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Issues: Whether the period spent in prosecuting the earlier suit and appeal could be excluded under Section 14 of the Indian Limitation Act, 1908 on the ground that those proceedings were prosecuted in good faith and with due diligence.
Analysis: Section 14 grants exclusion only where a prior civil proceeding, founded on the same cause of action, is pursued with due diligence and in good faith in a court unable to entertain it because of defect of jurisdiction or a like cause. On the undisputed facts, the objection that the Government was a necessary party was raised at the earliest stage and persisted throughout the earlier proceedings. The plaintiff nevertheless chose to continue the suit and even invited adjudication on the objection, instead of curing the defect and proceeding afresh after the notice required to the State. Such conduct did not amount to prosecution in good faith within the meaning of Section 2(7), and the earlier proceedings were not protected by Section 14.
Conclusion: The benefit of Section 14 was unavailable, and the suit remained time-barred. The appeal fails.
Ratio Decidendi: Exclusion under Section 14 of the Limitation Act is unavailable where the earlier proceeding was not prosecuted in good faith and with due diligence, particularly when the party knowingly continued despite a timely objection to a fatal defect of non-joinder.