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Smart Summary

Factual and Procedural Background

This matter concerns IA No.570/2023 in FA No.109/2023 filed by Reliance General Insurance Co. Ltd. (the Appellant) on 14.03.2023 challenging an order of the District Commission (South - X) dated 05.08.2022 in CC No.660/2019 in the complaint titled M/s. Irvine Technologies Inc. v. Reliance General Insurance Co. Ltd.

The Appellant moved an application seeking condonation of delay in filing the appeal. The Appellant's application alleged a delay of approximately 190 days (the application repeatedly references a delay of 190 days) arising from several events: the impugned order was not uploaded for about a month and a free copy (allegedly a statutory requirement) was not supplied; the Appellant discovered the impugned order during an audit on 18.12.2022 and applied for a certified copy, which it received on 23.12.2022; the officer in charge of consumer matters went on maternity leave and a successor required time to take over; the matter was handed to counsel on 27.02.2023; thereafter drafting, vetting and signing took additional time. The application therefore sought condonation of the delay and stated the delay was bona fide and caused no prejudice.

The record in the opinion also states (para 18) that the impugned judgment was pronounced on 05.12.2022 and that the present appeal was filed on 14.03.2023 with a delay of 191 days. The opinion proceeds to adjudicate the condonation application and dispose of the appeal on that basis.

Legal Issues Presented

  1. Whether the Appellant has shown "sufficient cause" within the meaning of Section 15 of the Consumer Protection Act, 1986 so as to justify condonation of the delay in filing the appeal.

Arguments of the Parties

Appellant's Arguments

  • The delay (stated as 190 days in the application) was caused by ineludible circumstances beyond the Appellant's control and was bonafide.
  • The impugned order was not uploaded and no free copy was supplied, so the Appellant was unaware of the order until an internal audit on 18.12.2022.
  • A certified copy was applied for and received on 23.12.2022.
  • The official who handled consumer court matters went on maternity leave after receipt of the certified copy; a new incumbent had to take over, which delayed internal approvals and vetting.
  • The brief and documents were furnished to the impaneled counsel on 27.02.2023; subsequent drafting, vetting and signing by the authorized representative took additional time, resulting in the alleged delay.

The opinion does not set out any detailed counter-arguments from the respondent(s) in the excerpt provided.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Basawaraj and Ors. v. The Special Land Acquisition Officer, AIR 2014 SC 746 Definition and scope of "sufficient cause" — meaning of "sufficient" as adequate or enough; that sufficient cause requires the applicant not to have acted negligently or without bona fides; applicant must satisfy the court that he was prevented by sufficient cause from prosecuting the case. The court relied on this definition to frame the standard the Appellant had to meet when explaining the delay and to assess whether the Appellant acted diligently or provided a satisfactory explanation.
Anil Kumar Sharma v. United Indian Insurance Co. Ltd. & Ors., IV (2015) CPJ 453 (NC) Authority of NCDRC discussing unjustified long delays (example given of 590/601 days) and referencing the need for special limitation periods in consumer matters; importance of expeditious adjudication. The court cited this decision to underscore that very long delays are not acceptable and to reinforce the requirement to explain day-to-day delay in consumer matters.
New Okhla Industrial Development Authority (referenced via the Anil Kumar Sharma discussion), IV (2011) CPJ 63 (SC) Emphasis that while deciding condonation applications courts must keep in mind the special periods of limitation under the Consumer Protection Act and that entertaining highly belated appeals undermines expeditious adjudication. The court used this principle to stress that the object of expeditious consumer dispute resolution militates against entertaining highly belated appeals without adequate explanation.
Lingeswaran Etc. v. Thirunagalingam, SLP (C) Nos. 2054-2055/2022 (judgment dated 25.02.2022) Where delay is not properly explained and the condonation application lacks merits, condonation should be dismissed; the law of limitation in statutory scheme must be applied with rigour. The court relied on this decision to support the proposition that in absence of adequate explanation the condonation application must be dismissed rather than condoned as a matter of grace.
Popat Bahiru Goverdhane v. Land Acquisition Officer, (2013) 10 SCC 765 That law of limitation may harshly affect a party but must be applied strictly when statute prescribes it; courts have no power to extend limitation on equitable grounds. The court referred to this case (via Lingeswaran) to emphasize the strict application of statutory limitation and that equitable considerations do not override the statutory period.
Office of The Chief Post Master General & Ors. v. Living Media India Ltd. & Ors., AIR 2012 SC 1506 Rejection of the plea that "impersonal machinery" or bureaucratic delay excuses limitation lapses; government or corporate impersonal procedures are not acceptable explanations in absence of reasonable justification. The court applied this authority to reject the Appellant's argument that internal corporate procedures and the impersonal machinery of the insurer justified the delay.

