{"id":5661,"date":"2020-10-15T16:04:39","date_gmt":"2020-10-15T16:04:39","guid":{"rendered":"https:\/\/lexforti.com\/legal-news\/?p=5661"},"modified":"2021-01-17T05:18:20","modified_gmt":"2021-01-17T05:18:20","slug":"extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned","status":"publish","type":"post","link":"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/","title":{"rendered":"Extension given for period of limitation does not apply to \u2018period upto which delay can be condoned\u2019"},"content":{"rendered":"\n<p>Extension given for period of limitation does not apply to \u2018period upto which delay can be condoned\u2019 written by Isha Sawant student of Government Law College<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-6a2245c917c0e\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-6a2245c917c0e\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/#Sagufa_Ahmed_v_Upper_Assam_Plywood_Products_Pvt_Ltd\" title=\"Sagufa Ahmed v. Upper Assam Plywood Products Pvt. Ltd.\">Sagufa Ahmed v. Upper Assam Plywood Products Pvt. Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/#Facts\" title=\"Facts:\">Facts:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/#Issues\" title=\"Issues:\">Issues:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/#Legal_Provisions\" title=\"Legal Provisions:\">Legal Provisions:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/#Appellant%E2%80%99s_Contention\" title=\"Appellant\u2019s Contention:\">Appellant\u2019s Contention:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/#Observations_of_the_Court\" title=\"Observations of the Court:\">Observations of the Court:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/#Judgement\" title=\"Judgement:\">Judgement:<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sagufa_Ahmed_v_Upper_Assam_Plywood_Products_Pvt_Ltd\"><\/span>Sagufa Ahmed v. Upper Assam Plywood Products Pvt. Ltd.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Facts\"><\/span><strong>Facts:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&nbsp;The appellant- Sagufa Ahmed, filed an appeal challenging the National Company Law Appellate Tribunal (NCLAT) order of dismissing and application for condoning delay along with an appeal and time barred. The appellants claimed to hold 24.8 9% share of the company- Upper Assam plywood product (respondent no. 1), and filed an application before the Guwahati bench of NCLT for winding up the company, this was dismissed by an order dated 25<sup>th<\/sup>&nbsp;October 2019. They then applied for a certified copy of the NCLT order dated 25<sup>th<\/sup>&nbsp;October 2019 on 21<sup>st<\/sup>&nbsp;November 2019 however the copy of application was filed where is the date 22<sup>nd<\/sup>&nbsp;November 2019 they then filed a statutory appeal before the NCLT on 20<sup>th<\/sup>September 2020. The NCLT by order dated 4<sup>th<\/sup>&nbsp;August 2020 dismissed the application for condoning the delay on the ground that it has no power to condone delay beyond a period of 45 days, so the appeal was dismissed. Aggrieved by the decision of the NCLAT, the appellants have approached the Supreme Court.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issues\"><\/span><strong>Issues:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>Whether the appellant can get extension for filing an appeal for condoning delay after expiry of period of limitation.<\/li><li>Whether the extension granted by the Supreme Court on \u2018period of limitation\u2019 would apply for condonation of delay beyond the prescribed period.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal_Provisions\"><\/span><strong>Legal Provisions:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li><a href=\"https:\/\/lexforti.com\/legal-news\/auditor-appointment-role-and-removal-under-companies-act-2013\/\" target=\"_blank\" rel=\"noreferrer noopener\">Companies Act, 2013<\/a>, Section 421- Appeal from orders of Tribunal<\/li><li>General Clauses Act, 1897 Section 10- Computation of time.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appellant%E2%80%99s_Contention\"><\/span><strong>Appellant\u2019s Contention:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The appellant raised a two fold contention- first, the Appeal Tribunal erred in computing the period of limitation from the date of the NCLAT order which is contrary to section 421(3) of the Companies Act of 2013; and Secondly, the Appellate Tribunal did not consider lockdown as well as the order of the Supreme Court dated 23<sup>rd<\/sup>&nbsp;March 2020 extending the period of limitation from filing any proceeding with effect from 15<sup>th<\/sup>. March 2020 till further orders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Observations_of_the_Court\"><\/span><strong>Observations of the Court:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The case was heard before