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Issues: Whether the delay of 1932 days in seeking to set aside the ex parte decree was satisfactorily explained and deserved condonation under Section 5 of the Limitation Act.
Analysis: The explanation offered by the appellant was that it had engaged counsel, believed its interests were protected, and had no knowledge of the ex parte decree until receipt of the respondent's letter. The record showed that the letter was acknowledged by an erstwhile employee who had already left service, and the appellant had produced supporting material to show his cessation from employment. The explanation did not indicate mala fides or a dilatory strategy. In matters of condonation, the length of delay is not decisive by itself and the governing test is the acceptability of the explanation and whether sufficient cause is shown. A liberal approach is required where negligence or want of bona fides is not attributable to the applicant.
Conclusion: The delay was satisfactorily explained and the refusal to condone it was unsustainable. The order declining condonation was set aside and the appeal was allowed.
Ratio Decidendi: For condonation of delay, the decisive test is whether sufficient cause is shown by a bona fide and acceptable explanation, not the mere length of delay; where mala fides and negligence are absent, a liberal exercise of discretion is warranted.