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Jindal Dyechem Industries Pvt. Ltd. vs Sebi

Securities Appellate Tribunal24 January 2019

Ratio decidendi

The rule this decision rests on

The reasoning here is confined to the condonation of delay, and the court's ground for condoning it rests on a rule of liberal construction in the interest of justice, applied to a delay where the appellant's default was not negligent. Under that approach, a Tribunal may condone a delay in filing an appeal where the explanation is plausible and the appellant is not at fault, even where the delay is substantial, and refusal would foreclose the appeal on the merits. A decision of the Delhi High Court relied upon by the respondent, which refused condonation where the litigant knew an appeal was required, is distinguished on the facts because the present appellant was not shown to be negligent.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

BEFORE THE SECURITIES APPELLATE TRIBUNALMUMBAI

Date : 24.01.2019

Misc. Application No. 220 of 2018 And Appeal No. 268 of 2018

Jindal Dyechem Industries Pvt. Ltd. ...Appellant

Versus

Multi Commodity Exchange of India Limited ...Respondent

Ms. Nidhi Singh, Advocate i/b Vidhi Partners for the Appellant.

Mr. Sameer Pandit, Advocate with Ms. Madhupreetha Elango, Advocate i/b Wadia Ghandy & Co. for the Respondent.

ORDER:

Misc. Application No. 220 of 2018:-

1. There is a delay of 252 days as reported by the learned counsel for

the appellant in filing the present appeal. This application for

condonation of delay has been opposed by the respondent. The learned

counsel for the appellant contended that the delay was on account of fact

that the lawyer initially was drafting a representation before the

Governing Board of the respondent. It was subsequently found that there

was no provision for filing such representation. It was further contended

that eventually the appellant changed their lawyer sometimes in

December and instructed the new advocate to prepare the appeal which

took some time and eventually the appeal was filed on April 21, 2018. In 2

this manner, the appellant has contended that satisfactory explanation has

been given which is bona fide and that the explanation is plausible and

therefore the delay in filing the appeal should be condoned.

2. The Learned Counsel for the respondent contended that the

explanation given is not bona fide. It was stated that in the earlier round

of litigation, the impugned order was passed by respondent on December

13, 2014 against which an appeal was preferred by the appellant before

the Tribunal after 419 days. Consequently the fact that an appeal was

required to be filed was known to them. It was thus urged that the

contention that the advocate was at fault cannot be a ground to condone

the delay. In this regard the learned counsel for the respondent has relied

upon the decision of the High Court of Delhi dated May 18, 2017 in the

matter of Moddus Media Pvt. Ltd. vs. M/s. SCONE Exhibition Pvt. Ltd.

3. We have gone through this decision and find that the same is

distinguishable on facts. It is not a case where the appellant is negligent.

On the other hand, we find that considering the totality of the facts that

have been placed before us a liberal approach should be made for

condoning the delay. Refusal to condone the delay will result in the

foreclosure of this appeal. Accordingly, considering the decision of the

Supreme Court in the matter of Perumon Bhagvathy Devaswom,

Perinadu Village vs. Bhargavi Amma (dead) by Lrs. And Others (2008)

8 Supreme Court Cases 321 we find that in the interest of justice, the

delay is liable to be condoned. We accordingly allow the Misc.

Application and condone the delay subject to payment of costs of Rs.

20,000/- (Rupees Twenty Thousand Only) which shall be deposited by 3

the appellant before the Registrar, Securities Appellate Tribunal, Mumbai

within two weeks from today. Upon deposit, the appeal shall be listed for

admission and for final disposal on February 28, 2019.

3. Misc. Application is disposed of.

Appeal No. 268 of 2018:-

List on February 28, 2019 for admission and final disposal.

Sd/-

Justice Tarun Agarwala Presiding Officer

Sd/-

Dr. C.K.G. Nair Member 24.01.2019 Prepared and compared by:msb

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