COVID-19:SC extends time for filing arbitral proceedings, cheque bounce cases from Mar 15

Taking note of difficulties faced by lawyers and litigants during nation-wide lockdown due to COVID-19, the Supreme Court on Wednesday extended the period of limitation prescribed under laws for initiating arbitral proceedings and the cheque bounce cases with effect from March 15 till further orders.

The Arbitration and Conciliation Act, 1996 and the Negotiable Instruments Act, 1881 provide fixed time periods to litigants to initiate arbitral proceedings and cheque dishonour cases. They become time-barred if filed after the statutory periods.

The top court on March 23 had invoked its plenary powers under Article 142 of the Constitution to extend limitation period of appeals from high courts or tribunals on account of coronavirus (COVID-19) pandemic and on Wednesday extended the same relief to lawyers and litigants for arbitral proceedings and cheque bounce cases.

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 Corona Virus (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, a bench headed by Chief Justice S A Bobde said in the order.

In case the limitation period 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 shall be extended for a period of 15 days after the lifting of lockdown, said the bench which also comprised justices Deepak Gupta and Hrishikesh Roy.

In the proceedings held through video conferencing, the top court also issued to notice to the Centre, represented by Attorney General K K Venugopal and Solicitor General Tushar Mehta, on the plea that such a relief from filing cases within a particular statutory time period be extended to all legal proceedings.

The bench said that it would like to give such a reliefs but there cannot a blanket order and sought views of the Centre on it.

Earlier, the apex court had taken suo-motu (on its own) cognizance of the problems faced by lawyers and litigants due to the pandemic in filing appeals from high courts or tribunals within fixed time and had extended that time by invoking its plenary powers under the Constitution.

"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," it had said.

The top court had said that its order may be brought to the notice of all high courts for being communicated to all subordinate Courts/Tribunals within their respective jurisdiction.