Tax Insights
13 January 2022
Supreme Court restores original suo moto order on limitation and directs inter alia exclusion of period from 15 March 2020 till 28 February 2022 for purposes of limitation
In brief
The Supreme Court of India has acted upon the miscellaneous applications1 filed by the Supreme Court Advocates–on–Record Association (SCAORA) to restore its original order, dated 23 March 2020. The original order laid down guidelines with respect to computation of the period of limitation applicable to applications, suits, appeals and other proceedings, as prescribed under general and any special laws.
In detail
Background
In view of the pandemic, the Supreme Court had issued various orders granting relief to existing and potential litigants from the various obstacles faced by them during undertaking filing or representation in various
proceedings in addition to safeguarding their overall health and safety. Consequently, the reliefs granted by the original order were accordingly modified/ extended in view the exigencies created from time to time by the spread of the COVID–19 pandemic.
The table below summarises the three most crucial orders issued earlier by the Supreme Court that lays down the legal position with respect to the extension of limitation.
S. No. Date of the Supreme Court’s order
Description/ Particulars
1 23 March 2020 • The Supreme Court ordered that the period of limitation applicable towards filing of petitions/ applications/ suits/
1 Miscellaneous Application No. 21 of 2022 with Miscellaneous Application No. 29 of 2022 in Miscellaneous Application No. 665
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S. No. Date of the Supreme Court’s order Description/ Particulars
appeals/ all other proceedings stood extended with effect from 15 March 2020 until issuance of further order(s) by the Supreme Court in the instant proceedings.
• These extensions were applicable for the period of limitation, whether condonable or not,
prescribed under the general Law of Limitation (i.e. the Limitation Act, 1963) or under Special Laws (both Centre and State).
• The original order was followed by orders dated 6 May 2020, 10 July 2020 and 8 March 2021.
2 27 April 2021 • This order was passed by the Supreme Court
pursuant to an interlocutory application filed by the SCAORA.
• The following directions were issued by the said order:
(i) The Supreme Court’s original order (which had extended period of limitation applicable to the filing of applications/ appeals/ suits/
petitions/ all other proceedings with effect from 15 March 2020 until issuance of further order(s) by the Supreme Court) was restored, thereby extending all periods of limitation ending on 14 March 2021 until further orders;
and
(ii) The period from 14 March 2021 until further orders shall also stand excluded in computing the periods prescribed under 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.
3 23 September 2021 • The Supreme Court stated that, even though
concerns of another wave of the COVID–19 pandemic were expressed, considering the situation having become near–normal, there existed no requirement for the relaxation of the period of limitation.
• The following were the chief directions issued by the said order:
(i) Computation of the period of limitation for any suit, appeal, application or proceeding:
The period from 15 March 2020 till 2 October 2021 stood excluded from the period of limitation, leading to the balance period of limitation remaining as on 15 March 2021 (in
case applicable) becoming available with effect from 3 October 2021.
(ii) In cases of expiry of limitation period between 15 March 2020 till 2 October 2021:
Notwithstanding the actual balance period of limitation remaining, a limitation period of 90 days beginning 3 October 2021, was made available to all litigants. Consequently, the said time was extended till 31 December 2021, except in cases where the actual balance period available as on 3 October 2021 was greater than 90 days, in which case the said greater period was applicable.
Present miscellaneous application before the Supreme Court
A miscellaneous application was filed by the SCAORA, through which the Supreme Court was informed regarding the spread of a new variant of the SARS–CoV–2.
The following were the reliefs sought by the SCAORA by the aforesaid application:
(i) restoration of the Supreme Court’s original order2;
(ii) restoration of the Supreme Court’s order dated 27 April 20213; and
(iii) passing of such other order(s) as the Supreme Court may deem fit and proper.
Supreme Court order dated 10 January 2022
The Supreme Court has disposed of the miscellaneous application filed by the SCAORA as follows:
S. No. Parameter/ Event Directions issued vide order dated 10 January 2022
1 Computation of the period of limitation for any suit, appeal, application or proceeding
• The period from 15 March 2020 till 28 February 2022 shall stand excluded from the period of limitation prescribed under any general or special laws in respect of all judicial or quasi–judicial proceedings.
• As a result, balance period of limitation remaining as on 3 October 2021, if any, will become
available with effect from 1 March 2022.
2 Expiry of limitation period between 15 March 2020 till 28 February 2022
• Notwithstanding the actual balance period of limitation remaining, all persons will have a limitation period of 90 days, beginning from 1 March 2022 until 30 May 2022.
• If the actual balance period available as on 1 March 2022 is greater than 90 days, the said greater period will apply.
2 Dated 23 March 2020 and passed in suo motu Writ Petition (C) No. 3 of 2020
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3 Computation of periods prescribed under specific Acts
• The period from 15 March 2020 till 28 February 2022 will stand excluded in the calculation of periods of limitation prescribed under –
(i) Sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996;
(ii) Section 12A of the Commercial Courts Act, 2015;
(iii) Provisos (b) and (c) of section 138 of the Negotiable Instruments Act, 1881; and (iv) Any other laws that prescribe period(s) of
limitation for –
- instituting proceedings;
- outer limits (within which the Court or Tribunal can condone delay; and - termination of proceedings.
The takeaways
The Supreme Court’s order dated 10 January 2022 is a welcome and a timely set of directions to ensure the safety and well–being of litigants.
The Supreme Court has granted additional time to comply with the applicable statutory limitation and brought much–needed relief to litigants and protected the losses (monetary or otherwise) that might have been incurred by them.
All parties involved in litigation across the board, either in connection with appeals or petitions or applications, can take refuge in the Supreme Court’s order dated 10 January 2022 and obtain relief against any detriment in connection with their litigation. The instructions issued by the government about the scope and applicability of the earlier Supreme Court extension orders should, in principle, apply to this order as well.
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