Order Date- 06 February 2025

Parties: Kamala Stores & Anr. Vs The State of West Bengal & Ors.

Facts -

• The Petitioner, Kamala Stores, had filed an appeal against an order passed under Section 73(9) of the said Act after depositing necessary pre-deposit. However, there was a delay of 79 days in filing the appeal.
• An application for condonation of delay was filed, but the appellate authority rejected the appeal, stating it was barred by limitation and that it could only condone the delay if the appeal was filed within one month beyond the prescribed period.

Issue - 

• Whether the appellate authority erred in rejecting the appeal solely on the ground of limitation?

Order -

• The Single Bench of Hon’ble High Court observed that the petitioners are a small partnership firm and there is no lack of bona fide on the part of the petitioners and one do not stand to gain by filing a belated appeal, the Court is of the view that in the instant case, the appellate authority ought to have appropriately considered the application for condonation of delay filed by the petitioners. 
• The appellate authority, however, appears to have rejected the appeal on the ground of limitation by, inter alia, holding that the delay can only be condoned provided the same is filed within the period of one month of the time prescribed. The aforesaid observation made by the appellate authority runs counter to the observation made by the Hon’ble Division Bench of this Court in the case of S. K. Chakraborty & Sons v. union of India & Ors., reported in 2023 SCC Online Cal 4759. 
• The aforesaid would demonstrate that the appellate authority had failed to exercise the jurisdiction vested in it. Having regard to the above and taking note of the explanation given by the petitioners while setting aside the appellate order dated 18th September, 2024, condone the delay in preferring the appeal.