2021 (3) TMI 497 - SCH - Indian Laws

Supreme Court Ends COVID-19 Limitation Extension, Excludes Period 15.03.2020-14.03.2021

The Supreme Court extended the limitation period due to the COVID-19 pandemic until further orders, but later decided to end the extension as the ... Extension of limitation - exclusion of period from 15.03.2020 to 14.03.2021 in computing limitation - restoration/availability of balance period of limitation with effect from 15.03.2021 - fixed 90-day period from 15.03.2021 where limitation expired during excluded period - application to outer limits, condonation and termination provisions under arbitration, commercial courts and negotiable instruments law - regulated movement for time-bound legal purposesExtension of limitation - exclusion of period from 15.03.2020 to 14.03.2021 in computing limitation - Continuation of the suo motu extension of limitation during the COVID-19 period is brought to an end and the period from 15.03.2020 to 14.03.2021 is excluded for computation of limitation. - HELD THAT: - The Court observed that the original order extending limitation from 15.03.2020 had served its purpose and, in view of improving circumstances and resumption of court functioning, the general extension should cease. It directed that for computing the period of limitation for any suit, appeal, application or proceeding the time-span from 15.03.2020 till 14.03.2021 shall stand excluded. This exclusion operates as a temporal carve-out in the computation of statutory limitation periods for all proceedings governed by general or special limitation laws. [Paras 1, 2]The extension of limitation is terminated and the period 15.03.2020-14.03.2021 is excluded in computing limitation.Restoration/availability of balance period of limitation with effect from 15.03.2021 - fixed 90-day period from 15.03.2021 where limitation expired during excluded period - Provision for restoration of the balance period of limitation from 15.03.2021 and the grant of a minimum 90-day period where limitation would have expired during the excluded span. - HELD THAT: - The Court provided that any balance period of limitation remaining as on 15.03.2020 shall become available from 15.03.2021. Further, where limitation would have expired during 15.03.2020-14.03.2021, all persons shall have a limitation period of 90 days from 15.03.2021; however, if the actual balance period as on 15.03.2021 exceeds 90 days, that longer period shall apply. Thus the order creates a floor of 90 days for actions whose limitation fell due in the excluded period while preserving any longer residual limitation. [Paras 2]Balance limitation periods revive from 15.03.2021 and a minimum 90-day period from that date is allowed where limitation expired during the excluded period, subject to any longer actual balance period.Application to outer limits, condonation and termination provisions under arbitration, commercial courts and negotiable instruments law - The exclusion of 15.03.2020-14.03.2021 is declared applicable to statutory provisions that prescribe periods for instituting proceedings, outer limits for condoning delay and termination of proceedings in arbitration, commercial courts and negotiable instruments law. - HELD THAT: - The Court expressly extended the exclusionary rule to computing periods under Sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015, provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and to any other laws which prescribe limitation periods, outer limits for condonation and termination. The effect is that prescribed outer limits and termination timelines in those provisions are to be computed with the excluded period omitted, consistent with the general computation rule laid down. [Paras 2]The exclusion of 15.03.2020-14.03.2021 applies to the specified arbitration, commercial courts and negotiable instruments provisions and similarly situated statutory limitation/termination regimes.Regulated movement for time-bound legal purposes - Direction to the Government of India to amend containment-zone guidelines to permit regulated movement for specified time-bound functions, including legal purposes. - HELD THAT: - Recognising that continued access to legal remedies is a necessary function, the Court directed amendment of containment-zone guidelines so that regulated movement is expressly allowed for medical emergencies, provision of essential goods and services and other necessary functions, specifically including time-bound applications for legal purposes and educational and job-related requirements. This is a public-order direction aimed at ensuring physical access where required despite containment measures. [Paras 2]The Government is directed to amend containment guidelines to permit regulated movement for time bound legal and other necessary purposes.Final Conclusion: The suo motu extension of limitation granted during the COVID-19 pandemic is brought to an end; the period 15.03.2020-14.03.2021 is excluded in computing limitation, balance periods revive from 15.03.2021 with a minimum 90 day window for matters whose limitation fell during the excluded span (subject to any longer residual period), the exclusion applies to specified arbitration, commercial courts and negotiable instruments timelines, and the Government is directed to permit regulated movement for time bound legal purposes. Issues:1. Extension of limitation period due to COVID-19 pandemic.2. Directions for computing the period of limitation.3. Exclusion of time period for various laws.4. Amendment of guidelines for containment zones.Extension of Limitation Period due to COVID-19 Pandemic:The Supreme Court took suo motu cognizance of the challenges faced by litigants during the COVID-19 pandemic in filing petitions and applications within the prescribed period of limitation. An order dated 27.03.2020 extended the limitation period till further orders. With the improvement in the situation and the country returning to normalcy, the Court decided that the extension should come to an end.Directions for Computing the Period of Limitation:Considering the suggestions of the Attorney General for India, the Court issued directions for computing the period of limitation. It was decided that the period from 15.03.2020 till 14.03.2021 would be excluded in calculating the limitation period. Any balance period of limitation remaining as of 15.03.2020 would become available from 15.03.2021. In cases where the limitation would have expired between 15.03.2020 and 14.03.2021, all persons were granted a limitation period of 90 days from 15.03.2021, with a longer period applying if the actual balance period was greater.Exclusion of Time Period for Various Laws:The period from 15.03.2020 till 14.03.2021 was also excluded in computing periods under specific laws such as the Arbitration and Conciliation Act, 1996, Commercial Courts Act, 2015, Negotiable Instruments Act, 1881, and any other laws prescribing limitation periods, outer limits for condoning delays, and termination of proceedings.Amendment of Guidelines for Containment Zones:The Government of India was directed to amend the guidelines for containment zones to allow regulated movement for medical emergencies, essential goods and services, time-bound applications for legal purposes, educational and job-related requirements, and other necessary functions.In conclusion, the Suo Motu Writ Petition was disposed of in accordance with the directions provided by the Supreme Court regarding the limitation period and other related matters in light of the COVID-19 pandemic.