Citation : 2025 Latest Caselaw 724 UK
Judgement Date : 4 July, 2025
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HIGH COURT OF UTTARAKHAND AT NAINITAL
Appeal From Order No.241 of 2020
04 July, 2025
State of U.P. & Ors. --Appellants
Versus
Lokendra Verma --Respondent
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Presence:-
Mr. I.D. Paliwal, Standing Counsel for the State of U.P./appellants.
Mr. Harshit Sanwal, Advocate holding brief of Mr. Vijay Bhatt, Advocate for the respondent
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Hon'ble Subhash Upadhyay, J.
Present appeal from order has been filed under
Section 37 of The Arbitration and Conciliation Act, 1996,
(for short, the Act) challenging the judgment dated
18.05.2016 passed by District Judge, Haridwar in Misc.
Case No.93 of 2014, whereby the objection filed by the
appellants under Section 34 of the Act, was rejected and
the order dated 01.03.2013 passed by Sole Arbitrator in
Arbitration Case No.16 of 2007, was upheld.
2. The sole Arbitrator was appointed to adjudicate
the claim between the appellants/Superintending Engineer,
U.P., Irrigation Department, Upper Ganga Canal Modernisation
Circle Ist, Haridwar Road, Roorkee and the respondent Lokendra
Verma qua payment of dues towards the construction of
Stop Log Structure at Km. 29.250 of Parallel Upper Ganga
Canal at Roorkee, Haridwar. The date of commencement of
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work was settled as 08.02.1994 and the entire work was
required to be completed upto 07.08.1995. The Arbitration
Case No.16/2007 was decided on 01.03.2013 and the
appellants were directed to pay to the respondent a sum of
Rs.19,77,251/- within a period of two months, failing which
interest @ 18% per annum was to be paid. Against the
Award passed by the Arbitrator on 01.03.2013, the
appellants preferred Objections u/s 34 of the Act before the
District Judge, Haridwar. Learned District Judge, Haridwar,
vide judgment dated 18.05.2016 rejected the objection of
the appellants. Hence, this appeal has been filed by the
appellants along with the Delay Condonation Application.
3. As per the report of Registry, there is a delay of
1560 days in filing the present appeal. The appellants have
stated the reasons for such inordinate delay in paragraphs
nos.3 to 17 of the affidavit filed in support of Delay
Condonation Application, which are reproduced below:-
"3. That the learned Civil Judge (S.D.) Dehradun passed the impugned judgment on 18.05.2016.
4. That thereafter the legal opinion of the D.G.C. (Civil) was obtained by the appellants, who opined that the Judgment dated 18.05.2016 should be challenged before the Hon'ble High Court Nainital. True and correct copy of the Legal Opinion of the DGC (Civil) Saharanpur, dated 23.11.2016 is annexed and marked as Annexure No.A-1.
5. That after receiving the legal opinion of the D.G.C. (Civil) the Executive Engineer, Northern Division, Ganga Canal, Roorkee, wrote letter to the Superintending
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Engineer, Ganga Canal Sanchalan Mandal, Meerut, for seeking permission of the State Law Department for granting sanction to file appeal against the Judgment dated 18.05.2016. True and correct copy of the letter no.244/m[kxUk:@dksVZ dsl dated 13.01.2017 is annexed and marked as Annexure No.A-2.
6. That thereafter, vide letter no.2930/m[kxu:@dksVZ dsl] dated 17.07.2018, a reminder was sent to the Superintending Engineer, Ganga Canal Sanchalan Mandal, Meerut. True and correct copy of the letter no.2930 m[kxu:@dksVZ dsl] dated 17.07.2018 is annexed and marked as Annexure No.A-3.
7. That thereafter, the proposal to file appeal against the Judgment dated 18.05.2016 was forwarded by the Superintending Engineer, Ganga Canal Sanchalan Mandal, Meerut to the Chief Engineer (Ganga), Irrigation and Water Resources Department, Uttar Pradesh, Meerut, vide letter no.4034/ xaule@dksVZ dsl dated 13.08.2018. True and correct copy of the letter no.4034/ xaule@dksVZ dsl dated 13.08.2018 is annexed and marked as Annexure No.A-4.
8. That the Chief Engineer (Ganga), Irrigation and Water Resources Department, Uttar Pradesh, Meerut, vide letter no.10546/eqvxaxk@,l&3@dksVZ dsl dated 30.08.2018 forwarded the proposal to Chief Engineer (Parivad), office of the Engineer-in-Chief, Irrigation and Water Resources Department, Uttar Pradesh, Lucknow. True and correct copy of the letter no.10546/eqvxaxk@,l&3@dksVZ dsl dated 30.08.2018 is annexed and marked as Annexure No.A-4.
