High Court of Bombay at Goa Allows Appeal Against Dismissal of Condonation of Delay Application in Ex-Parte Decree Setting Aside Case. Administrator's Failure to Inform Appellant Constitutes Sufficient Cause for Delay Under Section 5 of Limitation Act, 1963.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The appellant, Communidade of Malcornem, filed an Appeal from Order No. 19 of 2014 in the High Court of Bombay at Goa, challenging an order passed by the Lower Appellate Court in Civil Miscellaneous Application No. 143/2012. The Lower Appellate Court had dismissed the appellant's application for condonation of delay in filing an application to set aside an ex-parte decree passed against it. The appellant contended that the decree under challenge before the Lower Appellate Court was in its favour, but the respondents had filed an appeal. Summons were issued to the appellant but were served on the Administrator of the Communidade, who was based in Margao. The Administrator returned the summons stating there was no time to inform the appellant, and consequently, the appellant was not informed about the appeal. As a result, the appeal proceeded ex-parte and a decree was passed against the appellant. The appellant argued that the delay in filing the application to set aside the ex-parte decree was due to the Administrator's failure to inform, which constituted sufficient cause. The High Court, after hearing both sides, found that the appellant had made out a case for condonation of delay. The Court observed that the Administrator's action of returning the summons without informing the appellant was not attributable to the appellant. Therefore, the Court allowed the appeal, set aside the impugned order, and directed the Lower Appellate Court to decide the application to set aside the ex-parte decree on its own merits, after giving an opportunity of hearing to both parties. The Court also directed the Lower Appellate Court to dispose of the application within three months from the date of receipt of the order.

Headnote

A) Civil Procedure - Condonation of Delay - Sufficient Cause - Section 5 of Limitation Act, 1963 - The appellant, a Communidade, challenged the dismissal of its application for condonation of delay in filing an application to set aside an ex-parte decree passed by the Lower Appellate Court. The Court held that the Administrator's failure to inform the appellant about the summons constituted sufficient cause for the delay, as the appellant was not at fault. The Court set aside the impugned order and directed the Lower Appellate Court to decide the application to set aside the ex-parte decree on merits, after giving an opportunity of hearing to both parties. (Paras 4-6)

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Issue of Consideration

Whether the Lower Appellate Court erred in dismissing the application for condonation of delay filed by the appellant to set aside the ex-parte decree, on the ground that the appellant had sufficient cause for the delay.

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Final Decision

The High Court allowed the appeal, set aside the impugned order, and directed the Lower Appellate Court to decide the application to set aside the ex-parte decree on merits, after hearing both parties, within three months.

Law Points

  • Condonation of delay
  • Sufficient cause
  • Ex-parte decree
  • Service of summons
  • Administrator's duty to inform
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Case Details

2014 LawText (BOM) (07) 115

Appeal from Order No. 19 of 2014

2014-07-24

F. M. Reis, J.

Mr. Devidas Pangam for Appellant, Mr. R.G. Ramani for Respondents

Communidade of Malcornem

Shri Budo Custa Molic and Others

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Nature of Litigation

Appeal against order dismissing application for condonation of delay to set aside ex-parte decree.

Remedy Sought

Appellant sought setting aside of the order dismissing its condonation of delay application and restoration of the application to set aside the ex-parte decree.

Filing Reason

The Lower Appellate Court dismissed the appellant's application for condonation of delay, preventing the appellant from challenging the ex-parte decree.

Previous Decisions

The Lower Appellate Court passed an ex-parte decree against the appellant in an appeal filed by the respondents. The appellant's application for condonation of delay to set aside that decree was dismissed.

Issues

Whether the appellant had sufficient cause for the delay in filing the application to set aside the ex-parte decree.

Submissions/Arguments

Appellant argued that the Administrator of the Communidade returned the summons without informing the appellant, and thus the delay was due to circumstances beyond its control. Respondents opposed the condonation of delay.

Ratio Decidendi

The Administrator's failure to inform the appellant about the summons constituted sufficient cause for the delay, as the appellant was not at fault. The court should liberally construe 'sufficient cause' to advance substantial justice.

Judgment Excerpts

The Administrator of the Communidade who is based in Margao has in fact returned the summons in view of the fact that there was no time to inform the Appellant. The Administrator never informed the Appellant about the summons in such Appeal as such, the Appeal went uncontested and the decree came to be passed by the learned Lower Appellate Court. In my view, the Appellant has made out a case for condonation of delay.

Procedural History

The respondents filed an appeal before the Lower Appellate Court against a decree in favor of the appellant. Summons were issued to the appellant but were returned by the Administrator without informing the appellant. The appeal proceeded ex-parte and a decree was passed against the appellant. The appellant filed an application for condonation of delay to set aside the ex-parte decree, which was dismissed by the Lower Appellate Court. The appellant then filed the present appeal before the High Court.

Acts & Sections

  • Limitation Act, 1963: Section 5
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