Allahabad High Court

Financial Constraint Plea for Condoning Inordinate Delay Rejected Where Claimant Received Full Original Award Amount

Sushil Yadav vs Universal Sompo General Insurance Company Limited And 2 Others

Allahabad High CourtJUDGMENT: May 06, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellant/claimant filed an appeal for the enhancement of a compensation award dated August 24, 2021, passed by the Motor Accident Claims Tribunal (MACT), Firozabad, in M.A.C.P. No. 14 of 2019.

Source reference: para. 2

The Tribunal had awarded Rs. 7,87,057 with 6% interest, which the appellant had already received in full.

Source reference: para. 3, 7

The enhancement appeal was filed with a delay of 1,619 days.

Source reference: para. 2

The appellant sought condonation of delay through an affidavit, citing 50% permanent disability in the lower limb, financial hardship, lack of permanent income, and the time required to arrange funds and documents for filing the appeal in March/April 2026.

Source reference: para. 4-6
02

Issues

1. Whether the appellant provided "sufficient cause" under Section 5 of the Limitation Act, 1963, to condone the inordinate delay of 1,619 days in filing the enhancement appeal.

Source reference: para. 12-13

2. Whether the receipt of the full award amount and subsequent claims of financial constraint constitute a reasonable ground for delay in a motor accident claim.

Source reference: para. 7, 16-17
03

Law Applied

The court primarily applied Section 5 of the Limitation Act, 1963, regarding the requirement of "sufficient cause" for condonation of delay, emphasizing that the explanation must cover the entire period of delay as per Sitaram Ramcharan v. M.N. Nagarshana.

Source reference: para. 13

It relied on National Insurance Co. Ltd. v. Pranay Sethi and State of Haryana v. Jasbir Kaur to define "just compensation" as fair and equitable rather than a "windfall" or "bonanza".

Source reference: para. 8-9

Precedents such as D. Gopinathan Pillai v. State of Kerala and Oriental Aroma Chemical Industries Ltd. v. Gujarat Industrial Development Corp. established that inordinate delays without satisfactory explanations cannot be condoned.

Source reference: para. 11-12

Furthermore, Vedabai v. Shantaram Baburao Patil distinguished between a delay of a few days and inordinate delay, requiring a more cautious approach for the latter.

Source reference: para. 14
04

Reasoning

The Court observed that the appellant had full knowledge of the claim petition and had already received the entire awarded amount, negating the plea of financial constraint or lack of awareness as reasonable grounds for delay.

Source reference: para. 3, 7, 16

The Court noted a total lack of medical evidence to substantiate the inability to file the appeal during the relevant period.

Source reference: para. 7

Applying the principles from Oriental Aroma and Sita Ram v. Sri Dhar, the Court held that the explanation provided was neither plausible nor reasonable, as it failed to account for the specific daily lapses throughout the 1,619-day period.

Source reference: para. 12, 13, 15

The Court reasoned that since "just compensation" had already been granted by the Tribunal, and the law does not intend for compensation to be a source of profit, there was no equitable ground to overlook the lack of due diligence.

Source reference: para. 17-19
05

Holding

The Court held that the appellant failed to show any sufficient or reasonable cause to explain the inordinate delay of 1,619 days.

Consequently, the application for condonation of delay was rejected, and the appeal was dismissed as barred by limitation.

Source reference: para. 20-21
Allahabad High Court

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Sushil YadavvsUniversal Sompo General Insurance Company Limited And 2 Others

Allahabad High Court · May 06, 2026

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