Facts
The Appellant executed site-enabling works for a Sewage Treatment Plant for Respondent No. 1, claiming an outstanding balance of ₹96.00 lakhs
Source reference: para 11In 2013, the Appellant filed a writ petition (OWP No. 1516/2013) for recovery
Source reference: para 11Although initially allowed, the order was set aside by a Division Bench in 2015 and remitted for fresh consideration
Source reference: para 12-13The writ remained pending until 2022, during which it was briefly dismissed for non-prosecution in October 2021 but restored in April 2022
Source reference: para 14, 16On May 30, 2022, the Appellant withdrew the writ with liberty to pursue a civil remedy after the Respondent raised objections regarding its maintainability as a private contract dispute
Source reference: para 5, 14A civil suit was filed on July 9, 2022, accompanied by an application under Section 14 of the Limitation Act, 1963, to exclude the time spent in writ proceedings
Source reference: para 15The trial court dismissed the suit on August 19, 2025, as time-barred, holding that the Appellant lacked due diligence and bona fides
Source reference: para 2, 6Issues
1. Whether the time spent prosecuting a writ petition from 2013 to 2022 constitutes a "prior proceeding" pursued with due diligence and good faith under Section 14 of the Limitation Act, 1963
Source reference: para 7-82. Whether a temporary dismissal for non-prosecution in a prior proceeding, which was subsequently restored, precludes the benefit of Section 14 of the Limitation Act
Source reference: para 16-17Law Applied
Section 14 of the Limitation Act, 1963, provides for the exclusion of time spent in a court which, from defect of jurisdiction or other cause of a like nature, is unable to entertain the proceeding, provided it was prosecuted in good faith
Source reference: para 10The court relied on Madhavrao Narayanrao Patwardhan v. Ramakrishna Govind Bhanu (1959 SCR 564), which mandates five conditions for Section 14: identity of parties, due diligence, failure due to jurisdictional defect/similar cause, identity of subject matter, and both proceedings being in a "court"
Source reference: para 19Roshanlal Kuthalia v. R.B. Mohan Singh Oberoi (1975 4 SCC 628) established that "other cause of a like nature" should be interpreted liberally to include any legal or factual circumstance inhibiting a court from considering the merits
Source reference: para 20Purni Devi & Anr. v. Babu Ram & Anr. (2024 INSC 259) reinforced that time spent in a forum believed to be appropriate must be excluded
Source reference: para 22Reasoning
The High Court found that the trial court adopted a "hyper-technical approach" that frustrated the ends of justice
Source reference: para 23It held that the Appellant satisfied the requirements of Section 14, as pursuing a writ petition (which was initially allowed) until maintainability objections were formally addressed constitutes a bona fide exercise of legal recourse
Source reference: para 16, 21The court rejected the trial court’s finding of a "lack of diligence" based on the 2021 dismissal for non-prosecution; it reasoned that since the Writ Court had restored the petition, the trial court could not "go behind" that restoration to penalize the Appellant
Source reference: para 17Furthermore, the court emphasized that a litigant cannot be penalized for the nine-year pendency of a matter, as the pace of adjudication and "docket load" are beyond their control
Source reference: para 18The phrase "other cause of a like nature" is wide enough to encompass misdirected litigation pursued without bad faith
Source reference: para 21Holding
The High Court allowed the appeal and set aside the trial court's order dated August 19, 2025
It held that the Appellant is entitled to the exclusion of time under Section 14 of the Limitation Act, as they acted with due diligence and good faith
Source reference: para 21The matter was remitted to the trial court for disposal on its merits, with a direction for the parties to appear on April 24, 2026
Source reference: para 24Original Court PDF
M/S HSL ENTERPRISES TH S HARVINDER SINGHvsM/S THERMAX LTD. PUNE AND OTHERS
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