the Supreme Court Bench of S.A. Bobde, CJI, A.S. Bopanna and V. Balasubramanian. The court noted that sec-240(3) of the Companies Act 2013 mandates the in NCLT to send a copy of every order passed under Section 420(1) to all the parties concerned, and Section 420(3) mandates a tribunal to send a copy of every order passed under the section to all parties concerned. NCLT rule 50 mandates the registry of NCLT to send a certified copy of the final order to all parties concerned. It also enables the registry to send certified copies with costs as per schedule of fees to persons who are not parties. Section 421(1) provides for an appeal before the Appeal Tribunal against order of NCLT, subsection (3) lays down the period of limitation for filing an appeal and makes provision conferring limited discretion upon the Appellate Tribunal to condone the delay. <\/p>\n\n\n\n<p>The court so noted that the appellant\u2019s contention of period of limitation prescribed under Section 421(3) starts from the date on which the certified copy of the Tribunal\u2019s order is received by the aggrieved person, to be correct. Therefore, the appellant awaiting the receipt of free copy of order were justified in filing an application under Section 421(3), for fixing the date from which the period of limitation would start, however, in the present case, appellant applied for a certified copy 27 days after the order was announced in their presence. The court did not hold this fact against the appellant, but noted that form 19<sup>th<\/sup>&nbsp;December 2019, the date on which they received a certified copy of the order, the period of limitation began. They noted that the appellant had 45 days to file an appeal which expired on 2<sup>nd<\/sup>&nbsp;February 2020. The court observed that the Appellate Tribunal was empowered u\/s- 421(3) to condone the delay of period of up to 45 days, this period of 45 days started from 2<sup>nd<\/sup>&nbsp;February 2020 and expired on 18<sup>th<\/sup>&nbsp;March 2020, as agreed by the appellant. <\/p>\n\n\n\n<p>However, the appellant filed an appeal on 20<sup>th<\/sup>&nbsp;July 2020 instead of doing so before 18<sup>th<\/sup>&nbsp;March 2020. It was stated that to be relevant the lockdown was imposed on 24<sup>th<\/sup>&nbsp;March 2020 and that there was no obstacle to the opponent to file an appeal on or before 18<sup>th<\/sup>&nbsp;March 2020. For this difficulty, the appellant relied on the order of the Supreme Court dated 23<sup>rd<\/sup>&nbsp;March 2020. The court noted that the appellant cannot take refuge under that order as it was only applicable to the \u2018period of limitation\u2019 and not on the \u2018period up to which delay be condoned in exercise of discretion conferred by the statue\u2019. The court observed that the said order was for the benefit of vigilant litigants prevented by the pandemic and lockdown from initiating proceedings within the period of limitation prescribed by general or special law. The court went through the meaning of the words \u2018prescribed period\u2019 as the period of limitation for filing any application, suit or appeal as per the schedule.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Judgement\"><\/span><strong>Judgement:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The court held that the appellant cannot claim the benefit of the Supreme Court order dated 23<sup>rd<\/sup>&nbsp;March 2020, for enlarging the period upto which delay can be condoned. The second contention was held to be unjustifiable and untenable. The appeals were held liable to be dismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Extension given for period of limitation does not apply to \u2018period upto which delay can be condoned\u2019 written by Isha Sawant student of Government Law College Sagufa Ahmed v. Upper Assam Plywood Products Pvt. Ltd. Facts: &nbsp;The appellant- Sagufa Ahmed, filed an appeal challenging the National Company Law Appellate Tribunal (NCLAT) order of dismissing and [&hellip;]<\/p>\n","protected":false},"author":167,"featured_media":3630,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[111,219,26],"tags":[2324],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Extension given for period of limitation does not apply to \u2018period upto which delay can be condoned\u2019 - LexForti<\/title>\n<meta name=\"description\" content=\"Extension given for period of limitation does not apply to \u2018period upto which delay can be condoned\u2019 written by Isha Sawant\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lexforti.com\/legal-news\/extension-given-for-period-of-limitation-does-not-apply-to-period-upto-which-delay-can-be-condoned\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Extension given for period of limitation does not apply to \u2018period upto which delay can be condoned\u2019 - 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