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IBC - Highlights / Catch Notes

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The High Court refused to condone the delay of 4486 days in ...


Court rejects company's 12-year delay in appeal against money decree, cites lack of diligence and good faith.

Case Laws     IBC

November 28, 2024

The High Court refused to condone the delay of 4486 days in filing an appeal against a money recovery decree. The delay was inordinate, and the appellant, a limited company, failed to provide a satisfactory explanation. The professional misconduct of the appellant's erstwhile counsel was not a sufficient justification as the appellant had a duty to remain diligent. The appellant's attempt to claim the benefit u/s 14 of the Limitation Act for the period from 29.11.2019 to 20.09.2024 was rejected due to lack of good faith and due diligence. The appellant had filed an application under Order IX Rule 13 CPC without an ex-parte judgment, prolonging the proceedings for almost five years. The High Court held that by liberal standards, the appellant's actions could not be treated as proceedings pursued in good faith. Consequently, the delay condonation application was dismissed, denying the appellant the benefit u/ss 5 and 14 of the Limitation Act.

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