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Court pointed out that the extraordinary situation during COVID was then dealt with rightly by extraordinary orders protecting the rights of parties by ensuring that their remedies and defences were not barred.
The Supreme Court has allowed filing of written statement in a suit for recovery of money by holding that its previous orders passed during the period of Covid-19 pandemic not only extended the period of limitation but expanded the protection by excluding the period even for computing outer limits within which the court or tribunal can condone delay.
"When the whole world was in the grip of devastating pandemic, it could never have been said that the parties were sleeping over their rights. It is, at this juncture, that this court stepped in and after taking suo motu cognisance passed orders under Article 142 of the Constitution of India extending the deadlines," a bench of Justices J K Maheshwari and K V Vishwanathan has said.
It has also said “Vigilantibus non dormientibus jura subveniunt” meaning thereby, the law assists those who are vigilant, not those who sleep over their rights is a fundamental legal maxim on which statutes of limitations are premised.
In the instant case, appellants Aditya Khaitan and others challenged the Calcutta High Court's orders of February 26, 2021 by which their plea to take on record their written statements.
High Court had said the applications cannot be allowed as the period of 30 days to file the written statements had expired on March 08, 2020. It also held that the order of the Supreme Court passed on March 23, 2020 in Suo Motu 'In Re: Cognizance for Extension of Limitation' which is to be effective from March 15, 2020 would not enure to the benefit of the applicants/defendants since the limitation period for filing the written statements had expired on March 08, 2020.
The applicants, on their part, also referred to the order of July 10, 2020 by which the Supreme Court further extended the period of limitation in connection with certain specific statutes. They averred that the further period of 90 days had not expired at the time when the previous order of March 23, 2020 was passed.
Reliance was also placed upon the Supreme Court's judgement in 'Prakash Corporates vs Dee Vee Projects Limited' (2022).
The court noted while summons was served on February 07, 2020, the 30 days period expired on March 08, 2020 and the outer limit of 120 days expired on June 06, 2020.
"The application for taking on record the written statements and the extension of time was filed on January 20, 2021. Applying the orders of March 08, 2021 and the orders made thereafter and excluding the time stipulated therein, the applications filed by the applicants on January 19, 2021 are well within time," the bench said.
It further said the principle underlying the orders of this Court in 'In Re: Cognizance for Extension of Limitation', albeit subsequent to the impugned order, would enure to the benefit of the applicants-defendants.
Case Title: Aditya Khaitan & Ors. vs. IL and FS Financial Services Limited
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