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Issues: Whether the appellants were entitled to exclude the period spent in the earlier proceeding under Section 14(1) of the Indian Limitation Act so as to save the suit from limitation.
Analysis: The appeal arose from a dismissal on the preliminary ground of limitation. The prior proceeding had been prosecuted in good faith, and the question was whether the time spent in that proceeding, including the interval between the impugned order and the filing of the appeal, could be excluded. It was held that Section 14(1) applies where a party has prosecuted another civil proceeding with due diligence and good faith in a court unable to entertain it for defect of jurisdiction or a cause of like nature. The period spent in the earlier appeal was therefore excludable, and the explanation to Section 14 did not justify excluding the pre-filing interval in the manner adopted by the trial court. The identity of cause of action was accepted, and the earlier appeal being held untenable was treated as falling within defect of jurisdiction or a cause of like nature.
Conclusion: The appellants were entitled to the benefit of Section 14(1) of the Indian Limitation Act, and the suit was not barred by limitation.
Ratio Decidendi: In computing limitation under Section 14(1) of the Indian Limitation Act, the period spent in a prior civil appeal filed in good faith and with due diligence is excludable, including the time from the impugned order until the appeal is filed, where the earlier proceeding was not entertainable for defect of jurisdiction or a like cause.