M/S North Eastern Chemicals Industries (P) LTD.& Anr. vs M/S Ashok Paper Mill(assam) Ltd. & Anr.
- SCC(2023) 19 SCC 798
- Neutral2023 INSC 1059
- SCR[2023] 15 SCR 821
Ratio decidendi
The rule this decision rests on
1. An appeal provided under a special statute falls within Article 116 of the Limitation Act, 1963 only where the statute expressly makes applicable the procedure and provisions of the Code of Civil Procedure, 1908, or where it can be demonstrated that the legislature intended the appeal to be governed by the Code. The mere conferral of select powers vested in a civil court under the Code upon a statutory authority does not, by itself, constitute that authority a court under the Code, nor does it render an appeal from its order an appeal under the Code for purposes of Article 116. 2. Where a statute limiting the application of the Code does so by express enumeration—specifying which provisions or sections of the Code shall apply to particular aspects of the statutory proceeding—the principle of statutory interpretation expressio unius est exclusio alterius applies, and the Code's application is confined to those enumerated aspects alone, notwithstanding that an appeal is provided for from the statutory authority to a court of civil jurisdiction. 3. The Jogighopa (Assam) Unit of Ashok Paper Mills Limited (Acquisition Transfer of Undertaking) Act, 1990 does not fall within the scope of Article 116 of the Limitation Act, 1963 with regard to appeals under Section 22(8) thereof, because the Act expressly restricts the application of the Code of Civil Procedure, 1908 to specified matters—namely, the Commissioner's powers concerning summoning witnesses, discovery and production of documents, evidence on affidavits, and issuance of commissions—and contains no provision making the Code applicable to the appeal procedure itself. 4. Where no period of limitation for filing an appeal is prescribed either by a general statute such as the Limitation Act or by the special statute governing the proceeding, the appeal must be filed within a reasonable time, which is a principle of law binding on all statutory authorities and courts; however, "reasonable time" is a flexible concept admitting of no fixed formula and must be assessed on the peculiar facts and circumstances of each case, regard being had to the nature of the statute, the scheme of limitation provisions within it concerning claims and other proceedings, the conduct of the parties, the length of delay, the nature and complexity of the proceeding, and the actual prejudice, if any, likely to result from the delay to the other party. 5. In cases where a statute contains no express period of limitation for an appeal, a court must undertake a holistic assessment of the facts and circumstances and may not dismiss an appeal solely on the ground of delay without having examined whether prejudice or loss has been demonstrated by the party raising the defence of delay; it would be improper for a court, in the absence of statutory limitation, to import or apply a period of limitation not prescribed by the legislature, as to do so would be to supplant the legislature's judgment with that of the court. 6. Where a statute expressly prescribes periods of limitation for claims or other proceedings but contains no corresponding limitation for appeals, and the legislative silence appears deliberate rather than accidental, the absence of limitation for appeals carries significance in interpreting the legislative intent that such appeals are not to be subject to the rigid temporal restrictions imposed on claims, though parties remain bound by the principle that litigation must not be indefinitely prolonged.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 2669 OF 2013
M/S NORTH EASTERN CHEMICALS INDUSTRIES (P) LTD.& ANR. …APPELLANT(S)
VERSUS
M/S ASHOK PAPER MILL(ASSAM) LTD. & ANR. …RESPONDENTS
JUDGMENT
SANJAY KAROL J.,
1. The questions to be determined in this lis are:
A) Whether Article 116 of the Limitation Act 1963, applies to
proceedings under the Jogighopa (Assam) Unit of Ashok
Paper Mills Limited (Acquisition Transfer of Undertaking)
Act, 1990.
B) Contingently, if the Limitation Act does not apply then, in
the absence of Limitation being placed within the text of the Signature Not Verified Digitally signed by NITIN TALREJA Date: 2023.12.11 Statute in question, could the Appeal filed against the Order 16:21:49 IST Reason:
1|[Civil Appeal No. 2669 of 2013] of the Commissioner of Payments be held as maintainable
having been filed after a period of nearly three years from
the said order?
