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2026 Supreme(J&K) 73

HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU 
RAJNESH OSWAL, RAHUL BHARTI, JJ.
M/s HSL Enterprises, Through Its Proprietor Namely, S. Harvinder Singh Lahri – Appellant
Versus
M/s Thermax Ltd. – Respondent 
RFA No. 53 of 2025, CM No. 7225 of 2025
Decided On : 10-04-2026

Advocates Appeared:
For the Appellant :Mr. Ashish Sharma, Advocate
For the Respondent:Ms. Nazia Fazal, Advocate vice Ms. Monika Kohli, Sr. AAG Mr. P. D. Singh, Dy. AG Mr. R. S. Lalotra, Advocate

Time spent in bona fide and diligent prosecution of writ petition, despite jurisdictional defect, excludable under Section 14 of Limitation Act when filing subsequent civil suit for same claim.

Headnote:(A) Limitation Act, 1963 - Section 14 - Exclusion of time - Suit for recovery of unpaid balance for executed works dismissed as barred by limitation after rejecting application under Section 14 - Appeal under Section 13(1-A) Commercial Courts Act, 2015 - Time spent in prior writ proceedings (2013-2022) excludable as prosecuted with due diligence and good faith despite jurisdictional defect over private contract dispute - Conditions for invoking Section 14: both proceedings civil by same party; prior prosecuted diligently in good faith; failure due to jurisdictional defect or like cause; same matter in issue; both in court. (Paras 7, 16-21)

(B) Limitation Act, 1963 - Section 14 - Plea for exclusion to be averred in plaint itself, no separate application for condonation as in appeals. (Para 10)

(C) Writ proceedings - Initial allowance, remand by Division Bench, dismissal for non-prosecution restored, withdrawal with liberty for civil remedy - No lack of diligence or bona fides; pendency and delays not attributable to appellant; cannot penalize for court docket load or failure to decide maintainability objection early. (Paras 12-18)

Facts of the case:
Appellant executed site-enabling works, part payment received but balance outstanding prompting writ petition in 2013. Writ initially allowed, set aside and remitted; dismissed for non-prosecution (2021), restored (2022), withdrawn with liberty to pursue civil remedy. Suit filed 09.07.2022, dismissed 19.08.2025 as time-barred.

Findings of Court:
Impugned order set aside; period in writ proceedings excluded under Section 14; suit maintainable.

Issues: Whether appellant entitled to exclusion under Section 14 for time in writ proceedings; trial court erred in finding lack of due diligence/bona fides due to non-prosecution dismissal and continuation despite maintainability objection.

Ratio Decidendi: Appellant satisfied all conditions under Section 14; expression 'other cause of like nature' covers bona fide pursuit of misconceived remedy; hyper-technical approach frustrates justice; restoration cures prior non-prosecution; appellate court cannot go behind restoration order.

Result: Appeal allowed; matter remitted to trial court for disposal on merits.

Table of Content
1. appeal against time-barred suit dismissal. (Para 1 , 2 , 3)
2. bona fide writ pursuit despite maintainability objections. (Para 4 , 5 , 6 , 11 , 12 , 13 , 14 , 15)
3. due diligence essential for section 14 exclusion. (Para 7 , 8)
4. section 14 pleas averred in plaint mandatory. (Para 9 , 10)
5. no diligence lack from pendency or restoration. (Para 16 , 17 , 18)
6. section 14 conditions satisfied per precedents. (Para 19 , 20 , 21 , 22)
7. impugned order set aside; suit remitted. (Para 23 , 24 , 25 , 26)

JUDGMENT :

RAJNESH OSWAL, J.

1. The appellant prefers this a ppeal under Section 13(1-A) of the Commercial Courts Act, 2015 against an order dated 19.08.2025 passed by the Commercial Court of the Additional District Judge, Jammu (for short ‘the trial court’), in a suit bearing on File No. 434/2025 titled ‘M/s HSL Enterprises vs. M/s Thermax Ltd.'.

2. By way of impugned order, which literally amounts to decree, the trial court has dismissed the appellant’s suit as being barred by limitation by first rejecting an application for the exclusion of time sought by the appellant under the umbrage of Section 14 of the Limitation Act, 1963.

3. The appellant, being aggrieved of the impugned order, challenges it on the premise that the learned trial court failed to appreciate the factual genesis of the litigation and, thus, fell in error of judgment.

4. Upon the respondent No.1’s purported failure to release alleged pending payments’ claims, the appellant had initially filed a writ petition-OWP No. 1516/2013 before the learned writ court.

5. The respondent No. 1 had appeared to contest said writ petition on the grounds inter alia of maintainability by asserting that it involved a private contract and, thus, a dispute not subject to judicial review jurisdiction. Consequently, the appellant withdrew the writ petition by seeking liberty to pursue a civil remedy for enforcement of its claim and consequent recovery.

6. Consequently, civil suit was filed promptly thereafter, but the trial court erroneously dismissed it by wrongly concluding that the appellant lacked due diligence or bona fides in pursuing the writ proceedings.

7. Mr. Ashish Sharma, learned counsel appearing for the appellant, asserts that the appellant is entitled to avail benefit of Section 14 of the Limitation Act, 1963 so as to salvage the maintainability of its suit. He maintains that the time spent in prosecuting the writ petition for period ranging from 2013 to 2022 constituted a 'prior proceeding' pursued with due diligence and therefore, the trial court’s finding of lack of bona fides on the part of the appellant is contrary to the record, and the dismissal of the suit is unsustainable in law.

8. Mr. R. S. Lalotra, appearing for the respondent No. 1, on the other hand argues that the exploit of Section 14 of the Limitation Act, 1963 is unavailable to a litigant who wilfully pursues a patently non-available legal remedy. He submits that despite the respondent No.1's categorical objections to the writ petition’s maintainability, the appellant continued to pursue and prosecute the writ petition as misconceived and a wrong remedy for years at its own risk and costs. Such a conduct, he argues, disentitles the appellant from claiming premium of 'due diligence'. Consequently, the respondent No. 1 asserts that the trial court rightly held the suit to be barred by limitation.

9. Heard learned counsel for the parties and perused the record.

10. Before adjudicating upon merits of present appeal, it is pertinent to observe a procedural necessity which is that with respect to a civil suit, pleas for exclusion of time under Section 14 of the Limitation Act. 1963 are meant and should ideally be pleaded within the plaint itself as against time barred appeals or applications where condonation of delay is sought under Section 5 of the Limitation Act, 1963 by an application to effect but there is no such provision for 'condonation of delay' by an application in filing of a civil suit. Ra

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