Citation : 2024 Latest Caselaw 9855 Ker
Judgement Date : 5 April, 2024
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE C. JAYACHANDRAN
FRIDAY, THE 5TH DAY OF APRIL 2024 / 16TH CHAITHRA, 1946
OP(C) NO. 359 OF 2024
AGAINST CA NO.1 OF 2023 OF DISTRICT COURT & SESSIONS
COURT,KOZHIKODE
PETITIONERS/APPELLANTS/DFENDANTS:
1 STATE OF KERALA REPRESENTED BY CHIEF SECRETARY
GOVERNMENT OF KERALA, SECRETARIAT, THIRUVANANTHAPURAM,
PIN - 695001
2 DISTRICT COLLECTOR
CIVIL STATION KOZHIKODE, CIVIL STATION POST,
PIN - 673020
3 DIVISIONAL FOREST OFFICER,
TIMBER SALES DIVISION, VANASREE POST, ARIKKANOOR,
KOZHIKODE, PIN - 673028
BY T.P. SAJAN (SPECIAL GOVERNMENT PLEADER)
RESPONDENT/RESPONDENT/PLAINTIFF:
DR.PRAVEEN KUMAR .T.K
AGED 54 YEARS
SON OF T.K.VIJAYAN, LAKSHMI NIVAZ, ELATHUR POST,
ELATHUR AMSOM DESOM KOZHIKODE TALUK & DISTRICT, PIN -
673303
BY ADV A.KOMU
THIS OP (CIVIL) HAVING COME UP FOR ADMISSION ON 05.04.2024,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
O.P.(C).No. 359 of 2024
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"C.R."
J U D G M E N T
Dated this the 5th day of April, 2024
The petitioners herein are the appellants in
Commercial Appeal No. 1/2023 of the District
Court, Kozhikode and the defendants in Commercial
Suit, C.S.No.109/2020, of the Commercial Court,
Kozhikode. Respondent herein is the plaintiff
C.S.No.109/2020. The petitioners are aggrieved by
Exts. P7 and P8 orders of the Principal District
Court, Kozhikode. The gist of the facts involved
in this case is briefed as below:
The respondent/plaintiff filed Commercial Suit as
C.S. 109/2020 before the Commercial Court,
Kozhikode for realisation of money. The
plaintiff/respondent was the successful bidder in
e-auction, for purchase of teakwood, conducted by
3rd defendant/Divisional Forest Officer, on behalf
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of the 1st defendant/State of Kerala. An EMD of
Rs.50,000/- was paid by respondent/plaintiff.
Besides, a sum of Rs.3,00,000/- was also paid
towards the value of the material. Alleging that
further payment was not made within the time, the
above referred amount of rupees 3,50,000/- was
forfeited by the State, challenging which, the
instant suit was filed. The suit was decreed in
favour of respondent/plaintiff vide Ext.P3
judgment. Challenging the same, the petitioners/
defendants preferred Ext.P6 appeal, along with
Ext.P5 petition to condone the delay of 102 days
in preferring the appeal. Ext.P5 application to
condone the delay was dismissed by the Appellate
Court, vide Ext.P7. Consequently, Ext.P6 appeal
was also dismissed, vide Ext.P8 order. Exts.P7 and
P8 are under challenge in this Original Petition.
2. Heard Sri.T.P. Sajan, learned Special
Government Pleader for the petitioners and Sri.
A.Komu, learned counsel for the respondent.
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3. Learned Government Pleader based their
contention upon a decision of the Hon'ble Supreme
Court in Government of Maharashtra v. M/s Borse
Brothers Engineers & Contractors Pvt. Ltd. [2021
KHC 6175], wherein a liberal approach in condoning
delay is called for, if no negligence and laches
on the part of petitioner is found. The reason
espoused by the petitioners for condoning the
delay is that the office of the Government Pleader
met with a technical failure, resulting in delay
in e-filing the appeal memorandum, which according
to the petitioners is a genuine reason for
condonation of delay of 102 days.
4. Learned counsel for the respondent strongly
opposed the aforesaid contentions and placed a few
decisions for consideration of this court. The
counsel contended that the reason espoused by the
petitioners is not a valid ground for condoning
the delay and setting aside orders of dismissal of
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delay petition and appeal. Section 5 of Limitation
Act is generally given a liberal interpretation,
but the same cannot be adopted in case of
commercial disputes, having regard to the
legislative intent with which Commercial Courts
Act was enacted. It was emphasised that the
enactement contemplates adjudication of disputes
in a swift, time-bound manner, with lesser hassles
to the litigating parties. At best, a short delay,
beyond the stipulated period, can be condoned,
whereas in the instant case, the delay is more
than double the period stipulated by the statute,
which cannot be condoned at all, is the contention
urged.
5. Having heard the learned Government Pleader
and learned counsel for the respondent, this
court, endorses the submission made the learned
counsel for the respondent/plaintiff. This court
notice that the statutory time limit for filing a
commercial appeal under section 13 of Commercial
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Courts Act, 2015 is sixty days. In this case,
Ext.P6 appeal was filed with a delay of 102 days.
