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Smart Summary

Factual and Procedural Background

This opinion addresses an appeal challenging the order dated 01.10.2018 which closed the defendants' right to file the written statement after the expiration of 120 days prescribed under the Civil Procedure Code (CPC). The defendants had initially filed the written statement within the stipulated period, but it was returned due to office objections, necessitating re-filing. The appellant sought condonation of delay in re-filing the written statement, citing personal issues faced by counsel as the cause of delay.

Legal Issues Presented

  1. Whether delay in re-filing a written statement after it was returned on office objections can be condoned.
  2. Whether re-filing of the written statement amounts to a fresh filing attracting fresh limitation period under the CPC and relevant rules.
  3. The applicability of precedents regarding condonation of delay in re-filing and the procedural implications of such re-filing.

Arguments of the Parties

Appellant's Arguments

  • The written statement was originally filed within the 120-day period prescribed by the CPC.
  • The delay occurred only in re-filing due to the written statement being returned on office objections.
  • Relied on the order of the learned Joint Registrar dated 23.07.2018 noting that the written statement was filed but returned due to objections.

Respondent's Arguments

  • Re-filing of the written statement amounts to a fresh filing, not covered by the original limitation period.
  • Relied upon the Division Bench judgment in Northern Railway vs. M/s. Pioneer Publicity Corporation Pvt. Ltd. & Anr., 2015 (X) AD Delhi 378 to contend that delay in re-filing cannot be condoned.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
S.R. Kulkarni vs. Birla VXL Ltd., 1998 (3) RCR (Civil) 436 Delay in re-filing applications is considered differently from initial filing; delay in re-filing is not subject to rigorous tests under Section 5 of the Limitation Act. The court relied on this precedent to recognize that negligence or casual approach by counsel in re-filing does not automatically justify rejection of condonation but may warrant costs.
Indian Statistical Institute vs. Associate Builders and Ors., AIR 1978 SC 335 Delay in representation of objection petition after rectifying defects is not subject to stringent limitation tests if initial filing was within time. The court cited this to support the principle that delay in re-presentation after initial timely filing can be condoned under Section 5 of the Limitation Act.
Northern Railway v. Pioneer Publicity Corporation Pvt. Ltd., (2017) 11 SCC 234 Section 34(3) of the Arbitration Act applies only to initial filing, not re-filing; re-filing beyond prescribed time may amount to fresh institution but extensions can be granted. The court noted that the Supreme Court set aside the Division Bench's earlier judgment and held that re-filing can be allowed with conditions, as was done in this case.

Court's Reasoning and Analysis

The court analyzed the issue of delay in re-filing the written statement by distinguishing it from delay in initial filing. It observed that the defendants had filed the written statement within the original 120-day period, but it was returned due to office objections. The court referenced the Division Bench judgment in S.R. Kulkarni vs. Birla VXL Ltd. to emphasize that delay in re-filing is assessed differently and is not subject to the strict tests applicable to initial filings under Section 5 of the Limitation Act.

Further, the court relied on the Supreme Court’s ruling in Indian Statistical Institute vs. Associate Builders to reinforce that delay in re-presentation after rectifying defects can be condoned if the initial filing was within time.

Regarding the appellant’s reliance on the Division Bench judgment in Northern Railway vs. Pioneer Publicity Corporation Pvt. Ltd., the court noted that this judgment was set aside by the Supreme Court in Northern Railway v. Pioneer Publicity Corporation Pvt. Ltd. (2017) 11 SCC 234, which clarified that Section 34(3) applies only to initial filing and not re-filing. The court acknowledged that re-filing beyond the prescribed time can amount to fresh institution but noted that extensions had been granted in this case.

Balancing these principles, the court allowed the appeal subject to the condition that the written statement be re-filed within one week and imposed costs of Rs. 15,000/- to compensate for the delay.

Holding and Implications

The court’s final decision was to ALLOW THE APPEAL. The written statement was ordered to be taken on record if re-filed within one week from the date of the order, subject to payment of costs amounting to Rs. 15,000/-.

The direct effect of this decision is that the defendants are permitted to cure the delay in re-filing their written statement despite the expiration of the original limitation period. No new precedent was established; rather, the court applied established principles distinguishing delay in initial filing and re-filing, while also considering the Supreme Court’s authoritative ruling on the matter.

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    Narender Kumar Sharma v. Maharana Pratap Educational Center

    $~OS-24 * IN THE HIGH COURT OF DELHI AT NEW DELHI

    % Date of decision: 13.12.2018 + CS(COMM) 22/2018

    DR. NARENDER KUMAR SHARMA & ORS ..... Plaintiffs Through Mr.N.Prabhakar and Mr.Dhruv Sharma, Advs.

    versus

    MAHARANA PRATAP EDUCATIONAL

    CENTER & ANOTHER ..... Defendants Through Mr.Om Prakash and Ms.Sudeepti, Advs.

    CORAM:

    HON'BLE MR. JUSTICE JAYANT NATH

    O R D E R

    % 13.12.2018

    JAYANT NATH, J. (ORAL)

    IA No. 17120/2018

    By this application, the appellant seeks condonation of delay in filing the accompanying appeal. It is pleaded in the application that the delay took placed due to some serious issues being faced by the counsel for the appellant on her personal front.

    For the reasons stated in the application, the delay is condoned. The application stands disposed of.

    OA No. 154/2018

    1. This appeal is filed against the order dated 01.10.2018 whereby the right of the defendants to file the written statement was closed as 120 days

    1

    prescribed in CPC for filing the written statement have expired.