THE APPEAL
2. This Civil Appeal assails a judgement of the Gauhati High
Court passed in CRP No. 263 of 2009 dated 21 July 2011, by which
the Civil Revision Petition against the Order dated 14 May 2009
passed by the learned District Judge, Kamrup, Gauhati in M.A
Case No. 18/2008 stands allowed.
BACKGROUND OF FACTS AND PREVIOUS PROCEEDINGS
3. The Claimant-Appellants1 and Respondents2 are both
companies registered under the Companies Act, 1956. The
Appellant had received Orders to supply certain goods to the
Respondents. After doing so, they raised certain bills which were
only partly paid by the Respondents.
3.1 Subsequently, the Respondents was declared “a sick
company” under the Sick Industrial Companies (Special
Provisions) Act, 1935. For the necessitated rejuvenation of the
1 Respondents before the High Court. Hereinafter referred to as Claimant-Appellant. 2 Review Petitioner before the High Court
2|[Civil Appeal No. 2669 of 2013] industry, the Government of Assam promulgated the Jogighopa
(Assam) Unit of Ashok Paper Mills Limited (Acquisition Transfer of
Undertaking) Act, 19903.
3.2 The Appellant filed its claim under Section 16 of the
Jogighopa Act for a sum of 1,58,375/- along with interest-against
which the Commissioner of Payments awarded4 the principle sum
but no interest. The award of such amount was communicated to
the Claimant - Appellants vide forwarding letter dated 16 July
19975. By letter dated 16 July 19976, the Claimant - Appellants,
under protest, accepted the payment of principal amount in full.
They raised grievance in respect of non-payment of any interest for
the periods of January 1983 to March 1993 and from March 1993
to the date of payment, i.e., 16 July 1997. In such letter, the total
amount of interest claimed was 21,49, 698/-at 18% interest per
annum.
3.3 Aggrieved by the non-payment of such interest claimed, a
Writ Petition7 before the High Court was filed seeking direction to
3 Hereinafter referred to as the Jogighopa Act 4 In Claim Case No. CP/Cat.VI/91/153. By Order dated 30 October 1994 5 Not on record. The date of such forwarding letter is as reflected in Appellants’ response
thereto.
6 Bearing Ref- NECIL/97-98 7 Bearing No. 4210 of 1997. Order Dated 10 November 1997
3|[Civil Appeal No. 2669 of 2013] the Commissioner to consider an award interest on the principal
amount due. Such a request without adjudication of rights of the
parties was acceded to by the High with a direction to consider the
claims within a period of 3 months.
3.4 The Commissioner upon consideration of the request for
grant of interest on delayed payment, amounting to 6,83,688/-8
granted the same. Still aggrieved thereby, the claimants once again
knocked the doors of the High Court9.
3.5 In such proceedings, the High Court in observing that the
entitlement of interest of the claimant company could not be
questioned, referred the matter back to the Commissioner of
Payments to calculate the interest payable afresh, in accordance
with Sections 4 and 5 of the Interest on Delayed Payments to
Small-Scale and Ancillary Industrial Undertaking Act 199310. It
was directed that any additional interest, if found payable, shall
be paid within 60 days of the Order.
8 Made vide letter dated 9 August 2001 by Managing Director of the Appellant. The same is
not on record. The record does show a representation dated 9 May 2001 in which the claim of interest on delayed payment is worth 15, 93,957. However, the Commissioner’s letter of award records that to have been an error in calculation. 9 Writ Petition No. 4520 of 2002. Order dated 19 May 2004 10 For short, “the 1993 Act”
4|[Civil Appeal No. 2669 of 2013] 3.6 Against the said Order, the Respondents – non-claimants
herein filed Review Application11. The ground of assail was that the
amount payable against the bills pending, have already been paid
and therefore no ground for re-calculation of interest is made out.
The High Court, in consideration of the 1993 Act under which the
interest was claimed held that, the interest calculable and due
would only be from 23rd September, 1992 as the Act was brought
into force on such date.
3.7 On further remand12, the Commissioner recorded lack of
funds to consider the request any further and stated that upon
further recalculation, as it is, no further amount payable was
found.
