Case Note & Summary
The dispute arose from the removal of the appellant from service as a Clerk at the State Bank of India, following a promotion to Branch Manager. After being suspended in 1980, he faced departmental proceedings leading to his dismissal in January 1983. The appellant challenged this dismissal through various appeals, including one under Section 41(2) of the Tamil Nadu Shops and Establishments Act, 1947, which was dismissed on the grounds that the Act did not apply to nationalized banks. The appellant subsequently filed a suit in the City Civil Court, Madras, seeking a declaration that his dismissal was illegal. The trial court dismissed the suit, citing it was beyond the limitation period. However, the first appeal was allowed, stating the suit was within time, but this was overturned by the Madras High Court, which ruled the suit was barred by limitation. The Supreme Court was then approached to determine the timeliness of the suit. The court examined the applicability of Section 14 of the Limitation Act, which allows exclusion of time spent in civil proceedings. It concluded that the Deputy Commissioner of Labour (Appeals) constituted a 'court' under this section, thus allowing the exclusion of the time spent in the appeal process. The court found that if the time was excluded, the suit was indeed within the limitation period. Consequently, the appeal was allowed, and the earlier dismissal was overturned.
Headnote
A) Limitation Law - Period of Limitation - Applicability of Section 14 Limitation Act, 1963 - The Deputy Commissioner of Labour (Appeals) was deemed a 'court' for the purpose of Section 14 of the Limitation Act, allowing exclusion of time for pending appeals. The court held that the time spent in prosecuting the appeal before the Deputy Commissioner should be excluded from the limitation period, thus making the suit within time (Paras 1-4).
Issue of Consideration
Whether the suit instituted by the appellant in the City Civil Court, Madras on 28th of September, 1988 was within time.
Final Decision
The Supreme Court allowed the appeal, ruling that the suit was within the limitation period by excluding the time spent in the appeal before the Deputy Commissioner of Labour (Appeals).
Law Points
- Limitation period
- civil proceedings
- appeal jurisdiction
- Section 14 Limitation Act
- 1963
- Tamil Nadu Shops and Establishments Act
- 1947


