Supreme Court Modifies Cost in Delay Condonation Case: Surya Educational and Charitable Trust vs. Setia Builders (20 September 2021)

Introduction

Date of the Judgment: 20th September, 2021
Citation: Civil Appeal No(s).5781-5783/2021 (@SLP(C) No(s). 2020-2022/2019)
Judges: Justice Sanjiv Khanna and Justice Bela M. Trivedi

Can the Supreme Court modify the costs imposed by a High Court in a case concerning the condonation of delay? The Supreme Court addressed this question in a recent civil appeal, modifying the costs initially imposed by the Division Bench of the High Court. This case highlights the Supreme Court’s role in reviewing and adjusting decisions of lower courts, particularly concerning procedural matters like delay condonation.

The Supreme Court, in this case, considered a special leave petition regarding costs imposed by the High Court. The core issue revolved around whether the Supreme Court should intervene to modify the costs awarded by the High Court. The bench comprised Justice Sanjiv Khanna and Justice Bela M. Trivedi.

Case Background

The case originated from a dispute where the appellant, Surya Educational and Charitable Trust, sought relief related to a delay condonation matter. The respondent, M/S Setia Builders Engineers and Contractors, was the opposing party. The specific details of the underlying dispute are not elaborated upon in the provided judgment. However, the central issue before the Supreme Court was the modification of costs imposed by the High Court in the context of an application for condonation of delay.

The High Court had imposed certain costs, which the appellant found excessive. Consequently, the appellant approached the Supreme Court through a special leave petition seeking a modification of the cost order. The respondent agreed that the Supreme Court may modify the costs imposed by the High Court.

Timeline

Arguments

The primary argument presented by the respondent, M/S Setia Builders Engineers and Contractors, through their Senior Advocate, Mr. Manoj Swarup, was that the Supreme Court may modify the cost imposed by the Division Bench of the High Court. There were no other arguments presented by the parties.

Issues Framed by the Supreme Court

The Supreme Court did not explicitly frame specific issues in the judgment. However, the implicit issue before the Court was:

• Whether the Supreme Court should modify the costs imposed by the Division Bench of the High Court in a delay condonation matter.

Treatment of the Issue by the Court

Authorities

No specific authorities (cases or legal provisions) were cited or considered by the Supreme Court in this judgment.

Judgment

The Supreme Court, after hearing the parties and considering the facts of the case, decided to modify the costs imposed by the High Court. The Court reduced the costs to Rs. 3 Lakh, which were to be paid within three weeks from the date of the order. The Court also stated that failure to pay within the stipulated time would result in the dismissal of the application for condonation of delay.

What weighed in the mind of the Court?

The Supreme Court’s decision to modify the costs was primarily influenced by the facts and circumstances of the case, as stated in the judgment. The Court did not delve into detailed legal reasoning or cite any precedents. The primary factor was the agreement of the respondent and the court’s discretion to reduce the cost.

Key Takeaways

• The Supreme Court can modify costs imposed by High Courts in delay condonation matters based on the specific facts and circumstances of the case.
• The Court may reduce costs when both parties agree or when it deems the initial costs to be excessive.
• Failure to comply with the modified cost order can lead to the dismissal of the application for condonation of delay.
• Parties are free to request the High Court to expedite the matter.

Directions

The Supreme Court directed that the modified costs of Rs. 3 Lakh be paid within three weeks from the date of the order. It was also stated that if the costs are not paid within the stipulated time, the application for condonation of delay would be dismissed. The Court also mentioned that it will be open to the parties to request the High Court to take up the matter expeditiously.

Development of Law

The judgment reinforces the Supreme Court’s appellate jurisdiction to modify orders of lower courts, especially concerning procedural matters like costs in delay condonation. The ratio decidendi of the case is that the Supreme Court can modify the costs imposed by the High Court while considering facts and circumstances of the case. This case does not change any previous position of law but rather reinforces the existing principle of judicial discretion in matters of cost modification.

Conclusion

In conclusion, the Supreme Court’s decision in Surya Educational and Charitable Trust vs. M/S Setia Builders Engineers and Contractors demonstrates its willingness to modify cost orders of High Courts in delay condonation matters. The Court reduced the costs to Rs. 3 Lakh, emphasizing the importance of considering the specific circumstances of each case. The judgment serves as a reminder of the Supreme Court’s role in overseeing and adjusting decisions of lower courts to ensure fairness and justice.