What is Condonation of Delay in Law? What are its General Principles?
As per the Indian law, there is a certain time frame to submit all forms and applications to the Registrar of Companies (ROC). In case these applications are filed after the time specified under the law, an additional fee will be paid.
However, there are some forms or applications for which late filing is not permitted. For such forms, it is essential to opt for condonation of delay as per the Companies Act, 2013.
A court can grant condonation of delay as per the provisions of the Limitation Act, 1963, if it is proved that the delay was caused due to a rational reason under unavoidable circumstances. There are multiple ways in which this can be done, and every court must ascertain what grounds are acceptable to allow condonation. Often, most grounds emerge as an error in judgement, a lawyer’s mistake, or a misreading of the law.
Read on to find more information on the condonation of delay.
Meaning of Condonation of Delay
The term ‘condonation’ signifies that the offence (of avoiding the law of period as suggested by the Act) is impliedly rejected, and the case will continue to proceed as no offence has occurred.
What is the Condonation of Delay Under the Limitation Act 1963?
The Limitation Act of 1963 administers the limitation period for a lawsuit. The act summarises the factors that can be considered for evaluating the applicable time limit. Condonation of delay is an exemption to the general rule, which indicates that a court may agree to accept a late appeal or application. Here, find the list of some of the major points on how a condonation of delay can be filed:
- Late submission of a form or application will cause a time bar on an appeal in a legal case.
- Once the court ascertains the reason for the delay, it will continue to hear the case.
- A court will grant condonation of delay if it notices that the applicant had a rational reason for the delay. In such scenarios, the court usually agrees that there was an adequate delay in filing the appeal.
- Though the objective of the law is to safeguard a petitioner’s rights, it cannot offer a waiver to a defendant.
- The applicant is required to fulfil the time for the statute’s duration before they can file a lawsuit.
- The restraint period is when a petitioner can bring suit against a defendant.
- The law also facilitates an exception for the condonation of delay in the Limitation Act for appeals.
The Limitation Act of 1963 has a larger objective. It offers a time limit for the applicant to file an application, appeal, or suit before the court. In case the legislation is not passed with respect to limitations, it leads to an indefinite litigation process.
Also Read: Section 148 of Income Tax Act
The General Principles of the Condonation of Delay
In the Collector Land Acquisition v/s Mst Katiji case in 1987, the Supreme Court gave a verdict in favor of the latter. Mst Katiji recommended some principles that need to be adhered to while administering the doctrine on condonation of delay.
- Generally, the plaintiff is not entitled to an advantage by filing a late appeal.
- If the court denies to condone the delay, it can cause a meritorious matter to be dismissed. However, the case will be heard based on merits when a delay is permitted. This means a decision is ruled out as per the evidence instead of the technical and procedural ground.
- “Every day’s delay is needed to be justified” does not indicate that the doctrine should be applied irrationally. It must be applied in a reasonable manner, not a literal way.
- The option between substantial justice and technical considerations is a case of preference. The other party cannot claim that injustice is caused due to a bona fide delay.
- It is not possible to presume that the delay was caused deliberately. The litigant gains nothing but resorting to delaying and, in fact, possesses serious risk.
Instances when Condonation is Applicable
The following are some of the instances where condonation is granted.
- Subsequent amendments in the law.
- The party’s illness involves the nature and severity of the illness and the facts surrounding the failure to act.
- The party’s imprisonment; here, just detainment is not enough. It varies on a case-to-case basis.
- The party belongs to a minority group with inadequate resources.
- Poverty and paupers.
- The party is a government servant: Ideally, a government servant does not get an incentive to fulfil the task. Thus, a certain amount of flexibility is permitted in such cases.
- The party is illiterate.
- Delay owing to the pendency of the writ petition.
- Other accepted grounds: delay in fetching copies, error by the council, misled by rulings, error in court, etc.
Exceptions to Condonation of Delay
There are some exceptions to the possibility of the notion of condonation of delay; check the details below:
- Only criminal cases are included under the doctrine.
- Only applications and appeals are covered under the doctrine that excludes “suit”.
Barring the case of an application under Order XXI of the Code of Civil Procedure, 1908, all the applications and appeals are covered by the doctrine.
Time Limit for Condonation of Delay Under Limitation Act, 1963
There’s a specific time limit set forth in Schedule 1 of the Act. Here’s what it mentions:
- A suit dealing with contracts, accounts, suits related to moveable property, and retrieval of a lawsuit under a contract among others has a 3-year limit.
- Suits specific to possession of the immovable property are given a 12-year statute of limitations. On the other hand, suits dealing with mortgaged property have a 30-year statute of limitations.
- With regard to tort suits, there’s a time limit of 1 year (3 years for compensation in some cases). In a scenario of appeals under the Criminal Procedure Code and the Civil Procedure Code, the time limit is 30 to 90 days.
Type of Jurisdiction
The court holds the choice to forgive the delay, as well as allow the appeal to continue. Even if the right cause has been presented, the party is not authorised to delay condonation, as the decision is up to the court and has discretionary jurisdiction.
What is ‘Sufficient Cause’?
The subject of “sufficient cause” cannot be clearly defined and varies from case to case. The court can use discretion to ascertain what comprises adequate cause depending on the circumstances of each case.
The reason for non-appearance, stay of execution, and adjournment needs to be just and sufficient. Else, they will only serve to extend the litigation. While this principle is supposed to encourage the pursuit of justice, it cannot be used to reject justice. The sufficient cause should be interpreted profusely to achieve considerable justice.
What is the Condonation of Delay Under the Companies Act of 2013?
Section 460 of the Companies Act permits forgiving a party’s application delay. Section 460(a) suggests that if an application is essential to be filed with the Central government and is not made so within the stipulated time, the Central government has the authority to excuse the delay if the reasons are rational and given in writing.
Section 460(b) of the Act states that if an application is required to be filed with the registrar of the company and is not filed within the allotted time, the Central government can forgive the failure.
Procedure for Condonation of Delay
- A board of meeting is held to pass a resolution for filing an application for condonation of delay
- A petition is prepared for condonation of delay for not filing the application within the prescribed time.
- Petition filing to the Ministry of Corporate Affairs (MCA) in Form CG-1 is done, depending on the case.
- MCA then levies the penalty and condones the delay in filing the application.
- The company then files the order to ROC in Form INC-28.
Also Read: Tax Benefits under Section 80CCD(1B) of Income Tax Act
What is the Condonation of Delay Under the Income Tax Act, 1961?
The Income Tax 1961 facilitates the delay of an application lodged under the Act to be excused. It suggests that the Central Board of Direct Taxes (CBDT) can permit any income tax authority to accept a claim for a deduction, refund, exemption, or relief under the Income Tax Act after the time limit is crossed. The CBDT can authorise income tax officers to accept any application if it deems necessary to neglect hardship to the party.
Final Word
Condonation of delay and the law of limitation are effective ways to resolve cases and warrant fair litigation quickly. The law of limitation, on the other hand, averts cases from being stretched and sets a timeline within which the case may be filed to seek remedy. Condonation of delay safeguards the principle of natural justice. It identifies that different parties have different problems, and the same trial or rules cannot be applied to them all.
FAQs
Ans. To create a condonation of delay application, you need to visit the official site of the Indian Government and fill in the form as per stated guidelines.
Ans. The term condonation signifies that the offence (avoidance of the Act’s period law) is impliedly rejected, and the case will proceed as though no offence has occurred.
Ans. Circumstances where condonation is permitted include the presence of an illiterate party, delay caused due to pendency of the writ petition, or subsequent changes in the law.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
Read More on Income Tax Act
