Petitioner wins challenge against denial of Vivad Se Vishwas Act benefits despite payment deficit and delay

Bombay HC allowed petition challenging denial of benefits under Vivad Se Vishwas Act due to alleged short payment by petitioner. Court found respondents failed to inform petitioner of additional payment requirement within prescribed timeframe and only communicated deficit after extended deadline. Despite 11-day delay and Rs. 2,21,862 deficit, court attributed delay to technical glitches from website migration and respondents' processing errors. HC directed respondents to accept petitioner's declaration and issue final certificate, subject to payment of balance amount with 12% interest from 31.10.2021 and additional Rs. 2,00,000 within 21 days.

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Issues Involved:
1. Rejection of Petitioner's declaration under the Vivad Se Vishwas Act, 2020 (VsV Act).
2. Alleged technical glitches during the migration of the Respondents' website.
3. Incorrect computation of amounts payable under the VsV Act.
4. Delay in payment and filing of necessary forms by the Petitioner.

Summary:

Issue 1: Rejection of Petitioner's Declaration under the VsV Act
The Petitioner challenged the communications dated 22.01.2022 and 01.04.2022, which rejected her declaration under the VsV Act and denied her benefits. The Petitioner had filed a declaration on 29.01.2021, but the Respondents initially issued an erroneous Form 3. After several follow-ups, a corrected Form 3 was uploaded on the new website, which the Petitioner accessed in October 2021. The Petitioner paid the required amount within 15 days of accessing the revised Form 3. However, the Respondents rejected the declaration on the grounds of non-filing of Form 4 and delayed payment.

Issue 2: Alleged Technical Glitches During Website Migration
The Petitioner contended that technical glitches during the migration to a new website in June 2021 prevented her from accessing the revised Form 3 until October 2021. The Respondents denied these glitches but acknowledged that the old website was closed and a new one was launched. The Court noted that the Petitioner consistently followed up on the matter and the technical glitches could not be outrightly rejected.

Issue 3: Incorrect Computation of Amounts Payable under the VsV Act
Initially, the Respondents issued Form 3 with erroneous figures, which the Petitioner promptly sought to correct. The corrected Form 3, reflecting the correct amount of Rs. 14,04,620/-, was eventually uploaded, but the Petitioner faced difficulties accessing it due to the website migration. The Court found that the Petitioner was diligent in her efforts and the errors were on the Respondents' part.

Issue 4: Delay in Payment and Filing of Necessary Forms by the Petitioner
The Petitioner paid the amount of Rs. 14,04,620/- within 15 days of accessing the revised Form 3 and filed Form 4, which the Respondents initially acknowledged. However, the Respondents later claimed that the payment was made after the due date and rejected the declaration. The Court held that the delay, if any, was marginal and attributable to the technical glitches and errors by the Respondents.

Conclusion:
The Court quashed the impugned communications dated 22.01.2022 and 01.04.2022, directing the Respondents to accept the Petitioner's declaration under the VsV Act and issue the final certificate in Form 5, subject to the Petitioner paying the balance amount of Rs. 2,21,862/- with interest and an additional amount of Rs. 2,00,000/- within 21 days. The rule was made absolute without any order for costs.

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