Supreme Court on Extension on Period of Limitation due to Covid-19 Pandemic

  

Introduction

 

Today we will discuss the case of In Re: Cognizance for Extension of Limitation, Suo Motu Writ Petition (Civil) No. 3/2020, wherein the issue relating to period of limitation prescribed under various laws was considered in light of onset of Covid-19 pandemic.

 

Vide Order dated 27.03.2020 in the instant, the Hon’ble Supreme Court had extended “the period of limitation prescribed under the general law or special laws whether compoundable or not with effect from 15.03.2020 till further orders.”

 

The Court also observed that though the end of the pandemic remains to be seen yet there seems to be considerable improvement in the state of affairs and it is of the opinion that the Order extending the period of limitation has served its purpose.

 

Important Directions

 

Thus, following important directions have been issued by the Court: -

 

1. “In computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 14.03.2021 shall stand excluded. Consequently, the balance period of limitation remaining as on 15.03.2020, if any, shall become available with effect from 15.03.2021.”

 

2. “In cases where the limitation would have expired during the period between 15.03.2020 till 14.03.2021, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 15.03.2021. In the event the actual balance period of limitation remaining, with effect from 15.03.2021, is greater than 90 days, that longer period shall apply.”

 

3. Such exclusion of period of limitation is also applicable on S.23(4), 29A of the Arbitration & Conciliation Act, 1996 and Provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881.

 

4. The State shall allow regulated movement for legal, medical, educational, and employment related requirements.

 

Concluding Remarks

 

Though this is a small and laconic Order yet its significance is immense. There is a lot of confusion among the litigants as well as the legal fraternity regarding the computation of period of limitation in various cases. This conundrum started with the Order dated 24.03.2020 that was passed by the Ministry of Home Affairs, in exercise of the powers under Section 6 (2) (i) and 10 (2) (l) of the Disaster Management Act, 2005 (in short, ‘Act of 2005’). This lockdown was extended from time to time and after few months, the government started calling the same guidelines as ‘Unlock’ guidelines. The present Order provides much needed relief and clarity to every by making it amply clear that the period of last one year shall be excluded for the purposes of computing the period of limitation.

 

Another significant aspect of the instant Order is that the Court has directed the State allow regulated movement for legal, medical, educational, and employment related requirements. I think this has a lot of significance and can be used by common people as a shield against the atrocities and excesses committed by the State in various places. Getting a job and securing employment is equally important as breathing air or drinking water. It is high time that the State starts playing a proactive role in alleviating the agony of its citizens.