Case Note & Summary
The judgment concerns an application for leave to appeal and condonation of delay filed by Ahluwalia Contracts (India) Ltd. (ACIL) against a judgment and order dated 14th and 15th February 2018 passed by a learned Single Judge in Commercial Suit No. 65 of 2013. The suit was filed by Bellamy Constructions & Infrastructure Pvt. Ltd. (plaintiff) against Bank of India (defendant) seeking a decree for Rs.4.80 crores. The plaintiff had entered into a contract with ACIL for construction works, and ACIL had furnished bank guarantees issued by the defendant bank in favor of the plaintiff. The suit pertained to the bank guarantees. The learned Single Judge decreed the suit in favor of the plaintiff. ACIL, not being a party to the suit, sought leave to appeal and condonation of delay of 120 days in filing the appeal. The court examined the issue of locus standi and found that ACIL was not a party to the suit and had not demonstrated any direct interest or prejudice from the judgment. The court also found that the explanation for the delay was insufficient, as the appellant merely stated that it was awaiting legal advice and that the delay was not intentional. The court held that the appellant had no right to appeal and that the delay was not condonable. Consequently, the Notice of Motion for leave to appeal and condonation of delay was dismissed, and the Commercial Appeal was also dismissed as not maintainable.
Headnote
A) Civil Procedure - Locus Standi to Appeal - Right of Appeal - The appellant, not being a party to the suit, has no right to appeal against the judgment and decree unless he can show that he is a person aggrieved or that his rights are directly affected. The court held that the appellant failed to establish any such right. (Paras 1-10)
B) Condonation of Delay - Sufficient Cause - Delay of 120 days in filing appeal - The appellant did not provide sufficient cause for the delay, as the reasons given were vague and not supported by evidence. The court held that the delay cannot be condoned. (Paras 11-15)
Issue of Consideration
Whether the applicant/appellant, who was not a party to the suit, has locus standi to file an appeal against the judgment and decree passed in the suit, and whether the delay in filing the appeal is condonable.
Final Decision
The Notice of Motion (L) No. 596 of 2018 for leave to appeal and condonation of delay is dismissed. Consequently, Commercial Appeal Lodging No. 279 of 2018 is also dismissed as not maintainable.
Law Points
- Locus standi to appeal
- Condonation of delay
- Sufficient cause for delay
- Right of appeal under Section 96 CPC
- Order 41 Rule 3A CPC
Case Details
Notice of Motion Lodging No. 596 of 2018 in Commercial Appeal Lodging No. 279 of 2018
Naresh H. Patil, Acting CJ, G. S. Kulkarni, J.
Mr. Rajiv Kumar, Senior Advocate a/w Mr. Mayur Khandeparkar, Mr. Satyasrikant Vutha, Ms. Smiti Tewari, Mr. Dhiraj Mhetre, Ms. Nupur Jalan i/by Khaitan Legal Associates for applicant/appellant; Ms. Rajani Iyer, Senior Advocate a/w Mr. Vaibhav P. Bajpai I/by Pramod Bajpai for respondent no.1 – Org. Plaintiff; Ms. Sandhya Nambidi I/by Law Focus for respondent no. 2 – Org. Defendant.
Ahluwalia Contracts (India) Ltd.
Bellamy Constructions & Infrastructure Pvt. Ltd. and anr.
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Nature of Litigation
Application for leave to appeal and condonation of delay in filing an appeal against a judgment and decree in a commercial suit.
Remedy Sought
The applicant/appellant sought leave to appeal against the judgment and order dated 14th & 15th February 2018 passed by the learned Single Judge in Commercial Suit No. 65 of 2013 and condonation of delay in filing the appeal.
Filing Reason
The appellant, not being a party to the suit, claimed to be aggrieved by the judgment and decree passed in the suit which affected its rights as a contractor who had furnished bank guarantees.
Previous Decisions
The learned Single Judge decreed the suit in favor of the plaintiff (respondent no.1) against the defendant (respondent no.2).
Issues
Whether the applicant/appellant has locus standi to file an appeal against the judgment and decree passed in a suit to which it was not a party.
Whether the delay of 120 days in filing the appeal is condonable on the grounds stated.
Submissions/Arguments
The appellant argued that it was a necessary party to the suit as the bank guarantees were issued at its instance and the judgment directly affected its rights.
The respondents contended that the appellant had no locus standi as it was not a party to the suit and the delay was not satisfactorily explained.
Ratio Decidendi
A person who is not a party to a suit has no right to appeal against the judgment and decree unless he can show that he is a person aggrieved or that his rights are directly affected. Additionally, delay in filing an appeal must be supported by sufficient cause, and vague explanations without evidence do not constitute sufficient cause.
Judgment Excerpts
The appellant, not being a party to the suit, has no right to appeal against the judgment and decree unless he can show that he is a person aggrieved or that his rights are directly affected.
The delay of 120 days in filing the appeal is not condonable as the appellant has not provided sufficient cause for the delay.
Procedural History
The respondent no.1 filed Commercial Suit No. 65 of 2013 against respondent no.2. The learned Single Judge delivered judgment on 14th & 15th February 2018 decreeing the suit. The appellant filed Notice of Motion (L) No. 596 of 2018 seeking leave to appeal and condonation of delay on 18th June 2018. The matter was heard and reserved on 24th July 2018, and judgment pronounced on 6th September 2018.
Acts & Sections
- Code of Civil Procedure, 1908: Section 96, Order 41 Rule 3A
