advocates.

Important Point
Once the trial Court accepts the expla­nation for the delay in filing petition to set aside exparte order as sufficient it is the result of positive exercise of discretion and normally the superior Court should not disturb such finding, much less in revisional jurisdiction, unless the exercise of dis­cretion was on wholly untenable gro­unds or arbi­trary or perverse.

Headnote:Code of Civil Procedure, 1908 -Order 9 Rule 13-Limitation Act -Sec­tion 5-Exparte decree-Set­ting aside of-Condonation of delay -Appli­cation to set aside exparte decree dismissed for default-Peti­tion to set aside that order after a lapse of 883 days-Counsel did not purse petition allowed petition to be dismissed for default and appellant came to know on receipt of execution warrant-Counsel in fact left practice and joined service of a company-Appellant filed consumer complaint against counsel and secured compensation of Rs. 50,000 -Trial Court condoned delay accepting explanation for delay-High Court held that delay not properly explained on ground of absence of diligence on part of appellant and he should have been more vigilant by visiting advocate at short intervals-Whether correct-No-Appel­lants conduct did not warrant on the whole to casti­gate him as irresponsible litigant once trial Court accepts explana­tion as sufficient superior Court should not disturb such finding-Trial Court’s order restored-Respondent awarded Rs. 10,000/- as compensation.

       Held : Appellant’s conduct does not on the whole warrant to castigate him as an irresponsible litigant. What he did in defending the suit was not very much far from what a litigant would broadly do. Of course, it may be said that he should have been more vigilant by visiting his advocate at short intervals to check up the progress of the litigation. But during these days when everybody is fully occupied with his own avocation of life an omission to adopt such extra vigilance need not be used as a ground to depict him as a litigant not aware of his responsibilities, and to visit him with drastic consequences. (Para 6)

       It is axiomatic that condonation of delay is a matter of discretion of the court Section 5 of the Limitation Act does not say that such discretion can be exercised only if the delay is within a certain limit. Length of delay is no matter, acceptability of the explanation is the only criterion. Sometimes delay of the shortest range may be uncondonable due to want of acceptable explanation whereas in certain other cases delay of very long range can be condoned as the explanation thereof is satisfactory. Once the court accepts the expla­nation as sufficient it is the result of positive exercise of discre­tion and normally the superior court should not disturb such finding, much less in revisional jurisdiction, unless the exercise of discre­tion was on wholly untenable grounds or arbitrary or perverse. But it is a different matter when the first court refuses to condone the delay. In such cases, the superior court would be free to consider the cause shown for the delay afresh and it is open to such superior court to come to its own finding even untrammeled by the conclusion of the lower court. The reason for such a different stance is thus: The primary func­tion of a court is to adjudicate the dispute between the parties and to advance substantial justice. Time limit fixed for approaching the court in different situations is not because on the expiry of such time a bad cause would transform into a good cause. (Paras 7 & 8)

       Rules of limitation are not meant to destroy the right of parties. They are meant to see that parties do not resort to dilatory tactics, but seek their remedy promptly. The object of providing a legal remedy is to repair the damage caused by reason of legal injury. Law of limitation fixes a life-span for such legal remedy for the redress of the legal injury so suffered. Time is precious and the wasted time would never revisit. During efflux of time newer causes would sprout up necessitating newer persons to seek legal remedy by approaching the courts. So a life span must be fixed for each remedy. Unending period for launching the remedy may lead to unending uncertainty and conse­quential anarchy. Law of limitation is thus founded on public policy. It is enshrined in the maxim interest reipublicae up sit finis litium (it is for the general welfare that a period be put to litigation). Rules of limitation are not meant to destroy the right of the parties. They are meant to see that parties do not resort to dilatory tactics but seek their remedy promptly. The idea is that every legal remedy must be kept alive for a legislatively fixed period of time. A court knows that refusal to condone delay would result in fore­closing a suitor from putting forth his cause. There is no presumption that delay in approaching the court is always deliberate. This Court has held that the words “sufficient cause” under Section 5 of the Limitation Act should receive a liberal construction so as to advance substantial justice. (Paras 9 & 10)

       Resultantly held : In this case explanation for the delay set up by the appellant was found satisfactory to the trial Court in the exercise of its discre­tion and the High Court went wrong in upsetting the finding, more so when the High Court was exercising revisional jurisdiction. Nonetheless, the respondent must be compensated particularly because the appellant has secured a sum of Rs. Fifty thousand from the delin­quent advocate through the Consumer Disputes Redressal Forum. We, therefore, allow these appeals and set aside the impugned order by restoring the order passed by the trial Court but on a condition that appellant shall pay a sum of Rupees Ten thousand to the respondent (or deposit it in this court) within one month from this date. (Para 12)

       

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points:

  • The exercise of discretion by a trial court to accept an explanation for delay in filing a petition to set aside an ex parte order should generally not be disturbed by a higher court unless the decision was based on untenable, arbitrary, or perverse grounds (!) (!) .