9. That thereafter, vide letter no.5254/yhxy lsy dated 07.09.2018, the Nodal Officer & Executive Engineer (Legal Cell), office of the Engineer-in-Chief (Legal Cell) Irrigation and Water Resources Department, Uttar Pradesh, Lucknow
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forwarded the proposal to the Chief Engineer (Advance Planning), Irrigation and Water Resources Department, Uttar Pradesh, Lucknow. True and correct copy of the letter no.5254/yhxy lsy dated 07.09.2018 is annexed and marked as Annexure No.A-6.
10. That thereafter, vide letter no.5430/yhxy lsy dated 04.10.2018 the proposal was forwarded to the Under Secretary, Irrigation and Water Resources Section -3, Uttar Pradesh Government, Lucknow. Tue and correct copy of the letter no.5430/yhxy lsy dated 04.10.2018 is annexed and marked as Annexure No.A-7.
11. That thereafter, further legal opinion from the Chief Standing Counsel, High Court, Allahabad, for filing Appeal, challenging the Order dated 18.05.2016 was proposed by the Joint Secretary, Irrigation and Water Resources Section-3, Uttar Pradesh Government, vide letter no.1440/18-27-fl0&3-27-5 fookpu /15 dated 30.10.2018. True and correct copy of the letter no. 1440/18-27-fl0&3- 27-5 fookpu /15 dated 30.10.2018 is annexed and marked as Annexure No.A-8.
12. That after receiving Legal Opinion from the Chief Standing Counsel, High Court, Allahabad, the proposal was again forwarded to the Joint Secretary, Irrigation and Water Resources Section -3, Uttar Pradesh Government, vide letter no.220/ m[kxu:@dksVZ dsl dated 21.01.2019, after which a reminder vide letter no.lh&171@m[kxu:@dksVZ dsl dated 17.01.2020 was sent by the office of Executive Engineer, Northern Division, Ganga Canal, Roorkee. True and correct copies of the letters no. letter no.220/ m[kxu:@dksVZ dsl dated 21.01.2019 and letter no. no.lh&171@m[kxu:@dksVZ dsl dated 17.01.2020 are annexed and marked as Annexure No.A-9 & 10 respectively.
13. That the State Law Department U.P. Government,
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Lucknow granted sanction vide G.O. No.;w0vks0&636@lkr&U;k;- 6-20-05 fookpu /15 flapkbZ vuqHkkx&3 dated 12.02.2020 is annexed herewith and marked as Annexure no.A-11 to this affidavit.
14. That vide letter no.62/20-27-fla-3-05 fookpu /15 dated 25.02.2020, the State Government granted permission to the Irrigation Department to file Appeal before the Uttarakhand High Court, Nainital. True and correct copy of the letter no. 62/20-27-fla-3-05 fookpu /15 dated 25.02.2020 is annexed herewith and marked as Annexure no.A-12 to this affidavit.
15. That after receiving the requisite sanction to file the present Appeal from the State Government, the requisite and relevant documents were collected and the pairokar of the appeal department was deputed to file the present Appeal with a direction to contact with the Standing Counsel, State of U.P., Uttarakhand High Court, Nainital.
16. That the pairokar reached the Nainital and contacted with the Standing Counsel, State of U.P. Uttarakhand High Court, Nainital on 23rd March 2020. Since some more documents and a Certified Copy of the Impugned Judgment dated 18.05.2016 were required by the Standing Counsel to prepare the Appeal, the pairokar returned to Roorkee.
17. That thereafter due to Covid-19 pandemic and lockdown the matter was further delayed as the Courts below were not functioning."
4. The above referred facts depict that the
judgment dated 18.05.2016 was passed in presence of
counsel for the appellants and as such the appellants were
well aware of the aforesaid judgment. In para-4 of the
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affidavit filed in support of the delay condonation
application, it has been stated that legal opinion of the DGC
was obtained, who submitted his opinion on 23.11.2016,
however, there is no mention as to on which date the said
legal opinion was sought from the DGC and when the said
opinion was received by the Department. Thus, it is clear
that from 18.05.2016 till 23.11.2016 already six months
time period had elapsed.