    2. Learned counsel for the appellant submits that the written statement was filed within time i.e. within 120 days but there was delay in re-filing the same. She relies upon the order of the learned Joint Registrar passed on 23.07.2018 where it is noted that the written statement has been filed but has been returned under office objection.

    3. Learned counsel appearing for the appellant has opposed the appeal. He submits that re-filing tentamounts to fresh filing. He relies upon the judgment of the Division Bench of this court in Northern Railway vs. M/s. Pioneer Publicity Corporation Pvt. Ltd. & Anr., 2015 (X) AD Delhi 378 to contend that re-filing would tentamount to fresh filing and delay cannot be condoned.

    4. It is admitted fact that the defendants have filed the written statement on 07.05.2018 after being served on 08.01.2018.

    5. It is settled legal position that delay in re-filing has to be considered on a different footing. Reference in this context may be had to the judgment of the Division Bench of this court in S.R. Kulkarni vs. Birla VXL Ltd., 1998 (3)RCR (Civil) 436 where the court held as follows:-

    "8. Notwithstanding which of the aforesaid Rules are applicable, the question of condensation of delay in refiling of an application has to be considered from a different angle and viewpoint as compared to consideration of condensation of delay in initial filing. The delay in refiling is not subject to the rigorous tests which are usually applied in excusing the delay in a petition filed under Section 5 of the Limitation Act (See Indian Statistical Institute Vs. M/s. Associated Builders and others AIR 1978 S C

    335. In the present case, the initial delay of 7 days in filing the application for leave to defend stood condoned and that has not been challenged by any of the parties. It is no doubt true that the

    2

    counsel for the appellant had not been very diligent after filing of application for leave to defend on 19th August, 1995 as counsel did not check whether the application was lying in the Registry with any objection or not. Considering however, the nature of the objections, it was a matter of removal of the objections by the counsel and on the facts of the present case, it is difficult in this case to attribute any negligence to the party. On the facts of the case, the effect of negligence or 'casual approach', which would be appropriate term to be used here, of the counsel on his client, does not deserve to be so rigorous so as to deny condensation of delay in refiling the application. The casual approach of the counsel is evident as no timely efforts were made firstly to find out after filing application on 19th August, 1995 as to whether the Registry had raised any objection or not. Secondly, despite order of the Joint Registrar dated 9th January, 1996, the objection was removed only on 4th March, 1996 i.e. after the date which the Joint Registrar had fixed for the application being posted for hearing before the Court. When the application was refiled on 4th March, 1996, one would expect the person filing to be more careful thereby not giving an opportunity to the Registry to raise any other objection. But that was no so. The result was that the second objection was raised which, as noticed above, was removed on 21st March, 1996 but application was refiled only on 27th March, 1996. Apart from this casual approach, we do not find any mala fide intention on the part of the appellant to delay the proceedings. When there is negligence or causal approach in a matter like this in refiling of an application, though the court may not be powerless to reject an application seeking condensation and may decline to condone the delay but at the same time, passing of any other appropriate order including imposition of cost can be considered by the court to compensate the other party from delay which may occur on account of refiling of the application."

    6. Similarly, the Supreme Court in Indian Statistical Institute vs. Associate Builders and Ors., AIR 1978 SC 335 held as follows:-

    "10. The High Court was in error in holding that there was any

    3

    delay in filing the objections for setting aside the award. The time prescribed by the Limitation Act for filing of the objections is one month from the date of the service of the notice. It is common ground that the objections were filed within the period prescribed by the Limitation Act though defectively. The delay, if any, was in representation of the objection petition after rectifying the defects. Section 5 of the Limitation Act provides for extension of the prescribed period of limitation. If the petitioner satisfies the court that he had sufficient cause for not preferring the objections within that period. When there is no delay in presenting the objection petition Section 5 of the Limitation Act has no application and the delay in representation is not subject to the rigorous tests which are usually applied in excusing the delay in a petition under Section 5 of the Limitation Act. The application filed before the High Court for condonation of the delay in preferring the objections and the order of the court declining to condone the delay are all due to misunderstanding of the provisions of the Civil Procedure Code. As we have already pointed out in the return the Registrar did not even specify the time within which the petition will have to be re-presented."

    7. I may now note that the judgment of the Division Bench of this court, relied by the learned counsel for the appellant in Northern Railway vs. M/s. Pioneer Publicity Corporation Pvt. Ltd. & Anr.(supra) was set aside by the Supreme Court in Northern Railway v. Pioneer Publicity Corporation Pvt. Ltd., (2017) 11 SCC 234, wherein it has held as follows:

    "4. We find that said Section 34(3) has no application in re- filing the petition but only applies to the initial filing of the objections under Section 34 of the Act. It was submitted on behalf of the respondent that Rule 5(3) of the Delhi High Court Rules states that if the memorandum of appeal is filed and particular time is granted by the Deputy Registrar, it shall be considered as fresh institution. If this Rule is strictly applied in this case, it would mean that any re-filing beyond 7 days would

    4

    be a fresh institution. However, it is a matter of record that 5 extensions were given beyond 7 days. Undoubtedly, at the end of the extensions, it would amount to re-filing."

    8. Accordingly, I allow the appeal. The written statement is taken on record if re-filed within one week from today subject to costs of Rs.15,000/-.

    9. The appeal stands disposed of.

    CS(COMM) 22/2018

    List before the Joint Registrar on 24.01.2019.for further proceedings.

    JAYANT NATH, J.

    DECEMBER 13, 2018

    rb

    5

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    Narender Kumar Sharma v. Maharana Pratap Educational Center
    (Dec 13, 2018)