Bona fide prosecution in writ proceedings can extend limitation, but filing beyond the court-fixed deadline remains time-barred.

Time spent in bona fide writ and writ appeal proceedings before the High Court may be excluded under Section 14 of the Limitation Act, 1963 when the litigant acted with good faith and due diligence while pursuing an alternate remedy. On that basis, the period from 25.01.2022 to 22.06.2022 was excluded for limitation purposes. However, an appeal filed after the period expressly allowed by the High Court's order remained beyond time; the filing on 06.07.2022 was one day late and therefore not maintainable.

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Issues: (i) Whether the period spent in prosecuting writ proceedings before the High Court could be excluded under Section 14 of the Limitation Act, 1963 for computing limitation for the appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016. (ii) Whether the appeal filed on 06.07.2022 was within the time permitted by the High Court's order dated 22.06.2022.

Issue (i): Whether the period spent in prosecuting writ proceedings before the High Court could be excluded under Section 14 of the Limitation Act, 1963 for computing limitation for the appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016.

Analysis: Section 14 was applied on the footing that the appellants had bona fide pursued writ proceedings and a writ appeal before the High Court after the impugned order, rather than merely remaining inactive. The Tribunal treated limitation as a jurisdictional bar, but held that exclusion of time is available where the litigant acted with good faith and due diligence in a bona fide litigious course. On that basis, the period from 25.01.2022 to 22.06.2022 was directed to be excluded while computing limitation.

Conclusion: The period was excluded in the appellants' favour.

Issue (ii): Whether the appeal filed on 06.07.2022 was within the time permitted by the High Court's order dated 22.06.2022.

Analysis: The High Court had extended the interim order for two weeks from 22.06.2022 enabling the appellants to prefer the appeal. Reading that direction strictly, the last date was 05.07.2022. The electronic filing showed presentation on 06.07.2022, which was beyond the permitted period by one day. The Tribunal therefore held that the appeal could not be entertained.

Conclusion: The appeal was held to be time-barred and not maintainable.

Final Conclusion: Although the exclusion application succeeded on the basis of bona fide prosecution before the High Court, the substantive appeal remained outside the permitted filing window and was rejected as barred by time.

Ratio Decidendi: Time spent in bona fide proceedings prosecuted with good faith and due diligence may be excluded under Section 14 of the Limitation Act, 1963, but an appeal filed beyond the period expressly allowed by the court remains not maintainable.

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