2018 (11) TMI 1096 - HC - Indian Laws

Condonation of delay of 45 days in filing complaint - section 138 Negotiable Instruments Act, 1881 - Held that - The delay in this case is not inordinate. Liberal approach has to be adopted while considering an application seeking condonation of delay. Respondent had rendered a reasonable explanation for the delay in filing the complaint. The delay is only of a few days. Nothing has been pointed out to show that there was negligence on the part of the respondent or that the delay lacks bona fide - In the facts of the present case refusing to condone delay of a few days would imply that a meritorious case is being thrown out by adopting a hyper-technical approach. In case delay is condoned no prejudice would be caused to the petitioner as petitioner would have an opportunity to defend the case on merits. The discretion has been exercised by the trial court in a positive manner to further the cause of justice - it is the settled proposition of law that when discretion is exercised by the trial court in a positive manner, the Superior Court is not to interfere with the same unless the same is contrary to the settled principles of law or is perverse, which is not so in the present case. There is no infirmity in the order of the trial court in exercising discretion in favour of the respondent and condoning the delay of 45 days in filing the complaint - there is no merit in the petition and the petition is dismissed.

Issues Involved:
1. Condonation of delay in filing a complaint under Section 138 of the Negotiable Instruments Act, 1881.
2. Explanation of the delay by the respondent.
3. Application of the principle of "sufficient cause" for condonation.
4. Discretionary power of the trial court in condoning delay.
5. Impact of technicalities versus substantial justice.

Issue-wise Detailed Analysis:

1. Condonation of delay in filing a complaint under Section 138 of the Negotiable Instruments Act, 1881:
The petitioner challenged the order dated 11.11.2009, which allowed the respondent's application seeking condonation of a 45-day delay in filing a complaint under Section 138 of the Negotiable Instruments Act, 1881. Initially, this petition was dismissed by the court but was remanded for reconsideration by the Supreme Court.

2. Explanation of the delay by the respondent:
The respondent explained that the delay occurred due to the resignation of their constituted attorney, which led to a gap in authorizing a new attorney. The resignation was tendered on 10.02.2009 and accepted on 15.04.2009. The new attorney joined on 18.05.2009, and the power of attorney was executed on 03.06.2009 and made available on 14.06.2009. The courts were closed for summer vacations until 24.06.2009, and the complaint was filed on 25.06.2009.

3. Application of the principle of "sufficient cause" for condonation:
The trial court held that technicalities should not obstruct substantial justice, especially considering the complainant was a banking institution involving public money and a substantial amount of ?3 crores. The court found the grounds for delay believable and supported by an affidavit, thus condoning the delay.

4. Discretionary power of the trial court in condoning delay:
The Supreme Court's rulings in various cases, including Pawan Kumar Ralli v. Maninder Singh Narula and Maniben Devraj Shah v. Municipal Corpn. of Brihan Mumbai, emphasized a liberal approach in condoning delays to ensure substantive justice. The expression "sufficient cause" is elastic and should be applied to advance substantial justice rather than adhering to a rigid interpretation. The trial court's discretion in condoning the delay was exercised positively and aligned with these principles.

5. Impact of technicalities versus substantial justice:
The court reiterated that the law of limitation is based on public policy to ensure timely legal remedies but should not destroy rights due to technical delays. The delay in this case was not inordinate, and the respondent provided a reasonable explanation. Adopting a hyper-technical approach would unjustly dismiss a meritorious case. No prejudice would be caused to the petitioner as they would still have an opportunity to defend the case on merits.

Conclusion:
The High Court found no merit in the petition and upheld the trial court's order condoning the delay. The court emphasized that the trial court's discretion was exercised correctly and in furtherance of justice. The petition was dismissed, and the trial court was directed to expedite the proceedings and conclude them within four months due to the prolonged duration of the case.

Final Order:
The petition is dismissed with no orders as to costs. The trial court is directed to expedite and conclude the proceedings preferably within four months. Order Dasti under the signatures of the Court Master.

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