2020 (5) TMI 671 - SCH - Indian Laws

Arbitration proceedings - section 29A of the Arbitration and Conciliation Act, 1996 - Dishonor of Cheque - extension of time period of limitation - HELD THAT - In view of this Court s earlier order dated 23.03.2020 passed in Suo Motu Writ Petition (Civil) No.3/2020 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 15.03.2020 till further orders to be passed by this Court in the present proceedings. In case the limitation has expired after 15.03.2020 then the period from 15.03.2020 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. Application disposed off.

Summary

Issues: Application for directions regarding arbitration proceedings under section 29A of the Arbitration and Conciliation Act, 1996, and initiation of proceedings under section 138 of the Negotiable Instruments Act, 1881.

Analysis:
The Supreme Court, comprising Hon'ble The Chief Justice, Hon'ble Mr. Justice Deepak Gupta, and Hon'ble Mr. Justice Hrishikesh Roy, considered an application for directions concerning arbitration proceedings under section 29A of the Arbitration and Conciliation Act, 1996, and the initiation of proceedings under section 138 of the Negotiable Instruments Act, 1881. The applicant sought appropriate directions in light of the challenges posed by the COVID-19 pandemic. Referring to a previous order dated 23.03.2020 in a related matter, the Court acknowledged the difficulties faced by lawyers and litigants due to the pandemic and issued an order to extend all periods of limitation prescribed under the Arbitration and Conciliation Act, 1996, and under section 138 of the Negotiable Instruments Act, 1881. The extension was effective from 15.03.2020 until further orders by the Court. Notably, if the limitation had expired after 15.03.2020, the period from that date until the lifting of lockdown in the relevant jurisdiction was to be extended by an additional 15 days post lockdown lifting. This decision aimed to alleviate the challenges faced by legal practitioners and litigants in physically filing proceedings during the pandemic.

In light of the above, the Court disposed of the instant interlocutory application. Additionally, several other applications were mentioned, including those seeking clarification, direction, and intervention. The Court issued notices in response to these applications and waived service on behalf of the respondent, the Union of India, given the appearance of Mr. K. K. Venugopal, the learned Attorney General for India, and Mr. Tushar Mehta, the learned Solicitor General, on its behalf. The Court directed that notices be served to other respondents involved in the matter, thereby ensuring all relevant parties were duly informed and involved in the proceedings.