Commercial Courts Act Does Not Exclude Application Of Section 5 Limitation Act : Supreme Court

22nd Mar,2021

Commercial Courts Act Does Not Exclude Application Of Section 5 Limitation Act : Supreme Court

The Supreme Court ruled that the scheme of the Commercial Courts Act would not preclude the operation of section 5 of the Limitation Act. This means that, under Section 5 of the Limitation Act, a delay in filing an appeal under Section 13 of the Commercial Courts Act may be excused if there is ample reason. The bench, led by Justice RF Nariman, made this observation while overturning the decision in M/s NV International vs State of Assam, which had strictly held that a delay of more than 120 days in filing appeals under Section 37 of the Arbitration and Conciliation Act 1996 could not be excused.
The bench, which also included Justices BR Gavai and Hrishikesh Roy, questioned whether the operation of section 5 of the Limitation Act is barred by the Commercial Courts Act's scheme. To reply, the court pointed out that section 13(1A) of the Commercial Courts Act only allows for a 60-day limitation period from the date of the judgement or order appealed against, without addressing whether delays beyond this period may or cannot be excused, the bench said. The Commercial Courts Act, on the other hand, applies an intermediate duration of 60 days for filing an appeal, which is halfway between the 30 days and 90 days offered by Articles 116 and 117 of the Restriction Act, according to the court. The Commercial Courts Act, on the other hand, applies an intermediate duration of 60 days for filing an appeal, which is halfway between the 30 days and 90 days offered by Articles 116 and 117 of the Restriction Act, according to the court.