5. Further, in para-5, it has been stated that
thereafter, the Executive Engineer, Northern Division, Ganga
Canal, Roorkee wrote a letter to the Superintending
Engineer on 13.01.2017 communicating the legal opinion of
the DGC for seeking permission to file the appeal. The
affidavit filed in support of the delay condonation
application further reveals that on 17.07.2018 a reminder
was sent to Superintending Engineer, Ganga Canal, Meerut,
thus, it took more than 18 months to the Department to
send a reminder to the higher authority, for filing the
appeal. During this period already a delay of 2 years and 2
months had occurred.
6. A perusal of other paragraphs of the affidavit
filed in support of delay condonation application further
reveals that as per the case of the appellants, again opinion
was sought from learned C.S.C., High Court of Allahabad
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and thus it took time in the movement of file from one table
to another, which resulted in filing of appeal in the month of
November, 2020 before this Court. Thus, in total 1560 days
of delay occurred in filing the appeal.
7. Objection to the delay condonation application
has been filed by the respondent wherein it is stated that
there is huge delay in filing the appeal and the appellants
have failed to show sufficient cause for such delay and
therefore the delay condonation application is liable to be
dismissed on the ground of delay and laches. Reliance has
been placed upon the judgment passed by Hon'ble Apex
Court in "State of Madhya Pradesh & Ors. Vs. Bherulal"
(2020) 10 SCC 654 and "State of Bihar vs. Deo Kumar
Singh" SLP (Civil) Diary No.13348 of 2019.
8. Heard submissions of learned counsel for the
parties and perused the entire material available on file.
9. Hon'ble Apex Court in the case of "Government
of Maharashtra vs. Borse Brothers Engineers" (2021)
6 SCC 460 while considering the aspect of condonation of
delay in appeals filed u/s 37 of Arbitration and Conciliation
Act, 1996 held that merely because government is involved,
a different yardstick for condonation of delay cannot be laid
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down. Paragraphs 30, 31 and 55 to 63 of this judgment are
quoted below:-
30. The judgment in Kandla Export Corpn. v. OCI Corpn., (2018) 14 SCC 715 also observed:
"27. The matter can be looked at from a slightly different angle. Given the objects of both the statutes, it is clear that arbitration itself is meant to be a speedy resolution of disputes between parties. Equally, enforcement of foreign awards should take place as soon as possible if India is to remain as an equal partner, commercially speaking, in the international community. In point of fact, the raison d'être for the enactment of the Commercial Courts Act is that commercial disputes involving high amounts of money should be speedily decided. Given the objects of both the enactments, if we were to provide an additional appeal, when Section 50 does away with an appeal so as to speedily enforce foreign awards, we would be turning the 35 Arbitration Act and the Commercial Courts Act on their heads. Admittedly, if the amount contained in a foreign award to be enforced in India were less than Rs 1 crore, and a Single Judge of a High Court were to enforce such award, no appeal would lie, in keeping with the object of speedy enforcement of foreign awards. However, if, in the same fact circumstance, a foreign award were to be for Rs 1 crore or more, if the appellants are correct, enforcement of such award would be further delayed by providing an appeal under Section 13(1) of the Commercial Courts Act. Any such interpretation would lead to absurdity, and would be directly contrary to the object sought to be achieved by the Commercial Courts Act viz. speedy resolution of disputes of a commercial nature involving a sum of Rs 1 crore and over. For this reason also, we feel that Section 13(1) of the Commercial Courts Act must be construed in accordance with the object sought to be achieved by the Act. Any construction of Section 13 of the Commercial Courts Act, which would lead to further delay, instead of an expeditious enforcement of a foreign award must, therefore, be eschewed. Even on applying the doctrine of harmonious construction of both statutes, it is clear that they are best harmonised by giving effect to the special statute i.e. the Arbitration Act, vis-à-vis the more general statute, namely, the Commercial Courts Act, being left to operate in spheres other than arbitration."
