New Delhi: Arbitration and cheque bounce cases limitation time has been extended by the Supreme Court from March 15 till the end of lockdown. This has come into effect after realizing the diffculties being faced by lawyers and litigants due to the covid 19 induced lockdown. It is a pain reliever as lawyers need not go physically to file the cases. If anyone’s limitation had to end on March 15th, it will now be carried forward till the end of lockdown. The days spent during the lockdown need not be counted as they aren’t added in the limitation time period, failing which; they’d have to face legal proceedings.
On March 23, the court used it special powers under Article 142, to lengthen the limitation period of appeals from High Courts or tribunals, taking into consideration the outbreak of coronavirus in the country. The court on Wednesday extended the same relief to litigants and lawyers for arbitral proceedings and cheque bounce cases.
A bench headed by Chief Justice S.A. Bobde and comprising Justices Deepak Gupta and Hrishikesh Roy said: “In view of this Court’s earlier order dated March 23 passed in Suo Motu Writ Petition and taking into consideration the effect of the Covid-19 and resultant difficulties being faced by the lawyers and litigants and with a view to obviate such difficulties and to ensure that lawyers/litigants do not have to come physically to file such proceedings in respective Courts/Tribunal across the country including this court, it is hereby ordered that all periods of limitation prescribed under the Arbitration and Conciliation Act, 1996 and under section 138 of the Negotiable Instruments Act 1881 shall be extended with effect from March 15, till further orders to be passed by this court in the present proceedings.”
The top court observed that in case the limitation has expired after March 15, then the period from March 15 till the date on which the lockdown is lifted in the jurisdictional area where the dispute lies or where the cause of action arises, will be extended for a period of 15 days after the lifting of lockdown.
The Arbitration and Conciliation Act, 1996 and the Negotiable Instruments Act, 1881 offer fixed time periods to litigants to start the arbitral proceedings and cheque discredit cases. The proceedings become time-barred if filed after the prescribed statutory periods.
On the video conference initiated by the court to discuss this matter, they issued a notice on the requests that such liberation from filing cases within a time frame is extended for all legal proceedings including cheque bounces.
Earlier, the top court had taken action on its own of the problems faced by lawyers and litigants due to the pandemic in filing appeals from high courts or tribunals within a fixed time. This made them use their extraordinary powers in extending the duration of limitation.
Aseem Chawla, Managing Partner, ASC Legal said: “The said order of the Hon’ble Apex Court is seemingly in furtherance of the earlier order passed by the Court on March 23 suo motu taking notice of the hardship being faced by litigants in pursuing legal remedies. Now with the present order all period of limitation under Negotiable Instrument Act and Arbitration Act has been extended effect from March 15; 2020. This is indeed a welcome respite and would subserve the interest of justice”.
The bench said that it would want to give such reliefs but any blanket order cannot be made.
