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Patna High Court

East Central RailwayversusM/s Pratibha Royal (JV)

Decided
Disposal
DISMISSED

Holding

The 85‑day delay is not bona‑fide and cannot be condoned; the interlocutory application and the commercial appeal are dismissed.

Summary

The East Central Railway filed an interlocutory application seeking condonation of an 85‑day delay in filing a commercial appeal under Section 13(1‑A) of the Commercial Courts Act, 2015 against a judgment dated 24‑06‑2025 in an arbitration matter. The railway argued that the delay was caused by internal procedural requirements, multi‑level approvals and the time taken to obtain a certified copy of the order. It relied on Supreme Court precedent (Borse Brothers) and a Delhi High Court decision (United India Insurance) that allow condonation for bona‑fide short delays. The Patna High Court examined the statutory limitation, the Supreme Court’s observations, and its own recent decisions where similar administrative delays were not considered bona‑fide. Finding the reasons vague, procedural and not demonstrating bona‑fide urgency, the Court held that the delay could not be condoned. Consequently, the interlocutory application was dismissed and the commercial appeal was dismissed.

Issues considered

  • Whether an 85‑day delay beyond the 60‑day limitation for filing a commercial appeal under Section 13(1‑A) of the Commercial Courts Act, 2015 can be condoned.
  • Whether the reasons given by the railway constitute a bona‑fide cause of delay within the meaning of the Supreme Court’s decision in Borse Brothers.
  • Whether precedents such as United India Insurance and the railway’s internal procedural requirements justify condonation.

Legislation cited

Subjects

  • condonation of delay
  • commercial appeal
  • limitation period
  • bona fide
  • public authority procedural delay
  • Arbitration Act
  • Commercial Courts Act
  • Supreme Court precedent

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                      COMMERCIAL APPEAL No.18 of 2025
     ======================================================
1.    East Central Railway through Chief Administrative Officer (Construction),
      East Central Railway, Mahendru Ghat, P.O. and P.S. Mahendru Ghat, Patna,
      Bihar.
2.   The Financial Advisor and Chief Accounts Officer (Construction), East
     Central Railway, Mahendru Ghat, P.O. and P.S. Mahendru Ghat, Patna,
     Bihar.
3.   The Chief Engineer (Construction), (South) East Central Railway, having its
     office situated at Mahendru Ghat, P.O. and P.S. Mahendru Ghat, Patna,
     Bihar.
4.   The Deputy Chief Engineer (Construction), East Central Railway,
     Barkakana, P.O. and P.S. Barkakana, Ramgarh, Jharkhand.

                                                                     ... ... Appellants
                                        Versus
     M/s Pratibha Royal (JV) a Joint Venture Company having its office at 18 R.N.
     Mukherjee Road, 6th Floor, P.O. and P.S. R.N. Mukherjee Road, Kolkata-
     700001, represented through its authorized signatory namely, Dhananjay
     Kumar, S/o late Kamdeo Sharma, resident of Plot no. C-69, Police Colony,
     Anisabad, P.O. and P.S. Gardanibagh, District- Patna.

                                                ... ... Respondent
     ======================================================
     Appearance :
     For the Appellants    :       Mr. Satyabir Bharti, Senior CGC
                                   Mr. Ram Tujabh Singh, CGC
     For the Respondent    :       Mr.
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
             and
             HONOURABLE MR. JUSTICE SHAILENDRA SINGH
     ORAL JUDGMENT
     (Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)

      Date : 09-02-2026


                                I.A. No. 1 of 2026

                 Heard Mr. Satyabir Bharti, learned Senior Counsel

     assisted by Mr. Ram Tujabh Singh, learned counsel for the

     appellants.
Patna High Court COMMERCIAL APP No.18 of 2025 dt.09-02-2026
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                   2. By filing this interlocutory application, the appellants

       are seeking condonation of delay of 85 days in filing of the present

       commercial appeal for setting aside the impugned judgment dated

       24.06.2025 passed by learned Principal District Judge, Patna in

       Miscellaneous (Arbitration) Case No. 09 of 2024 on an application

       under Section 34 of the Arbitration and Conciliation Act, 1996

       (hereinafter referred to as the ‘Act of 1996’).

