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Supreme Court: All periods of limitation prescribed under the Arbitration and Conciliation Act, 1996 extended till further orders. [Read Order]


Supreme Court Arbitration.jpg
14 Jul 2020
Categories: Latest News Arbitration

Supreme Court and High Court Advocates prayed before the Supreme Court for extending the time where the limitation is to expire during the period when there is a lockdown in view of COVID-19 or the time to perform a particular act is to expire during the lockdown.

The Supreme Court of India, comprising of The Chief Justice, Justice R. Subhash Reddy, and Justice A.S. Bopanna extended all periods of limitation prescribed under the Arbitration and Conciliation Act, 1996 shall be extended till further order and held as under;

I.A. No. 49221/2020 -Section 29A of the Arbitration and Conciliation Act, 1996

Section 29A of the Arbitration and Conciliation Act, 1996 does not prescribe a period of limitation but fixes a time to do certain acts, i.e. making an arbitral award within a prescribed time. We, accordingly, direct that the aforesaid orders shall also apply for an extension of time limit for passing arbitral award under Section 29A of the said Act. Similarly, Section 23(4) of the Arbitration and Conciliation Act, 1996 provides for a time period of 6 months for the completion of the statement of claim and defense. We, accordingly, direct that the aforesaid orders shall also apply for an extension of the time limit prescribed under Section 23(4) of the said Act.

Pre-Institution Mediation and Settlement under Section 12A of the Commercial Courts Act, 2015.

Under Section 12A of the Commercial Courts Act, 2015, time is prescribed for completing the process of compulsory pre-litigation, mediation, and settlement. The said time is also liable to be 5 extended. We, accordingly, direct that the said time shall stand extended from the time when the lockdown is lifted plus 45 days thereafter. That is to say that if the above period, i.e. the period of lockdown plus 45 days has expired, no further period shall be liable to be excluded.

Service of all notices, summons, and exchange of pleadings

Service of notices, summons, and exchange of pleadings/documents, is a requirement of virtually every legal proceeding. Service of notices, summons, and pleadings, etc. have not been possible during the period of lockdown because this involves visits to post offices, courier companies, or physical delivery of notices, summons, and pleadings. We, therefore, consider it appropriate to direct that such services of all the above may be effected by e-mail, FAX, commonly used instant messaging services, such as WhatsApp, Telegram, Signal, etc.

Extension of validity of Negotiable Instruments Act, 1881-I.A. Nos. 48461 and 48672/2020 (IA. No. 48671/2020, 48673/2020)

The period of validity of a cheque be extended, we find that the said period has not been prescribed by any Statute but it is a period prescribed by the Reserve Bank of India under Section 35-A of the Banking Regulation Act,1949. We do not consider it appropriate to interfere with the period prescribed by the Reserve Bank of India, particularly, since the entire banking system functions on the basis of the period so prescribed. The Reserve Bank of India may in its discretion, alter such a period as it thinks fit. Ordered accordingly.

Read Order @Latestlaws.com



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