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IN THE HIGH COURT OF DELHI
Rajiv Shakdher, Talwant Singh, JJ.
Union of India - Appellant
Versus
Naresh Kumar Gupta & Co. Pvt. Ltd. - Respondent
FAO (COMM) 72 of 2021 and CM No. 9820 of 2021
Decided On : 09-08-2021




The Court held that the Supreme Court's orders extending limitation periods due to the COVID-19 pandemic must be applied in all cases, including those under the Arbitration and Conciliation Act, 1996.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 - Appeal against order dismissing petition as time-barred - Supreme Court's suo motu order extending limitation due to COVID-19 pandemic applicable - Lower court erred in not considering extension of statutory timelines. (Paras 5, 6, 3.1)

(B) Limitation - Delays due to pandemic - Courts must recognize and apply extensions mandated by higher authority. (Paras 1.1, 2, 5.1)

Facts of the case:
The appeal pertains to an order dated 05.12.2020 dismissing a petition under Section 34 of the Arbitration Act due to late filing, with a delay of 56 days noted, attributed to disruptions from the COVID-19 pandemic.

Findings of Court:
The Court found the lower court's dismissal unsustainable as it failed to consider the Supreme Court's extension of limitation periods. The case is to be decided on its merits henceforth.

Issues: The primary issues include whether the delay should be excused given the extension of limitations due to the pandemic and whether the order should be set aside.

Ratio Decidendi: The Court reasoned that the actions of the Supreme Court in extending limitation periods take precedence and should be considered by lower courts to avoid injustice to litigants during exceptional circumstances.

Result: The impugned order is set aside, and the case is remanded for consideration on its merits.

Judgement Key Points

What is...


Table of Content
1. court proceedings and representation issues. (Para 1)
2. impact of covid-19 on limitation periods. (Para 2)
3. setting aside of order on limitation grounds. (Para 3)
4. conclusion and order of the court. (Para 4 , 5 , 6)

JUDGMENT

Rajiv Shakdher, J. (ORAL):--(Court hearing convened via video-conferencing on account of COVID-19)

1. Pursuant to a direction issued by this Court, on 16.07.2021, the matter was listed before the Joint Registrar (Judicial) on 29.07.2021.

1.1. It appears that, on 29.07.2021, counsel for the respondent appeared along with one, Mr. Naresh K. Gupta.

1.2. Although, the order of the Joint Registrar (Judicial) dated 29.07.2021 does not record the appearance of the counsel for the respondent, as, apparently, he did not submit the appearance slip, Mr. Arnav Sanyal, who appeared for the appellant, on the aforesaid date i.e. 29.07.2021, submits that Mr. Shiv Kumar Gupta, Advocate had appeared for the respondent.

1.3. Evidently, Mr. Shiv Kumar Gupta has not filed his vakalatnama, as yet, though, time was sought for that purpose on 29.07.2021. As noted above, on the said date, counsel for the respondent was present along with Mr. Naresh K. Gupta.

1.4. Mr. Ashish Verma, who appears for the appellant, submits that, Mr. Naresh K. Gupta is the person-in-charge of the respondent-company.

2. On 10.03.2021, when the matter had been listed before the court, we had, inter alia, observed as follows:

    "4. The instant appeal is directed against an order dated 05.12.2020 whereby the petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (in short "the Act") has been dismissed on the ground that it was filed beyond the period of limitation. The District Judge (Commercial Court), in this behalf, has relied upon the decision of the Supreme Court rendered in Union of India vs. Popular Construction Company, (2001) 8 SCC 470.

    5. Prima facie, to our minds, the decision, in that judgment, may not apply in the instant case on account of lockdown ordered in the country due to the spread of the Coronavirus pandemic. Because of the Pandemic, the functioning of the courts in the country remains disrupted since 15.03.2020.

    5.1 It is in this background that the Supreme Court passed an order dated 23.03.2020, in a suo motu writ petition [i.e. SM WP(C) 03/2020], whereby, the period of limitation prescribed under various statutes was extended. The relevant portion of the order is set forth hereafter:

    "This Court has taken suo motu cognisance of the situation arising out of the challenge faced by the country on account of Covid 19 Virus and resultant difficulties that may be faced by the litigants across the country in filing their petitions/application/suits/ appeals/all other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws (both Central and/or State).

    To obviate such difficulties and to ensure that lawyers/litigants do not have to come physically to file such proceedings in respective Courts/Tribunals/across the country including this Court, it is hereby ordered that the period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. March 2020 till further order/s to be passed by this court in present proceedings.

    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.

    This order may be brought to the notice of all High Courts for being communicated to all Subordinate Courts/Tribunals within their respective jurisdiction.

    Issue notice to all the Registrar Generals of the High Courts, returnable in four weeks."

    5.2 This order was modified/clarified from time to time by the Supreme Court. Orders clarifying/modifying the order dated 23.03.2020 were passed on 06.0

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