3.8 Subsequently, the Claimant - Appellants filed an appeal
thereagainst as also, moved an Application before the District
Judge, Guwahati under Section 5 of the Limitation Act 1963 for
condonation of delay in filing Appeal No. 18/2008.
3.9 It was observed by the learned District Judge vide Order
dated 14 May 2009 that since no specific time has been provided
for preferring an Appeal upon dissatisfaction with the decision of
11 Review Application 91 of 2001 12 Order bearing No- DI(V)APM/NEC/199/2005/26; Dated 13 April 2005
5|[Civil Appeal No. 2669 of 2013] the Commissioner, before the Principal Civil Court, such an Appeal
is fit to be admitted.
3.10 It is against this Order that the Order impugned before us in
Civil Revision13 came to be passed.
THE IMPUGNED JUDGEMENT
4. The Learned Single Judge in Civil Review, examined the
Limitation Act, 1963 along with various decisions rendered by this
Court and concluded, after detailed consideration that since an
Appeal under Section 22 (8) has been provided to a Principal Court
of Civil jurisdiction without being restricted by a period of
Limitation it would be treated as an Appeal provided under the
Code, that is the Code of Civil Procedure14, to a Court subordinate
to that of a High Court and to such an Appeal, the period of
Limitation as prescribed under Article 116 of the Limitation Act,
1963 would apply. In the instant facts therefore, the conclusion
was that the Appeal was erroneously admitted by the District
Judge and the same to have been dismissed as not maintainable
on the ground of limitation.
13 Petition No. 263/2009 14 Hereinafter referred to as “The Code”
6|[Civil Appeal No. 2669 of 2013] SUBMISSIONS ON BEHALF OF THE PARTIES
5. We have heard at great length, the Learned Senior Counsel
appearing for both parties, Mr. Parthiv K Goswami for the Claimant
- Appellants and Mr. Rajshekhar Rao for the Respondent and have
also perused the written submissions filed.
A. Claimant - Appellants
6. It is submitted that, the Learned Single Judge’s reliance on
Vidyacharan Shukla v. Khubchand Baghel & Ors.15 (Five-Judges
Bench) to arrive at the conclusion that the Appeal under Section
22(8) would be covered by Article 116 of The Limitation Act, 1963
was mistaken as, the majority view therein was that to attract
Article 156 of The Limitation Act 1908, the corresponding Section
to Article 116 of the present Act, it was not necessary that the
Appeal should be conferred by the Code itself. It would be sufficient
if the procedure governing the Appeal would be according to the
Code.
6.1 Unlike the fact situation in Vidyacharan Shukla (supra)
where the concerned provision was 116A (2) of the Representation
of People Act, 1951, The Special Act herein and particularly the
15 AIR 1964 SC 1099 (Five-Judge Bench)
7|[Civil Appeal No. 2669 of 2013] Appeal provision mentioned therein does not provide that the
procedure governing the Appeal shall be in accordance with the
Code. In particular, reliance is placed on paras 6-8, 18, 19 and 33
of the said Constitution Bench judgement.
6.2 Another “condition precedent” for the employment of Article
116 is that the Appeal governed thereby arise from an Order or a
Decree. It is submitted that, in the present case, the Order passed
is neither a Decree nor an Order. Further it is submitted that the
Order dated 13 April 2005 which was the Order against which the
subject Appeal had been filed, was an Order passed by an
executive officer who is neither a Court nor a Civil Court as
recognised in Law. The Learned Senior Counsel relies on Nahar
Industrial Enterprises Ltd. v. Hongkong & Shanghai Banking
Corporation16. In particular, paras 26, 67 – 69, 71 – 73, 85, 86
and 89 are relied upon.
6.3 The powers of the Civil Court, conferred upon the
Commissioner of payments are for a very limited purpose. It is for
this reason that Article 116 would not apply. Thereby meaning that
the present Appeal is outside the purview of the Limitation Act and
16 (2009) 8 SCC 646
8|[Civil Appeal No. 2669 of 2013] can be filed at any time. Reference is made to Uttam Namdeo
Mahale v. Vithal Deo & Ors.17
6.4 It is further submitted that without prejudice to the
contentions made, even if it is concluded that Article116 of the
Limitation Act would apply or that the time period to file Appeal
would be “a reasonable period”, the matter may be remanded to
the District Judge, as the Principal Civil Court of Original
jurisdiction (being the Appellate Court herein) for consideration of
the application under Section 5 of the Limitation Act.
