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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Sections 23(4) and 29-A of the Arbitration and Conciliation Act, 1996
  • Section 12-A of the Commercial Courts Act, 2015
  • provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Sections 23(4) and 29-A of the Arbitration and Conciliation Act, 1996
  • Section 12-A of the Commercial Courts Act, 2015
  • provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881
Smart Summary

Factual and Procedural Background

In March 2020, the Supreme Court of India took suo motu cognizance of the difficulties litigants might face in complying with statutory limitation periods owing to the Covid-19 pandemic. By order dated 23-3-2020 ((2020) 19 SCC 10), limitation was extended for all judicial and quasi-judicial proceedings with effect from 15-3-2020. On 8-3-2021 ((2021) 5 SCC 452) that relaxation was brought to an end, and limitation resumed from 15-3-2021.

Following a second surge of Covid-19 cases, the Supreme Court Advocates-on-Record Association (SCAORA) filed Misc. Appl. No. 665 of 2021. By order dated 23-9-2021 (2021 SCC OnLine SC 947) the Court again extended limitation up to 2-10-2021.

The present Misc. Appl. No. 21 of 2022, filed by SCAORA in light of the emergence of a new Covid-19 variant and a drastic nationwide surge in cases, seeks restoration of the earlier extension orders. The Court now disposes of this application and issues fresh directions on limitation.

Legal Issues Presented

  1. Whether the Supreme Court should restore and further extend the earlier Covid-19-related orders that suspended statutory limitation periods.
  2. The scope and manner in which any restored suspension should apply across general and special laws, including arbitration, commercial disputes, and negotiable instruments proceedings.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Order dated 23-3-2020 ((2020) 19 SCC 10) Initial nationwide suspension of limitation from 15-3-2020 due to Covid-19. Restored and treated as the baseline for the fresh exclusion period.
Order dated 8-3-2021 ((2021) 5 SCC 452) Ended the first suspension and directed limitation to resume from 15-3-2021. Considered as an earlier modification; current order supersedes its termination of suspension.
Order dated 27-4-2021 ((2021) 17 SCC 231; 2021 SCC OnLine SC 373) Further relaxation of limitation during the second Covid-19 wave. Expressly continued by the present order.
Order dated 23-9-2021 (2021 SCC OnLine SC 947) Extended limitation up to 2-10-2021. Referenced to calculate the “balance period” available from 3-10-2021.

Court's Reasoning and Analysis

The Court took judicial notice of:

  • The rapid spread of a new Covid-19 variant and the attendant public-health risks.
  • The practical impediments litigants face in initiating or pursuing legal proceedings under prevailing conditions.

Having considered submissions of learned counsel and the continuing adverse impact on access to justice, the Court found it appropriate to re-instate and extend the earlier relaxation of limitation. The operative analytical steps are:

  1. Restoration of 23-3-2020 Order: The foundational suspension of limitation is revived.
  2. Computation of Exclusion Period: The period from 15-3-2020 to 28-2-2022 is excluded from all limitation calculations for judicial or quasi-judicial proceedings under general or special laws.
  3. Balance Period Rule: Any balance period of limitation that existed as on 3-10-2021 becomes available from 1-3-2022.
  4. Minimum 90-Day Grace: Where limitation would otherwise have expired between 15-3-2020 and 28-2-2022, litigants receive a fresh 90-day period from 1-3-2022, unless a longer balance period subsists.
  5. Specific Statutory Clarifications: The same exclusion applies to time limits under Sections 23(4) & 29-A of the Arbitration and Conciliation Act, 1996; Section 12-A of the Commercial Courts Act, 2015; provisos (b) & (c) of Section 138 of the Negotiable Instruments Act, 1881; and any analogous statutory limitation provisions.

Holding and Implications

ALLOWED IN PART / DISPOSED OF: Misc. Appl. No. 21 of 2022 is disposed of with directions restoring and extending suspension of limitation as detailed above. Misc. Appl. No. 29 of 2022 is dismissed as withdrawn.

