IN THE HIGH COURT OF DELHI AT NEW DELHI
Jyoti Singh, J.
M/s Dewan Chand - Appellant
Versus
The Central Board Trustees - Respondent
W.P.(C) 1441/2021 and Cm No. 4128/2021 (Stay)
Decided On : 07-05-2021
Employees Provident Fund - Restoration of Appeal - Section 7(A) of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 - Summary of Acts and Sections: Section 7(A) of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 - The court discussed the provisions of Section 5 of the Limitation Act, 1963 and cited case laws such as N. Balakrishnan vs. M. Krishnamurthy, State of Jammu and Kashmir vs. Dr. Ashok Kumar Gupta, M.K. Prasad vs. P. Arumugam, and Ram Nath Sahu vs. Gobardhan Sahu to establish the legal framework for condonation of delay and restoration of appeal. The court emphasized the need for a liberal construction of 'sufficient cause' and a pragmatic approach to advance substantial justice.
Fact of the Case:
The Petitioner, a partnership firm, filed a writ petition assailing the order dismissing the applications for restoration of the appeal and condonation of delay. The appeal was dismissed in default due to non-appearance, and the Petitioner sought restoration after a delay of nearly 3 years. The Respondents opposed the application, citing lack of diligence on the part of the Petitioner.
Finding of the Court:
The court found merit in the Petitioner's contentions, considering the genuine personal difficulties of the lawyers engaged and the cumulative factors contributing to the delay. It held that the Petitioner should not suffer for the non-appearance of their lawyers and allowed the writ petition, restoring the appeal with a cost of Rs.50,000/- to be deposited.
Issues: The main issue was whether the appeal should be restored and the Petitioner given another opportunity to prosecute the same, considering the delay and the reasons for non-appearance.
Ratio Decidendi: The court applied a liberal construction of 'sufficient cause' and a pragmatic approach to advance substantial justice, citing case laws to establish the legal framework for condonation of delay and restoration of appeal. It emphasized that parties should not suffer for the non-appearance of their lawyers.
Final Decision: The writ petition was allowed, and the impugned order was set aside. The appeal was restored with a cost of Rs.50,000/- to be deposited, and the court requested the Tribunal to decide the appeal expeditiously, uninfluenced by any observations made in the order.
ORDER
Jyoti Singh, J. (Oral). - Present petition has been filed assailing the order dated 19.11.2020 whereby the applications filed by the Petitioner for restoration of the appeal and condonation of delay in filing the restoration application have been dismissed.
2. Petitioner is a partnership firm with two partners. An Assessment Order was passed by Assistant Provident Fund Commissioner, Faridabad under Section 7(A) of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 (hereinafter referred to as the 'the Act') on 29.11.2012 assessing Rs.6,55,380/- allegedly payable by the Petitioner establishment. The said order was challenged by the Petitioner by an appeal before the Employees Provident Fund Appellate Tribunal (now Central Government Industrial Tribunal), Delhi, in the year 2013, being ATA No. 184(16) 2013. Appeal was admitted on 19.03.2013, subject to deposit of 25% of the assessed amount.
3. The appeal was dismissed in default on 10.05.2016 due to non-appearance of the Petitioner, but was restored on 06.06.2016. Yet again, when the appeal was listed on 14.12.2016, there was no appearance on behalf of the Petitioner and the CGIT dismissed the appeal in default. After a lapse of nearly 3 years, Petitioner filed an application for restoration of the appeal along with an application for condonation of delay. However, the CGIT vide order dated 19.11.2020 dismissed both the applications on the ground that several adjournments had been allowed to the Petitioner for hearing and even on earlier occasion i.e. on 10.05.2016, the appeal was dismissed in default, indicating lack of diligence on the part of the Petitioner in the conduct of the appeal. CGIT was of the view that the explanation for non-appearance and condonation of delay mentioned in the applications, was not convincing to the conscience of the Tribunal.
4. Order dated 19.11.2020 is assailed before this Court by the Petitioner in the present writ petition. Be it noted that during the pendency of the writ petition, Petitioner was permitted to file an additional affidavit explaining the sequence of the proceedings before the CGIT from 2013 and reasons for non-appearance on the date when the appeal was dismissed in default as well as for condonation of delay in filing the restoration application. Detailed affidavit was filed by the Petitioner on 23.03.2021 and a response thereto was filed by the Respondents.
5. In the additional affidavit filed in this Court, it is sought to be explained by the Petitioner that the order dated 14.12.2016 was never communicated to the Petitioner and the Petitioner was under a bonafide impression that the appeal was pending before the CGIT. The said order came to the knowledge of the Petitioner only when coercive action was initiated by the Respondents.
6. On coming to know of the order dated 14.12.2016, an application was filed by the Petitioner for inspection of the file before the CGIT and file was inspected on 24.10.2019. After perusing the exact order, an application for restoration of the appeal was filed on 30.10.2019, which was dismissed by the CGIT.
7. The reasons set out in the application for restoration were that the counsel who was appearing on the previous dates, left the office of the main counsel, without intimating the status of the proceedings or the date of hearing, on which date, the appeal was dismissed. Order dated 14.12.2016 was never communicated to the Petitioner by the office of the CGIT or the Respondents. Non-appearance was on account of reasons beyond the control of the Petitioner and bonafide. Petitioner should not be penalized due to the non-appearance of a counsel. In the application seeking condonation of delay under Section 5 of the Limitation Act, 1963, it was averred that the Petitioner was unaware of the order dated 14.12.2016 dismissing the appeal in default as the same was never served on or communicated to the Petitioner. On coming to know of the order, when coercive action was initiated by the R
M.K. Prasad vs. P. Arumugam (2001) 6 SCC 176
N. Balakrishnan vs. M. Krishnamurthy (1998) 7 SCC 123
N. Balakrishnan vs. M. Krishnamurthy (1998) 7 SCC 123
Ram Kumar Gupta vs Har Prasad & Anr. (2010) 1 SCC 391
Ram Nath Sahu vs. Gobardhan Sahu (2002) 3 SCC 195
Ramlal vs. Rewa Coalfields Ltd. AIR 1962 SC 361
The main legal point established in the judgment is the need for a liberal construction of 'sufficient cause' and a pragmatic approach to advance substantial justice in applications for condonation o....
The court emphasized a pragmatic approach to justice, stating that delay should be liberally construed under the Limitation Act, and parties should not be penalized for their counsel's non-appearance....
A party seeking condonation of delay under Section 5 of the Limitation Act must demonstrate sufficient cause; mere invocation of a liberal approach unaccompanied by due diligence will not suffice.
Inherent powers cannot override Rule 48(2)'s 30-day limit for restoring non-prosecuted petitions; counsel's negligence not sufficient cause absent litigant diligence in time-sensitive insolvency proc....
Point of Law - It is axiomatic that condonation of delay is a matter of discretion of court Section 5 of Limitation Act does not say that such discretion can be exercised only if the delay is within ....
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