B. Respondent
7. It is submitted that to attract Article 116 of the Limitation
Act, it is not necessary that such Appellate remedy should be
conferred by the Code. It is only that the procedure for such Appeal
be governed under the Code.
7.1 The Act provides for an Appeal from the Order passed by the
Commissioner of payments to lie to a principal Civil Court of
original jurisdiction which, by all intent and purposes is governed
by the Court.
17 (1997) 6 SCC 73
9|[Civil Appeal No. 2669 of 2013] 7.2 A reading of the Statutory scheme, it is submitted, suggests
that the Legislature intended the Commissioner to function as the
Civil Court for “all practical purposes”. The fact that an Appeal
therefrom lies to a Principal Civil Court of Original jurisdiction,
further substantiates such intention.
7.3 It is submitted that Article 116 provides for Limitation in
cases of Appeal under the Code from any Decree or Order to High
Court. Vidyacharan Shukla carved out a third category where the
Appeal is not governed by the provisions of the Code but the
procedure therefore and the powers for dealing there with, are
governed by the Code.
7.4 The Claimant - Appellants contention, it was submitted, runs
strictly contrary to the very objective of the Law of Limitation which
is to ensure that a dispute does not survive endlessly and that the
parties subject thereto are not forever, in the land of uncertainty.
7.5 The Appeal before the District Judge, was filed 3 years 6
months and 22 days after passing of the Order by the
Commissioner of Payments. It is submitted that the delay in
Condonation Application, which states that it was only then that
the Appellant came to know of the provisions of Section 22(8) of
10|[Civil Appeal No. 2669 of 2013] the Jogighopa Act, amounts to ignorance of Law which is not an
excuse permissible.
7.6 It is further submitted that, it is now well settled that the
Courts are not to take a liberal approach in condonation of delay
in the absence of sufficient cause. To substantiate this position,
Learned Senior Counsel refers to Amalendu Kumar Bera v. State
of W.B.18
7.7 It is further submitted without prejudice, that in the absence
of a prescribed Statutory Limitation, approaching the Court, is to
be done within “reasonable time”. Satyan v. Deputy
Commissioner19 is relied on.
7.8 Section 19 of the Act provides for a claim before the
Commissioner to be filed within 30 days from the specified date. It
provides that if such authority is satisfied that the claimant was
prevented by sufficient cause, he may entertain the claim within a
further period of 30 days, but no later – this suggests that the
intention was to provide for a summary and expeditious claim
disposal mechanism. This further suggests, it is submitted, that it
would be unfair to suggest that the Legislature had provided a
18 (2013) 4 SCC 52 19 (2020) 14 SCC 210
11|[Civil Appeal No. 2669 of 2013] strict timeline for claims but intended to provide an endless
opportunity for appeals.
CONSIDERATION BY THIS COURT
8. The term “Court” is not defined under the Code. What it does
define is a decree and an order in Section 2(2) and Section 2(14)
respectively. The said definitions are extracted below.
“Section 2(2) "Decree" means the formal expression of an adjudication which, so far as regards the Court expressing it, conclusively determines the rights of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final. It shall be deemed to include the rejection of a plaint and the determination of any question within 1*** section 144, but shall not include.
(a) any adjudication from which an appeal lies as an appeal from an order, or
(b) any order of dismissal for default.
Explanation. A decree is preliminary when further proceedings have to be taken before the suit can be completely disposed of. It is final when such adjudication completely disposes of the suit. It may be partly preliminary and partly final.” “Section 2(14) "order" means the formal expression of any decision of a Civil Court which is not a decree.”
9. The Indian Evidence Act, 1872 defines the word “Courts” as
under:-
“3…..“Court”.––“Court” includes all Judges and Magistrates, and all persons, except arbitrators, legally authorised to take evidence.”
