Limitation and exclusion of bona fide prior proceedings: delay in filing a statutory reference was condoned.

Time spent in bona fide proceedings prosecuted with due diligence before a forum unable to grant the intended relief is excludable under section 14 of the Limitation Act when computing limitation for a statutory reference application. Applying that principle to a reference remedy under section 42(1) of the Haryana General Sales Tax Act, the High Court held that the assessee's prior review and writ proceedings, followed by prompt filing after withdrawal of the writ petition with liberty to pursue the reference, justified exclusion of that period. The Tribunal's refusal to condone delay was treated as hyper-technical, and the delay was required to be condoned.

---

---

Issues: Whether the delay in filing the reference application before the Tribunal was liable to be condoned by excluding the time spent in prosecuting review and writ proceedings under section 14 of the Limitation Act.

Analysis: The statutory reference remedy under section 42(1) of the Haryana General Sales Tax Act, 1973 carried a limitation period of 60 days. The assessee had first pursued a review before the Tribunal within time, then challenged the dismissal of the review by writ petition, and upon withdrawal of that writ petition with liberty to avail the reference remedy, promptly filed the reference application with a delay-condonation request. The period spent in proceedings bona fide prosecuted with due diligence before a forum unable to grant the intended relief was held excludable under section 14 of the Limitation Act. The Tribunal's refusal to condone delay was found to be hyper-technical and inconsistent with the object of the provision.

Conclusion: The delay in filing the reference application was required to be condoned and was accordingly condoned; the assessee succeeded on this issue.

Ratio Decidendi: Time spent in bona fide proceedings pursued with due diligence before an inappropriate forum must be excluded while computing limitation, and delay in filing a statutory reference should be condoned where the litigant has diligently pursued an alternative remedy in good faith.

---