M/S Zaz Sons Export Pvt. Ltd And Another vs Akhil Kumar Gupta on 9 July, 2026

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    Uttarakhand High Court

    M/S Zaz Sons Export Pvt. Ltd And Another vs Akhil Kumar Gupta on 9 July, 2026

    Author: Ravindra Maithani

    Bench: Ravindra Maithani

                                                         UKHC010063872018
    
    
    
                                                                  2026:UHC:5617
     IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
    
                    Second Appeal No. 68 of 2018
    
    M/s Zaz Sons Export Pvt. Ltd and Another                 ...... Appellants
    
                                       Vs.
    
    Akhil Kumar Gupta                                       ..... Respondent
    
    Present:
    Dr. Menaka Guruswamy, Senior Advocate (through video conferencing) assisted
    by Mr. Siddharth Singh and Mr. Hardik Sah, Advocates for the appellants.
    Mr. S.K. Jain, Senior Advocate assisted by Mr. Divyam Sharma, Advocate
    holding brief of Mr. Siddharth Jain, Advocate for the respondent.
    
    
    
                                      JUDGMENT
    

    Hon’ble Ravindra Maithani, J. (Oral)

    The present second appeal is preferred against the

    SPONSORED

    following:-

    i) The judgment and decree dated

    03.04.2005, passed in Original Suit No.

    455 of 1995, Akhil Kumar Gupta v. M/s

    Zaz Sons Export Pvt. Ltd. and Another by

    the court of 3rd Additional Chief Judicial

    Magistrate, Dehradun (“the suit”); and

    ii) The order dated 01.10.2014, passed in

    R.M. No.745 of 2005, M/s Zaz Sons Export

    Pvt. Ltd. and another v. Akhil Kumar

    Gupta (“the Misc. case”), by the court of VI

    Additional District Judge, Dehradun.

    2. Heard learned counsel for the parties and perused

    the record.

    3. The record reveals that the respondent filed the

    suit for recovery of Rs. 85,868.65/- along with interest against the
    2

    appellants. This suit was decreed on 03.04.2001. The appellants

    proposed to prefer an appeal challenging the judgment and decree

    dated 03.04.2001 passed in the suit, but it was delayed.

    Therefore, a delay condonation application under Section 5 of the

    Limitation Act, 1963 (“the Act”) was filed by the appellants along

    with the memo of appeal. It is the basis of the Misc. case.

    4. The respondent did file objections to the delay

    condonation application. By the impugned order dated

    01.10.2014, passed in the Misc. case, the application under

    Section 5 of the Act filed by the appellants has been dismissed. It

    is challenged in this appeal.

    5. Before we proceed further, it would be apt to

    record, at this stage itself, that the delay condonation application

    was filed by the appellants on the ground that the deponent was

    suffering from heart disease since 1995, and he was completely

    bed ridden since 1999. It was so stated in Para No.2 of the

    affidavit filed by the appellant no.2, Tahir Hussain, which further

    records that the medical certificate is also enclosed as Annexure

    No.1 to the affidavit. One of the grounds that were taken for delay

    condonation was that the earlier counsel of the appellants, Mr.

    M.P. Awasthi, had passed away on 15.04.2001, and since the

    appellant no.2, Tahir Hussain, was bed ridden, he could not

    pursue the matter in the court at Dehradun.

    6. The respondent did file his objections along with

    the affidavit, and all these facts were denied. With regard to the

    death of Advocate Mr. M.P. Awasthi, it was recorded in Para No.4

    of the affidavit that, “It is wrong, false and denied that the

    expiry of Shri M.P. Awasthi, Advocate has anything do with

    the decree or the delay in preferring the appeal.” The factum

    of illness has also been denied. The memo of appeal along with

    delay condonation application was filed on 19.10.2005.
    3

    7. Initially, when the appeal was taken up,

    substantial questions of law were not framed. Subsequently, three

    questions of law were framed on 26.11.2019. This Court need not

    reproduce them for the simple reason that they were substituted

    by the questions of law that were framed by the Court on

    01.05.2025. They are as below:-

    “(i). Whether the First Appellate Court adopt a liberal
    approach in considering application for
    condonation of delay on ground of substantial
    cause under Section 5 of the Limitation Act?