                           Submissions on behalf of the Appellants

                   3. Learned Senior Counsel for the appellants submits

       that the present appeal has been preferred under Section 13(1-A)

       of the Commercial Courts Act, 2015 (hereinafter referred to as the

       ‘Act of 2015’). The period of limitation for filing the appeal is 60

       days from the date of the judgment or order.

                   4. It is his submission that in this case, after the delivery

       of judgment/order, the appellant filed an application for obtaining

       a certified copy of the same on 27.06.2025. The office notified the

       requirement of folios on 12.07.2025 which was supplied on

       14.07.2025 and the certified copy was made ready for delivery on

       14.07.2025. In this way, altogether 18 days’ time were taken in

       providing the certified copy. It is his submission that the period of

       limitation expired on 10.09.2025. The appeal was presented
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       through e-filing on 03.12.2025 and the date of final presentation is

       04.12.2025. In this background, 85 days’ delay has taken place.

                   5. To show the bona fide reasons behind the delay,

       learned Senior Counsel has drawn the attention of this Court

       towards the statements made in paragraphs ‘5’, ‘6’ and ‘7’ of the

       interlocutory application. His submissions is that the delay has

       taken place in movement of files, deliberations on the merits and

       in obtaining legal opinions from the Law Officer. Due to this

       official procedure requiring multi-level approvals for litigation

       involving public funds, the delay has taken place.

                   6. Learned Senior Counsel has submitted that the issue

       of limitation under Section 13(1-A) of the Act of 2015 came up for

       consideration before the Hon’ble Supreme Court in the case of

       Government of Maharashtra (Water Resources Department)

       Represented by Executive Engineer Vs. M/s Borse Brothers

       Engineers & Contractors Pvt. Ltd. reported in (2021) 6 SCC

       460. The Hon’ble Supreme Court has, upon consideration of the

       scheme of the statute, taken a view that if the party has otherwise

       acted bonafide and not in a negligent manner, a short delay beyond

       such period can in the discretion of the Court be condoned. It is

       submitted that in the case of United India Insurance Company

       Limited Vs. Bansal Wood Product Private Limited reported in
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       (2023) 1 High Court Cases (Del) 111, the Hon’ble Delhi High

       Court has been pleased to condone delay of 76 days in filing of the

       appeal for the reason that the counsel for the appellant was unwell

       due to which he was unable to instruct his associates or finalise the

       appeal himself.

                   7. It is, thus, submitted that this Court may consider the

       reasons provided by the appellants as sufficient and cogent reasons

       and condone the delay.

                                     Consideration

                   8. We have heard learned Senior Counsel for the

       appellant and perused the records. Section 13(1-A) of the Act of

       2015 reads as under:-

                             “Section 13. Appeals from decrees of
                             Commercial         Courts    and       Commercial
                             Divisions. (1-A) Any person aggrieved by the
                             judgment or order of a Commercial Court at
                             the level of District Judge exercising original
                             civil jurisdiction or, as the case may be,
                             Commercial Division of a High Court may
                             appeal to the Commercial Appellate Division
                             of that High Court within a period of sixty
                             days from the date of the judgment or order:
                             Provided that an appeal shall lie from such
                             orders passed by a Commercial Division or a
                             Commercial        Court   that   are    specifically
                             enumerated under Order XLIII of the Code of
                             Civil Procedure, 1908 (5 of 1908) as amended
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                             by this Act and section 37 of the Arbitration
                             and Conciliation Act, 1996 (26 of 1996).]”


