A division bench of Supreme Court held as follows,
From Para 26,
26. We are at a loss to fathom any logic or rationale, which could have impelled the High Court to condone the delay after holding the same to be unjustifiable. The concepts such as “liberal approach”, “justice oriented approach”, “substantial justice” can not be employed to jettison the substantial law of limitation. Especially, in cases where the Court concludes that there is no justification for the delay. In our opinion, the approach adopted by the High Court tends to show the absence of judicial balance and restraint, which a Judge is required to maintain whilst adjudicating any lis between the
parties. We are rather pained to notice that in this case, not being satisfied with the use of mere intemperate language, the High Court resorted to blatant sarcasms. The use of unduly strong intemperate or extravagant language in a judgment has been repeatedly disapproved by this Court in a number of cases. Whilst considering applications for condonation of delay under Section 5 of the Limitation Act, the Courts do not enjoy unlimited and unbridled discretionary powers. All discretionary powers, especially judicial powers, have to be exercised within reasonable bounds, known to the law. The discretion has to be exercised in a systematic manner informed by reason. Whims or fancies; prejudices or predilections can not and should not form the basis of exercising discretionary powers.
Citations: [2011 SCALE 2 703], [2011 AIR SC 1199], [2011 AIR SC 1459], [2011 SUPREME 2 174], [2011 AIOL 144], [2011 SLT 2 378], [2011 BOMCR SC 5 857], [2011 JT 2 540], [2011 SCC 4 363], [2011 MHLJ SC 4 104], [2011 RCR CIVIL SC 2 880], [2011 ALR 86 59], [2011 AWC SC 3 2295], [2011 SCSUPPL CHN 2 130], [2011 CLT SC 112 152], [2011 KCCR SN 2 124], [2011 LW 3 26], [2011 SCR 3 2172909 CIVIL APPEAL NO OF 2913 2005], [2011 BOMCR 5 857], [2011 KCCRSN 2 124], [2011 RCR CIVIL 2 880], [2011 AIR SCW 1459]
Other Sources:
https://indiankanoon.org/doc/912526/
https://www.casemine.com/judgement/in/5609af08e4b0149711415652
https://vlex.in/vid/c-no-002909-002913-852352762