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The indefinite extension of limitation period due to COVID 19

Writer's picture: Taxgen TeamTaxgen Team


The Supreme Court bench comprising of the Hon'ble Mr. Chief Justice S.A. Bobde, Hon'ble Mr. Justice L. Nageswara Rao and Hon'ble Mr. Justice Surya Kant, passed an order recently in effect extending the period of limitation of all proceedings at all Courts/Tribunals across the country including the Supreme Court, from 15th March 2020, till an order to this effect is passed. The extension of this limitation period shall be irrespective of the limitation prescribed under the general law or Special Laws, whether condonable or not.

The court also noted that,

"We are exercising this power under Article 142 read with Article 141 of the Constitution of India and declare that this order is a binding order within the meaning of Article 141 on all Courts/Tribunals and authorities."

Article 141 of the Constitution of India establishes the hierarchy of the courts in India, whereby all courts in India are placed under the Supreme Court. Further, the law declared by the Supreme Court is binding on all the courts in India.

In effect now, the limitation period of all petitions/applications/suits/appeals/other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws (both Central and/or State) shall be extended indefinitely, from the 15th March 2020. The order is binding on all High Courts, Tribunals, and lower courts and all other authorities.

Therefore, for litigants whose legal actions had the limitation period ending after the 15th March 2020, but were unable to pursue such litigation due to the lockdown, have been provided with relief. These litigants will be able to initiate proceedings in accordance with the future order of the Supreme Court when the lockdown has been eased and the Courts resume full functioning.

We can already see that the Government of NCT of Delhi has acknowledged the Supreme Court order, and the effect of COVID-19 and the lockdown on the litigants by issuing Circular No. 3 - 2020/21 dated 15th May 2020. The govt. has advised all assessing authorities and objection hearing authorities under the DVAT Act, 2004 to adhere to the Supreme Court order for extension of the limitation period.

Such cognizance and communications will increase the reach of the extension of limitation to a broad range of litigants and ensure the relief is delivered to all affected parties.

 


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