  • The primary function of the court is to adjudicate disputes and promote substantial justice. The rules of limitation are designed to prevent dilatory tactics and ensure prompt pursuit of remedies, not to extinguish rights unnecessarily (!) (!) .

  • The length of delay is not the sole criterion; the acceptability of the explanation is paramount. Once a court finds an explanation satisfactory, such a finding is a result of positive exercise of discretion and should not be disturbed on appeal or revision unless clearly unjustified (!) (!) .

  • When a lower court refuses to condone delay, a superior court has the authority to re-evaluate the cause shown and come to its own conclusion, even if it differs from the lower court’s decision (!) .

  • The law advocates a liberal interpretation of "sufficient cause" to advance substantial justice, recognizing that delays can occur due to genuine reasons and not necessarily mala fide intentions (!) (!) .

  • A litigant's conduct, such as being reasonably diligent, plays a role in assessing the explanation for delay. However, minor lapses or lack of vigilance do not automatically render a litigant irresponsible or justify denying condonation (!) .

  • When delay is condoned based on acceptable explanations, courts may impose compensation on the opposite party to offset potential losses incurred due to the delay (!) .

  • The overarching principle is that the law aims to balance the interests of justice with procedural efficiency, ensuring that genuine cases are not barred due to procedural technicalities while discouraging dilatory tactics (!) (!) .

Please let me know if you require further analysis or specific legal advice.


Judgment

Thomas, J.-Leave granted.

2. Explanation for the apparently inordinate delay in moving an application was accepted by the trial Court under Section 5 of the Limitation Act, 1963, but the High Court in revision reversed the finding and consequently dismissed the motion. That order of the High Court has given rise to these appeals.

3. Facts barely needed for these appeals are the following:

A suit for declaration of title and ancillary reliefs filed by the respondent was decreed ex-parte on 28.10.1991. Appellant, who was defendant in the suit, on coming to know of the decree moved an appli­cation to se it aside. But she application was dismissed for default on 17.02.1993. Appellant moved for having that order set aside only on August 19, 1995 for which a delay of 883 days was noted. Appellant also filed another application to condone the delay by offering an explanation which can be summarised thus:

Appellant engaged an advocate (one Sri MS Rajith) for making the motion to set the ex-parte decree aside but the advocate failed to inform him that the application was dismissed for default on 17.02.1993. When he got summons from the execution side on 5.7.1995 he approached his advocate but he was told that perhaps execution pro­ceedings would have been taken by the decree-holder since there was no stay against such execution proceedings. On the advice of the same advocate, he signed some papers including a Vakalatnama for resisting the execution proceedings, besides making a payment of Rupees Two Thousand towards advocate’s fees and other incidental expenses. But the fact is that the said advocate did not do anything in the court even thereafter. On 4.8.1995 the execution warrant was issued by the court and he became suspicious of the conduct of his advocate and hence rushed to the court from where he got the disquieting information that his application to set aside the ex-parte decree stood dismissed for default as early as 17.2.1993 and that nothing was done in the court thereafter on his behalf. He also learned that his advocate has left the profession and joined as legal assistant of M/s. Maxworth Orcheads India Limited. Hence he filed the present applica­tion for having the order dated 7.2.1993 set aside.

Appellant did not stop with filing the aforesaid application. He also moved the District Consumer Disputes Redressal Forum, Madras North ventilating his grievance and claiming a compensation of rupees one lakh as against his erstwhile advocate. The said forum passed final order directing the said advocate to pay a compensation of Rs. Fifty thousand to the appellant besides a cost of Rs. Five Hundred.

Though, the trial Court was pleased to accept the aforesaid explana­tion and condoned the delay a single Judge of the High Court of Madras who heard the revision, expressed the view that the delay of 883 days in filing the application has not been properly explained. Hence the revision was allowed and trial Court order was set aside. An applica­tion for review was made, but that was dismissed. Hence these appeals.

4. The reasoning of the learned single Judge of the High Court for reaching the above conclusion is that the affidavit filed by the appellant was silent as to why he did not meet his advocate for such a long period. According to the learned single Judge:

“If the appellant was careful enough to verify about the stage of the proceedings at any point of time and had he been misled by the counsel then only it could have been said that due to the conduct of the counsel the party should not be penalised.”

5. Learned single Judge then observed that when the party is in utter negligence, he cannot be permitted to blame the counsel. Learned single Judge has further remarked that :

“A perusal of the affidavit does not reveal any diligence on the part of the respondent in the conduct of the proceedings. When already the suit has been decreed ex-parte, the respondent ought to have been more careful and diligent in prosecuting the matt










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