Supreme Court Disposes of Miscellaneous Application in Suo Motu Limitation Extension Case with Final Directions. The Court excluded the period from 15.03.2020 to 02.10.2021 in computing limitation under general and special laws, providing a 90-day period from 03.10.2021 for cases where limitation expired, and applied this to specific statutes including Arbitration and Conciliation Act, 1996, and Negotiable Instruments Act, 1881.

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Case Note & Summary

The Supreme Court of India, in suo motu proceedings initiated due to the COVID-19 pandemic, addressed the extension of limitation periods for legal proceedings. The background involved the Court taking cognizance in March 2020 of difficulties faced by litigants in filing various petitions, applications, suits, appeals, and other proceedings within prescribed limitation periods under general and special laws. Initially, on 23.03.2020, the Court directed an extension of limitation periods from 15.03.2020 until further orders. As the pandemic situation evolved, the Court passed an order on 08.03.2021, excluding the period from 15.03.2020 to 14.03.2021 in computing limitation and providing a 90-day period from 15.03.2021 for cases where limitation expired during that interval. However, a second surge in COVID-19 cases led to the restoration of the 23.03.2020 order on 27.04.2021, upon intervention by the Supreme Court Advocates on Record Association (SCAORA) through Miscellaneous Application No. 665 of 2021. The legal issues centered on whether the extension should be continued, restored, or modified, considering the restored normalcy and the Attorney General's contention for modification of the 08.03.2021 order. Arguments included the Attorney General's submission that the balance period of limitation prior to 15.03.2020 should be considered, while SCAORA and others sought restoration. The Court analyzed the situation, noting consensus that the initial order need not continue further and that the 08.03.2021 order was a one-time measure not requiring modification. In its decision, the Court disposed of the miscellaneous application with directions: excluding the period from 15.03.2020 to 02.10.2021 in computing limitation, providing a 90-day period from 03.10.2021 for expired cases, and applying this exclusion to specific statutes like the Arbitration and Conciliation Act, 1996, Commercial Courts Act, 2015, and Negotiable Instruments Act, 1881. The Court also directed the Government of India to amend containment zone guidelines. The order was passed under Article 142 read with Article 141 of the Constitution, making it binding on all courts and authorities.

Headnote

A) Limitation Law - Extension of Limitation Periods - COVID-19 Pandemic - Limitation Act, 1963 and various special laws - The Supreme Court, in suo motu proceedings, considered the difficulties faced by litigants due to the COVID-19 pandemic and extended limitation periods. Initially, on 23.03.2020, the Court directed extension from 15.03.2020 till further orders. On 08.03.2021, it excluded the period from 15.03.2020 to 14.03.2021 and provided a 90-day period from 15.03.2021 for expired cases. Due to a second surge, the order dated 23.03.2020 was restored on 27.04.2021. In the present order, the Court disposed of the miscellaneous application by directing exclusion from 15.03.2020 to 02.10.2021, with a 90-day period from 03.10.2021 for expired cases, and applied this to specific statutes. Held that the order dated 08.03.2021 should not be modified as it was a one-time measure, and the extension need not continue further due to restored normalcy. (Paras 1-8)

B) Constitutional Law - Judicial Powers - Binding Orders - Article 142 and Article 141 of the Constitution of India - The Court exercised its powers under Article 142 read with Article 141 to pass binding orders on all Courts/Tribunals and Authorities regarding the extension of limitation periods. This was done to address the extraordinary situation caused by the COVID-19 pandemic and minimize hardship for litigants. The order dated 27.04.2021 explicitly stated this exercise of power, ensuring nationwide applicability. Held that such orders are binding under Article 141. (Paras 3, 8)

C) Arbitration Law - Exclusion of Periods in Arbitration Proceedings - Arbitration and Conciliation Act, 1996, Sections 23(4) and 29A - The Court directed that the period from 15.03.2020 to 02.10.2021 shall be excluded in computing periods prescribed under Sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996. This applies to proceedings instituting arbitration and outer limits for condoning delay. The exclusion was part of the broader limitation extension due to the pandemic. Held that this exclusion is necessary to align with the general extension of limitation periods. (Paras 2, 8)

D) Commercial Law - Exclusion of Periods in Commercial Courts - Commercial Courts Act, 2015, Section 12A - The Court directed that the period from 15.03.2020 to 02.10.2021 shall be excluded in computing periods prescribed under Section 12A of the Commercial Courts Act, 2015. This pertains to pre-institution mediation and other limitation periods in commercial disputes. The exclusion ensures consistency with the pandemic-related extension. Held that this measure prevents prejudice to litigants in commercial proceedings. (Paras 2, 8)

E) Negotiable Instruments Law - Exclusion of Periods in Cheque Dishonour Cases - Negotiable Instruments Act, 1881, Section 138 provisos (b) and (c) - The Court directed that the period from 15.03.2020 to 02.10.2021 shall be excluded in computing periods prescribed under provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881. This relates to the limitation for filing complaints in cheque dishonour cases. The exclusion is part of the comprehensive extension to mitigate pandemic impacts. Held that this ensures fairness in time-bound proceedings under the Act. (Paras 2, 8)

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Issue of Consideration

Whether the extension of limitation periods due to the COVID-19 pandemic should be continued, restored, or modified, and the appropriate directions for computing limitation periods

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Final Decision

The Court disposed of Miscellaneous Application No. 665 of 2021 with directions: I. Exclude period from 15.03.2020 to 02.10.2021 in computing limitation; balance period from 15.03.2020 available from 03.10.2021. II. For cases where limitation expired between 15.03.2020 and 02.10.2021, provide 90-day period from 03.10.2021, or longer if balance period greater. III. Exclude same period for specific statutes: Arbitration and Conciliation Act, 1996 (Sections 23(4) and 29A), Commercial Courts Act, 2015 (Section 12A), Negotiable Instruments Act, 1881 (Section 138 provisos (b) and (c)). IV. Government of India to amend containment zone guidelines.

