Supreme Court Sets Aside Restoration of Suit at Behest of Stranger - Unregistered Agreement for Sale Does Not Confer Locus Standi to Seek Condonation of Delay. The Court held that a person not a party to the suit cannot maintain an application for condonation of delay in filing restoration, especially when an application by the legal heirs is pending.

In Favour of Accused
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Case Note & Summary

The Supreme Court allowed the appeal against the judgment of the Bombay High Court which had upheld the trial court's order condoning a delay of 9 years and 11 months in filing an application for restoration of a suit. The suit, Special Civil Suit No. 269 of 2002, was filed by the original plaintiff Pravin Jamndas Thakkar (Kanani) concerning certain lands in Thane, Maharashtra. The suit was dismissed for want of prosecution on 3rd November 2011. The legal heirs of the plaintiff filed an application for condonation of delay in filing restoration on 7th November 2019, which was pending. Subsequently, on 12th October 2021, respondent No.1, a private limited company claiming to be an assignee under an unregistered Agreement for Sale dated 8th December 2009 with the legal heirs, filed a separate application for condonation of delay. The trial court allowed this application, and the High Court upheld it, enhancing costs to Rs. 1,50,000. The Supreme Court held that respondent No.1, being a stranger to the suit and not impleaded, had no locus standi to maintain such an application. The court emphasized that allowing a stranger to file such applications would open the floodgates. Additionally, the court noted that the pending application by the legal heirs should have been decided first. The court set aside the orders of the trial court and High Court, allowing the appeal.

Headnote

A) Civil Procedure - Locus Standi - Stranger to Suit - A person who is not a party to the suit cannot maintain an application for condonation of delay in filing an application for restoration of the suit. The trial court's order entertaining such an application at the behest of a stranger is illegal and unsustainable in law. (Paras 9-10)

B) Civil Procedure - Condonation of Delay - Sufficient Cause - An inordinate delay of 9 years and 11 months, when an application by the legal heirs is already pending, does not constitute 'sufficient cause' for condonation. The reasoning of the trial court and High Court for condoning such delay is prima facie not in consonance with the settled law. (Para 12)

C) Civil Procedure - Restoration of Suit - Pending Application - When an application for condonation of delay in filing restoration is already pending at the instance of the legal heirs, the trial court ought not to entertain a subsequent application by a stranger. The proper course is to decide the pending application on its merits. (Para 10)

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Issue of Consideration

Whether a stranger to a suit, claiming rights under an unregistered Agreement for Sale, can maintain an application for condonation of delay in filing an application for restoration of the suit when an application by the legal heirs of the original plaintiff is already pending.

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Final Decision

Appeal allowed. Orders of the trial court dated 4th May 2022 and High Court dated 14th December 2022 are set aside. The application filed by respondent No.1 (MCA No. 1473 of 2021) stands dismissed. The trial court is directed to decide the application filed by the legal heirs (MCA No. 1082 of 2019) expeditiously in accordance with law.

Law Points

  • Locus standi
  • stranger to suit
  • condonation of delay
  • sufficient cause
  • restoration of suit
  • unregistered agreement for sale
  • pending application by legal heirs
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Case Details

2024 LawText (SC) (5) 81

Civil Appeal No. of 2023 (Arising out of SLP(C) No. of 2023)

2023-04-24

B.R. Gavai, J

Mukul Rohatgi (for appellants), C.A. Sundaram (for respondents)

Vijay Laxman Bhawe (since deceased) through LRs

Pravin Jamndas Thakkar (Kanani) (since deceased) through LRs & Ors.

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Nature of Litigation

Civil appeal against High Court order upholding condonation of delay in filing restoration application by a stranger to the suit.

Remedy Sought

Appellants sought setting aside of the trial court and High Court orders allowing condonation of delay at the instance of respondent No.1, a stranger.

Filing Reason

Respondent No.1, claiming as assignee under an unregistered Agreement for Sale, filed an application for condonation of delay in filing restoration of the suit, which was allowed by the trial court and upheld by the High Court.

Previous Decisions

Trial court allowed condonation of delay on 4th May 2022; High Court dismissed revision on 14th December 2022, enhancing costs.

Issues

Whether a stranger to a suit can maintain an application for condonation of delay in filing restoration? Whether the trial court should have entertained the application when a similar application by legal heirs was pending?

Submissions/Arguments

Appellants: Respondent No.1 is a stranger; the suit is frivolous; the application by legal heirs was pending; entertaining stranger's application is illegal. Respondents: Respondent No.1 has accrued rights under Agreement for Sale; legal heirs were not prosecuting; no interference warranted.

Ratio Decidendi

A person who is not a party to the suit has no locus standi to file an application for condonation of delay in filing an application for restoration of the suit. Such an application by a stranger is illegal and unsustainable. The trial court ought to have decided the pending application by the legal heirs instead of entertaining a subsequent application by a stranger.

Judgment Excerpts

entertaining an application filed at the behest of a stranger for condonation of delay in filing an application for restoration of the subject suit is totally unsustainable in law. If the approach as adopted by the trial court is approved, any Tom, Dick and Harry would be permitted to move an application for condonation of delay in filing an application for restoration of the suit even if he is not a party to the subject suit.

Procedural History

Special Civil Suit No. 269 of 2002 filed in 2002; dismissed for want of prosecution on 3rd November 2011. Legal heirs filed MCA No. 1082 of 2019 on 7th November 2019 for condonation of delay in filing restoration. Respondent No.1 filed MCA No. 1473 of 2021 on 12th October 2021. Trial court allowed MCA No. 1473 of 2021 on 4th May 2022. Appellants filed Civil Revision Application No. 269 of 2022 before Bombay High Court, which was dismissed on 14th December 2022. Present appeal filed in Supreme Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Order IX Rule 9, Section 5 of Limitation Act (implied)
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