Settlement applications cannot be rejected for a short document-filing delay where the explanation is accepted and prejudice would follow.

Delay in furnishing documents under the Settlement Proceedings Regulations, 2018 did not justify rejection where the explanation for the lapse was accepted and no overriding prejudice was shown. The Bombay High Court held that a 15-day delay should not render the settlement applications inconsequential on the peculiar facts, and that denial of consideration would prejudice the applicant. The impugned rejection was set aside, and the settlement proceedings were restored for fresh decision in accordance with law.

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Issues: Whether the rejection of the settlement applications for delayed submission of documents under the Settlement Proceedings Regulations, 2018 was liable to be set aside and the applications restored for fresh consideration.

Analysis: The delay in furnishing the required documents was acknowledged, but the Court accepted the explanation offered for the delay and treated the lapse as not warranting denial of consideration of the settlement applications. The Court held that, on the peculiar facts of the case, the applications should not become inconsequential merely because of a 15-day delay and that prejudice would otherwise be caused to the petitioner. The impugned rejection was therefore set aside and the settlement proceedings were restored to the respondent for decision in accordance with law.

Conclusion: The rejection of the settlement applications was quashed and set aside, and the applications were restored for reconsideration; this is in favour of the petitioner.

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