Court's Reasoning and Analysis

The court's analysis proceeded in a stepwise manner based on the material before it:

  1. Statutory Framework: The court referred to Section 15 of the Consumer Protection Act, 1986, which prescribes a 30-day period to prefer an appeal from an order of the District Forum and permits the State Commission to entertain an appeal beyond that period only if satisfied that there was a "sufficient cause" for delay.
  2. Quantification of Delay: On perusal of the record the court observed (para 18) that the impugned judgment was pronounced on 05.12.2022 and that the appeal was filed on 14.03.2023 — a delay stated as 191 days in the opinion. (The Appellant's application itself described a delay of 190 days.)
  3. Standard to be Met — "Sufficient Cause": The court described the required standard by reference to Basawaraj (AIR 2014 SC 746): "sufficient cause" must be adequate, the applicant should not have acted negligently or lacked bona fides, and must provide a satisfactory explanation to enable the court to exercise its discretion judiciously.
  4. Supporting Authorities: The court cited NCDRC (Anil Kumar Sharma) and Supreme Court decisions (including New Okhla and Lingeswaran, and Popat Bahiru Goverdhane) highlighting that special time limits in consumer matters are to be applied strictly and that unexplained or excessive delays weigh against condonation.
  5. Evaluation of Appellant's Explanation: The court examined paras 2 to 9 of the condonation application (which set out the Appellant's factual explanation). The court found that:
    • The Appellant did not provide cogent reasons explaining why it did not act promptly after the impugned order was passed, despite being aware of the order (as per the court's reading).
    • No documentary proof was furnished to substantiate the timeline asserted (e.g., dates of application for certified copy, dates when drafts were sent for vetting and when approvals were received).
    • The Appellant failed to explain day-to-day delay and largely enumerated events without specific dates.
    • The Appellant's reliance on internal corporate procedures ("impersonal machinery") was unsatisfactory; the court referred to the Office of The Chief Post Master General v. Living Media India Ltd. decision to hold that such pleas are not acceptable.
  6. Conclusion on Condonation: Applying the authorities and the facts before it, the court concluded that the Appellant failed to demonstrate "sufficient cause" and that the explanation was neither acceptable nor cogent enough to justify condonation of the delay.
  7. Consequent Relief: The court held that the condonation application was without merit and therefore dismissed it; as a result, the appeal filed beyond the prescribed period was also dismissed. The court ordered no costs in the facts of the case and directed that the file be consigned to the record room.

Holding and Implications

Core Ruling: The application for condonation of delay is dismissed, and consequently the appeal filed beyond the stipulated period is dismissed.

Implications and direct consequences as stated in the opinion:

  • The Appellant's condonation application (IA No.570/2023) was found to be without merit and dismissed.
  • Because condonation was refused, the appeal (FA No.109/2023) filed after the statutory period was dismissed as time-barred.
  • In the facts of this case the court ordered that there shall be no orders as to costs.
  • The file was directed to be consigned to the record room.

The opinion does not assert that it is laying down novel law; it applies established authorities on "sufficient cause" and limitation in consumer matters to the facts before it and dismisses the condonation application and the belated appeal.


Decision recorded in the provided opinion: (Justice Sangita Dhingra Sehgal) President; (Pinki) Member (Judicial); (J.P. Agrawal) Member.

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    M/S RELIANCE GENERAL INSURANCE COMPANY LTD v. M/S IRVINE TECHNOLOGIES INC

    Page 1 of 8

    RELIANCE GENERAL INSURANCE CO. LTD. V. IRVINE

    TECHNOLOGIES INC.

    20.04.2023

    IA NO.570/2023 IN FA NO.109/2023 The present Appeal was filed by the Appellant on 14.03.2023 challenging the impugned order dated 05.08.2022 passed by Ld. District Commission (South -X) in CC No. 660/2019 titled as M/s. Irvine Technologies Inc. v. Reliance General Insurance Co. Ltd.. Alongwith the appeal, there is an application filed by the Appellant seeking condonation of delay in filing the present appeal.

    Therefore, vide this order we shall dispose of the aforesaid application for condonation of delay in the above appeal. The application has been moved on behalf of the Appellant bearing IA No.570/2023 seeking condonation of delay in filing the appeal on the following ground:

    1. …….