12|[Civil Appeal No. 2669 of 2013] However, this Court in State of M.P v. Anshuman Shukla20
while referring to a judgment of the Calcutta High Court21 observed
that the definition under the said Act is not exhaustive, but all
authorities authorized to take evidence must be held to be courts
under the meaning of said provision.
10. In P. Sarathy v. SBI22 this Court has observed
“13. The Court referred to the earlier decisions in Bharat Bank Ltd. v. Employees [1950 SCC 470 : AIR 1950 SC 188 : 1950 SCR 459] ; Maqbool Hussain v. State of Bombay [AIR 1953 SC 325 : 1953 SCR 730] and Brajnandan Sinha v. Jyoti Narain [AIR 1956 SC 66 : (1955) 2 SCR 955] . The Court approved the rule laid down in these cases that in order to constitute a court in the strict sense of the term, an essential condition is that the court should have, apart from having some of the trappings of a judicial tribunal, power to give a decision or a definitive judgment which has finality and authoritativeness which are the essential tests of a judicial pronouncement.”
11. Article 116 of the Limitation Act provides the period of
limitation for an appeal, a) to a High Court i.e., 90 days from the
date of order/decree; and b) to any other court from an order, 30
days from the date of order/decree.
20 (2008) 7 SCC 487 21 Empress v. Ashootosh Chuckerbutty [ILR (1879-80) 4 Cal 483] 22 (2000) 5 SCC 355
13|[Civil Appeal No. 2669 of 2013]
12. The Claimant - Appellants contend that this court judgment
in Vidyacharan Shukla (supra) is clearly distinguishable from the
present dispute. In the said case, inter alia, the court was faced
with a statute (Representation of Peoples Act, 1951), to which the
Court has been made expressly applicable, whereas the same is
not the case here. On the other hand, the respondents argue that
since an appeal under Section 22 (8) of the Jogighopa Act is to a
principal court of original civil jurisdiction, which qualifies as an
appeal ‘governed by the Court’ – Article 116 of the Limitation Act
shall be attracted.
13. The Constitution Bench in Vidyacharan Shukla referred to
three judgments of High Courts in Aga Mahomed Hamadani v.
Cohen23, Ramasami Pillai v. Deputy Collector of Madura24, and
Dropadi v. Hira Lal25. In each of these three decisions, the
respective High Courts were tasked with the question of
application of Article 156 of the Limitation Act (now Article 116 )
to the Burma Court’s Act, the Provincial Insolvency Act, 1907 and
Land Acquisition Act, 1894 respectively. In Cohen (supra) it was
observed that “the natural meaning of an appeal under the Civil
23 (1886) ILR 13 Cal 221 24 AIR 1920 Mad 407 25 ILR (1912) 34 All 496 (FB)
14|[Civil Appeal No. 2669 of 2013] Procedure Code appears to us to be an appeal governed by the
Code of Civil Procedure so far as procedure is concerned”. In Hira
Lal (Supra) the full bench of the Allahabad High Court observed
that the objection of Section 47 thereof appears to be to attract the
provisions of the Code. In Ramasami Pillai (supra), it was held
that by virtue of Section 54, the procedure in its entirety set out in
the code to govern appeals, was made applicable to the Land
Acquisition Act. Similar to the above said decisions of the High
Courts this Court in the said decision was also dealing with a
statute which expressly made applicable26, the provisions of the
code. The holding, therefore, is that appeals provided for in special
statutes that are governed by the code, can be said to be appeals
under the code for the purposes of Article 116 of the Limitation
Act.
14. We may now refer to Section 22(6) of the Jogighopa Act which
deals with the powers vested in the Commissioner under the Act.
The relevant portion of which reads as under: -
“(6) The commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge of his functions, including the place or places at which he will hold his sittings and shall, for the purpose of making an investigation under this Act, have the same powers as are vested in a Civil Court under the
26 Section 90 of Representation of Peoples Act, 1951
15|[Civil Appeal No. 2669 of 2013] Code of Civil Procedure, 1908, in respect of the following matters, namely:-
(a) The summoning and enforcing the attendance of any witness and examining him on Oath :
(b) the discovery and production of any document or other material object producible as evidence ;
(c) the reception of evidences on affidavits;
(d) the issuing of any commission for the examination of witness.”
