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2026 Supreme(Del) 385

IN THE HIGH COURT OF DELHI AT NEW DELHI
DEVENDRA KUMAR UPADHYAYA, C.J., TEJAS KARIA, J.
M/S Sanghvi Writing Points Private Limited – Appellant
Versus
Union of India Through The Secretary & Ors. – Respondents
LPA 152 of 2026 & CM APPL No. 18271 of 2026
Decided On : 24-03-2026

Advocates Appeared:
For the Appellant :Mr. Vineet Sinha, Advocate.
For the Respondents:Ms. Puja S. Kalra, CGSC, Mr. Akhil Mittal, Senior Panel Counsel with Ms. Shayna Das Pattanayak & Ms. Riddhi Jain, Advocates, Mr. Siddharth, Standing Counsel with Mr. Rajesh Kumar, Mr. Harshit Manwani, Ms. Himansh Girdhar, Mr. Deepanshu Grover & Mr. Yash Narain, Advocates.

Litigants must vigilantly monitor proceedings and cannot condone inordinate delay solely by blaming counsel's negligence; appointing counsel does not absolve duty to ensure active pursuit of rights.

Headnote:(A) Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 - Sections 14B and 7Q - Sick Industrial Companies (Special Provisions) Act, 1985 - Delay in payment of provident fund dues due to financial difficulties and declaration as sick industrial unit - Imposition of damages and interest without inquiry into circumstances - Waiver requests rejected despite pendency of rehabilitation scheme - Tribunal and authorities passed non-speaking orders - Challenge via writ petition dismissed on grounds of delay and laches attributable to counsel's inaction. (Paras 12-17)

(B) Writ Proceedings - Delay and laches - Condonation - Litigant cannot absolve responsibility by solely blaming counsel; must remain vigilant and monitor proceedings - No documentary evidence of consistent follow-up with counsel over six years - Mere appointment of counsel does not discharge litigant's duty. (Paras 18-23)

Facts of the case:
Appellant company, declared sick industrial unit, faced delayed provident fund payments due to financial issues. Show cause notice issued for damages and interest for period May 1983 to February 2006. Multiple representations for waiver made, partial payments done. Tribunal dismissed appeal against recovery order in 2010. Earlier writ filing in 2012 defective and not pursued due to counsel's alleged negligence; fresh writ filed in 2018 dismissed by Single Judge on delay. Letters Patent Appeal challenged dismissal.

Findings of Court:
No case made out for interference; appellant lacked diligence in pursuing remedy despite significant time lapse; appeal and applications dismissed without costs.

Issues: Whether delay in filing writ petition, attributed to previous counsel's negligence and misleading assurances, can be condoned given litigant's bona fide belief in pendency.

Ratio Decidendi: Litigants owe a duty to vigilantly pursue their rights and cannot throw entire blame on counsel for inordinate delay; growing tendency to disown responsibility via counsel's affidavit not permissible, as observed by Supreme Court. Result : Appeal dismissed.

Table of Content
1. procedural delays and exemptions condoned. (Para 1 , 2 , 4 , 5 , 7 , 8)
2. pf defaults during sick unit rehabilitation. (Para 10)
3. arbitrary damages; writ delay by counsel fault. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17)
4. litigant vigilance required; delay not condoned. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24)

JUDGMENT :

TEJAS KARIA, J.

CM APPL Nos. 18272/2026 and 18273/2026
1. Exemptions are allowed, subject to all just exceptions.

2. The Applications stand disposed of.

CM APPL No. 18274/2026
3. The present Application has been filed by the Appellant seeking condonation of delay of 56 days in filing the Appeal.

4. For the reasons disclosed in the Application, the same is allowed. The delay of 56 days in filing the Appeal is hereby condoned.

5. The Application stands disposed of.

CM APPL No. 18275/2026
6. The present Application has been filed by the Appellant seeking condonation of delay of 38 days in re-filing the Appeal.

7. For the reasons disclosed in the Application, the same is allowed. The delay of 38 days in re-filing the Appeal is hereby condoned.

8. The Application stands disposed of.

LPA 152/2026
9. The present Letters Patent Appeal has been filed challenging the Order dated 11.11.2025 (“Impugned Order”) passed in W.P.(C) No. 5039/2018 (“Writ Petition”), whereby the learned Single Judge has dismissed the Writ Petition filed by the Appellant.

10. Brief factual matrix giving rise to the filing of the present Appeal is:

10.1. The Appellant is a company incorporated under the Companies Act, 1956 on 05.08.1980 under the name of M/s Precision Writing Point Private Limited. Thereafter, the name of the Appellant was changed to M/s Sanghvi Writing Point Private Limited on 10.08.1993.
10.2. In the year 2000, the Appellant filed a reference before the Board for Industrial and Financial Reconstruction (“BIFR”), being Case No. 316/2000 under the Sick Industrial Companies (Special Provisions) Act, 1985. The Appellant was declared a sick industrial unit by BIFR on 31.07.2001. Thereafter, IDBI was appointed as an Operating Agency on 29.03.2004 for preparation of a rehabilitation scheme, which was subsequently approved by BIFR. According to the Appellant, due to managerial problems and financial difficulties, some provident fund dues were paid belatedly.
10.3. On 01.03.2006, the Appellant filed an application before the Respondent Authorities seeking waiver of damages that may become payable under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (“Act”).
10.4. On 28.08.2006, Respondent No. 3, the Regional Provident Fund Commissioner (“RPF Commissioner”), issued a Show Cause Notice calling upon the Appellant to pay interest of Rs.7,84,881/- under Section 7Q of the Act and damages of Rs.23,56,669/- under Section 14B of the Act, aggregating to Rs.31,41,550/-, for the period May 1983 to February 2006. The Appellant replied to he Show Cause Notice on 13.09.2006 stating that it had been declared a sick industrial unit. It was further stated by the Appellant in its reply that the rehabilitation scheme was pending before BIFR and that the application seeking waiver of damages and interest was also pending consideration.
10.5. Thereafter, the Appellant made further representations seeking waiver of damages and interest and also placed on record that it had paid a sum of Rs.7,84,971/- towards interest during the period 11.06.2003 to 05.05.2010.
10.6. On 26.04.2007, Vijaya Bank issued a certificate stating that its loan had been cleared, and the Appellant filed the said certificate dated 26.04.2007 before BIFR on 02.05.2007.
10.7. On 09.05.2007, Respondent No. 2 informed the Appellant that its request for waiver of interest had been rejected and directed it to submit the rehabilitation scheme for consideration of waiver of damages under Section 14B of the Act. The Appellant filed the rehabilitation scheme on 12.06.2007, but the Respondents sent a letter dated 06.10.2008 stating therein that no such scheme had been rece


























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