{"id":55377,"date":"2002-05-03T00:00:00","date_gmt":"2002-05-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/hector-m-mehta-vs-crb-capital-markets-ltd-and-ors-on-3-may-2002"},"modified":"2017-11-06T08:58:07","modified_gmt":"2017-11-06T03:28:07","slug":"hector-m-mehta-vs-crb-capital-markets-ltd-and-ors-on-3-may-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/hector-m-mehta-vs-crb-capital-markets-ltd-and-ors-on-3-may-2002","title":{"rendered":"Hector M. Mehta vs Crb Capital Markets Ltd. And Ors. on 3 May, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Hector M. Mehta vs Crb Capital Markets Ltd. And Ors. on 3 May, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2002 VAD Delhi 47, 98 (2002) DLT 127, 2002 (63) DRJ 408<\/div>\n<div class=\"doc_author\">Author: S Aggarwal<\/div>\n<div class=\"doc_bench\">Bench: S Aggarwal<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>  Sharda Aggarwal, J.  <\/p>\n<p> 1. This order shall dispose of defendant No. 1&#8217;s two<br \/>\napplications being IA. 822\/02 under Order 37 Rule 2 CPC<br \/>\nfor filing appearance and IA. NO. 823\/02 under Section 5 of<br \/>\nthe Limitation Act read with Order 37 Rule 3(vii) CPC for<br \/>\ncondensation of delay in filing the appearance.\n<\/p>\n<p> 2. Defendant No. 1 was served with summons of the<br \/>\nsuit under Order xxxvII CPC on 25th August, 2000. These<br \/>\nsummons were served through the Official Liquidator as<br \/>\nthe defendant No. 1 company had gone in liquidation and<br \/>\nthe Official Liquidator was appointed as the Provisional<br \/>\nLiquidator of the Company. The Official Liquidator<br \/>\nentered his appearance through counsel Shri S.C. Sharma,<br \/>\nAdvocate on 3rd August, 2001. The reason for condoning<br \/>\nthe delay in filing the appearance is that summons and<br \/>\nthe copy of the plaint got mixed up with huge and<br \/>\nvoluminous cases filed by the company which were pending<br \/>\nin the Company Court. It is submitted that the delay is<br \/>\ninadvertent and unintentional. The plaintiff has opposed<br \/>\nthe application for condensation of delay on the ground<br \/>\nthat the application is mis-conceived, not bonafide and<br \/>\ndoes not disclose any ground or sufficient cause for<br \/>\ncondoing the delay. It is vehemently contended that the<br \/>\nreason for condoning the delay that the summons and the<br \/>\ncopy of the plaint were got mixed with the voluminous<br \/>\nrecords of the defendant Company lying with the Official<br \/>\nLiquidator cannot be taken as a sufficient ground for<br \/>\ncondoning the long delay of more than one year. It is<br \/>\nalso contended that though it is stated that appearance<br \/>\nwas filed on 3rd August, 2001 but application for entering<br \/>\nappearance Along with the affidavit has been filed on 23rd<br \/>\nNovember, 2001.\n<\/p>\n<p> 3. No doubt the defendant No. 1 through Official<br \/>\nLiquidator has filed appearance much beyond the period of<br \/>\nten days from the date of service of summons, but it is<br \/>\nnot disputed that defendant No.1 Company had gone into<br \/>\nliquidation and the Official Liquidator, attached to<br \/>\nDelhi High Court, has been appointed as the Provisional<br \/>\nLiquidator of the said Company by the orders of the<br \/>\nCompany Court dated 22nd May, 1997 in CA.No. 1737\/97 in<br \/>\nCP. No. 191\/97. The plea raised by the learned counsel for<br \/>\nthe defendant is that the delay in filing the appearance<br \/>\nby the Official Liquidator was not intentional and<br \/>\ndeliberate. Contention is that, in fact there was no<br \/>\nreason that the Official Liquidator would have<br \/>\ndeliberately delayed in filing the appearance. It is<br \/>\nsubmitted that large number of creditors are involved in<br \/>\nliquidation of the defendant Company and number of cases<br \/>\nwhich were filed against them are pending in the Company<br \/>\nCourt. The summons and the copy of the plaint got mixed<br \/>\nup in the voluminous records of the cases pending against<br \/>\nthe defendant Company and that was the reason that the<br \/>\nOfficial Liquidator could not file appearance within the<br \/>\nrequisite time.\n<\/p>\n<p> 4. As per the provisions of Order xxxvII Rule 3<br \/>\nsub-rule 7 CPC, the Court may excuse the delay in<br \/>\nentering appearance for sufficient cause shown by the<br \/>\ndefendant. The words &#8220;sufficient cause&#8221; though have not<br \/>\nbeen defined but have been interpreted by the Supreme<br \/>\nCourt in a catena of judgments in reference to Section 5<br \/>\nof the Limitation Act. It is held in a number of<br \/>\njudicial pronouncements that the words &#8220;sufficient cause&#8221;<br \/>\nshould be liberally construed so as to advance<br \/>\nsubstantial justice. The Supreme Court in ,   <a href=\"\/doc\/1240908\/\">N. Balakrishnan v. M. Krishnamurthy<\/a>   held that in the<br \/>\nabsence of anything showing malafides or deliberate delay<br \/>\nas a dilatory tactic, Court should normally condone the<br \/>\ndelay. It has also been held that length of delay is not<br \/>\nmaterial, acceptability of the explanation is the only<br \/>\ncriterion as sometimes delay of the shortest range may be<br \/>\nuncondonable due to want of acceptable explanation<br \/>\nwhereas in certain other cases, delay of a very long<br \/>\nrange can be condoned as the explanation thereof is found<br \/>\nsatisfactory. It is held that there is no presumption<br \/>\nthat delay in approaching the Court is always deliberate.\n<\/p>\n<p> 5. In the instant case, though the delay is almost<br \/>\nof one year, but in the stated facts no malafides can be<br \/>\nattributed for the delay nor the delay can be treated as<br \/>\ndeliberate by way of a dilatory strategy. In the given<br \/>\nfacts of the case, it should not be overlooked that<br \/>\nrefusal to condone the delay would result in foreclosing<br \/>\nthe defendant from putting forth his defense. In the<br \/>\npeculiar facts of this case, I find that the explanation<br \/>\nfor condoning the delay is neither deliberate nor<br \/>\nmalafide. There is sufficient cause for condoning the<br \/>\ndelay in filing the appearance. The delay is accordingly<br \/>\ncondoned and the appearance of defendant No. 1 through the<br \/>\nOfficial Liquidator is taken on record.\n<\/p>\n<p> 6. The applications are accordingly disposed of.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Hector M. Mehta vs Crb Capital Markets Ltd. And Ors. on 3 May, 2002 Equivalent citations: 2002 VAD Delhi 47, 98 (2002) DLT 127, 2002 (63) DRJ 408 Author: S Aggarwal Bench: S Aggarwal JUDGMENT Sharda Aggarwal, J. 1. This order shall dispose of defendant No. 1&#8217;s two applications being IA. 822\/02 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-55377","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hector M. Mehta vs Crb Capital Markets Ltd. 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