Extension of Limitation in Pandemic

Extension of Limitation in Pandemic written by Surya Sunilkumar student of Ramaiah institute of legal studies

In Re Cognizance for Extension of Limitation (2020)

Introduction

In March 2020 Indian government had announced a lockdown due to the rapid spread of the Coronavirus or Covid- 19. This had caused a halt in the functioning of the whole country. All the sectors of the economy faced a huge difficulty, so did the judiciary. In Re Cognizance for Extension of Limitation (2020) considering the current pandemic situation, the Supreme Court of India passed a suo moto order stating that lawyers and litigants who are facing problems regarding the physically filing procedures in respective Courts/tribunals do not have to go to the courts to do so. It also ordered that all periods of limitation of the Arbitration and Conciliation Act be extended and also provided directions regarding the Negotiable Instrument Act 1881 from 15.03.2020 till further orders were passed in the present proceeding.

Background

The Supreme Court invoked Article 142 read with Article 141 of the Indian constitution as many lawyers and litigators faced difficulty regarding the filing of the procedures during the lockdown and couldn’t adhere to the limitations stated by the Arbitration and Conciliation Act, 1996; The Negotiable Instrument Act, 1881 and also limitations regarding serving of summons, notice, and exchange of pleadings and documents.

Judgement

1. The Supreme Court passed an order extending all periods of limitation that were prescribed under the Arbitration and Conciliation Act. It also sought some temporary minor changes in the aforesaid order which are:
   1. Section 29 (A) of the Arbitration and conciliation Act, 1996 did not prescribe any period of limitation but it fixed a time to do certain acts such as making an arbitral award within a specific time. So the order directed that an extension of the limitation period will be granted.
   2. It also directed that the extension be applied in Section 23(4) of the Act aforementioned.

2. Sec 12 (A) of Commercial Courts Act 2015 dealing with prescribed time limit for completing the process of compulsory pre-institution of mediation and settlement also got an extension from the time lockdown is lifted plus 45 days thereafter.
3. The order also stated that; service of notice, summons, and exchange of pleading/ documents are necessary for legal proceeding thus it directed that alternative virtual methods be used such as e-mail, FAX, commonly used instant messaging services like WhatsApp Telegram, etc.
4. Regarding the extension validity of a cheque the Bench stated that even though the time period is not prescribed by the Statutes but also a period is prescribed by RBI under Sec 35 A of Banking Regulation Act 1949, the court didn’t find it appropriate to interfere with the prescribed limitation period. It advised that RBI may in its discretion alter the period accordingly.

Critical Analysis

1. The extension provided by this order passed by the Bench of Supreme court adheres to the current situation of a pandemic. It provided relief extensively.
2. As it is a temporary relief it won’t affect the procedure once the lockdown ends. It has clearly mentioned that the extension of limitation is till the end of the lockdown.
3. As social distancing and lockdown are instituted in India it becomes difficult to physically file for proceeding of the case and to serve notice, summons, and pleading/ documents. This order has made it easier by stating that these procedures can be done by using alternative virtual methods. Although it has lessened the burden of the lawyers and litigators it has a major drawback. There are chances that the documents that are submitted are forged or edited thus questioning the authenticity and validity of the document.
4. During the pandemic many people lost their business thus making it difficult to make profits. As there is no extension given for the validity of cheques many businessmen will become defaulters as they won’t be having enough funds for repayment.

Conclusion

The decree passed by the Bench has proven to be one of the important decisions as it has invoked its power considering the ongoing pandemic faced by the public and the judiciary at large. This decision will help smooth functioning of proceedings, as possible alternatives are suggested by the Hon’ble court. The extensions provided by the decree will aid those people who are in dire need of this relief thus reducing the burden on them.