Orders Extending Limitation Period During Covid-19 Also Apply To Period Up To Which Delay Can Be Condoned: Supreme Court

The Supreme Court on Tuesday (03.10.2023) set aside an order of the Calcutta High Court that had refused to take on record a written submission on the ground of delay. The Apex Court held that the benefit of the series of orders passed by the Supreme Court in In Re: Cognizance for Extension of Limitation, extending the period of limitation in light of the Covid-19 pandemic, would enure to the benefit of the appellants who had challenged the High Court order.  The Court clarified that the order passed by it on 08.03.2021 expanded the protection to litigants by making it applicable to the period up to which delay can be condoned and not just to the period of limitation. 

“When the whole world was in the grip of devastating pandemic, it could never have been said that the parties were sleeping over their rights. It is, at this juncture, that this Court stepped in and after taking suo motu cognizance passed orders under Article 142 of the Constitution of India extending the deadlines. The extraordinary situation was dealt with rightly by extraordinary orders protecting the rights of parties by ensuring that their remedies and defences were not barred,” A bench of Justice J.K. Maheshwari and Justice K.V. Viswanathan said.

The Apex Court said that the legal maxim “Vigilantibus non dormientibus jura subveniunt” which says that the law assists those who are vigilant, not those who sleep over their rights, would not be applicable to this case.

In the case at hand, the High Court rejected the application for taking the written statement on record, filed by the defendants in a suit for recovery of money,

The High Court refused to allow the application holding that the period of 30 days to file the written statements had expired on 08.03.2020. The High Court held that the order dated 23.03.2020 passed by the Supreme Court In Re: Cognizance for Extension of Limitation, would not benefit the appellants since it was only effective from 15.03.2020 and the limitation period for the appellants had expired on 08.03.2020. The High Court had relied on the Apex Court ruling in Sagufa Ahmed and Others Vs. Upper Assam Plywood Products Private Limited and Others (2021) 2 SCC 317, to hold that the order dated 23.03.2020 of the Supreme Court extending limitation applied only to 'the period of limitation' and not the period up to which delay can be condoned.

However, the Supreme Court in this case referred to the order passed by it on 08.03.2021 which expanded the protection provided by its previous orders by also excluding the period for computing outer limits within which the court or tribunal can condone delay. This was reiterated in subsequent orders of the Supreme Court on 27.04.2021 and 22.09.2021

“..the very basis of the judgment in Sagufa Ahmed (supra) that under the 23.03.2020 order, only the period of limitation has been extended and not the period up to which delay can be condoned, has been taken away by expanding the protection by excluding the period even for computing outer limits within which the court or tribunal can condone delay. This is an important subsequent aspect which has a great bearing in deciding the present controversy,” the Court said.

The Apex Court accordingly set aside the order of the High Court and allowed the appeal.

“..while summons was served on 07.02.2020, the 30 days period expired on 08.03.2020 and the outer limit of 120 days expired on 06.06.2020. The application for taking on record the written statements and the extension of time was filed on 20.01.2021. Applying the orders of 08.03.2021 and the orders made thereafter and excluding the time stipulated therein, the applications filed by the applicants on 19.01.2021 are well within time,” the Court concluded.

Sr. Adv. Sanjoy Ghose, appeared for the appellants and Adv. Sahil Tagotra appeared for the respondent.

Case Title: Aditya Khaitan & Ors. V. IL and FS Financial Services Limited

Citation : 2023 LiveLaw (SC) 845

Click here to read/download judgment