    (ii). Whether dismissal of the First Appeal as barred by
    time amounts to confirmation of the decree passed
    by the trial Court, if no, what would be the effect?

    (iii). If order of the First Appellate Court amounts to the
    confirmation of the decree then whether the
    interest as awarded by the trial Court was in
    conformity with the provision of “The Interest on
    Delayed Payments to Small Scale and Ancillary
    Industrial Undertakings Act, 1993
    “, (Act No.32 of
    1993).”

    8. Not only this, subsequent to it, one more question

    of law was framed by this Court on 29.10.2025, which is as

    below:-

    “(iv) Whether the Civil Court at Dehradun had
    jurisdiction to entertain the suit in view of the
    Purchase Order conferring exclusive jurisdiction on
    the courts at Kanpur.”?”

    9. Learned Senior Counsel appearing for the

    appellants submits that the first appellate court ought to have

    taken a very liberal view while considering the delay condonation

    application, but it was not so done, which resulted in the rejection

    of the delay condonation application, as a consequence of which

    the judgment and decree passed by the trial court has been

    confirmed; if liberal approach in such matter is not taken, it

    causes substantial loss to a party.

    10. In support of her arguments, she would refer to

    the principles of law, as laid down by the Hon’ble Supreme Court

    in the case of N. Balakrishnan v. M. Krishnamurthy, (1998) 7 SCC
    4

    123, to argue that the Court should take a very liberal approach

    while considering the delay condonation application.

    11. In the case of N. Balakrishnan (supra), the Hon’ble

    Supreme Court, in Para No.12 of the judgment, observed as

    hereunder:-

    “12. A court knows that refusal to condone delay would
    result in foreclosing a suitor from putting forth his
    cause. There is no presumption that delay in
    approaching the court is always deliberate. This
    Court has held that the words “sufficient cause”

    under Section 5 of the Limitation Act should
    receive a liberal construction so as to advance
    substantial justice vide Shakuntala Devi
    Jain v. Kuntal Kumari
    , AIR 1969 SC 575 and State
    of W.B. v. Administrator, Howrah Municipality
    ,
    (1972) 1 SCC 366.”

    12. She further submits that the phrase “sufficient

    cause”, as given under Section 5 of the Act, should get a liberal

    construction.

    13. On behalf of the respondent, learned Senior

    Advocate submits that in the instant case, no cause has been

    shown for delay in filing the appeal; the appellant no.2 write in his

    affidavit that he was unwell, but the medical certificate has not

    been filed; the death certificate of the lawyer has also not been

    filed.

    14. In support of his contention, learned Senior

    Counsel for the respondent has relied on the principles of law, as

    laid down in the cases of State of U.P. and another v. Hari

    Shanker Dubey, 2002 SCC OnLine All 44, and Basawaraj and

    Another v. Special Land Acquisition Officer, (2013) 14 SCC 81.

    15. In the case of Hari Shanker Dubey (supra), in

    Paragraph Nos. 3, 4 and 5, the Hon’ble Allahabad High Court

    observed as follows:-

    “3. It is true that the application filed under Section 5
    of the Limitation Act is to be liberally construed but
    such interpretation on liberally has to be made on
    the basis of the materials disclosed. If no material
    5

    is disclosed, it is not possible to construe the
    petition liberally because very valuable rights of the
    other party are involved and the same cannot be
    ignored.

    4. In the above facts and circumstances of the case
    the application filed under Section 5 of the
    Limitation Act is dismissed with the aforesaid
    observations.

    5. Since the delay condonation petition has been
    dismissed, the special appeal itself stands
    dismissed and the same need not be registered and
    shall be taken out of the file of this Court.”

