Oriental Insurance Company vs Karam Chand And Ors on 4 June, 2025

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Himachal Pradesh High Court

Oriental Insurance Company vs Karam Chand And Ors on 4 June, 2025

Author: Vivek Singh Thakur

Bench: Vivek Singh Thakur

                                                         ( 2025:HHC:18150 )

       IN THE HIGH COURT OF HIMACHAL PRADESH
                       SHIMLA

                           CMP(M) No.1942 of 2024

                           Date of Decision: 04.06.2025

Oriental Insurance Company                                    ...Appellant.

                                   Versus
Karam Chand and Ors
                                            ..Respondents/Petitioners.
Coram:
The Hon'ble Mr. Justice Vivek Singh Thakur, Judge.
Whether approved for reporting?1 Yes
For the Appellant:         Mr. Deepak Bhasin, Sr. Advocate with Mr.
                           Sambhav Bhasi, Advocate.

For the Respondents:       Ms.   Shivani   Tegta,          Advocate,       for
                           respondent No.1.

                           Mr. Rakesh Chaudhary,             Advocate      for
                           respondents No. 2 and 3.

                           Mr. Abhinav Mohan Goel, for respondent
                           No4.

Vivek Singh Thakur, J. (Oral)

This application has been filed for condonation of delay in

filing appeal against the award dated 27.05.2024 passed in MACP No.

43/K/II/2021/17 by Motor Accident Claims Tribunal-III, Kangra at

Dharamshala, District Kangra.

2. The only ground taken to explain the delay is that

Insurance Company was proceeded against ex-parte before passing of

award by MACT and, therefore, the Company was not aware about

passing of the award by the MACT till First week of October, 2024.

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Whether reporters of the local papers may be allowed to see the judgment?
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3. It is further case of the Insurance Company that

immediately thereafter appeal was filed after seeking legal opinion and

it has been stated that there was bonafide and compelling reason, and

also due to location of the Insurance Company at the distant place,

due to which delay has occurred in filing the appeal.

4. Applicant/Appellant is an Insurance Company having

large number of Law Officers/ Legal Advisers and directory of

Advocates throughout the country to assist the Company. The

Insurance Company cannot equate itself with the person having no

knowledge of law. Once the service of the Insurance Company before

the MACT is not disputed, it was incumbent upon and legal and moral

duty of the Insurance Company to ensure representation of the

Insurance Company before the MACT. It is a serious lapse on the part of

the Insurance Company, particularly keeping in view the fact noted

above regarding the legal assistance available to the company.

5. It is also noticeable that Insurance Company including the

Insurance Company, are facing numerous cases throughout the

country and most of them are MACT Motor Accident Claims cases. In

such eventuality, the Insurance Company had opted not to contest the

MACT claim before the MACT even when it was the duty of the

Company to remain vigilant about the passing an award by the MACT.

6. Insurance Company has to show and establish sufficient cause

for not preferring the appeal within limitation period as required under

Section 5 of the Limitation Act, which reads as under:-

“5. Extension of prescribed period in certain cases.-Any
appeal or any application, other than an application
under any of the provisions of Order XXI of the Code of
Civil Procedure
, 1908 (5 of 1908), may be admitted after
the prescribed period, if the appellant or the applicant
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satisfied the court that he had sufficient cause for not
preferring the appeal or making the application within
such period”.

7. The Hon’ble Supreme Court in Postmaster General and Others

Vs. Living Media India Ltd. and another, reported in (2012) 3 SCC 563

has observed as under:-.

“28. Though we are conscious of the fact that in a matter
of condonation of delay when there was no gross
negligence or deliberate inaction or lack of bona fides, a
liberal concession has to be adopted to advance
substantial justice, we are of the view that in the facts
and circumstances, the Department cannot take
advantage of various earlier decisions. 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.

29. 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 bona fide effort,
there s no need to accept the usual explaination 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 the government departments. The
law shelters everyone under the same light and should
not be swirled for the benefit of a few”.

8. The Supreme Court in University of Delhi Vs. Union of India

and others, reported in (2020) 13 SCC 745 had observed that there

may be insufficiency of routine explanation and every day’s delay need

not be explained but resonable and aceptable explanation is very

much necessary to indicate sufficient cause to justify the delay.

9. In the present case, Insurance Company has failed to render

reasonable and acceptable explanation to show sufficient cause which

prevented the Insurance Company from filing the appeal within

limitation period.

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10. The Supreme Court in Principal Commissioner Central Excise,

Delhi-I Vs. Design Dialogues India Private Limited, reported in (2022) 2

SCC 327, had declined to condone the delay on the ground that similar

matters were pending before the Supreme Court with observation that

unless the case is brought within parameters of Postmaster General

and Others Vs. Living Media India Ltd. case, the Court would not be

inclined to condone the delay.

11. The Supreme Court in Commissioner of Customs, Chennai Vs.

Volex Interconnect (India) Private Limited, reported in (2022) 3 SCC

159, had declined to condone the delay for absence of any cogent

explanation for condonation of delay in terms of Postmaster General

and Others Vs. Living Media India Ltd.