15. A perusal of the above extracted section of the Jogighopa Act
makes sufficiently clear the commissioner “for the purpose of
making and investigation under this act” shall have the powers
vested in “a civil court” under the Code to the limited extent as
mentioned in (a), (b), (c), (d).
16. The intent of the Assam State Legislature is quite clear. Not
only under Section 22 (6) is the application of the code limited but
further under Section 22 (7)27. The application thereof is also
equally well circumscribed therein, the Commissioner has been
deemed to be a Civil Court for the purposes of Section 195 and
Chapter XXVI of the Code of Criminal Procedure, 1973. Section
195 provides for Prosecution for contempt of lawful authority of
public servants, for offences against public justice and for offences
27 “7.Any investigation before the Commissioner shall be deemed to be a judicial proceeding
within the meaning of Section 193 and 228 of the Indian Penal Code, and the Commissioner shall be deemed to be a Civil Court for the purposes of Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.”
16|[Civil Appeal No. 2669 of 2013] relating to documents given in evidence. Chapter XXVI relates to
Provisions as to Offences Affecting the Administration of Justice.
17. The above description of the powers of either the Code or
Cr.P.C. clearly testifies to the intent of the state legislature to
specifically restrict the application of both the said codes, to only
the extent provided. The principle of statutory interpretation:
expression unius est exclusion alterius (the expression of one thing
is the exclusion of the other) supports such a view. We also notice
this Court holding International Asset Reconstruction
Company of India vs Official Liquidator28 as extracted below:
“9. The fact that the Tribunal may be vested with some of the powers as a civil court under the Code of Civil Procedure, regarding summoning and enforcing attendance of witnesses, discovery and production of the documents, receiving evidence on affidavits, issuing commission for the examination of witnesses or documents, reviewing its decisions, etc. does not vest in it the status of a court. Section 22(1), in fact, provides that the Tribunal shall not be bound by the procedures under CPC, and can regulate its own procedures in accordance with natural justice.”
(Emphasis supplied)
18. Therefore, it is clear from the above extracted decision that
the vesting of select few powers upon a Tribunal, or as in the
present case, a statutory authority, does not equate the same to
28 (2017) 16 SCC 137
17|[Civil Appeal No. 2669 of 2013] be a Court within the meaning of the code. It is also noteworthy
that Section 22 (6) states “the Commissioner shall have the power
to regulation his own procedure in all matters arising out of the
discharge of his functions including the place or places at which
he will hold his sittings”; This also supports the proposition that
the Code does not apply to the proceedings of the Commissioner.
19. We must consider now, the contention of the respondent that
by virtue of Section 22 (8) providing for an appeal to a court of
Original Civil Jurisdiction thereby the appeal being brought under
the code, implies that the Jogighopa Act itself shall be governed by
the code. Section 22 (8) reads as under: –
“8. A Claimant, who is dissatisfied with the decision of the Commissioner, may prefer an appeal against such decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the undertaking of the Government Company is situated Provided that where a person who is a Judge of High Court is appointed to be the Commissioner such appeal shall lie to the High Court at Guwahati, and such appeal shall be heard and disposed of by not less than two Judges of that High Court.”
20. The above noticed maxim of statutory interpretation would
suggest otherwise. As discussed, the state legislature has been
conscious to make only certain parts of the Jogighopa Act
governable by the code. Here only we may note the proviso to
18|[Civil Appeal No. 2669 of 2013] Section 22 (8) which states that in case the Commissioner under
the Jogighopa Act is a Judge of a High Court, then an appeal from
an order of such Commissioner shall lie before no less than two
Judges of the High Court.
21. It is in this light that we find Section 22 (8) of the Jogighopa
Act cannot be said to be an appeal under the code governed by
Article 116 of the Limitation Act. The conclusion which beckons
then is that the period of limitation mentioned under such article
of the Limitation Act shall not apply to Section 22 (8) of the
Jogighopa Act. The Claimant - Appellants contention of the
impugned judgement’s reliance on with Vidyacharan Shukla
(supra) being misplaced, therefore, has to be accepted.
