INTRODUCTION
Today, I will talk about the case of In Re: Cognizance for Extension of Limitation, Miscellaneous Application
No.665/2021, wherein vide Order dated 23.09.2021, the Hon’ble Supreme Court discussed
the issue relating to period of limitation prescribed under various laws in
light of the Covid-19 Pandemic.
I had discussed this issue in our earlier shows as
well, the links for which could be accessed in the description below.
BACKGROUND
Briefly speaking, in March 2020, 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.” Such Order extending limitation period
was continued from time to time till 02.10.2021.
It is pertinent to note that such orders have been
passed under Article 141 and Article 142 of the Constitution of India, making
it binding on all the courts, tribunals and authorities across the country. The
Court also noted that since the Covid-19 situation is attaining near normalcy
now, there is no point in continuing the relaxations relating to limitations
periods. In order to understand this proposition in a better manner, let us
understand the pertinent directions by the Court that were passed on 23.09.2021.
OBSERVATIONS BY THE COURT
Firstly, the Court directed that “in
computing the period of limitation for any suit, appeal, application or
proceeding, the period from 15.03.2020 till 02.10.2021 shall stand excluded.”
Secondly, according to the Court, “in cases
where the limitation would have expired during the period between 15.03.2020
till 02.10.2021, notwithstanding the actual balance period of limitation
remaining, all persons shall have a limitation period of 90 days from
03.10.2021. In the event the actual balance period of limitation remaining, with
effect from 03.10.2021, is greater than 90 days, that longer period shall
apply.”
Thirdly, the Court also clarified that the period
from 15.03.2020 till 02.10.2021 shall also stand excluded in computing the following
periods prescribed: -
a. Limitation Period for filing of Statements of
Claim and Defence and Time limit for passing Arbitral Awards under the Arbitration
& Conciliation Act, 1996.
b. Period of Pre-Institution Mediation and
Settlement under S. 12A of the Commercial Courts Act, 2015.
c. Limitation Period in relation to dishonour of cheques
under S. 138 of the Negotiable Instruments Act, 1881; and
d. Other laws where limitation periods have been
prescribed.
Thus, the period from 15.03.2020 till 02.10.2021
shall stand excluded in respect of all the laws that we just discussed.
And lastly and interestingly, the Court also directed
the Government of India to expressly allow regulated movement for medical
emergencies, provisioning of essential goods and services, time bound
applications in government departments, educational requirements, job related
requirements and other necessary functions.
Those were the directions by the Court in this case.
So, what are my concluding remarks?
CONCLUDING REMARKS
Though the Hon’ble Supreme Court has ended the
relaxations granted earlier in relation to extension of limitation periods, yet
there are many places in India where Covid-19 still continues to wreak havoc.
Hundreds of people are still losing their lives every day because of Covid-19
and no body knows when the third wave in India would come, if at all it comes. With
all due respect, I find it to be a confusing order. In earlier instances as
well, the Hon’ble Supreme Court had ended these relaxations but after coming of
2nd wave of Covid-19, such relaxations were again brought into force.
There is lot of confusion among litigants with respect to computation of periods
of limitation. I hope that this Order brings some much-needed clarity in this
regard and there does not arise a situation where such relaxations have to be
extended again.
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