Limitation and condonation where fraud or lack of service is pleaded must turn on discovery, knowledge, and a liberal justice-oriented approach.

Where fraud or absence of due service is pleaded, limitation does not begin until the fraud is discovered or the decree becomes known to the applicant, and Article 123 was treated as running from knowledge in ex parte matters. The court further stated that condonation of delay must be approached with a liberal, justice-oriented assessment of the explanation for delay and the surrounding circumstances, including the merits where the applicants were not parties to the earlier suit and their lack of knowledge was not specifically disproved. On that basis, rejection of condonation was held unsustainable and the matter required reconsideration in accordance with law.

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Issues: Whether the first appellate court was justified in rejecting the application for condonation of delay in filing the first appeal despite the plea that the impugned decree was obtained by fraud and that limitation would run from the date of knowledge.

Analysis: The relevant legal framework applied was that, in cases of fraud, limitation does not begin to run until the fraud is discovered, and in ex parte matters the period under Article 123 is linked to the applicant's knowledge. The court also treated the law of limitation and the discretion to condone delay as instruments to advance substantial justice, requiring consideration of the explanation for delay as well as the merits, particularly where the applicants were not parties to the earlier suit and their plea of lack of knowledge was not specifically negatived.

Conclusion: The rejection of condonation of delay was unsustainable, and the matter had to be reconsidered afresh in accordance with law.

Ratio Decidendi: Where fraud or absence of due service is pleaded, limitation runs from discovery of the fraud or from knowledge of the decree, and an application for condonation of delay must be decided on a liberal, justice-oriented appraisal of the explanation and surrounding circumstances.

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