22. Having come to the conclusion as above, we are required to
consider, whether the instant appeal, filed against the order of the
Commissioner of Payments is maintainable or not? Prior to delving
into such a question, we would also need to examine as to whether
in the absence of an expressly prescribed limitation, can an appeal
from an order passed by the Commissioner of Payments, be
entertained, irrespective of passage of time?
19|[Civil Appeal No. 2669 of 2013]
23. This dispute concerns the exercise of a statutory right. The
issue of no express limitation being provided in regard to the
exercise of a right to assail the order has captured the attention of
this Court, earlier, on certain occasions. We may refer to some
decisions hereinbelow: –
23.1 In State of Punjab & Ors. v. Bhatinda District
Cooperative Milk Producers Union29 this Court
observed that -
“18. It is trite that if no period of limitation has been prescribed, statutory authority must exercise its jurisdiction within a reasonable period. What, however, shall be the reasonable period would depend upon the nature of the statute, rights and liabilities thereunder and other relevant factors.”
The principle stands reiterated in Securities and
Exchange Board of India v. Sunil Krishna Khaitan &
Ors.30
23.2 In Jagdish v. State of Karnataka31, this Court referred
to a number of decisions to reiterate that where the
statute in question does not prescribe a limitation, the
29 (2007) 11 SCC 363 30 (2023) 2 SCC 643 31 (2021) 12 SCC 812
20|[Civil Appeal No. 2669 of 2013] rights conferred therein must be exercised within
reasonable time.
23.3 This aspect of reasonable time was recently discussed
by this Court in Madras Aluminium Co Ltd v. Tamil
Nadu State Electricity Board32, having referred a
three-Judge Bench decision in SEBI v. Bhavesh
Pabari33 stating that the concept is to be applied and
judged in each case per its own peculiar facts.
24. We further refer to observations made in Ajaib Singh v.
Sirhind Coop. Marketing-cum-Processing Service Society
Ltd.34 to the effect that Courts should be wary of prescribing
specific period of limitation in cases where the legislature has
refrained from doing so. It was further observed that where the
defence of delay is employed in a situation where no limitation is
prescribed vide statute, the exact prejudice or loss suffered by the
party if such a delay is condoned, must be shown on facts. In other
words, in the absence of a specific limitation it would be improper
for courts to dismiss a plea is solely on the ground of delay without
32 (2023) 8 SCC 240 33 (2019) 5 SCC 90 34 (1999) 6 SCC 82
21|[Civil Appeal No. 2669 of 2013] having examined the nature of laws order prejudice caused to the
other party in the facts and circumstances of the case at hand.
The holding in Ajaib Singh (supra) was affirmed by a three-Judge
Bench of this court in Purohit & Co. v. Khatoonbee.35
25. In light of above discussion, it is clear that when a Court is
seized of a situation where no limitation stands provided either by
specific applicability of the Limitation Act or the special statute
governing the dispute, the Court must undertake a holistic
assessment of the facts and circumstances of the case to examine
the possibility of delay causing prejudice to a party. When no
limitation stands prescribed it would be inappropriate for a Court
to supplant the legislature’ s wisdom by its own and provide a
limitation, more so in accordance with what it believes to be the
appropriate period. A court should, in such a situation consider in
the facts and circumstances of the case at hand, the conduct of
the parties, the nature of the proceeding, the length of delay, the
possibility of prejudice being caused, and the scheme of the statute
in question. It may be underscored here that when a party to a
dispute raises a plea of delay despite no specific period being
35 (2017) 4 SCC 783
22|[Civil Appeal No. 2669 of 2013] prescribed in the statute, such a party also bears the burden of
demonstrating how the delay in itself would cause the party
additional prejudice or loss as opposed to, the claim subject matter
of dispute, being raised at an earlier point in time.
