Lawstreet Journal

Supreme Court explains “sufficient cause” as used in Commercial Courts Act, 2015

Lawstreet Journal 22 Mar 2021 11:10pm

Image courtesy: Lawstreet Journal Judiciary Supreme Court explains “sufficient cause” as used in Commercial Courts Act, 2015

The Scheme of Commercial Courts Act, 2015 does not exclude the application of section 5 of the Limitations Act, 1963, as held recently by the Supreme Court. 

Justice RF Nariman who was heading the bench in this matter Government of Maharashtra vs Borse Brothers Engineers and Contractors Pvt Ltd. [CA 995 OF 2021], overruled a decision that was made in M/s NV International vs State of Assam where it was held that any more than 120 days of delay in filing of cases under section 37 of Arbitration and Conciliation Act 1996 shall not be condoned.

In other words, it meant that under Section 13 of the Commercial Courts act, filing of appeals would be condoned if good enough cause according to section 5 of the Limitation Act could be fulfilled.

 

The common issue addressed by the other judges on the bench was “whether the application of section 5 of the Limitation Act is excluded by the scheme of the Commercial Courts Act.”

The Court observed, “section 13(1A) of the Commercial Courts Act does not contain any provision akin to section 34(3) of the Arbitration Act. Section 13(1A) of the Commercial Courts Act only provides for a limitation period of 60 days from the date of the judgment or order appealed against, without further going into whether delay beyond this period can or cannot be condoned”

 

The respondents referred to a previous judgement made in CCE & Customs v. Hongo India Ltd. (2009) 5 SCC 791 in which the court held, “Unlike the scheme of the Central Excise… Continue Reading...


Tagged: Supreme Court of India  
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