Implications: All litigants across India benefit from an exclusion of limitation from 15-3-2020 to 28-2-2022, with a guaranteed minimum 90-day window from 1-3-2022 to file proceedings if their limitation would otherwise have expired. The order harmonises limitation across multiple statutes but does not articulate any novel legal doctrine beyond pandemic-related relief.

    Cognizance For Extension Of Limitation, In Re

    1. In March 2020, this Court took suo motu cognizance of the difficulties that might be faced by the litigants in filing petitions/applications/suits/appeals/all other quasi proceedings within the period of limitation prescribed under the general law of limitation or under any special laws (both Central and/or State) due to the outbreak of the Covid-19 Pandemic.

    2. On 23-3-2020, this Court directed (2020) 19 SCC 10 extension of the period of limitation in all proceedings before courts/tribunals including this Court w.e.f. 15-3-2020 till further orders. On 8-3-2021 (2021) 5 SCC 452, the order dated 23-3-2020 (2020) 19 SCC 10 was brought to an end, permitting the relaxation of period of limitation between 15-3-2020 and 14-3-2021. While doing so, it was made clear that the period of limitation would start from 15-3-2021.

    3. Thereafter, due to a second surge in Covid-19 cases, the Supreme Court Advocates-on-Record Association (Scaora) intervened in the suo motu proceedings by filing Miscellaneous Application No. 665 of 2021 seeking restoration of the order dated 23-3-2020 (2020) 19 SCC 10 relaxing limitation. The aforesaid Miscellaneous Application No. 665 of 2021 was disposed of by this Court vide order dated 23-9-2021 2021 SCC OnLine SC 947, wherein this Court extended the period of limitation in all proceedings before the courts/tribunals including this Court w.e.f. 15-3-2020 till 2-10-2021.

    4. The present miscellaneous application has been filed by the Supreme Court Advocates-on-Record Association in the context of the spread of the new variant of the Covid-19 and the drastic surge in the number of Covid cases across the country. Considering the prevailing conditions, the applicants are seeking the following:

    (i) Allow the present application by restoring the order dated 23-3-2020 passed by this Hon'ble Court in Cognizance for Extension of Limitation, In re (2020) 19 SCC 10; and
    (ii) Allow the present application by restoring the order dated 27-4-2021 passed by this Hon'ble Court in Cognizance for Extension of Limitation, In re (2021) 17 SCC 231, 2021 SCC OnLine SC 373; and
    (iii) Pass such other order or orders as this Hon'ble Court may deem fit and proper.

    5. Taking into consideration the arguments advanced by the learned counsel and the impact of the surge of the virus on public health and adversities faced by litigants in the prevailing conditions, we deem it appropriate to dispose of MA No. 21 of 2022 with the following directions:

    5.1. The order dated 23-3-2020 (2020) 19 SCC 10 is restored and in continuation of the subsequent orders dated 8-3-2021 (2021) 5 SCC 452, 27-4-2021 (2021) 17 SCC 231, 2021 SCC OnLine SC 373 and 23-9-2021 2021 SCC OnLine SC 947, it is directed that the period from 15-3-2020 till 28-2-2022 shall stand excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial or quasi-judicial proceedings.

    5.2. Consequently, the balance period of limitation remaining as on 3-10-2021, if any, shall become available with effect from 1-3-2022.

    5.3. In cases where the limitation would have expired during the period between 15-3-2020 till 28-2-2022, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 1-3-2022. In the event the actual balance period of limitation remaining, with effect from 1-3-2022 is greater than 90 days, that longer period shall apply.

    5.4. It is further clarified that the period from 15-3-2020 till 28-2-2022 shall also stand excluded in computing the periods prescribed under Sections 23(4) and 29-A of the Arbitration and Conciliation Act, 1996, Section 12-A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings.

    6. As prayed for by the learned Senior Counsel, MA No. 29 of 2022 is dismissed as withdrawn.

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    Comments

    Cognizance For Extension Of Limitation, In Re
    (Jan 10, 2022)