Law Points

  • Extension of limitation periods under general and special laws
  • exclusion of specified periods in computing limitation
  • exercise of powers under Article 142 read with Article 141 of the Constitution of India
  • restoration and modification of previous orders based on pandemic conditions
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Case Details

2021 LawText (SC) (9) 39

Miscellaneous Application No. 665 of 2021 in SMW(C) No. 3 of 2020

2021-09-23

N. V. Ramana, L. Nageswara Rao, Surya Kant

K.K. Venugopal, B.V. Balaram Das, Shivaji M. Jadhav, Manoj K. Mishra, Dr. Joseph S. Aristotle, Diksha Rai, Nikhil Jain, Atulesh Kumar, Dr. Aman Hingorani, Anzu Varkey, Sachin Sharma, Aljo Joseph, Varinder Kumar Sharma, Abhinav Ramkrishna, S. Niranjan Reddy, Mahfooz Ahsan Nazki, Polanki Gowtham, Shaik Mohamad Haneef, T. Vijaya Bhaskar Reddy, Amitabh Sinha, K.V. Girish Chowdary, P.H. Parekh, Sameer Parekh, Kshatrashal Raj, Tanya Chaudhry, Pratyusha Priyadarshini, Nitika Pandey, Soumya Chakraborty, Sanjai Kumar Pathak, Shashi Pathak, Vikas Singh, Amit Sharma, Dipesh Sinha, Pallavi Barua, Prateek Kumar, Ashok Nijhawan, Aman Bhalla, Anindita Mitra, Pawan Reley, Akshay Lodhi, Vinod Sharma, Joydip Roy, Sajal Awasthi, Binod Kumar Singh, Parijat Som, Yashvardhan, Apoorv Shukla, Smita Kant, Ishita Farsaiya, Prabhleen Kaur, Kritika Nagpal, Bhavya Bhatia, Arjun Garg, Aakash Nandolia, Sagun Srivastava, Sunieta Ojha, P. I. Jose, Prashant K. Sharma, Jenis V. Francis, Avijit Mani Tripathi, T.K. Nayak, Sahil Tagotra, A.P. Mayee, Vkc Law Offices, Mukesh K. Giri, Kunal Chatterji, Maitrayee Banerjee, Abhimanyu Tewari, Eliza Bar, Apoorv Kurup, Nidhi Mittal, Binu Tamta, Dhruv Tamta, Pratibha Jain, Sanjai Kumar Pathak, Divyakant Lahoti, Parikshit Ahuja, Praveena Bisht, Madhur Jhavar, Vindhya Mehra, Kartik Lahoti, Rahul Maheshwari, Shivangi Malhotra, Tapesh Kumar Singh, Aditya Pratap Singh, L. Bhaswati Singh, Aditya Narayan Das, Uttara Babbar, Manan Bansal

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Nature of Litigation

Suo motu proceedings for extension of limitation periods due to COVID-19 pandemic

Remedy Sought

Restoration of order dated 23.03.2020 and appropriate directions for computing limitation periods

Filing Reason

Difficulties faced by litigants in filing proceedings within limitation periods during the pandemic

Previous Decisions

Order dated 23.03.2020 extended limitation from 15.03.2020 till further orders; order dated 08.03.2021 excluded period from 15.03.2020 to 14.03.2021 and provided 90-day period from 15.03.2021; order dated 27.04.2021 restored order dated 23.03.2020

Issues

Whether the extension of limitation periods due to COVID-19 should be continued, restored, or modified

Submissions/Arguments

Attorney General contended that the order dated 08.03.2021 should be modified to consider balance period of limitation prior to 15.03.2020 SCAORA and others sought restoration of order dated 23.03.2020

Ratio Decidendi

The Supreme Court, in exercise of powers under Article 142 read with Article 141 of the Constitution, can issue binding orders to extend limitation periods during extraordinary situations like the COVID-19 pandemic to minimize hardship for litigants, and such extensions should be tailored to the evolving pandemic conditions without modifying one-time measures.

Judgment Excerpts

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. We have passed this order in exercise of our powers under Article 142 read with Article 141 of the Constitution of India.

Procedural History

23.03.2020: Court directed extension of limitation from 15.03.2020 till further orders. 08.03.2021: Court excluded period from 15.03.2020 to 14.03.2021 and provided 90-day period from 15.03.2021. 27.04.2021: Court restored order dated 23.03.2020 upon intervention by SCAORA. 23.09.2021: Court disposed of Miscellaneous Application No. 665 of 2021 with final directions.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: 23(4), 29A
  • Commercial Courts Act, 2015: 12A
  • Negotiable Instruments Act, 1881: 138
  • Constitution of India: Article 141, Article 142
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