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31. A recent judgment of this Court in ICOMM Tele Ltd. v. Punjab State Water Supply and Sewerage Board, (2019) 4 SCC 401, states:
"25. Several judgments of this Court have also reiterated that the primary object of arbitration is to reach a final disposal of disputes in a speedy, effective, inexpensive and expeditious manner. Thus, in Centrotrade Minerals & Metal Inc. v. Hindustan Copper Ltd. [Centrotrade Minerals & Metal Inc. v. Hindustan Copper Ltd., (2017) 2 SCC 228 : 36 (2017) 1 SCC (Civ) 593] , this Court held: (SCC p. 250, para 39) '39. In Union of India v. U.P. State Bridge Corpn. Ltd. [Union of India v. U.P. State Bridge Corpn. Ltd., (2015) 2 SCC 52 : (2015) 1 SCC (Civ) 732] this Court accepted the view [ Indu Malhotra, O.P. Malhotra on the Law and Practice of Arbitration and Conciliation (3rd Edn., Thomson Reuters, 2014).] that the A&C Act has four foundational pillars and then observed in para 16 of the Report that: (SCC p. 64) "16. First and paramount principle of the first pillar is 'fair, speedy and inexpensive trial by an Arbitral Tribunal'. Unnecessary delay or expense would frustrate the very purpose of arbitration."'"
55. Reading the Arbitration Act and the Commercial Courts Act as a whole, it is clear that when section 37 of the Arbitration Act is read with either Article 116 or 117 of the Limitation Act or section 13(1A) of the Commercial Courts Act, the object and context provided by the aforesaid statutes, read as a whole, is the speedy disposal of appeals filed under section 37 of the Arbitration Act. To read section 5 of the Limitation Act consistently with the aforesaid object, it is necessary to discover as to what the expression "sufficient cause" means in the context of condoning delay in filing appeals under section 37 of the Arbitration Act.
56. The expression "sufficient cause" contained in section 5 of the Limitation Act is elastic enough to yield different results depending upon the object and context of a statute. Thus, in Ajmer Kaur v. State of Punjab, (2004) 7 SCC 381, this Court, in the context of section 11(5) of the Punjab Land Reforms Act, 1972, held as follows:
"10. Permitting an application under Section 11(5) to be
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moved at any time would have disastrous consequences. The State Government in which the land vests on being declared as surplus, will not be able to utilise the same. The State Government cannot be made to wait indefinitely before putting the land to use. Where the land is utilised by the State Government, a consequence of the order passed subsequently could be of divesting it of the land. Taking the facts of the present case by way of an illustration, it would mean that the land which stood mutated in the State Government in 1982 and which was allotted by the State Government to third parties in 1983, would as a result of reopening the settled position, lead to third parties being asked to restore back the land to the State Government and the State Government in turn would have to be divested of the land. The land will in turn be restored to the landowner. This will be the result of the land being declared by the Collector as not surplus with the landowner. The effect of permitting such a situation will be that the land will remain in a situation of flux. There will be no finality. The very purpose of the legislation will be defeated. The allottee will not be able to utilise the land for fear of being divested in the event of deaths and births in the family of the landowners. Deaths and births are events which are bound to occur. Therefore, it is reasonable to read a time-limit in sub- section (5) of Section 11. The concept of reasonable time in the given facts would be most appropriate. An application must be moved within a reasonable time. The facts of the present case demonstrate that redetermination under sub-section (5) of Section 11 almost 5 years after the death of Kartar Kaur and more than 6 years after the order of the Collector declaring the land as surplus had become final, has resulted in grave injustice besides defeating the object of the legislation which was envisaged as a socially beneficial piece of legislation. Thus we hold that the application for redetermination filed by Daya Singh under sub-section (5) of Section 11 of the Act on 21-6-1985 was 58 liable to be dismissed on the ground of inordinate delay and the Collector was wrong in reopening the issue declaring the land as not surplus in the hands of Daya Singh and Kartar Kaur.
11. The above reasoning is in consonance with the provision in sub-section (7) of Section 11 of the Act. Subsection (7) uses the words "where succession has
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opened after the surplus area or any part thereof has been determined by the Collector ...". The words "determined by the Collector" would mean that the order of the Collector has attained finality. The provisions regarding appeals, etc. contained in Sections 80-82 of the Punjab Tenancy Act, 1887, as made applicable to proceedings under the Punjab Land Reforms Act, 1972, show that the maximum period of limitation in case of appeal or review is ninety days. The appeal against the final order of the Collector dated 30-9- 1976 whereby 3.12 hectares of land had been declared as surplus was dismissed on 27-3-1979. The order was allowed to become final as it was not challenged any further. Thus the determination by the Collector became final on 27-3- 1979. The same could not be reopened after a lapse of more than 6 years by order dated 23-7-1985. The subsequent proceedings before the Revenue Authorities did not lie. The order dated 23-7-1985 is non est. All the subsequent proceedings therefore fall through. The issue could not have been reopened." (emphasis supplied)
57. Nearer home, in Brahampal v. National Insurance Company, 2020 SCC OnLine SC 1053, this Court specifically referred to the difference between a delay in filing commercial claims under the Arbitration Act or the Commercial Courts Act and claims under the Motor Vehicles Act, 1988, as follows:
"14. This Court has firstly held that purpose of conferment of such power must be examined for the determination of the scope of such discretion conferred upon the court. [refer to Bhaiya Punjalal Bhagwandin v. Dave Bhagwatprasad Prabhuprasad, AIR 1963 SC 120; Shri Prakash Chand Agarwal v. Hindustan Steel Ltd., (1970) 2 SCC 806]. Our analysis of the purpose of the Act suggests that such discretionary power is conferred upon the Courts, to enforce the rights of the victims and their dependents. The legislature intended that Courts must have such power so as to ensure that substantive justice is not trumped by technicalities.
