SC Orders Extending Period Of Limitation Applicable To Proceedings & Orders Passed Under Payment Of Gratuity Act: Delhi High Court

While hearing an appeal filed against an order of the Appellate Authority which had dismissed an appeal filed by the Petitioner on the ground that the appeal was barred by limitation, Justice Pratibha M Singh clarified that the extension of limitation by an order of the Supreme Court dated 23.09.2021 would apply to decisions of the Appellate Authority under the Payment of Gratuity Act.

It further directed that the same be communicated to all the other authorities under the Act, so that the benefit of the computation of the period of limitation is extended to all and multiplicity of proceedings as has happened in the present case is avoided.

By an order dated 23.09.2021 in In Re: Cognizance for Extension of Limitation, the Supreme Court has extended the limitation period and had excluded the period from 15th March, 2020 to 2nd October, 2021 for the purpose of calculating limitation.

In the present case, the Delhi High Court notes that the order of the Controlling Authority is dated 28th May, 2020 and the same was passed during the pandemic. Thus, the period of limitation under Section 7(7) would not expire till 3rd October, 2021. Further, the appeal in the present case is stated to have been filed on 17th September, 2021 and was dismissed on 29th September, 2021. It notes:

"In view of the order of the Supreme Court, the date from the passing of the order by the Controlling Authority till the dismissal of the appeal is completely excluded for calculating the limitation period. Thus, the period of limitation provided under Section 7(7) of the Act has to be read along with the order of the Supreme Court. Thus, this Court is of the opinion that the appeal would not be barred by limitation and the appeal deserves to be heard on merits by the Controlling Authority."

Accordingly, the High Court set aside the impugned order of the Appellate Authority and directed that the appeal be heard on merits. The Appellate Authority is also directed to give the benefit of extension of limitation to similarly placed litigants.

"The Appellate Authority would give benefit of this order to all similarly placed persons/litigants who are entitled to the benefit of the extended period of limitation in terms of the orders passed by the Supreme Court from time to time. The Appellate authority shall also circulate this order to all the other authorities under the Act, so that the benefit of the computation of the period of limitation, as directed vide order dated 23rd September 2021, is extended to all and multiplicity of proceedings as has happened in the present case is avoided."

Case Title: Union of India v. Hemant Kumar

Citation: 2022 LiveLaw (Del) 22

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