2021 (1) TMI 261 - SCH - Indian Laws

Supreme Court Extends Time Limits for Arbitration & Commercial Courts

In Re : Cognizance For Extension of Limitation

The Supreme Court extended time limitations under the Arbitration and Conciliation Act, 1996, including for passing arbitral awards and completing ... Time Limit for passing of Arbitral Award - Section 29A of the Arbitration and Conciliation Act, 1996 - lockdown in view of COVID-19 - HELD THAT:- In Suo Moto Writ Petition (C) No. 3/2020, by our order [2020 (5) TMI 418 - SC ORDER], we ordered that all periods of limitation prescribed under the Arbiration and Conciliation Act, 1996 shall be extended w.e.f. 15-3-2020 till further orders. - It is directed that the aforesaid orders shall also apply for extension of the time limit prescribed under section 23(4) of the said Act. Time Limit for for completing the process of compulsory pre-litigation, mediation and settlement - Pre-Institution Mediation and Settlement under section 12A of the Commercial Courts Act, 2015 - HELD THAT:- Under Section 12A of the Commercial Courts Act, 2015, time is prescribed for completing the process of compulsory pre-litigation, mediation and settlement. The said time is also liable to be extended - it is directed that the said time shall stand extended from the time when the lockdown is lifted plus 45 days thereafter. That is to say that if the above period, i.e. the period of lockdown plus 45 days has expired, no further period shall be liable to be excluded. Time limit for Service of all notices, summons and exchange of pleadings - HELD THAT:- Service of notices, summons and exchange of pleadings/documents, is a requirement of virtually every legal proceeding. Service of notices, summons and pleadings etc. have not been possible during the period of lockdown because this involves visits to post offices, courier companies or physical delivery of notices, summons and pleadings - It is considered appropriate to direct that such services of all the above may be effected by e-mail, FAX, commonly used instant messaging services, such as WhatsApp, Telegram, Signal etc. However, if a party intends to effect service by means of said instant messaging services, it is directed that in addition thereto, the party must also effect service of the same document/documents by e-mail, simultaneously on the same date. Period of validity of a cheque - Extension of validity of Negotiable Instruments Act, 1881 due to lockdown in view of COVID-19 - HELD THAT:- The said period has not been prescribed by any Statute but it is a period prescribed by the Reserve Bank of India under section 35-A of the Banking Regulation Act,1949. It is not considered appropriate to interfere with the period prescribed by the Reserve Bank of India, particularly, since the entire banking system functions on the basis of the period so prescribed - The Reserve Bank of India may in its discretion, alter such period as it thinks fit. Issues:1. Extension of time limitation during lockdown under the Arbitration and Conciliation Act, 1996.2. Extension of time for completing pre-litigation mediation under the Commercial Courts Act, 2015.3. Service of notices, summons, and pleadings during lockdown.4. Extension of validity of Negotiable Instruments Act, 1881.Extension of time limitation during lockdown under the Arbitration and Conciliation Act, 1996:The Supreme Court addressed the issue of extending time limitation during the lockdown period due to COVID-19. The Court referred to its previous orders extending all periods of limitation under the Arbitration and Conciliation Act, 1996 from 15-3-2020. The Court noted that Section 29A of the Act does not prescribe a period of limitation but sets a time for specific acts, such as making an arbitral award. Therefore, the Court directed that the extension of time would also apply to passing arbitral awards under Section 29A. Additionally, the Court extended the time limit for completing the statement of claim and defense under Section 23(4) of the Act.Extension of time for completing pre-litigation mediation under the Commercial Courts Act, 2015:Regarding pre-litigation mediation under Section 12A of the Commercial Courts Act, 2015, the Court allowed an extension of time for completing the mediation process. The Court directed that the time for pre-litigation mediation and settlement would be extended from the end of the lockdown period plus an additional 45 days. Once this extended period expires, no further exclusion of time would be applicable.Service of notices, summons, and pleadings during lockdown:The Court acknowledged the challenges in serving notices, summons, and pleadings during the lockdown period. Considering the limitations on physical delivery, the Court permitted the service of these documents through electronic means such as email, FAX, and instant messaging services like WhatsApp, Telegram, and Signal. The Court emphasized that if service is done through instant messaging services, simultaneous service via email is mandatory.Extension of validity of Negotiable Instruments Act, 1881:In response to the request for extending the validity period of cheques, the Court noted that the period is determined by the Reserve Bank of India under the Banking Regulation Act, 1949. The Court declined to interfere with this prescribed period, highlighting the importance of the banking system's functioning based on these regulations. The Reserve Bank of India retains the discretion to alter the validity period as deemed necessary.The Court disposed of the applications accordingly, with one application allowed for impleadment and another listed for hearing after six weeks.