    16. In the case of Basawaraj (supra), the Hon’ble

    Supreme Court summarised the principles of sufficient cause in

    Paragraph No.15, and observed as hereunder:-

    “15. The law on the issue can be summarised to the
    effect that where a case has been presented in the
    court beyond limitation, the applicant has to
    explain the court as to what was the “sufficient
    cause” which means an adequate and enough
    reason which prevented him to approach the court
    within limitation. In case a party is found to be
    negligent, or for want of bona fide on his part in the
    facts and circumstances of the case, or found to
    have not acted diligently or remained inactive,
    there cannot be a justified ground to condone the
    delay. No court could be justified in condoning
    such an inordinate delay by imposing any
    condition whatsoever. The application is to be
    decided only within the parameters laid down by
    this Court in regard to the condonation of delay. In
    case there was no sufficient cause to prevent a
    litigant to approach the court on time condoning
    the delay without any justification, putting any
    condition whatsoever, amounts to passing an order
    in violation of the statutory provisions and it
    tantamounts to showing utter disregard to the
    legislature.”

    17. Undoubtedly, when a litigation is stopped on the

    ground of delay, it does not permit the parties to contest the case

    on merits. Its effects are always left open.

    18. In the case of Collector, Land Acquisition,

    Anantnag and Another v. Mst. Katiji and Others, (1987) 2 SCC

    107, the Hon’ble Supreme Court has discussed these principles,

    and in Para 3 of the judgment and observed as below:-
    6

    “3. The legislature has conferred the power to
    condone delay by enacting Section 5 [ Any appeal
    or any application, other than an application under
    any of the provisions of Order XXI of the Code of
    Civil Procedure
    , 1908, may be admitted after the
    prescribed period if the appellant or the applicant
    satisfies the court that he had sufficient cause for
    not preferring the appeal or making the application
    within such period.] of the Indian Limitation Act of
    1963 in order to enable the courts to do
    substantial justice to parties by disposing of
    matters on “merits”. The expression “sufficient
    cause” employed by the legislature is adequately
    elastic to enable the courts to apply the law in a
    meaningful manner which subserves the ends of
    justice — that being the life-purpose for the
    existence of the institution of courts. It is common
    knowledge that this Court has been making a
    justifiably liberal approach in matters instituted in
    this Court. But the message does not appear to
    have percolated down to all the other courts in the
    hierarchy. And such a liberal approach is adopted
    on principle as it is realized that:

    “1. Ordinarily a litigant does not stand to
    benefit by lodging an appeal late.

    2. Refusing to condone delay can result in a
    meritorious matter being thrown out at the
    very threshold and cause of justice being
    defeated. As against this when delay is
    condoned the highest that can happen is that
    a cause would be decided on merits after
    hearing the parties.

    3. “Every day’s delay must be explained” does
    not mean that a pedantic approach should be
    made. Why not every hour’s delay, every
    second’s delay? The doctrine must be applied
    in a rational common sense pragmatic
    manner.

    4. When substantial justice and technical
    considerations are pitted against each other,
    cause of substantial justice deserves to be
    preferred for the other side cannot claim to
    have vested right in injustice being done
    because of a non-deliberate delay.

    5. There is no presumption that delay is
    occasioned deliberately, or on account of
    culpable negligence, or on account of mala
    fides. A litigant does not stand to benefit by
    resorting to delay. In fact he runs a serious
    risk.

    6. It must be grasped that judiciary is
    respected not on account of its power to
    legalize injustice on technical grounds but
    because it is capable of removing injustice
    and is expected to do so.

    ………………………………………………………………….
    ………………………………………………………………….
    …………………………………………………….”

    7

    19. This Court proceeds to decide the first substantial

    question of law, which is as below:-

    “(i). Whether the First Appellate Court adopt a liberal
    approach in considering application for
    condonation of delay on ground of substantial
    cause under Section 5 of the Limitation Act?”

    20. It has been the case of the appellants that after

    passing of the judgment and decree on 03.04.2001 in the suit, the

    lawyer representing the appellants, Mr. M.P. Awasthi, Advocate,

    passed away on 15.04.2001. Therefore, on time, appeal could not

    be filed.

    21. Another ground that has been taken in the

    affidavit accompanying the delay condonation application is that

    the appellant no.2 was unwell since 1995. A medical certificate

    dated 24.09.2005 of one Zahid Hussain has been filed, which was

    issued by Prof. S.C. Manchanda, Senior Consultant Cardiologist,

    Sir Ganga Ram Hospital, New Delhi.

