Suo Motu Orders Extending Limitation Apply Also To Delay Which Could Have Been Condoned : Supreme Court

The Supreme Court has observed that the period of limitation which could have been condoned by a Court or a Tribunal is also excluded from the limitation period up to 07.10.2021 in view of the orders passed suo motu by the Top Court to extend limitation period in the wake of COVID-19."Even as held by this Court in the subsequent orders even the period of limitation which could have been extended and/or condoned by the Tribunal/Court is excluded and/or extended even up to 07.10.2021", observed the Supreme Court.Holding so, the Supreme Court upheld the decision of Madras High Court, which relied on its direction dated 08.03.2020 in Suo Moto Writ (Civil) No 3 of 2020 titled In Re Cognizancefor Extension of Limitation to condone the delay in filing written statements in a commercial suit. A Bench comprising Justices M.R. Shah and B.V. Nagarathna dismissed the appeal filed challenging the order of the Madras High Court which condoned delay in filing of written statements within the excluded period of 15.03.2020 to 14.03.2021 and held - "Having heard the learned counsel for the respective parties, we are of the opinion that, in the facts and circumstances of the case, the High Court has not committed any error in extending the period of limitation in filing the written statement and consequently taking on record the written statement filed on behalf of the respondent-original defendant."Factual Background In a patent infringement suit filed by Centaur Pharmaceuticals Pvt. Ltd. and Kibow Biotech Inc., the defendants, Stanford Laboratories Pvt. Ltd. and La Renon Health Care Pvt. Ltd. had filed applications before the Madras High Court seeking condonation of delay in filing of their written statements. As per Order VIII Rule 1 of the Civil Procedure Code, a written statement can be filed within 30 days from the date of receipt of suit summons. However, the court has discretion to grant another 90 days to file the written statement upon the defendant providing cogent reasons for the same. The 30 day period for written statement for Standford had expired on 22.02.2020 and La Renon had expired on 09.02.2020( both dates before the Supreme Court passed the suo motu order for limitation extension on 23.03.2020). Stanford Laboratories' upper limit with condonation of delay had expired on 23.05.2020. It e-filed its written statement on 14.07.2020. La Renon Health Care's upper limit had expired on 10.05.2020 and it filed its written statement on 14.07.2020. The issue was whether the extended period of 90 days for filing written statement will fall within the suo motu extension of limitation ordered by the Supreme Court. Contentions raised by the parties before Madras High Court The Senior Counsel appearing for the defendants placed reliance on the suo moto order of the Supreme Court dated23.03.2020 and 08.03.2021 in In Re: Cognizance for extension of Limitation, SMW (Civil) No. 3 of 2020, and the notification issued by the Madras High Court dated 13.07.2020. He emphasised that the Supreme Court had categorically excluded the period from 15.03.2020 till 14.03.2021 in computing the period of limitation in its order dated 08.03.2021. Relying on SCG Contracts (India) Ltd. v. K.S. Chamankar Infrastructure Pvt. Ltd. (2019) 12 SCC 210, the Counsel appearing on behalf of the plaintiffs argued that the limitation prescribed under the Order VIII Rule 1 of C.P.C ought to be strictly followed for suits filed under the Commercial Courts Act, 2015. It was further contended that the original limitation of 30 days expired for Standard Laboratories on 22.02.2020 and for La Renon Health Care on 09.02.2020, which was before the Supreme Court had passed orders in the Suo moto petition to exclude the period of limitation from 15.03.2020. He cited Sagufa Ahmed And Ors. v. Upper Assam PlywoodProducts Pvt Limited And Ors. (2021) 2 SCC 317 to argue that order dated 23.03.2020 passed by Supreme Court in the Suo Moto Petition extended the period of limitation and not the period upto which delay can be condoned in exercise of discretion conferred by the statute. Decision of Madras High Court On perusal of the order passed by the Supreme Court on 08.03.2021, while disposing of SWM (Civil) No. 3 of 2020, the Madras High Court was convinced that the benefit of exclusion of the period from 15.03.2020 to 14.03.2021 ought to have been provided for calculation of limitation for filing the written statements. On 08.03.2020, the Supreme Court had passed directions as reproduced hereinbelow - In computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 14.03.2021 shall stand excluded. Consequently, the balance period of limitation remaining as on 15.03.2020, if any, shall become available with effect from 15.03.2021.In cases where the limitation would have expired during the period between 15.03.2020 till 14.03.2021,...

Suo Motu Orders Extending Limitation Apply Also To Delay Which Could Have Been Condoned : Supreme Court

Sohini Chowdhury

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Sohini Chowdhury

Suo Motu Orders Extending Limitation Apply Also To Delay Which Could Have Been Condoned : Supreme Court

Sohini Chowdhury

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Sohini Chowdhury

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