The reason espoused is an alleged technical error
occurred in e-filing. In the decision relied upon
by the petitioners in M/s Borse Brothers (supra),
the Court observes as below:
"61. Given the aforesaid and the object of speedy disposal sought to be achieved both under the Arbitration Act and the Commercial Courts Act, for appeals filed under section 37 of the Arbitration Act that are governed by Articles 116 and 117 of the Limitation Act or section 13(1A) of the Commercial Courts Act, a delay beyond 90 days, 30 days or 60 days, respectively, is to be condoned by way of exception and not by way of rule. In a fit case in which a party has otherwise acted bona fide and not in a negligent manner, a short delay beyond such period can, in the discretion of the court, be condoned, always bearing in mind that the other side of the picture is that the opposite party may have acquired both in equity and justice, what may now be lost by the first party's inaction, negligence or laches."
(underlined by me, for emphasis)
6. From the above authoritative pronouncement,
this Court notice a paradigm shift in the approach
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of the courts, in the matter of condonation of
delay in commercial matters governed by the
Commercial Courts Act. The object and purpose of
the Act is surely a matter to be borne in mind,
while interpreting any provision under the
particular statute. This Court notice that, a
period of 60 days is stipulated under Section 13
of the Commercial Courts Act for preferring a
commercial appeal. Unlike in the case of Section
34 of the Arbitration Act, no further period is
stipulated for preferring a commercial appeal. It
could therefore possibly be contented that Section
5 of the Limitation Act may apply, which doctrines
the concept of sufficient cause. The obvious
purpose is to mitigate the hard ship of a suitor
from the rigours of limitation, when the party
may have a justifiable reason for not approaching
the court on time. Indian Courts have consistently
adopted a liberal approach in condoning the delay,
applying Section 5 of the Limitation Act. However,
as referred above, the paradigm shift is clearly
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indicated and adopted by the Hon'ble Supreme
Court, once it comes to adjudication of commercial
matters under the Commercial Courts Act, wherein
expediency and quick resolution is the hall mark.
A liberal approach, as is taken usually, may
perhaps defeat the very purpose of the statute.
7. Coming to the facts at hand, this Court notice
that, the delay sought to be condoned is 102 days,
which commence on the expiry of the stipulated
period of 60 days under Section 13 of the Act. It
could thus be seen that, the delay sought to be
condoned is more than double the original period
stipulated, i.e., 60 days. Such delay cannot be
condoned, going by the above authoritative
pronouncement of the Hon'ble Supreme Court in M/s
Borse Brothers (supra).
8. Apart from the above legal angle, this Court
is not satisfied with the facts as well. The
reason espoused is a technical error in e-filing.
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Had it been true and genuine, recourse should have
been made by the appellants to seek a permission
from the court concerned, so as to enable physical
filing, pointing out the error in e-filing and
also sensitizing the Court regarding the
limitation period. No such action is seen
initiated by the appellant, so as to establish
bonafides.
In the above referred facts and circumstances,
this Court finds no reason to interfere with
Exts.P7 and P8 orders of the appellate Court. In
the result, this Original Petition fails and the
same will stand dismissed.
Sd/-
C. JAYACHANDRAN JUDGE 08/01/24
Vdv/TR
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APPENDIX OF OP(C) 359/2024
PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE PLAINT FILED BY THE RESPONDENT/PLAINTIFF BEFORE THE COMMERCIAL/PRINCIPAL SUB COURT KOZHIKODE DATED 23.10.2017 Exhibit P2 TRUE COPY OF THE WRITTEN STATEMENT FILED BY THE PETITIONERS/DEFENDANTS BEFORE THE COMMERCIAL/PRINCIPAL SUB COURT KOZHIKODE Exhibit P3 TRUE COPY OF THE JUDGEMENT IN CS 109/2020 DATED 30.7.2022 OF THE COMMERCIAL /PRINCIPAL SUB COURT KOZHIKODE Exhibit P4 TRUE COPY OF THE GAZETTE NOTIFICATION CONTAINING THE E AUCTION TENDER DATED 16.9.2014
DATED 17.3.2023 Exhibit P6 TRUE COPY OF APPEAL MEMORANDUM IN CA 1/2023 FILED BEFORE THE DISTRICT COURT /COMMERCIAL APPELLATE COURT DATED 17.3.2023 Exhibit P7 TRUE COPY OF THE ORDER DATED 3.7.2023 IN IA NO 1/23 IN CA 1/23 REJECTING THE APPLICATION FOR CONDONING THE DELAY Exhibit P8 TRUE COPY OF THE ORDER DATED 3.7.2023 OF DISTRICT COURT/COMMERCIAL APPELLATE
Exhibit P9 TRUE COPY OF THE STAY ORDER DATED 24.11.2023 OF HONBLE COURT IN MSA
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