                   9. The Hon’ble Supreme Court has considered the

       scheme of the statute, the object of speedy disposal sought to be

       achieved under the statute and concluded in paragraph ‘63’ of the

       judgment in the case of Borse Brothers (supra) as under:-

                             “63. Given the aforesaid and the object of
                             speedy disposal sought to be achieved both
                             under    the    Arbitration      Act   and   the
                             Commercial Courts Act, for appeals filed
                             under Section 37 of the Arbitration Act that
                             are governed by Articles 116 and 117 of the
                             Limitation Act or Section 13(1-A) of the
                             Commercial Courts Act, a delay beyond 90
                             days, 30 days or 60 days, respectively, is to
                             be condoned by way of exception and not
                             by way of rule. In a fit case in which a party
                             has otherwise acted bona fide and not in a
                             negligent manner, a short delay beyond such
                             period can, in the discretion of the court, be
                             condoned, always bearing in mind that the
                             other side of the picture is that the opposite
                             party may have acquired both in equity and
                             justice, what may now be lost by the first
                             party’s inaction, negligence or laches.”


                   10. Articles 116 and 117 in the Schedule Part X (Second

       Division-Appeals) of the Limitation Act prescribes the period of

       limitation for filing an appeal against a decree under the Code of
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       Civil Procedure, 1908. The same has been taken note of and

       examined by the Hon’ble Supreme Court in case of Borse

       Brothers (supra). What is culled out from the ratio of the

       judgment of the Hon’ble Supreme Court is that the delay beyond

       the prescribed period of limitation is to be condoned by way of

       exception and not by way of rule. The party who is looking for the

       condonation of delay must have otherwise acted bona fide and not

       in a negligent manner. The delay should not be such that the other

       side may have acquired rights both in equity and justice. If these

       conditions are satisfied then a short delay beyond the said period

       can, in the discretion of the Court, be condoned.

                   11. Keeping in view the aforesaid views of the Hon’ble

       Supreme Court, this Court has considered the reasons shown in

       paragraphs ‘5’, ‘6’ and ‘7’ of the interlocutory application. Those

       are being reproduced hereunder for a ready reference:-

                             “5. That as part of official Railway procedure
                             requiring multi-level approvals for litigation
                             involving public funds, the certified copy was
                             forwarded      internally    on   16/07/2025   for
                             processing     through      competent   authorities
                             including Dy.CE/Con, CE/Con, CAO/Con, and
                             AGM/ECR.
                             6. That the file movement involved detailed
                             deliberations on merits, legal opinions from
                             Law Officer, finance concurrence, and final
                             approval from AGM/ECR/HJP, consuming time
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                             due to hierarchical official protocols followed
                             diligently without negligence.
                             7. That on 01/12/2025, after obtaining necessary
                             approvals and drafting by counsel following
                             discussions, the Commercial Appeal was filed
                             before this Hon’ble Court. ”


                   12. Recently, in Commercial Appeal No. 3 of 2024

       (The Union of India and Another Vs. M/s Oberoi Thermit Pvt.

       Ltd), this Court had occasion to consider an application seeking

       condonation of delay for a period of 5 months and 23 days. This

       Court having noticed the submissions of the Railways which were

       not contested by the sole respondent that the order was not

       pronounced in the open court, therefore, learned counsel for the

       appellant did not know whether the order has been passed on the

       date fixed in the matter or not, which led to a delay in obtaining

       the certified copy of the order, this Court took a view that there

       was no reason on the record to doubt the bona fide of the

       appellants, hence, the delay was taken as well explained and it was

       condoned.

                   13. In the present case, however, we find that the only

       reason shown by the appellant is that the delay occasioned due to

       file movement and with procedural follow up. In such

       circumstances, a question arises as to whether the reasons shown

       by the appellant may be said to have an element of bona fide so as
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       to bring this case within the ambit of the observations of the

       Hon’ble Supreme Court in the case of Borse Brothers (supra). We

       find that the Act of 2015 came into force as back as on 31st

       December, 2015. Even the judgment of the Hon’ble Supreme

       Court in the case of Borse Brothers (supra) came in the year

       2021.