* * *
20. Therefore, the aforesaid provision being a beneficial legislation, must be given liberal interpretation to serve its object. Keeping in view the substantive rights of the parties, undue emphasis should not be given to technicalities. In such cases delay in filing and refiling
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cannot be viewed strictly, as compared to commercial claims under the Arbitration and Concilliation Act, 1996 or the Commercial Courts Act, 2015.
21. In P. Radha Bai v. P. Ashok Kumar, (2019) 13 SCC 445, wherein this Court while interpreting Section 34 of the Arbitration Act, held that the right to object to an award itself is substantively bound with the limitation period prescribed therein and the same cannot merely a procedural prescription. In effect the Court held that a complete petition, has to be filed within the time prescribed under Section 34 of the Arbitration Act and 'not thereafter'. The Court while coming to the aforesaid conclusion, reasoned as under:
"36.1 First, the purpose of the Arbitration Act was to provide for a speedy dispute resolution process. The Statement of Objects and Reasons reveal that the legislative intent of enacting the Arbitration Act was to provide parties with an 60 efficient alternative dispute resolution system which gives litigants an expedited resolution of disputes while reducing the burden on the courts. Article 34(3) reflects this intent when it defines the commencement and concluding period for challenging an award. This Court in Popular Construction case [Union of India v. Popular Construction Co., (2001) 8 SCC 470] highlighted the importance of the fixed periods under the Arbitration Act. We may also add that the finality is a fundamental principle enshrined under the Arbitration Act and a definitive time limit for challenging an award is necessary for ensuring finality. If Section 17 were to be applied, an award can be challenged even after 120 days. This would defeat the Arbitration Act's objective of speedy resolution of disputes. The finality of award would also be in a limbo as a party can challenge an award even after the 120 day period."
Coming back to the Motor Vehicles Act, the legislative intent is to provide appropriate compensation for the victims and to protect their substantive rights, in pursuit of the same, the interpretation should not be as strict as commercial claims as elucidated above.
22. Undoubtedly, the statute has granted the Courts with discretionary powers to condone the delay,
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however at the same time it also places an obligation upon the party to justify that he was prevented from abiding by the same due to the existence of "sufficient cause". Although there exists no strait jacket formula for the Courts to condone delay, but the Courts must not only take into consideration the entire facts and circumstances of case but also the conduct of the parties. The concept of reasonableness dictates that, the 61 Courts even while taking a liberal approach must weigh in the rights and obligations of both the parties. When a right has accrued in favour of one party due to gross negligence and lackadaisical attitude of the other, this Court shall refrain from exercising the aforesaid discretionary relief.
23. Taking into consideration the facts and circumstances of the present case, we are of the opinion that the delay of 45 days has been properly explained by the appellants, which was on account of illness of the wife of Appellant No. 1. It was not appropriate on the part of the High Court to dismiss the appeal merely on the ground of delay of short duration, particularly in matters involving death in motor accident claims. Moreover, in the present case no mala fide can be imputable against the appellants for filing the appeal after the expiry of ninety days. Therefore, we are of the opinion that the strict approach taken in the impugned order is hyper-technical and cannot be sustained in the eyes of law."