26. In determining the question at hand, it would also be useful
to take note of the statutory scheme of the Jogighopa Act. Section
17 of the Act states that the State government or government
company shall, within 30 days of the appointed day, pay in cash
all amounts under Sections 8 and 9 of the Act to the Commissioner
for discharge of the liability of the company. Section 19 states that
every person having a claim to payments under the schedule shall
make a claim before the Commissioner within a period of 30 days
from specified date. The proviso thereto states that the
Commissioner also has the power to entertain claims made for an
additional 30 days after the expiry of the initial period, but not
thereafter. Section 20 read with the schedule, prescribes priority
of payments when discharging the liabilities. As evident from the
above referred to provisions, the state legislature was conscious of
the aspect of limitation and has categorically therefore, prescribed
periods for claims to be made so as to not leave open the possibility
23|[Civil Appeal No. 2669 of 2013] of a claim, indefinitely. Crucially, the legislature omitted placing
any period of limitation when it came to Section 22 (8) of the Act.
27. When a statute, either general or specific in application,
provides for a limitation within which to file an appeal, the parties
interested in doing so are put to notice of the requirement to act
with expedition. However, opposite thereto, in cases such as the
present one where neither statute provides for an explicit
limitation, such urgency may be absent. While it is still true that,
as held in Ajaib (supra), this does not entitle parties to litigate
issues decades later, however shorter delays, in such
circumstances, would not attract delay and laches.
28. The present facts are that the Claimant - Appellants are
aggrieved by an order of The Commissioner of Payments dated 13
April 2005. The appeal filed thereagainst was on 5 November 2008.
In the intervening period, it is submitted by the Claimant -
Appellants that they pursued remedies by way of a Contempt
Petition before the High Court36 which came to be disposed of on 1
April 2008 without any particular relief having been granted. The
appeal before the District Judge, under section 22(8) of the
36 Contempt Case 293 Of 2005, filed on 11 May 2005.
24|[Civil Appeal No. 2669 of 2013] Jogighopa Act, came to be filed thereafter and the order in question
was passed on 5 November 2008.
29. Consequent to the discussion made hereinabove, i.e., neither
the general nor the specific statute providing for an appeal from an
order of the Commissioner of Payments within a specified period
of time, the Claimant – Appellants’ appeal cannot be said to be
barred by time. The same would therefore, be maintainable.
30. The questions raised in this appeal are answered as under-
30.1 The Jogighopa (Assam) Unit of Ashok Paper Mills
Limited (Acquisition Transfer of Undertaking) Act,
1990, is not governed by the prescription of limitation
under Article 116 of the Limitation Act, 1963, as the
appeal thereunder, from an order of the Commissioner
of payments cannot be said to be an appeal under the
Code of Civil Procedure, 1908 for the Legislature of the
State of Assam has been categorical in limiting the
application of the code to certain aspects of the Act
only. Given that the Jogighopa Act allows for a Judge
of the High Court to be the Commissioner of Payments
and then categorically provides for an appeal to lie
25|[Civil Appeal No. 2669 of 2013] therefrom, Division Bench of the High Court further
evidences the sui generis nature of the appeal
procedure provided therein.
30.2 In the absence of any particular period of time being
prescribed to file an appeal, the same would be
governed by the principle of ‘reasonable time’, for
which, by virtue of its very nature, no straitjacket
formula can be laid down and it is to be determined as
per the facts and circumstances of each case. In the
present lis, having regard to the sequence of events, as
taken note of above-the Claimant - Appellants cannot
be said to have transgressed the boundaries of
reasonable time in filing their appeal before the District
Judge.
31. The appeal is allowed in the aforesaid terms. The file is
restored to the docket of the concerned District Judge for him to
proceed in accordance with law and in light of the discussions
made herein. The same be decided possibly within a period of
three months from the date on which a copy of this judgment and
26|[Civil Appeal No. 2669 of 2013] order is received by the District Judge, as is necessitated by the
attending facts and circumstances.
32. Parties to bear respective costs.
…….….....……….J (ABHAY S. OKA)
…............……….J (SANJAY KAROL)
New Delhi;
Dated : 11 December 2023.
27|[Civil Appeal No. 2669 of 2013]
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free