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2023 Supreme(Ker) 980

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K.NARENDRAN, SOPHY THOMAS, JJ.
Muhammedshafeek, S/o. Abith S – Appellant
Versus
M/s. Tasty Nut Industries – Respondent
C.M Appln.No.1 of 2023 in Coml.Appeal No.3 of 2023
Decided on : 17-10-2023

Advocate Appeared:
For the Appellant :M/S.A.PARVATHI MENON, P.SANJAY, BIJU MEENATTOOR, INDIRA.K.P., PAUL VARGHESE (PALLATH), P.A.MOHAMMED ASLAM, KIRAN NARAYANAN, RAHUL RAJ P., AMRUTHA M. NAIR, MUHAMMED BILAL.V.A, Advocates
For the Respondent:SRI.S.SREEKUMAR, Senior Advocate along with SRI.P.MARTIN JOSE, P.PRIJITH, THOMAS P.KURUVILLA, AJAY BEN JOSE, R.GITHESH, MANJUNATH MENON, REJU PRASAD, SACHIN JACOB AMBAT, ANNA LINDA EDEN, HARIKRISHNAN S., Advocates

The main legal point established in the judgment is the need for a liberal, pragmatic, and justice-oriented approach while dealing with applications for condonation of delay, especially in commercial disputes.

Headnote:

Limitation Act - Delay Condonation - Commercial Suit - [APPLICATION UNDER SECTION 5 OF THE LIMITATION ACT] - [COMMERCIAL SUIT NO.96 OF 2020] - [SUMMARY OF ACT SECTIONS: Section 5 of the Limitation Act, 1963; Section 14 of the Commercial Courts Act, 2015] - The court discussed the application of the Limitation Act in commercial disputes, the requirement for condonation of delay, and the principles established in Ajay Dabra v. Pyare Ram and Esha Bhattacharjee v. Managing Committee of Raghunathpur Nafar Academy. The court considered the appellant's reasons for delay, including financial stringency and personal setbacks, and allowed the application on the cost of Rs.10,000 to the respondents.

Fact of the Case:

The appellant filed an application under Section 5 of the Limitation Act to condone the delay of 25 days in filing the appeal for a commercial suit. The appellant cited financial stringency and personal setbacks, including hospitalization of his infant child, as reasons for the delay.

Finding of the Court:

The court found that the appellant's reasons for delay, coupled with the additional affidavit and documents, reasonably justified the delay. The court exercised judicial discretion to condone the delay of 25 days in filing the appeal, but imposed a cost of Rs.10,000 to the respondents.

Issues: The issues included the application of the Limitation Act in commercial disputes, the requirement for condonation of delay, and the appellant's reasons for the delay.

Ratio Decidendi: The court considered the principles established in Ajay Dabra v. Pyare Ram and Esha Bhattacharjee v. Managing Committee of Raghunathpur Nafar Academy, emphasizing the need for a liberal, pragmatic, and justice-oriented approach while dealing with applications for condonation of delay.

Final Decision: The court allowed the application under Section 5 of the Limitation Act to condone the delay of 25 days in filing the appeal, imposing a cost of Rs.10,000 to the respondents.

ORDER :

Sophy Thomas, J.

This is an application under Section 5 of the Limitation Act, filed by the appellant to condone the delay of 25 days in filing the appeal.

2. The appellant was the defendant in Commercial Suit No.96 of 2020 on the file of Commercial Judge’s Court, Kollam, and the respondents were the plaintiffs. They filed the suit for recovery of money, based on a contract entered into between them, for supply of raw cashew nuts. The Commercial Judge’s Court, Kollam decreed that suit with costs on 04.03.2023, whereby the respondents/plaintiffs were entitled to realise Rs.19,75,448/- from the appellant/defendant, with 6% interest per annum from the date of suit till realisation.

3. The appellant applied for certified copy of the judgment on 04.03.2023, stamp papers were called on 20.05.2023 and stamps were produced on the same day, and copy also was delivered on 20.05.2023. So the appeal ought to have been filed on or before 20.07.2023. Since he had to adjust money from his business in order to raise the huge court fee, there occurred delay of 25 days in filing the appeal. There was no wilful negligence or default from his part and so, he filed this petition to condone the delay of 25 days.

4. Though no counter affidavit was filed, learned counsel for the respondents/plaintiffs opposed that petition contending that, the Commercial Courts Act, 2015 (hereinafter referred as ‘the Act’) was enacted for expeditious disposal of commercial disputes, and hence the Limitation Act has no application in commercial courts. Relying on Section 14 of the Act, he contended that, the Commercial Appellate Court and the Commercial Appellate Division shall endeavour to dispose of appeals filed before it within a period of six months from the date of filing of such appeal. Moreover, he would contend that the appellant has not explained the reason for the delay in a satisfactory manner, and his inability to raise the court fee amount, is not a valid ground to condone the delay. Hence, according to him, the application is liable to be dismissed.

5. After hearing the appellant and the respondents in part, learned counsel for the appellant filed an additional affidavit along with I.A No.2 of 2023, to accept additional documents as Annexures A1 to A4. That I.A was heard and allowed. In the additional affidavit, the appellant contended that, he lost his cashew business, and at the same time, he had several personal setbacks including an angioplasty for himself, prolonged ailment and hospitalisation of his father, and intermittent hospitalisation of his infant child in KIMS hospital, Trivandrum due to chronic respiratory issues. Annexure A1 is the discharge summary of his nine month old child in KIMS Hospital, Trivandrum in July 2023. Apart from his inability to raise money to pay the court fee, he could not personally reach out to his counsel, for making the payment and to finalise the appeal. He was very vigilant in defending his case before the Commercial Court, and two times he had to approach this Court by filing OP(C) No.572 of 2021 and OP(C) No.1463 of 2021. Annexure A2 is the copy of the judgment in OP(C) No.1463 of 2021 and by that judgment, this Court directed the Commercial Court to dispose the suit within a period of four months from the date of receipt of certified copy of the judgment. The respondents/plaintiffs again approached this Court to enlarge the time, and the time was enlarged till 23.12.2022, and Annexure A3 is the certified copy of that order. When further enlargement of time was sought by the respondents/plaintiffs by filing I.A No.2 of 2022, the appellant/defendant opposed the same and it was dismissed on 23.12.2022, as per Annexure A4 order. According to the appellant, the Annexures will prove his bonafides and it will show that he was diligently defending the litigation throughout. Moreover the respondents will not suffer any injury, due to the short delay caused in filing the appeal.

6. After accepting the additional affida

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