TMI Blog2009 (5) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... lves ran into trouble as the Copper Clad manufacturing Unit setup by them as an 100% EOU did not take off due to non-cooperation, lack of working capital, overhead escalation and delay; in raising overseas funds. 8. The Petitioner submits that even prior to issuance of the notice to them during 1998, financial crunch faced by the Unit led to a situation of not being able to achieve export obligation and action initiated by one of the debenture holder during 1999 (Suit No: 1136/1999) has resulted in all the assets (including the records and books of accounts) being placed under lock and seal by the Court Receiver appointed by the Hon ble High Court of Mumbai during 1001 itself. In this connection suits were file by ICICI, Banks and other Financial Institutions for recovery of their dues. As a consequence, operations of the auto division, copper clad laminates division as well as the chemical division came to a grinding halt with effect from 1-8-2001. 9. The Petitioner submits that ever since the abrupt closure of their unit consequent to sealing of its premises al the employees including the executives had left the company leading to a menial employee being stationed at the regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant represented by the Managing Director and a Director who were the only persons left in the Organization knew of the passing of the Order-in-Original by the Adjudicating Authority, still they could not act as they; were on their toes in facing various legal suits instituted in various Courts by the financial institutions as secured/unsecured creditors, employees and various statutory authorities. The same continued during 2007 and 2008 and since they of their own could not get access to the records of the Company, they were by force of adverse circumstances could not respond in time by filing an appeal against the Order of the Respondent. Added to the above their Chairman Managing Director was also suffering serious heart problem and could not attend to the affairs of the company. 13. The Petitioner further submits that they were under a bona fide belief that since the company is being taken over by the Court Receiver appointed by the Hon ble Court, and as none of the records were available with them there was no necessity for them to prefer the present appeal and only now on being advised legally to file the appeal they had immediately swung into action but in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticularly in the financial year 1st October 2002 to 30th September 2003 and all the employees had also left the company. Subsequently, the appellant company had been declared as sick as per the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. The Tribunal ought to have considered the above facts. Without appreciating the same, the Tribunal has rejected the petition for condonation of delay on the ground that no further documentary evidence was filed to support the claim of the assessee. The Tribunal should not have taken a technical view in the matter of condonation of delay. No hard and fast rule can be laid down in the matter of condonation of delay. The Courts should adopt a pragmatic approach. The courts should exercise the discretion on the facts of each case keeping in mind that in construing expression sufficient cause the principle of advancing substantial justice is of prime importance. The expression sufficient cause means liberal and adequate. The Apex Court in the case of Collector, Land Acquisition v. MST. Katiji and Others reported in (1987) 167 ITR 471 has held as follows :- The legislature has conferred the power to condone delay by e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance substantial justice. The time-limit fixed for approaching the court in different situations is not because on the expiry of such time a bad cause would transform into a good cause. 11. Rules of limitation are not meant to destroy the rights of parties. They are meant to see that parties do not resort to dilatory tactics, but seek their remedy promptly. The object of providing a legal remedy is to repair the damage caused by reason of legal injury. The law of limitation fixes a lifespan for such legal remedy for the redress of the legal injury so suffered. Time is precious and wasted time would never revisit. During the efflux of time, newer causes would sprout up necessitating newer persons to seek legal remedy by approaching the courts. So a lifespan must be fixed for each remedy;. Unending period for launching the remedy may lead to unending uncertainty and consequential anarchy. The law of limitation is thus founded on public policy. It is enshrined in the maxim interest reipublicae up sit finis litium (it is for the general welfare that a period be put to litigation). Rules of limitation are not meant to destroy the rights of the parties. They are meant to see tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITAT while in the present case the applicants have not offered any acceptable explanation for the delay in preferring the appeal before CESTAT after the expiry of three months from 8-1-2007, which is the date on which the impugned order was, admittedly received by them. The only reason given in the application for the delay after April 07 is contained in para 13 namely that the applicants were under a bona fide belief that since the company was being taken over by the Court Receiver appointed by the Hon ble Court, and as none of the records were available with them, there was no necessity for them to prefer the present appeal and only now on being advised legally to file the appeal, they had filed the appeal belatedly. However, there is no basis for the bona fide belief. The company is an existing one. There is no conformation by the applicant that they had handed over a copy of the impugned order received by the Chairman and Managing Director on 8-1-2007, to the Official Receiver for further action in the matter. The non-availability of records is also no ground for a belief that no appeal is required to be filed against the order confirming demand and imposing penalty. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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