Supreme Court Laments 1987 Condonation of Delay Judgment, Dismisses Appeals

On Friday, the Supreme Court of India expressed strong displeasure over its own 1987 judgment in *Collector, Land Acquisition v. Katiji*, lamenting that the decision, which liberally condoned a mere four-day delay, had “driven the country back” by encouraging litigants to routinely seek condonation of delay. This observation was made by a Bench of Justices Dipankar Datta and Sheel Nagu while dismissing appeals filed by Karvy Stock Broking Limited and its former Chairman and Managing Director C Parthasarathy, who sought to challenge Securities Appellate Tribunal (SAT) orders refusing to condone delays in challenging penalties imposed by the Securities and Exchange Board of India (SEBI).

This pronouncement carries significant legal significance for practitioners, signaling a potential shift towards a more stringent application of the principles governing condonation of delay. The Court's criticism of *Katiji*, which advocated a liberal approach to ensure substantial justice, suggests that the judiciary may now be inclined to prioritize procedural diligence and the sanctity of limitation periods, especially in commercial and regulatory contexts. This could lead to a reduction in the success rate of applications for condonation of delay, thereby placing a greater burden on litigants to adhere strictly to statutory timelines.

The legal context for this matter is primarily the Limitation Act, 1963, particularly Section 5, which allows for the condonation of delay if