Tuesday, 24 May 2022

Whether Supreme Court order on the extension of limitation dated January 10, 2022, applies to Commercial courts Act proceedings?

In that view of the matter, the period from

15.03.2020 till 28.02.2022 shall have to be 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. The Commercial Courts Act,

2015 being a Special Law, the said order shall also be

applicable with respect to the limitation prescribed

under the Commercial Courts Act, 2015 also.

In view of the above and for the reasons stated

above and more particularly when the 120 days period

expired in the present case on 09.05.2020 which was

during the aforesaid period as prescribed by this Court

in the aforesaid order, the High Court ought to have

excluded the aforesaid period for the purpose of filing

the written statement and ought to have permitted to

take the written statement on record. The impugned

judgment and order passed by the High Court refusing to

condone the delay and take on record the written

statement is hereby quashed and set aside. It is directed

that the written statement, already filed, be taken on

record and the same be considered in accordance with law.

 IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. OF 2022

(@ Special Leave Petition (C) No. 2522/2022)

BABASAHEB RAOSAHEB KOBARNE & ANR. Vs PYROTEK INDIA PRIVATE LIMITED & ORS. 

Dated: MAY 09, 2022

Leave granted.

Feeling aggrieved and dissatisfied with the impugned

judgment and order dated 13.12.2021 passed by the High

Court of Judicature at Bombay in Writ Petition No.6191

of 2021, by which the High Court has dismissed the said

writ petition and has confirmed the order passed by the

learned Trial Court, refusing to take the written

statement on record and has refused to condone the delay

in filing the written statement, the original defendants

have preferred the present appeal.

From the impugned judgment and order passed by the

High Court, it appears that the High Court has refused to

condoned the delay and take on record the written

statement on the ground that the period of 120 days

within which the written statement could have been taken

on record, expired on 09.05.2020 which was during the

lock-down imposed. Therefore, the High Court has refused

to condone the delay and take the written statement on

record.

Having heard the learned counsel appearing on behalf

of the respective parties and having considered order

dated 10.01.2022 passed by this Court in Miscellaneous

Application No.21/2022 by which the following order was

passed and order dated 04.01.2022 passed by this Court in

SLP (C) No.17298/2021 in the case of Centaur

Pharmaceuticals Pvt. Ltd. & Anr. Vs. Standford

Laboratories Pvt. Ltd., the impugned order passed by the

High Court is unsustainable. The operative portion of

the order passed by this Court in Miscellaneous

Application No.21/2022 reads as under -

“I. The order dated 23.03.2020 is restored and

in continuation of the subsequent orders dated

08.03.2021, 27.04.2021 and 23.09.2021. It is

directed that the period from 15.03.2020 till

28.02.2022 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.

II. Consequently, the balance period of

limitation remaining as on 03.10.2021, if any,

shall become available with effect from

01.03.2022.

III. In cases where the limitation would have

expired during the period between 15.03.2020

till 28.02.2022, notwithstanding the actual

balance period of limitation remaining, all

persons shall have a limitation period of 90

days from 01.03.2022. In the event the actual

balance period of limitation remaining, with

effect from 01.03.2022 is greater than 90 days,

that longer period shall apply.


IV. It is further clarified that the period

from 15.03.2020 till 28.02.2022 shall also stand

excluded in computing the periods prescribed

under Sections 23 (4) and 29A 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.”

In that view of the matter, the period from

15.03.2020 till 28.02.2022 shall have to be 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. The Commercial Courts Act,

2015 being a Special Law, the said order shall also be

applicable with respect to the limitation prescribed

under the Commercial Courts Act, 2015 also.

In view of the above and for the reasons stated

above and more particularly when the 120 days period

expired in the present case on 09.05.2020 which was

during the aforesaid period as prescribed by this Court

in the aforesaid order, the High Court ought to have

excluded the aforesaid period for the purpose of filing

the written statement and ought to have permitted to

take the written statement on record. The impugned

judgment and order passed by the High Court refusing to

condone the delay and take on record the written

statement is hereby quashed and set aside. It is directed

that the written statement, already filed, be taken on

record and the same be considered in accordance with law.

It is reported that an interim injunction

application is pending before the learned Trial Court

since long. We direct the learned Trial Court to finally

decide and dispose of the interim injunction application

at the earliest and preferably within a period of six

weeks from the date of receipt of the present order.

The Appeal is accordingly allowed to the aforesaid

extent. No costs.

………………………………………J.

[M.R. SHAH]

……………………………………J.

[B.V. NAGARATHNA]

NEW DELHI

MAY 09, 2022


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