    2. That it is due to some ineludible circumstances beyond the control of the Appellant herein that a delay of 190 days has been caused in the filing of this present appeal. That the said delay is totally bonafide and there is no prejudice caused to any party due to the same.

    3. It is most humbly submitted that the present appeal is being filed against the order of the District Commission-X, Udyog Sadan, dated 05.08.2022 in case No.660/2009, which was argued by the parties son 05.08.2022.

    Page 2 of 8

    4. That the matter was reserved for orders on 05.08.2022, however, the impugned order was not uploaded for next 01 months and in addition to that no free copy which is a statutory requirement under the Consumer Protection Act was supplied to the applicant because of which the applicant had no idea about the impugned order.

    5. It is germane to mention here that only on 18.12.2022 when an audit took place in the office of the applicant relating to the pending cases before the Hon'ble Consumer Commission, the applicant got to know about the impugned order dated 05.08.2022 underpinning which a certified copy was promptly applied by the applicant.

    6. It is also germane to mention here that the certified copy of the impugned order was received by the applicant on 23.12.2022, however, the incumbent incharge who used to look after the consumer court matters went on maternity leave because of which no prompt action could be taken by the applicant.

    7. That in the month of February, some other employee of the applicant steps in the shoes of the old incumbent and equipped Mr. Anuj Chauhan who is the impaneled counsel of the applicant with the brief and documents of the present case on 27.02.2023.

    8. That thereafter the counsel for the Appellant completed the draft of the appeal and sent the draft to the incumbent authority of the Appellant insurance company for vetting and signing the same. However, it is pertinent to reiterate herein that since the incumbent incharge of the present matter has left on maternity leave the new incumbent incharge read and understood the draft verbatim and vet the draft after approval from his senior. The instant appeal was then signed by the authorized representative and sent to the counsel.

    9. That the whole process of availing the certified copy, drafting, vetting and signing by the new authorized representative took a little time due to the maternity leave of the concerned authority of the insurance company and caused a delay of 190 days in filing the instant appeal.

    Page 3 of 8

    To adjudicate this issue, we deem it appropriate to refer to Section 15 of the Consumer Protection Act, 1986 which provides as under:

    "Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed.

    Provided that the State Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period:

    Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the District Forum, shall be entertained by the State Commission unless the appellant has deposited in the prescribed manner fifty per cent. of the amount or rupees thirty-five thousand, whichever is less."

    Perusal of the aforesaid statutory position reflects that the appeal against an impugned order should be preferred within a period of thirty days from the date of such order, as the complaint filed by the Appellant was filed under the old Consumer Protection Act. On perusal of record before us, it is clear that the impugned judgment was pronounced on 05.12.2022 and the present appeal was filed on 14.03.2023 with a delay of 191 days.

    In order to condone the delay, the Appellant has to satisfy this commission that there was sufficient cause for preferring the appeal after the stipulated period. The term 'sufficient cause' has been explained by the Apex Court in Basawaraj and Ors. vs. The Spl. Land Acquisition

    Page 4 of 8

    Officer reported at AIR 2014 SC 746. The relevant paras of the aforesaid judgment are reproduced as under:-

    "9. Sufficient cause is the cause for which Defendant could not be blamed for his absence. The meaning of the word "sufficient" is "adequate" or

    "enough", inasmuch as may be necessary to answer the purpose intended. Therefore, the word

    "sufficient" embraces no more than that which provides a platitude, which when the act done suffices to accomplish the purpose intended in the facts and circumstances existing in a case, duly examined from the view point of a reasonable standard of a cautious man. In this context,

    "sufficient cause" means that the party should not have acted in a negligent manner or there was a want of bona fide on its part in view of the facts and circumstances of a case or it cannot be alleged that the party has "not acted diligently" or "remained inactive". However, the facts and circumstances of each case must afford sufficient ground to enable the Court concerned to exercise discretion for the reason that whenever the Court exercises discretion, it has to be exercised judiciously. The applicant must satisfy the Court that he was prevented by any

    "sufficient cause" from prosecuting his case, and unless a satisfactory explanation is furnished, the Court should not allow the application for condonation of delay. The court has to examine whether the mistake is bona fide or was merely a device to cover an ulterior purpose."

    We also deem it appropriate to refer to Anil Kumar Sharma vs. United Indian Insurance Co. Ltd. and Ors. reported at IV(2015)CPJ453(NC), wherein the Hon'ble NCDRC held as under: -

    "12. ………we are not satisfied with the cause shown to justify the delay of 590/601 days. Day to day delay has

    Page 5 of 8

    not been explained. Hon'ble Supreme Court in a recent judgment of v. New Okhla Industrial Development Authority, IV (2011) CPJ 63 (SC) has held that while deciding the application filed for condonation of delay, the Court has to keep in mind that special period of limitation has been prescribed under the Consumer Protection Act, 1986, for filing appeals and revisions in consumer matters and the object of expeditious adjudication of the consumer disputes, will get defeated if the appeals and revisions, which are highly belated are entertained."

