2021 (5) TMI 564 - SCH - Indian Laws

SC Extends Limitation Periods for Judicial Proceedings Due to COVID-19, Adds 90-Day Grace Period After March 2021.

The SC extended the limitation period for all judicial and quasi-judicial proceedings due to the COVID-19 pandemic. Initially set from 15th March 2020 to ... Extension of period of limitation - exclusion of period in computation of limitation - application to 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 - suo motu cognizance - exercise of powers under Article 142 read with Article 141 of the ConstitutionExtension of period of limitation - suo motu cognizance - Restoration and continuation of the extension of limitation periods for all judicial and quasi judicial proceedings in view of the COVID 19 pandemic. - HELD THAT: - The Court took suo motu cognizance of the difficulties caused by the COVID 19 pandemic and, having noted the renewed nationwide surge in infections, restored the operative directions of the order dated 23 March 2020. Consequently, the periods of limitation prescribed under any general or special laws for instituting proceedings, whether condonable or not, are extended and shall stand excluded till further orders. The restoration is directed as a nation wide measure to minimise hardship to litigants and practitioners in the extraordinary situation caused by the pandemic.The order dated 23 March 2020 restoring extension of limitation periods is revived and continued till further orders.Exclusion of period in computation of limitation - application to 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 - Whether the excluded period extends to statutory outer limits and termination provisions in specified statutes and other laws prescribing limitation periods. - HELD THAT: - The Court clarified that the period from 14 March 2021 until further orders shall be excluded in computing limitation for the specified provisions and generally for any law prescribing periods for instituting proceedings, outer limits within which courts/tribunals can condone delay, and termination of proceedings. This extension therefore operates also in relation to the statutory provisions identified in the order and any similar statutory prescription, ensuring that outer limits and termination periods are likewise not run during the excluded period.The excluded period is declared applicable to the named statutory provisions and to other laws prescribing limitation, outer limits for condonation and termination of proceedings.Exercise of powers under Article 142 read with Article 141 of the Constitution - Whether the order is binding on all courts, tribunals and authorities and the source of the Court's power to pass the directions. - HELD THAT: - The Court invoked its plenary power under Article 142 read with Article 141 to pass the directions and expressly declared the order to be binding within the meaning of Article 141 on all courts, tribunals and authorities. The order is therefore to be implemented nationwide and communicated by High Courts to subordinate courts and tribunals within their jurisdictions.The directions are issued under Article 142 read with Article 141 and are binding on all courts, tribunals and authorities; High Courts are to communicate the order to subordinate fora.Final Conclusion: In view of the resurgence of COVID 19, the Supreme Court has restored and continued the nationwide extension of limitation by excluding the relevant period until further orders, clarified that the exclusion applies to the specified statutory provisions and similar limitation/outer limit rules, and has made the directions binding under Article 142 read with Article 141, directing communication of the order to all subordinate courts and registrars general of the High Courts. Issues:1. Extension of limitation period due to COVID-19 pandemic.2. Restoration of the order dated 23rd March, 2020 for extending limitation periods.3. Impact on judicial and quasi-judicial proceedings.4. Application of the order to specific laws and acts.5. Exercise of powers under Article 142 and Article 141 of the Constitution of India.Analysis:The Supreme Court took suo motu cognizance of the challenges posed by the COVID-19 pandemic on litigants nationwide. Initially, on 23rd March, 2020, the Court extended the period of limitation for all legal proceedings from 15th March, 2020, until further orders. Subsequently, on 8th March, 2021, observing a return to normalcy, the Court ended the extension of limitation. Specific directions were issued, excluding the period from 15th March, 2020, to 14th March, 2021, from the calculation of limitation periods. For cases where the limitation would have expired during this period, a grace period of 90 days from 15th March, 2021, was granted. The order also impacted laws such as the Arbitration and Conciliation Act, Commercial Courts Act, and Negotiable Instruments Act, extending limitation periods and outer limits for condoning delays.The Supreme Court received an application from the Supreme Court Advocate on Record Association (SCAORA) highlighting the surge in COVID-19 cases in Delhi and the challenges faced by advocates and litigants in filing cases. In response, the Court restored the order dated 23rd March, 2020, extending limitation periods for all judicial and quasi-judicial proceedings until further orders. This extension was deemed necessary due to the extraordinary situation caused by the resurgence of COVID-19 cases nationwide. The Court clarified that the exclusion of the period from 14th March, 2021, onwards would also apply to specific laws governing limitation periods and delay condonation provisions.The Supreme Court invoked its powers under Article 142 read with Article 141 of the Constitution of India to issue this binding order applicable to all courts, tribunals, and authorities. The order was to be communicated to all High Courts for dissemination to subordinate courts and tribunals within their jurisdictions. Notice was issued to all Registrars General of the High Courts, returnable in 6 weeks, with the Miscellaneous Application listed for further consideration on 19th July, 2021.