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        Case ID :

        2019 (12) TMI 1136 - AT - FEMA

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        Tribunal grants condonation for delay in filing legal heirs' substitution, imposes costs to proceed The Tribunal allowed the application for condonation of delay in filing for the substitution of Legal Heirs (LRs) of the deceased appellant, despite ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Tribunal grants condonation for delay in filing legal heirs' substitution, imposes costs to proceed

                            The Tribunal allowed the application for condonation of delay in filing for the substitution of Legal Heirs (LRs) of the deceased appellant, despite finding the reasons provided for the delay insufficient. To proceed with the appeals and prevent prejudice to the appellants, the Tribunal required payment of costs amounting to Rs. 25,000/- in each appeal to the respondent within six weeks. The applications for substitution of legal heirs were set for a hearing on 25th February 2020.




                            Issues Involved:
                            1. Condonation of delay in filing applications for substitution of Legal Heirs (LRs) of the deceased appellant.
                            2. Adequacy of the reasons provided for the delay.
                            3. Legal principles applicable to condonation of delay.

                            Issue-wise Detailed Analysis:

                            1. Condonation of Delay in Filing Applications for Substitution of Legal Heirs (LRs):
                            The applications under consideration pertain to the condonation of a 370-day delay in filing for the substitution of LRs of the deceased appellant, who was involved in two appeals. The deceased, Shri M. Ramesh Babu, had filed appeals in his capacity as Managing Director of M/s. Sree Sanjay Agro Traders Pvt. Ltd. The application for substitution was filed by the company, represented by its authorized signatory, along with a death certificate.

                            2. Adequacy of the Reasons Provided for the Delay:
                            The appellants argued that the delay was due to the emotional suffering and oversight following the death of Shri M. Ramesh Babu. They claimed that the family was dejected and the delay was neither deliberate nor intentional. The respondent, however, countered that the appellants failed to show sufficient cause for the delay, citing that the counsel should have moved the application in a timely manner. The Tribunal noted that the reasons provided were general and insufficient to justify the 370-day delay.

                            3. Legal Principles Applicable to Condonation of Delay:
                            The Tribunal referenced several Supreme Court judgments to outline the principles for condonation of delay:
                            - Katari Suryanarayana & Ors. Vs. Koppisetti Subba Rao & Ors. (2009): The Supreme Court emphasized that "sufficient cause" should be understood in a reasonable, pragmatic, and liberal manner, depending on the case's facts and circumstances. The court should be more lenient in applications for setting aside abatement and should focus on the sufficiency of the explanation rather than the length of the delay.
                            - Esha Bhattacharjee Vs. Managing Committee of Raghunathpur Nafar Academy and others: The Court stated that even with a liberal approach, the explanation for the delay must be reasonable and bona fide. Negligence or inaction on the part of the applicant could lead to the denial of condonation.

                            Conclusion:
                            The Tribunal, after considering the explanations and the legal principles, was not convinced by the appellants' reasons for the delay. However, to ensure that the merits of the appeals could be considered and to avoid undue prejudice to the appellants, the Tribunal allowed the application for condonation of delay. This was subject to the payment of costs amounting to Rs. 25,000/- in each appeal to the respondent within six weeks. The applications for substitution of legal heirs were scheduled for hearing on 25th February 2020.
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                            ActsIncome Tax
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