12. The Supreme Court in State of Uttar Pradesh and others Vs.

Sabha Narain and others, reported in (2022) 9 SCC 266, had declined

the request to condone the unexplained delay for showing no sufficient

cause by referring Postmaster General and Others Vs. Living Media

India Ltd., with imposition of costs of Rs.25,000/- for wastage of judicial

time.

13. In the Sheo Raj Singh (deceased) through LRs and others vs.

Union of India and another reported in (2023)10 SCC 531, the Supreme

Court after taking into consideration various pronouncements has held

as under:-

“30. Considering the aforementioned decisions, there
cannot be any quarrel that this Court has stepped in to
ensure that substantive rights of private parties and the
State are not defeated at the threshold simply due to
technical considerations of delay. However, these
decisions notwithstanding, we reiterate that
condonation of delay being a discretionary power
available to courts, exercise of discretion must
necessarily depend upon the sufficiency of the cause
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shown and the degree of acceptability of the
explanation, the length of delay being
immaterial.

31. Sometimes, due to want of sufficient cause being
shown or an acceptable explanation being proffered,
delay of the shortest range may not be condoned
whereas, in certain other cases, delay of long periods
can be condoned if the explanation is satisfactory and
acceptable. Of course, the courts must distinguish
between an ‘explanation’ and an ‘excuse’. An
‘explanation’ is designed to give someone all of the
facts and lay out the cause for something. It helps clarify
the circumstances of a particular event and allows the
person to point out that something that has happened is
not his fault, if it is really not his fault. Care must
however be taken to distinguish an ‘explanation’ from
an ‘excuse’ Although people tend to see ‘explanation’
and ‘excuse’ as the same thing and struggle to find out
the difference between the two, there is a distinction
which, though fine, is real.

32. An ‘excuse’ is often offered by a person to deny
responsibility and consequences when under attack. It is
sort of a defensive action. Calling something as just an
‘excuse’ would imply that the explanation proffered is
believed not to be true. Thus said, there is no formula
that caters to all situations and, therefore, each case for
condonation of delay based on existence or absence of
sufficient cause has to be decided on its own facts. At
this stage, we cannot but lament that it is only excuses,
and not explanations, that are more often accepted for
condonation of long delays to safeguard public interest
from those hidden forces whose sole agenda is to
ensure that a meritorious claim does not reach the
higher courts for adjudication.”

14. Though condonation of delay being a discretionary power

available to Courts, however, exercise of discretion must

necessarily depend upon the sufficiency of the cause shown and the

degree of accetability of the explanation, irrespective of length of

delay.

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15. In present case, there is not only considerably long delay,

but there is only excuse, and for absence of sufficiency cause, and

for want of material particulars especially acceptable explanation

for casual approach, prayer of Insurance Company cannot be

accepted.

16. Pleadings of the application and material placed on record

clearly depict that explanation being rendered by the Insurance

Company is not explanation depicting sufficient cause which prevented

the Insurance Company from filing the appeal within time, but only a

lame excuse. As observed in Sheo Raj Singh’s case, submissions made

by and on behalf of Insurance Company, nowhere explain the

satisfactory conduct on the part of Insurance Company, so as to entitle

the Insurance Company for condonation of delay. In fact, there is no

cause for keeping the matter pending except lame excuse stated in

the application.

17. It is also apt to record that as observed by the Supreme

Courtin The Special Tehsildar, Land Acquisition, Kerala Vs. K.V.

Ayisumma,(1996) 10 SCC 634 that it would not be necessary for the

State to provide day-to-day explanation of delay while seeking

condonation of the same and the Court should be pragmatic, but not

pedantic but not adopting the strict standard of proof leads to grave

miscarriage of public justice, resulting in public mischief by skillful

management of delay in the process of filing the appeal. However, in

the given facts and circumstances of present case, Insurance Company

are not entitled for benefit of the aforesaid observation/decision of the

Supreme Court, because no effort has been made to place the record

even about movement of file for explaining sufficient cause, which has

established absence of due diligence as well as laxity on the part of
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Insurance Company. Therefore, Insurance Company is not entitled for

discretionary relief for condonation of delay in present case.

18. In the facts and circumstances of the present matter as

well as pronouncements of the Hon’ble Supreme Court no cause has

been disclosed for explaining the delay, much less sufficient cause,

which prevented the Insurance Company-State for filing the appeal

within limitation period.

19. For considering plea of the Insurance Company-State with

regard to merit of proposed appeal, judgment of Supreme Court,

passed in State of MP & Ors. Vs. Bherula, reported in (2010) 10 SCC

654 is also relevant wherein it has been observed that though Court

has jurisdiction to condone the delay in appropriate case, but even in

good case hearing on merit can be rejected for delay in appealing the

Court because a bar of limitation can even shut out good cases. In

present case, there is neither sufficient cause to condone the delay nor

merit in proposed appeal.

Accordingly the application is dismissed and disposed of.

In view of dismissal of application for condonation of delay proposed

appeal also stands disposed of.

(Vivek Singh Thakur)
Judge

June 4, 2025 (g.m)

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