IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.2687 OF 2007

Lucy Paul and Anr.       ...Appellant(s)

Versus

Custodian, Special Court (Torts) Act. & Ors. ...Respondent(s)

O  R  D  E  R

By  the impugned order, the Special Court constituted under the Special  Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 [for short,  

“the Special Court”] dismissed the application filed on behalf of the appellants for  lifting the attachment of ACC shares and grant of consequential benefits on the sole  

ground that the same was filed much after the cut off date and the explanation given  by the appellants was not sufficient for condonation of delay.

We have heard learned counsel for the parties and perused the record.  In  our opinion, the Special Court was not justified in refusing to condone the delay in  

filing application for issue of a direction to the Custodian to lift the attachment on five  ACC shares of hundred rupees face value, to the company to transfer the shares in  

the applicants name and to pay dividend and accruals thereon.  In their application,  the appellants had given the reasons for not filing application before the cut off date,  

but, without even adverting to the same,  the  Special Court dismissed the ....2/-

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application.  In our view, in the facts and circumstances o the case, the Special Court  should have condoned the delay in filing the application and disposed of the same on  

merits. Accordingly, the appeal is allowed, impugned order is set aside and delay  

in filing the application before the Special Court is condoned.  Now, the Special Court  shall  dispose  of  the  application  filed  on  behalf  of  the  appellants  on  merits  in  

accordance with law after giving opportunity of hearing to the parties.

......................J.       [B.N. AGRAWAL]

......................J.       [G.S. SINGHVI]

New Delhi, April 17, 2009.