58. Given the object sought to be achieved under both the Arbitration Act and the Commercial Courts Act, that is, the speedy resolution of disputes, the expression "sufficient cause"
is not elastic enough to cover long delays beyond the period provided by the appeal provision itself. Besides, the expression "sufficient cause" is not itself a loose panacea for the ill of pressing negligent and stale claims. This Court, in Basawaraj v. Land Acquisition Officer, (2013) 14 SCC 81, has held:
"9. Sufficient cause is the cause for which the defendant could not be blamed for his absence. The meaning of the 62 word "sufficient" is "adequate" or "enough", inasmuch as may be necessary to answer the purpose intended. Therefore, the word "sufficient"
embraces no more than that which provides a platitude,
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which when the act done suffices to accomplish the purpose intended in the facts and circumstances existing in a case, duly examined from the viewpoint of a reasonable standard of a cautious man. In this context, "sufficient cause" means that the party should not have acted in a negligent manner or there was a want of bona fide on its part in view of the facts and circumstances of a case or it cannot be alleged that the party has "not acted diligently" or "remained inactive". However, the facts and circumstances of each case must afford sufficient ground to enable the court concerned to exercise discretion for the reason that whenever the court exercises discretion, it has to be exercised judiciously. The applicant must satisfy the court that he was prevented by any "sufficient cause"
from prosecuting his case, and unless a satisfactory explanation is furnished, the court should not allow the application for condonation of delay. The court has to examine whether the mistake is bona fide or was merely a device to cover an ulterior purpose. (See Manindra Land and Building Corpn. Ltd. v. Bhutnath Banerjee [AIR 1964 SC 1336] , Mata Din v. A. Narayanan [(1969) 2 SCC 770 :
AIR 1970 SC 1953] , Parimal v. Veena [(2011) 3 SCC 545 : (2011) 2 SCC (Civ) 1 : AIR 2011 SC 1150] and Maniben Devraj Shah v. Municipal Corpn. of Brihan Mumbai [(2012) 5 SCC 157 : (2012) 3 SCC (Civ) 24 : AIR 2012 SC 1629] .
10. In Arjun Singh v. Mohindra Kumar [AIR 1964 SC 993] this Court explained the difference between a "good cause" and a "sufficient cause" and observed that every "sufficient cause" is a good cause and vice versa.
However, if any difference exists it can only be that the requirement of good cause is complied with on a lesser degree of proof than that of "sufficient cause".
11. The expression "sufficient cause" should be given a liberal interpretation to ensure that substantial justice is done, but only so long as negligence, inaction or lack of bona fides cannot be imputed to the party concerned, whether or not sufficient cause has been furnished, can be decided on the facts of a particular case and no straitjacket formula is possible. (Vide Madanlal v. Shyamlal [(2002) 1 SCC 535 : AIR 2002 SC 100] and Ram Nath Sao v. Gobardhan Sao [(2002) 3 SCC 195 : AIR 2002 SC 1201])
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12. It is a settled legal proposition that law of limitation may harshly affect a particular party but it has to be applied with all its rigour when the statute so prescribes. The court has no power to extend the period of limitation on equitable grounds. "A result flowing from a statutory provision is never an evil. A court has no power to ignore that provision to relieve what it considers a distress resulting from its operation." The statutory provision may cause hardship or inconvenience to a particular party but the court has no choice but to enforce it giving full effect to the same. The legal maxim dura lex sed lex which means "the law is hard but it is the law", stands attracted in such a situation. It has consistently been held that, "inconvenience is not" a decisive factor to be considered while interpreting a statute.
13. The statute of limitation is founded on public policy, its aim being to secure peace in the community, to suppress fraud and perjury, to quicken diligence and to prevent oppression. It seeks to bury all acts of the past which have not been agitated unexplainably and have from lapse of time become stale. According to Halsbury's Laws of England, Vol. 28, p. 266:
"605. Policy of the Limitation Acts.--The courts have expressed at least three differing reasons supporting the existence of statutes of limitations 64 namely, (1) that long dormant claims have more of cruelty than justice in them, (2) that a defendant might have lost the evidence to disprove a stale claim, and (3) that persons with good causes of actions should pursue them with reasonable diligence."
An unlimited limitation would lead to a sense of insecurity and uncertainty, and therefore, limitation prevents disturbance or deprivation of what may have been acquired in equity and justice by long enjoyment or what may have been lost by a party's own inaction, negligence or laches. (See Popat and Kotecha Property v. SBI Staff Assn. [(2005) 7 SCC 510] , Rajender Singh v. Santa Singh [(1973) 2 SCC 705 : AIR 1973 SC 2537] and Pundlik Jalam Patil v. Jalgaon Medium Project [(2008) 17 SCC 448 : (2009) 5 SCC (Civ) 907] .)