                   14. Despite all clarity available under Section 13(1-A) of

       the Act of 2015 with regard to the period of limitation for filing the

       Commercial Appeal and the judgment of the Hon’ble Supreme

       Court clearly saying that only for bona fide reasons, a short delay

       may be condoned, the authorities of the Railways are taking the

       matters of filing of appeal leisurely. If the officers of the Railways

       do not show urgency to prefer an appeal within the period of

       limitation or for some bona fide reasons within a short period

       thereafter, they have to blame themselves for this.

                   15. Recently, in another Commercial Appeal being

       Commercial Appeal No. 17 of 2025 (General Manager, East

       Central Railways and Others Vs. M/s KEC-DELCO-

       VARAHA (JV)), this Court refused to condone the delay of 222

       days in filing of the appeal wherein similar kind of reasons were

       shown as the cause for delay in filing of the appeal. This Court

       held that the delay caused due to procedural compliance and
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       hierarchical administrative orders cannot be taken as a bona fide

       reason. This Court also noticed that in the case of Borse Brothers

       (supra), the Hon’ble Supreme Court held that the delay of 131

       days beyond the 60 days’ period was a long delay and the appeal

       was dismissed. So far as the judgment of the Hon’ble Delhi High

       Court in case of United India Insurance Co. Ltd (supra) is

       concerned, it appears that in the said case, the appellant was able

       to demonstrate that the counsel for the appellant was unwell due to

       which he was unable to instruct his associates or finalise the

       appeal. Thus, there was no question of taking an adverse view as

       to the bona fide of the appellant, therefore, in the opinion of this

       Court, the facts of the case in case of United India Insurance Co.

       Ltd (supra) were quite different and distinct.

                   16. This Court is reminded of the judgment of the

       Hon’ble Supreme Court in the case of Bharat Petroleum Corpn.

       Ltd. and Another Vs. N.R. Vairamani and Another reported in

       (2004) 8 SCC 579 wherein the Hon’ble Supreme Court has

       observed in paragraph ‘9’ as under:-

                       “9. Courts should not place reliance on
                       decisions without discussing as to how the
                       factual situation fits in with the fact situation of
                       the decision on which reliance is placed.
                       Observations of courts are neither to be read as
                       Euclid's theorems nor as provisions of a statute
                       and that too taken out of their context. These
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                         observations must be read in the context in
                         which they appear to have been stated.
                         Judgments of courts are not to be construed as
                         statutes. To interpret words, phrases and
                         provisions of a statute, it may become
                         necessary for judges to embark into lengthy
                         discussions but the discussion is meant to
                         explain and not to define. Judges interpret
                         statutes, they do not interpret judgments. They
                         interpret words of statutes; their words are not
                         to be interpreted as statutes. In London Graving
                         Dock Co. Ltd. v. Horton2 (AC at p. 761) Lord
                         MacDermott observed : (All ER p. 14 C-D)
                                   “The matter cannot, of course, be
                         settled merely by treating the ipsissima verba of
                         Willes, J., as though they were part of an Act of
                         Parliament       and      applying    the    rules     of
                         interpretation appropriate thereto. This is not to
                         detract from the great weight to be given to the
                         language       actually     used     by     that     most
                         distinguished judge,…””


                    17. Keeping in view the aforesaid discussions, we are of

       the considered opinion that the delay of 85 days over and above

       the period of limitation in the present case remains unexplained.

       The explanations offered in paragraphs ‘5’, ‘6’ and ‘7’ of the

       interlocutory application are completely vague and sweeping kind

       of reasons shown which are a kind of general statements

       introduced in the application seeking condonation of delay in a
       2. [1951 AC 737 : (1951) 2 All ER 1 (HL)]
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                    routine manner. This Court cannot take such reasons as bona fide

                    reasons for purpose of condonation of delay keeping in view the

                    aims and objects of the Act of 1996 and the Act of 2015.

                                18. We refuse to condone the delay. I.A. No. 1 of 2026 is

                    dismissed.

                                19. As a result of dismissal of the I.A., the appeal stands

                    dismissed.



                                           (Rajeev Ranjan Prasad, J)


                                               (Shailendra Singh, J)
lekhi/-
AFR/NAFR
CAV DATE
Uploading Date            13.02.2026
Transmission Date


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