Importance of Condonation of Delay

1. Access to Justice: It enables parties to seek redress even if they miss deadlines due to genuine reasons.
2. Flexibility in Law: It allows the legal system to be adaptable to human circumstances, recognizing that not all delays are intentional or negligent.
3. Judicial Discretion: It empowers judges and authorities to assess the merits of each case individually.

Condonation of Delay Under Various Statutes

1. Condonation of Delay Under the Income Tax Act, 1961

The Income Tax Act, 1961 offers provisions for the condonation of delay in filing claims or applications related to income tax.

Key Provisions

• Section 119(2)(b): This section empowers the Central Board of Direct Taxes (CBDT) to authorize income tax authorities to admit delayed applications or claims if the delay was due to genuine hardship faced by the taxpayer.

Application Process

1. Submission of Written Application: Taxpayers must file a written request to the income tax authority, outlining the reasons for the delay.
2. Consideration of Reasons: The income tax authority assesses whether the reasons presented justify the delay.
3. Possible Outcomes: If deemed reasonable, the application for condonation may be accepted, allowing the taxpayer to proceed with their claims.

2. Condonation of Delay Under the Limitation Act, 1963

The Limitation Act, 1963 sets specific time limits for filing suits and applications in courts. However, it also allows for the condonation of delays under certain conditions.

Key Provisions

• Section 5: This section states that courts can condone delays if a party provides sufficient reasons for not filing within the stipulated time.

Factors Considered by Courts

• Illness of the party
• Legal amendments impacting filing
• Lack of knowledge about the filing requirement
• Any other justifiable cause

3. Condonation of Delay Under the Companies Act, 2013

The Companies Act, 2013 provides a framework for companies to seek condonation for delays in filing necessary documents.

Key Provisions

• Section 460: This section relates to the condonation of delays in filing documents with the Central Government or the Registrar of Companies.

Application Process

1. Board Resolution: Companies must pass a board resolution ratifying the application for condonation.
2. Submission of Form CG-1: The application, along with supporting documents, must be submitted in Form CG-1 to the relevant authority.
3. Decision by Government: The government will review the application and decide whether to accept or reject the request.

When is Condonation of Delay Permissible?

Condonation of delay may be granted in various circumstances, including:

1. Amendments in Law: Changes that may affect the filing process.
2. Imprisonment: If the individual responsible for filing is incarcerated.
3. Illness: Serious health issues that impede timely filing.
4. Pardanashin Women: Women who practice seclusion may face societal constraints in filing.
5. Illiteracy: Lack of knowledge about legal processes can be a reason for delay.
6. Pending Petitions: If a writ petition is pending in court.
7. Financial Hardship: Parties belonging to economically weaker sections may also be considered.

Procedure to Apply for Condonation of Delay

For Individuals Under the Income Tax Act

1. Prepare Application: Draft a detailed application stating the reasons for the delay.
2. Gather Supporting Documents: Collect any documents that can substantiate your claims of hardship.
3. Submit to the Income Tax Authority: File your application along with supporting documents.

For Companies Under the Companies Act

1. Board Meeting: Convene a board meeting to discuss and ratify the application.
2. Authorize Filing: Empower a designated officer to file the application with the government.
3. File Form CG-1: Submit the necessary form along with the board resolution.
4. Await Decision: The government will review the application and notify the company of the outcome.

Common Challenges in Condonation of Delay

1. Lack of Evidence: Insufficient proof of hardship can lead to rejection of applications.
2. Strict Adherence to Procedures: Failure to follow procedural guidelines can result in automatic dismissal.
3. Judicial Discretion: The subjective nature of "sufficient reason" can lead to inconsistent outcomes.

Note: The condonation of delay serves as a crucial mechanism in the legal framework, ensuring that genuine cases are not dismissed due to procedural delays. Understanding the provisions under various laws, the factors that warrant condonation, and the application procedures can significantly enhance the chances of a successful claim.