2022 (1) TMI 385 - SCH - Indian Laws

Limitation period pause 15 Mar 2020-28 Feb 2022 restored; limitation resumes 1 Mar 2022 with 90-day grace

SC restored its 23.03.2020 order and, continuing subsequent orders, excluded the period 15.03.2020-28.02.2022 from computation of limitation for all ... Extension of period of limitation - exclusion of period for computation of limitation - restoration of earlier limitation orders - availability of balance limitation period - fixed 90-day limitation where original expiry fell within excluded period - application to arbitration and specified statutory provisionsRestoration of earlier limitation orders - extension of period of limitation - Restoration and continuation of the Court's earlier order relaxing limitation from 15.03.2020. - HELD THAT: - Having considered the surge of the COVID-19 virus and its impact on public health and litigants' ability to access courts, the Court restored the order dated 23.03.2020 and continued the earlier relaxations. The Court observed that, in light of prevailing conditions and submissions, it is appropriate to treat the period affected by the pandemic as excluded for limitation purposes and to reinstate the relief previously granted by its orders of 23.03.2020 and subsequent directions. [Paras 5]Order dated 23.03.2020 restored and the period from 15.03.2020 till 28.02.2022 excluded for purposes of limitation.Availability of balance limitation period - fixed 90-day limitation where original expiry fell within excluded period - Allocation of the balance period of limitation and imposition of a 90-day limitation where limitation would have expired during the excluded period. - HELD THAT: - The Court directed that any balance period of limitation remaining as on 03.10.2021 shall become available with effect from 01.03.2022. Further, where limitation would have expired during 15.03.2020 to 28.02.2022, every person shall have a limitation period of 90 days from 01.03.2022; however, if the actual balance period available from 01.03.2022 exceeds 90 days, that longer period will apply. These measures are intended to provide a uniform and protective mechanism for commencement of actions delayed by the pandemic period. [Paras 5]Balance limitation period available from 01.03.2022; where original expiry fell within excluded period, a 90-day period from 01.03.2022 applies unless a longer balance period exists.Exclusion of period for computation of limitation - application to arbitration and specified statutory provisions - Extent of exclusion to statutory regimes including arbitration, Commercial Courts Act and Negotiable Instruments Act. - HELD THAT: - The Court clarified that the excluded period (15.03.2020 to 28.02.2022) is to be disregarded not only for ordinary limitation statutes but also in computing periods and outer limits under specific provisions: 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 any other laws prescribing periods for instituting proceedings, outer limits for condoning delay, and termination of proceedings. The exclusion therefore operates for instituting actions, condonation outer limits and termination timelines across these specified statutes and any similar statutory prescriptions. [Paras 5]Excluded period applies in computing limitation and outer limits under the stated provisions of the Arbitration Act, Commercial Courts Act, Negotiable Instruments Act and any other laws prescribing similar limitation or termination periods.Final Conclusion: The Supreme Court restored its 23.03.2020 order and directed that the period from 15.03.2020 to 28.02.2022 be excluded for limitation purposes; balance limitation stands available from 01.03.2022 with a 90-day protective period where applicable, and the exclusion applies to the specified provisions of the Arbitration Act, Commercial Courts Act, Negotiable Instruments Act and other laws prescribing limitation, outer limits or termination periods. Issues:1. Extension of period of limitation due to COVID-19 pandemic.2. Restoration of orders dated 23.03.2020 and 27.04.2021.3. Impact of COVID-19 surge on judicial proceedings.Analysis:Extension of Period of Limitation:The Supreme Court took Suo Motu cognizance in March 2020 of the challenges faced by litigants in meeting the limitation period due to the COVID-19 pandemic. An order was issued on 23.03.2020 extending the limitation period in all proceedings till further orders. Subsequently, on 08.03.2021, it was decided to relax the limitation period between 15.03.2020 and 14.03.2021, with the limitation period starting from 15.03.2021. Due to a second surge in COVID-19 cases, a Miscellaneous Application was filed seeking restoration of the order dated 23.03.2020. The Court extended the limitation period till 02.10.2021 in response to this application.Restoration of Orders:A new Miscellaneous Application was filed seeking restoration of the orders dated 23.03.2020 and 27.04.2021 in light of the spread of a new COVID-19 variant and the surge in cases across the country. The Court, considering the arguments presented and the impact of the virus surge on public health and litigants, decided to restore the order dated 23.03.2020. This restoration, in conjunction with previous orders, excluded the period from 15.03.2020 till 28.02.2022 for limitation purposes. It was directed that any balance period of limitation as of 03.10.2021 would become available from 01.03.2022.Impact of COVID-19 Surge on Judicial Proceedings:The Court clarified that in cases where the limitation would have expired between 15.03.2020 and 28.02.2022, all persons would have a limitation period of 90 days from 01.03.2022. Furthermore, the exclusion of the period from 15.03.2020 to 28.02.2022 was also applicable in computing periods prescribed under specific laws related to arbitration, commercial courts, negotiable instruments, and other laws governing limitation periods for legal proceedings.In conclusion, the Court's decision aimed to address the challenges faced by litigants during the COVID-19 pandemic by extending the limitation period and restoring previous orders to ensure fairness and access to justice in judicial proceedings.