Kerala HC restores dismissed belated appeal citing extraordinary circumstances under B.C. Chaturvedi precedent

Kerala HC allowed writ petition challenging dismissal of belated appeal. Court held that while appeals filed beyond statutory limitation are normally not restored, extraordinary circumstances may warrant mandamus directing appellate authority to consider appeal on merits. Relying on SC precedent in B.C. Chaturvedi, HC found special circumstances justified restoration. Order dismissing appeal was set aside with direction to appellate authority to hear and dispose of appeal on merits in accordance with law.

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Issues:
Appeal filed beyond the time permitted by statute, Special circumstances preventing timely filing of appeal, Restoration of appeal for consideration on merits.

Analysis:
The petitioner filed an appeal against a demand under the Finance Act, 1994, which was dismissed as belated by the Appellate Authority. The petitioner argued that various events, including a First Information Report against bank officials and seizures from the bank's offices, led to the delay in filing the appeal. The Enforcement Directorate also initiated proceedings against former bank officials under the Prevention of Money Laundering Act, 2002. The petitioner sought restoration of the appeal based on these special circumstances. The respondents opposed, citing the appeal as time-barred and unaffected by Covid-19 related extensions.

The Court considered the Supreme Court's stance on the power of High Courts to do complete justice, as highlighted in B.C. Chaturvedi v. Union of India. The judgment emphasized that if special and extraordinary circumstances exist that prevented timely filing of an appeal, the Court has the authority to set aside the rejection and restore the appeal for consideration on merits. The Court referred to the concurring judgment of B. L. Hansaria, J, in the aforementioned case, which discussed the power of High Courts to modify penalties when necessary to achieve complete justice.

Based on the exceptional circumstances presented by the petitioner, the Court decided to set aside the Appellate Authority's order and restore the appeal for hearing on merits. The judgment highlighted that this decision was made in consideration of the unique circumstances of the case and should not be treated as a precedent for all cases of appeals filed beyond the limitation period. The writ petition was allowed, directing the Appellate Authority to hear and dispose of the appeal in accordance with the law, ensuring the petitioner's right to be heard.

In conclusion, the Court's decision to restore the appeal was based on the recognition of special circumstances that impeded the timely filing of the appeal. The judgment underscored the High Court's authority to intervene in such cases to ensure justice is served, emphasizing the need to consider unique factors that may have affected the appeal's timeliness.

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