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        Companies Law

        1997 (12) TMI 544 - HC - Companies Law

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        Certified copy exclusion in limitation for statutory appeal under the Chit Funds Act preserves the right to challenge awards effectively. In an appeal under Section 70 of the Chit Funds Act, 1982, the time reasonably spent in obtaining a certified copy of an award must be excluded when ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                              Certified copy exclusion in limitation for statutory appeal under the Chit Funds Act preserves the right to challenge awards effectively.

                              In an appeal under Section 70 of the Chit Funds Act, 1982, the time reasonably spent in obtaining a certified copy of an award must be excluded when computing limitation, because the award is not required to be communicated and the Limitation Act is not expressly or impliedly excluded. The proceedings under Chapter XII were treated as having the incidents of civil proceedings, and the principle underlying Section 12(2) of the Limitation Act, 1963, was applied to protect the appellant's right to frame effective grounds of challenge. The appeal was therefore treated as within time and the time-bar objection could not stand.




                              Issues: Whether, in computing the limitation period for an appeal under Section 70 of the Chit Funds Act, 1982, the time taken to obtain a certified copy of the award is liable to be excluded.

                              Analysis: The appeal under Section 70 had to be filed within two months from the date of the award, but the Rules contemplated that a party may obtain a certified copy on application and payment of fees, while the award itself was not required to be communicated by the Registrar. The proceedings under Chapter XII bore the incidents of civil proceedings, and without a certified copy the aggrieved party could not effectively prefer an appeal or know the contents of the award to frame grounds. The Court held that the Limitation Act was not expressly or impliedly excluded, and the principle underlying Section 12(2) of the Limitation Act, 1963, must therefore be applied so that the time spent in obtaining the copy is excluded.

                              Conclusion: The time taken from the date of the copy application until delivery of the certified copy was to be excluded, and the appeal was within time.

                              Final Conclusion: The rejection of the appeal as time-barred could not stand, and the matter had to be taken up and decided on merits.

                              Ratio Decidendi: Where a statutory appeal lies against an award that is not required to be communicated, the period reasonably spent in obtaining the certified copy of the award must be excluded in computing limitation, applying the principle underlying Section 12(2) of the Limitation Act, 1963, unless such exclusion is expressly or impliedly barred.


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