The Supreme Court set aside the High Court’s order condoning a delay of 5,250 days in filing a restoration application. It held that courts must be cognizant of third-party rights created during prolonged delays and that such condonation requires reasoned orders after hearing affected parties, who may be impleaded. The matter was remanded for fresh consideration.
Facts Of The Case:
The case originated from a suit for eviction filed by Mafatlal Mangilal Kothari and another (Respondent Nos. 1 and 2) against the defendants concerning a disputed property. The Trial Court dismissed the suit in 1988, prompting the plaintiffs to file a First Appeal. This appeal was admitted by the Bombay High Court in 1989 but was eventually listed in 2008, where the Court passed an order stating that if the compilation of pleadings was not filed within three months, the appeal would stand dismissed for non-prosecution. As this directive was not complied with, the appeal was deemed dismissed in May 2008. The plaintiffs filed an application for restoration of this dismissed appeal after an inordinate delay of 5,250 days. The High Court, relying on an affidavit of private service and without hearing the non-applicants (the opponents to the restoration), condoned the massive delay and restored the appeal. This order was challenged before the Supreme Court by Sethia Infrastructure Pvt. Ltd., an appellant/developer which claimed to have acquired third-party rights and undertaken large-scale construction on the suit property during the period the appeal remained dismissed.
Procedural History:
The procedural history began with the dismissal of the plaintiffs’ First Appeal for non-prosecution by the Bombay High Court in May 2008 due to non-compliance with an order to file pleadings. The plaintiffs then filed an application for restoration along with a plea to condone an inordinate delay of 5,250 days. The High Court allowed this application in 2023, condoning the delay and restoring the appeal based solely on an affidavit of service and without hearing the opposing parties. This restoration order was challenged before the Supreme Court, which set aside the High Court’s decision and remanded the matter for a fresh hearing on the condonation of delay application, with a specific direction to implead and hear the affected appellant developer.
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Court Observation:
The Supreme Court observed that the High Court committed a legal error by condoning an inordinate delay of 5,250 days without assigning any reasons and without hearing the affected non-applicants. The Court emphasized that when dealing with such massive delays in restoration applications, courts must be cognizant that time does not stand still and must presume that valuable third-party rights may have been created in the interregnum. It held that such a presumption necessitates a careful consideration of the facts and a reasoned order after providing an opportunity of hearing to all affected parties, including potential third parties whose rights may be impacted by the restoration of the dismissed case.
Final Decision & Judgement:
The Supreme Court allowed the appeal and set aside the impugned order of the High Court. The Court held that the High Court’s decision to condone the massive delay without reasons and without hearing the affected parties was legally unsustainable. The matter was remitted back to the High Court with a direction to decide the application for condonation of delay afresh after hearing the appellant developer, who claims third-party rights. The Court further directed that the appellant may be impleaded as a party if necessary, and listed the matter for hearing before the High Court on a specified date.
Case Details:
Case Title: M/s. Sethia Infrastructure Pvt. Ltd. vs Mafatlal Mangilal Kothari and Ors. Criminal/Civil Appeal No: (Arising out of S.L.P.(C) No.22195 of 2025) Date of Judgement: August 14, 2025 Judges/Justice Name: Justice Rajesh Bindal and Justice Manmohan
Download The Judgement Here