2022 Supreme(SC) 191

SUPREME COURT OF INDIA
(From the High Court of Chhattisgarh at Bilaspur)
Dinesh Maheshwari, Vikram Nath, JJ.
PRAKASH CORPORATES – APPELLANTS
VERSUS
DEE VEE PROJECTS LIMITED – RESPONDENT
Civil Appeal No(s). 1318 of 2022 (Arising Out of SLP(C) Nos. 13751 of 2021)
Decided on : 14-02-2022

IMPORTANT POINTS
(1) Extension of period of limitation – Legal effect and coverage of Orders passed by Apex Court in SMWP No. 3 of 2020 cannot be unnecessarily narrowed – Having regard to their purpose and object, full effect is required to be given to such orders and directions.
(2) Rules of procedure are essentially intended to subserve cause of justice and are not for punishment of parties in conduct of proceedings.
(3) Limitation – If prescribed period for any suit/appeal/application expires on day when Court is considered ‘closed’, such proceedings may be instituted on re-opening day.

Headnote:

(A) Limitation Act, 1963 – Sections 5 and 12 to 15 – Extension of period of limitation – When a particular period is to be excluded in relation to any suit or proceeding, essentially reason is that such a period is accepted by law to be one not referable to any indolence on part of litigant, but being relatable to either force of circumstances or other requirements of law (like that of mandatory two months’ notice for a suit against Government) – Excluded period, as a necessary consequence, results in enlargement of time, over and above period prescribed. (Para 20)

(B) Civil Procedure Code, 1908 – Order VIII Rule 1 – Commercial Courts Act, 2015 – Sections 12-A and 16 – Written Statement – Extension of period of limitation in wake of Covid-19 Pandemic – Suo motu order dated 23.03.2020 passed by Apex Court in SMWP No. 3 of 2020 – In consciously worded Order dated 23.03.2020, Apex Court, while taking note of difficulties likely to be faced by litigants in filing their petitions/applications/suits/appeals/proceedings within period of limitation, ordered that period of limitation in all such proceedings, irrespective of limitation prescribed under general or special laws, whether condonable or not, shall stand extended w.e.f. 15.03.2020 until further orders – This Order was passed in exercise of plenary powers of Apex Court under Article 142 of Constitution of India, which are complementary to other powers specifically conferred by various statutes – Anxiety of Apex Court had been to obviate hardships likely to be suffered by litigants during onslaughts of this pandemic – Legal effect and coverage of Orders passed by Apex Court in SMWP No. 3 of 2020 cannot be unnecessarily narrowed – Having regard to their purpose and object, full effect is required to be given to such orders and directions – Commercial Court is to follow provisions of CPC as amended by the Act in trial of a suit in respect to a Commercial dispute of a Specified Value – However, with COVID-19, movement of persons and working of almost all institutions landed in such difficulties which were neither foreseen nor guarded against – When movements and gatherings of persons were fraught with dangers and when lockdowns became inevitable, institutions related with task of administration of justice were also required to respond to challenges thrown by this pandemic. (Paras 16, 17, 18.1, 19, 19.1 and 19.6)

(C) Civil Procedure Code, 1908 – Order VIII Rule 1 – Written Statement – Extension of period of limitation in wake of Covid-19 Pandemic – Orders in SMWP No. 3 of 2020 passed by Apex Court were of extraordinary measures in extraordinary circumstances and their operation cannot be curtailed with reference to ordinary operation of law – Special and extraordinary measures were provided by Apex Court for advancing cause of justice in wake of challenges thrown by pandemic and their applicability cannot be denied in relation to period prescribed for filing written statement – In view of orders passed by Apex Court in SMWP No. 3 of 2020, time limit for filing written statement by appellant in subject suit did not come to an end on 06.05.2021 – Present one is a case where prescribed extendable time for filing of written statement expired on 06.05.2021 – It is not the case of respondent nor there is any observation in the orders impugned that at relevant point of time, area in question was not a containment zone or that such a normalcy was available where appellant could have filed its written statement – Rules of procedure are essentially intended to subserve cause of justice and are not for punishment of parties in conduct of proceedings – Written statement already prepared and notarised by defendant-appellant deserves to be taken on record and Trial Court deserves to be directed to proceed with matter in accordance with law thereafter. (Paras 20.1, 20.2, 20.3, 22.2.2, 26.1 and 27)

(D) Limitation Act, 1963 – Section 4 – Limitation – Expiry of prescribed period when court is closed (dies non juridicus) – If prescribed period for any suit/appeal/application expires on day when Court is considered ‘closed’, such proceedings may be instituted on re-opening day – A day when Court may not as such be closed in physical sense, it would be ‘deemed’ to be closed, if during any part of its normal working hours, it remains closed on that day for any particular proceedings or work. (Para 25.2.1)

Facts of the case:

By way of present appeal, the appellant has challenged the order dated 09.07.2021, as passed by the High Court of Chhattisgarh at Bilaspur in WP No. 312 of 2021, whereby the High Court has upheld order dated 22.06.2021, as passed by the Commercial Court (District Level), Nava Raipur, Chhattisgarh in Civil Suit No. 01-B of 2021, in declining the prayer of the defendant-appellant for granting further time to file its written statement. The prayer of the defendant-appellant came to be declined on the ground that in view of the proviso to Order VIII Rule 1 of the Code of Civil Procedure, 19081, as substituted by the Commercial Courts Act, 2015, such a right of the defendant to file the written statement stood forfeited with expiry of 120 days from the date of service of summons.

Findings of Court:

After taking written statement on record, the Trial Court shall proceed with the suit in accordance with law; and for that matter, shall deal with the pending applications before taking any other steps in the suit.

Result : Appeal allowed. Impugned Orders set aside.