14. In P. Ramachandra Rao v. State of Karnataka
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[(2002) 4 SCC 578 : 2002 SCC (Cri) 830 : AIR 2002 SC 1856] this Court held that judicially engrafting principles of limitation amounts to legislating and would fly in the face of law laid down by the Constitution Bench in Abdul Rehman Antulay v. R.S. Nayak [(1992) 1 SCC 225 : 1992 SCC (Cri) 93 : AIR 1992 SC 1701] .
15. The law on the issue can be summarised to the effect that where a case has been presented in the court beyond limitation, the applicant has to explain the court as to what was the "sufficient cause" which means an adequate and enough reason which prevented him to approach the court within limitation. In case a party is found to be negligent, or for want of bona fide on his part in the facts and circumstances of the case, or found to have not acted diligently or remained inactive, there cannot be a justified ground to condone the delay. No court could be justified in condoning such an inordinate delay by imposing any 65 condition whatsoever. The application is to be decided only within the parameters laid down by this Court in regard to the condonation of delay. In case there was no sufficient cause to prevent a litigant to approach the court on time condoning the delay without any justification, putting any condition whatsoever, amounts to passing an order in violation of the statutory provisions and it tantamounts to showing utter disregard to the legislature." (emphasis supplied)
59. Likewise, merely because the government is involved, a different yardstick for condonation of delay cannot be laid down. This was felicitously stated in Postmaster General v. Living Media India Ltd., (2012) 3 SCC 563 ["Postmaster General"], as follows:
"27. It is not in dispute that the person(s) concerned were well aware or conversant with the issues involved including the prescribed period of limitation for taking up the matter by way of filing a special leave petition in this Court. They cannot claim that they have a separate period of limitation when the Department was possessed with competent persons familiar with court proceedings. In the absence of plausible and acceptable explanation, we are posing a question why the delay is to be condoned mechanically merely because the Government or a wing of the Government is a party before us.
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28. Though we are conscious of the fact that in a matter of condonation of delay when there was no gross negligence or deliberate inaction or lack of bona fides, a liberal concession has to be adopted to advance substantial justice, we are of the view that in the facts and circumstances, the Department cannot take advantage of various earlier decisions. The claim on account of impersonal machinery and inherited bureaucratic 66 methodology of making several notes cannot be accepted in view of the modern technologies being used and available. The law of limitation undoubtedly binds everybody, including the Government.
29. In our view, it is the right time to inform all the government bodies, their agencies and instrumentalities that unless they have reasonable and acceptable explanation for the delay and there was bona fide effort, there is no need to accept the usual explanation that the file was kept pending for several months/years due to considerable degree of procedural red tape in the process. The government departments are under a special obligation to ensure that they perform their duties with diligence and commitment. Condonation of delay is an exception and should not be used as an anticipated benefit for the government departments. The law shelters everyone under the same light and should not be swirled for the benefit of a few."
60. The decision in Postmaster General (supra) has been followed in the following subsequent judgments of this Court:
(i) State of Rajasthan v. Bal Kishan Mathur, (2014) 1 SCC 592 at paragraphs 8-8.2;
(ii) State of U.P. v. Amar Nath Yadav, (2014) 2 SCC 422 at paragraphs 2-3;
(iii) State of T.N. v. N. Suresh Rajan, (2014) 11 SCC 709 at paragraphs 11-13; and
(iv) State of M.P. v. Bherulal, (2020) 10 SCC 654 at paragraphs 3-4.
61. In a recent judgment, namely, State of M.P. v. Chaitram Maywade, (2020) 10 SCC 667, this Court referred to Postmaster General (supra), and held as follows:
"1. The State of Madhya Pradesh continues to do the same thing again and again and the conduct seems to be incorrigible. The special leave petition has been filed
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after a delay of 588 days. We had an occasion to deal with such inordinately delayed filing of the appeal by the State of Madhya Pradesh in State of M.P. v. Bherulal [State of M.P. v. Bherulal, (2020) 10 SCC 654] in terms of our order dated 15-10-2020.
2. We have penned down a detailed order in that case and we see no purpose in repeating the same reasoning again except to record what are stated to be the facts on which the delay is sought to be condoned. On 5-1-2019, it is stated that the Government Advocate was approached in respect of the judgment delivered on 13- 11-2018 [Chaitram Maywade v. State of M.P., 2018 SCC OnLine HP 1632] and the Law Department permitted filing of the SLP against the impugned order on 26-5-2020. Thus, the Law Department took almost about 17 months' time to decide whether the SLP had to be filed or not. What greater certificate of incompetence would there be for the Legal Department!