    22. Learned Senior Counsel appearing for the

    respondent has two fold objections to it. According to him, as per

    affidavit accompanying the delay condonation application, it is the

    appellant Tahir Hussain, who was unwell. But his medical

    certificate has not been filed, and second, there is no death

    certificate of Mr. M.P. Awasthi, Advocate.

    23. In reply to it, learned counsel for the appellants

    submits that the point no.2 in the affidavit of Tahir Hussain

    accompanying the delay condonation application, it is

    categorically stated that the medical certificate of the deponent is

    enclosed; in fact, it was a typographical error; it is not the

    appellant Tahir Hussain, who was suffering with cardiac disease.

    It is his father, Zahid Hussain, who was suffering with cardiac

    disease, and accordingly, the medical certificate of his father was
    8

    enclosed, and this has been strictly read by the first appellate

    court, and a genuine interpretation has not been given to it.

    24. Insofar as the death of Mr. M.P. Awasthi,

    Advocate, is concerned, it is argued that it is not denied by the

    respondents. In fact, in Para No.4 of their affidavit, they record

    that it has nothing to do with the delay condonation application.

    25. The appellant no.2, Tahir Hussain, in his affidavit

    writes that he was unwell for a long and a medical certificate was

    enclosed. In fact, the medical certificate is of Zahid Hussain, who,

    it is stated, is the father of the appellant Tahir Hussain. Both

    documents ought to have been read together to give a life to both

    of them, which was not done in the instant case. A liberal

    approach has not been taken. In fact, a much pedantic approach

    has been taken.

    26. Insofar as the death certificate of Mr. M.P.

    Awasthi, Advocate, is concerned, at times it would be considered

    too much to ask from a party to file the death certificate,

    particularly, when the factum of death has not been denied.

    27. In the instant case, it has been the case of the

    appellant no.2, Tahir Hussain, that his lawyer expired on

    15.04.2001, and this fact is not denied.

    28. At the cost of repetition, it may be reiterated in

    Para No.4 of his affidavit accompanying the objections, the

    respondent has stated that, “It is wrong, false and denied that the

    expiry of Shri M.P. Awasthi, Advocate has anything do with the

    decree or the delay in preferring the appeal.” It has much to do

    because the trial court has delivered the judgment and decree on

    03.01.2001. If on 15.04.2001, the lawyer of the appellants had

    died, it cannot be said that it has nothing to do with the preferring

    appeal.

    9

    29. Having considered, this Court is of the view that,

    in fact, the court below has not taken a liberal approach in

    considering the application for condonation of delay. The

    application for condonation of delay ought to have been allowed.

    Accordingly, the order dated 01.10.2014, passed in R.M. No.745

    of 2005, M/s Zaz Sons Export Pvt. Ltd. and another v. Akhil

    Kumar Gupta, by the court of VI Additional District Judge,

    Dehradun, is liable to be set aside.

    30. The order dated 01.10.2014, passed in R.M.

    No.745 of 2005, M/s Zaz Sons Export Pvt. Ltd. and another v.

    Akhil Kumar Gupta, by the court of VI Additional District Judge,

    Dehradun, is set aside

    31. The delay condonation application is allowed. The

    matter is remanded to the first appellate court to decide the

    appeal on merits.

    32. The first substantial question of law is decided

    accordingly.

    33. On the second substantial question of law, learned

    counsel for both the parties are in agreement that dismissal of

    first appeal, as barred by time, amounts to confirmation of decree.

    In fact, this second substantial question of law does not require

    any deliberation. It is an accepted phenomenon.

    34. The third and fourth substantial questions of law

    touch the merits of the case. Since, while recording the finding on

    the first substantial question of law, this Court has already

    remitted the matter for decision afresh on merits to the first

    appellate court, there is no occasion to record any finding on the

    third and fourth substantial questions of law.
    10

    35. The second appeal is decided accordingly.

    36. The parties shall appear personally or through

    their respective Advocates before the court of District Judge,

    Dehradun on 04.08.2026.

    (Ravindra Maithani, J.)
    09.07.2026

    Ravi Bisht



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