By the said judgment, the High Court had dismissed the said applications and consequently denied the applicants/defendants prayer to take on record their written statements. According to the High Court, the applications cannot be allowed as the period of 30 days to file the written statements had expired on 08.03.2020. The High Court has held that the order dated 23.03.2020 passed by this Court in Suo Motu Writ Petition (C) No. 3 of 2020 [In Re: Cognizance for Extension of Limitation], which is to be effective from 15.03.2020 would not enure to the benefit of the applicants/defendants since the limitation period for filing the written statements had expired on 08.03.2020. The High Court has further held that, as held in Sagufa Ahmed and Others Vs. Upper Assam Plywood Products Private Limited and Others (2021) 2 SCC 317, since the orders of this Court under Article 142 of the Constitution of India extended only “the period of limitation” and not the period up to which delay can be condoned, the applications for taking on record the written statements cannot be entertained. (Para 2)
While summons was served on 07.02.2020, the 30 days period expired on 08.03.2020 and the outer limit of 120 days expired on 06.06.2020. The application for taking on record the written statements and the extension of time was filed on 20.01.2021. Applying the orders of 08.03.2021 and the orders made thereafter and excluding the time stipulated therein, the applications filed by the applicants on 19.01.2021 are well within time. The judgment passed by the High Court, for the reasons set out herein above, needs to be set aside. The principle underlying the orders of this Court dated 08.03.2021, 27.04.2021 and 23.09.2021, in In Re: Cognizance for Extension of Limitation, albeit those orders being passed, subsequent to the impugned order, would enure to the benefit of the applicants-defendants. (Para 2)
SUPREME COURT OF INDIA
2023 STPL(Web) 305 SC
[2023 INSC 867]
Aditya Khaitan & Ors. Vs. Il And Fs Financial Services Limited
Civil Appeal Nos. 6411-6418 of 2023 (Arising out of SLP (C) Nos. 4789-4796 of 2021)-Decided on 3-10-2023
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