3. We consider it appropriate to direct the Chief Secretary of the State of Madhya Pradesh to look into the aspect of revamping the Legal Department as it appears that the Department is unable to file appeals within any reasonable period of time much less within limitation. These kinds of excuses, as already recorded in the aforesaid order, are no more admissible in view of the judgment in Postmaster General v. Living Media (India) Ltd. [Postmaster General v. Living Media (India) Ltd., (2012) 3 SCC 563 : (2012) 2 SCC 68 (Civ) 327 : (2012) 2 SCC (Cri) 580 : (2012) 1 SCC (L&S) 649]
4. We have also expressed our concern that these kinds of the cases are only "certificate cases" to obtain a certificate of dismissal from the Supreme Court to put a quietus to the issue. The object is to save the skin of officers who may be in default. We have also recorded the irony of the situation where no action is taken against the officers who sit on these files and do nothing.
5. Looking to the period of delay and the casual manner in which the application has been worded, the wastage of judicial time involved, we impose costs on the petitioner State of Rs 35,000 to be deposited with the Mediation and Conciliation Project Committee. The amount be deposited within four weeks. The amount be recovered from the officer(s) responsible for the delay in filing and sitting on the files and certificate of recovery of the said amount be also filed in this Court within the said
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period of time. We have put to Deputy Advocate General to caution that for any successive matters of this kind the costs will keep on going up."
62. Also, it must be remembered that merely because sufficient cause has been made out in the facts of a given case, there is no right in the appellant to have delay condoned. This was felicitously put in Ramlal v. Rewa Coalfields Ltd., (1962) 2 SCR 762 as follows:
"12. It is, however, necessary to emphasise that even after sufficient cause has been shown a party is not entitled to the condonation of delay in question as a matter of right. The proof of a sufficient cause is a condition precedent for the exercise of the discretionary jurisdiction vested in the court by s. 5. If sufficient cause is not proved nothing 69 further has to be done; the application for condoning delay has to be dismissed on that ground alone. If sufficient cause is shown then the Court has to enquire whether in its discretion it should condone the delay. This aspect of the matter naturally introduces the consideration of all relevant facts and it is at this stage that diligence of the party or its bona fides may fall for consideration; but the scope of the enquiry while exercising the discretionary power after sufficient cause is shown would naturally be limited only to such facts as the Court may regard as relevant. It cannot justify an enquiry as to why the party was sitting idle during all the time available to it. In this connection we may point out that considerations of bona fides or due diligence are always material and relevant when the Court is dealing with applications made under s. 14 of the Limitation Act. In dealing with such applications the Court is called upon to consider the effect of the combined provisions of ss. 5 and 14. Therefore, in our opinion, considerations which have been expressly made material and relevant by the provisions of s. 14 cannot to the same extent and in the same manner be invoked in dealing with applications which fall to be decided only under s. 5 without reference to s. 14."
63. 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
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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 70 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."
10. Honble Apex Court in the aforesaid judgment,
while interpreting the scope and purpose of the Arbitration
and Conciliation Act emphasized that the object sought to
be achieved by the Act is speedy disposal through
arbitration proceedings. In such circumstances, the Court
held that the period of limitation is to be followed and delay
can only be condoned in cases where sufficient cause is
shown by the party. The Court clarified that 'sufficient
cause' would mean that party seeking condonation of delay
has not acted in a negligent manner or it cannot be said
that such party was inactive or was not diligent in pursuing
his/her case.
11. In the present case, the appellants being the
State of U.P. were fully aware of the judgment dated
18.05.2016 from the very beginning, however, they acted in
a callous and negligent manner, resulting in an inordinate
delay of 1560 days in filing the appeal. The appellants have
failed to show any sufficient cause for such huge delay in
filing the appeal u/s 37 of the Arbitration and Conciliation
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Act. In such circumstances, this Court is of the considered
opinion that delay of 1560 days cannot be condoned.
Therefore, the delay condonation application is dismissed.
Consequently, the appeal also stands dismissed.
(Subhash Upadhyay, J.) 04.07.2025 Rajni
RAJINI UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND, 2.5.4.20=97cfa6e4cbd49c07b876db4 8448ac3701a9ae475a2547e4b7f1d9b 1f17d01342, postalCode=263001,
GUSAIN st=UTTARAKHAND, serialNumber=8D039BC77BD1A2222 B4DF4FC80D4557562F95BEBA013F53 0616A158A0A878BD8, cn=RAJINI GUSAIN Date: 2025.07.08 22:31:37 -07'00'
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