2025 (1) TMI 1146 - SC - Indian Laws

Dismissal of appeals on the grounds of delay without considering the merits of the case - HELD THAT - Although multiple submissions were raised from both sides touching upon the merits of the case it is not deemed necessary to refer to them as the present appeals can be allowed on a short ground which is that the order impugned before the High Court was of refusal to condone the delay in preferring the appeals before the Appellate Tribunal Mumbai. Once the High Court opined that in normal circumstances the delay ought to have been condoned it ought not to have commented upon the merits of the orders dated 23.07.2019 and 16.10.2019 particularly when the Appellate Tribunal Mumbai had not dealt with the correctness of those orders. In such circumstances the High Court should have set aside the order rejecting the delay condonation application condoned the delay and restored the appeals on the file of the Appellate Tribunal Mumbai for consideration on merits. The scope of the appeal before the High Court was limited to examining the correctness of the order of the Appellate Tribunal Mumbai declining condonation of delay. Only when the delay is condoned the merits of the order could be examined by the Appellate Court. Conclusion - The delay should be condoned when sufficient cause is shown and that merits should not be commented upon unless the delay is condoned. The order dated 01.12.2022 passed by the Appellate Tribunal Mumbai refusing to condone the delay in filing the appeals by the appellants herein against the orders dated 23.07.2019 and 16.10.2019 is set aside. Appeal allowed.

1. ISSUES PRESENTED and CONSIDERED

The core legal questions considered in this judgment are:

Whether the High Court erred in dismissing the appeals on the grounds of delay without considering the merits of the case.
Whether the Appellate Tribunal, Mumbai, was correct in dismissing the appeals as barred by limitation.
Whether the order dated 23.07.2019 was passed with the consent of the parties and if such consent was valid.

2. ISSUE-WISE DETAILED ANALYSIS

Issue 1: Whether the High Court erred in dismissing the appeals on the grounds of delay without considering the merits of the case.

Relevant legal framework and precedents: The court referenced the principle that the scope of appeal before the High Court was limited to examining the correctness of the order of the Appellate Tribunal declining condonation of delay, citing a precedent that only when the delay is condoned, the merits of the order could be examined.
Court's interpretation and reasoning: The Supreme Court reasoned that the High Court should have focused solely on the issue of delay and not commented on the merits of the orders dated 23.07.2019 and 16.10.2019, particularly since the Appellate Tribunal had not addressed the correctness of those orders.
Key evidence and findings: The High Court had acknowledged that under normal circumstances, the delay should have been condoned, yet it proceeded to dismiss the appeals based on the merits of the previous orders.
Application of law to facts: The Supreme Court applied the principle that the High Court should have set aside the order rejecting the delay condonation application and restored the appeals for consideration on merits.
Treatment of competing arguments: The appellants argued that the High Court should not have commented on the merits, while the respondents contended that the delay was inexcusable.
Conclusions: The Supreme Court concluded that the High Court erred in its approach and the appeals should be restored for consideration on merits by the Appellate Tribunal.

Issue 2: Whether the Appellate Tribunal, Mumbai, was correct in dismissing the appeals as barred by limitation.

Relevant legal framework and precedents: The legal framework involves the rules governing the condonation of delay in filing appeals, which require sufficient cause to be shown for the delay.
Court's interpretation and reasoning: The Supreme Court found that the Appellate Tribunal erred in not condoning the delay, especially when the High Court itself acknowledged that the delay should have been condoned under normal circumstances.
Key evidence and findings: The appeals were filed within 60 days of the final order, and a formal application for condonation of delay was presented.
Application of law to facts: The Supreme Court applied the principle that sufficient cause was shown for the delay, and thus, the appeals should not have been dismissed on limitation grounds.
Treatment of competing arguments: The appellants argued for condonation due to procedural complexities, while the respondents maintained that the delay was unjustified.
Conclusions: The Supreme Court concluded that the delay should be condoned and the appeals restored for consideration on merits.

Issue 3: Whether the order dated 23.07.2019 was passed with the consent of the parties and if such consent was valid.

Relevant legal framework and precedents: The issue of consent in legal proceedings involves determining whether parties or their representatives have the authority to agree to certain orders.
Court's interpretation and reasoning: The Supreme Court noted that the appellants disputed the consent given for the order dated 23.07.2019 and that the High Court should not have commented on this issue without a proper examination by the Appellate Tribunal.
Key evidence and findings: The appellants contested that their advocate was not authorized to consent to the order.
Application of law to facts: The Supreme Court emphasized that the merits of the consent should be examined by the Appellate Tribunal, not the High Court.
Treatment of competing arguments: The appellants argued against the validity of the consent, while the respondents upheld its validity.
Conclusions: The Supreme Court concluded that this issue should be examined on merits by the Appellate Tribunal.

3. SIGNIFICANT HOLDINGS

Preserve verbatim quotes of crucial legal reasoning: "Once the High Court opined that in normal circumstances the delay ought to have been condoned, it ought not to have commented upon the merits of the orders dated 23.07.2019 and 16.10.2019."
Core principles established: The principle that delay should be condoned when sufficient cause is shown, and that merits should not be commented upon unless the delay is condoned.
Final determinations on each issue: The Supreme Court set aside the High Court's dismissal of the appeals, condoned the delay, and restored the appeals for consideration on merits by the Appellate Tribunal, Mumbai.