    We further deem it appropriate to refer to judgment dated 25.02.2022 passed in Special Leave to Appeal (C) Nos.2054-2055/2022 titled as Lingeswaran Etc. Versus Thirunagalingam, wherein the Hon'ble Supreme Court held as under: -

    "5. We are in complete agreement with the view taken by the High Court. Once it was found even by the learned trial Court that delay has not been properly explained and even there are no merits in the application for condonation of delay, thereafter, the matter should rest there and the condonation of delay application was required to be dismissed. The approach adopted by the learned trial Court that, even after finding that, in absence of any material evidence it cannot be said that the delay has been explained and that there are no merits in the application, still to condone the delay would be giving a premium to a person who fails to explain the delay and who is guilty of delay and laches. At this stage, the decision of this Court in the case of Popat Bahiru Goverdhane v. Land Acquisition Officer, reported in (2013) 10 SCC 765 is required to be referred to. In the said decision, it is observed and held that the law of limitation may harshly affect a particular party but it has to be applied with all its rigour when the statute so prescribes. The Court has no power to extend the period of limitation on equitable grounds. The statutory provision may

    Page 6 of 8

    cause hardship or inconvenience to a particular party but the Court has no choice but to enforce it giving full effect to the same.

    From the aforesaid dicta of the Hon'ble Apex Court and the Hon'ble National Commission, it is clear that 'sufficient cause' means that the party should not have acted in a negligent manner or there was a want of bona fide on its part and applicant must satisfy the Court that he was prevented by any "sufficient cause" from prosecuting his case, and unless a satisfactory explanation is furnished, the Court should not allow the application for condonation of delay.

    On perusal of record before us, Para 2 to Para 9 of the application for condonation of delay is the explanation given by the Appellant for the delay caused in filing this appeal. However, there are no cogent reasons given by the Appellant to explain as to why it did not take immediate after passing of the impugned order, as it was well aware of the impugned order. Further, no document was furnished by the Appellant to prove the contention that when it applied for certified copy of the impugned order, when the draft was sent to Appellant for vetting and signing and when it was received back after approval.

    In our considered opinion, the Appellant failed to explain the day- to-day delay and had merely mentioned the event without specifying the dates. It is further submitted by the counsel for the Appellant that the Appellant is a corporate organization and due to the impersonal machinery, the delay occurred in taking various approvals for filing the present appeal. To this argument of the Appellant, we deem it appropriate to refer to the case of Office of The Chief Post Master General and Ors.

    Page 7 of 8

    Vs. Living Media India Ltd. and Ors. reported at AIR 2012 SC 1506, wherein the apex court has held as under:

    "12. …….The claim on account of impersonal machinery and inherited bureaucratic methodology of making several notes cannot be accepted in view of the modern technologies being used and available. The law of limitation undoubtedly binds everybody including the Government.

    13. In our view, it is the right time to inform all the government bodies, their agencies and instrumentalities that unless they have reasonable and acceptable explanation for the delay and there was bonafide effort, there is no need to accept the usual explanation that the file was kept pending for several months/years due to considerable degree of procedural red-tape in the process. The government departments are under a special obligation to ensure that they perform their duties with diligence and commitment. Condonation of delay is an exception and should not be used as an anticipated benefit for government departments. The law shelters everyone under the same light and should not be swirled for the benefit of a few."

    Relying on the above settled law and considering the fact that there was no proper explanation offered by the Appellant for the delay except mentioning of events and the reasons mentioned in the application are their internal arrangement. According to us, the Appellant has miserably failed to give any acceptable and cogent reasons sufficient to condone such delay. Accordingly, the application filed by the Appellant seeking condonation of delay is without any merit and needs to be dismissed.

    Page 8 of 8

    Consequently, the present appeal filed beyond the stipulated period shall also stands dismissed. However, in the facts of the case, there shall be no orders as to cost.

    File be consigned to record room.

    (Justice Sangita Dhingra Sehgal)

    President

    (Pinki)

    Member (Judicial)

    (J.P. Agrawal)

    Member

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    M/S RELIANCE GENERAL INSURANCE COMPANY LTD v. M/S IRVINE TECHNOLOGIES INC
    (Apr 20, 2023)