Holding

The 30‑day limitation period under Section 4(2) of the Special Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992 is mandatory, the Act excludes the Limitation Act, and the Special Court cannot condone the delay.

Summary

Fairgrowth Investments Ltd. was notified under the Special Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992 and filed a petition of objection under Section 4(2) more than 30 days after the notification. The Special Court rejected the petition on the ground of limitation. The Supreme Court examined whether the 30‑day period in Section 4(2) is mandatory or merely directory, whether Section 5 of the Limitation Act could be invoked via Section 29(2) of the Limitation Act, 1963, and whether the Act expressly excludes the Limitation Act. The Court held that the period is mandatory, the Act expressly excludes the Limitation Act, and therefore the Special Court has no power to condone the delay. The appeal was dismissed.

Issues considered

The period prescribed under Section 4(2) of the Special Courts Act is mandatory or directory.
Whether Section 5 of the Limitation Act can be applied to petitions under Section 4(2) through Section 29(2) of the Limitation Act.
Whether the Special Courts Act expressly or necessarily excludes the application of the Limitation Act.
Whether the Special Court possesses inherent jurisdiction to condone delay in filing objections under Section 4(2).

Legislation cited

Code of Civil Procedure, 1908
Limitation Act, 1963s. 29(2), s. 4, s. 5
Special Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992s. 10(3), s. 13, s. 3(2), s. 4(2), s. 5, s. 9, s. 9A

Subjects

limitation periodmandatory vs directorycondonation of delaySpecial Courts Act 1992Section 29(2) Limitation Actstatutory exclusionjudicial interpretation

Judgment

FAIRGROWTH INVESTMENTS LTD. A
v.
THE CUSTODIAN

OCTOBER 14, 2004

[RUMA PAL AND ARUN KUMAR, JJ.] B

Special Courts (Trial of Offences Relating to Transactions in Securities)
Act, 1992/Limitation Act, 1963-Section 4(2)/ Sections 5 and 29(2)-Petition
u/s 4(2)-Beyond the limitation period-Condonation ofdelay-Permissibility
of-Held: The delay in filing the petition cannot be condoned-The limitation C
period is mandatory-The provision for condoning delay is not provided in
the statute, nor can it be condoned u/s 5 of Limitation Act by virtue of
applicability of Section 29(2) of Limitation Act-Section 29(2) does not
apply to the statute as the statute had excluded application of Limitation Act.
Judicial Propriety-Judicial pronouncement-Two views-One by D
Division Bench another by larger Bench-Held: Reliance should be placed
on the view expressed b; larger Bench-Precedent.
1

Words and Phrases:
'Exclusion '-Meaning of E
Appellant was notified u/s 3(2) of Special Courts (Trial of Offences
Relating to Transactions in Securities) Act, 1992. Appellant filed petifon of
objection to the notification u/s 4(2) of the Act, but beyond the period of
limitation prescribed under the Section. Special Court rejected the same on
the ground of limitation. F
In appeal to this Court appellant contended that the notified person could
not be deprived of the right merely on the ground of limitation; that provision
prescribing a period of limitation in Section 4(2) was directory and not
mandatory; that Section 29(2) of the Limitation Act, 1963 would automa!ically
be applicable to all Special Acts; that the provisions of Limitation Act had not G
been excluded either expressly or by necessary implication; that by virtue of
applicability of Section 29(2), Section 5 of Limitation Act would be applicable
to the petitions u/s 4(2) of the Act and hence the delay could be condoned
thereunder.

505 H
506 SUPREME COURT REPORTS (2004] SUPP. 5 S.C.R.

A Respondent-Custodian contended that period of limitation prescribed u/
u/s 4(2) could not be said to be merely directory; that Section 29(2) of
Limitation Act would have no application to the Act; and that conferment of
power to condone delay provided expressly in connection with appeal u/s 10 of
the Act, necessarily implied the exclusion of such power in the Court u/s
B 4(2).

Dismissing the appeal, the Court

HELD: 1.1. Since the appellant's petition of objection had been filed
much beyond the period prescribed under Section 4(2) of Special Courts {Trial
C of Offences Relating to Transactions in Securities) Act, 1992, the Special
Court was right in rejecting the petition in limine. [Sl9-B]

L.S. Synthetics Ltd. v. Fairgrowth Financial Services Ltd and Anr.,
(2004) 7 SCALE 427 and Hukumdev Narayan Yadav v. L.N. Mishra, (1974) 2
sec 133, relied on.
D 1.2 The period for filing a~ objection under Section 4(2) is a mandatory
provision given the language of the Section and having regard to the objects
sought to be served by the Act. The period prescribed cannot be extended by
the Court under any inherent jurisdiction of the Special Court.
[Sl2-C; SIS-CJ
E
Dr. J.J. Merchant v. Shrinath Chaturvedi, (2002) 6 SCC 63S, followed.

Topline Shoes Ltd v. Corporation Bank, [2002) 2 SCC 33, referred to.

1.3. The mere use of the word "may" in Sections 4(2) of the Act does
F not indicate that the period prescribed under the Section is merely directory.
The word 'may' merely enables or empowers the objector to file an objection.
[SI3-A-BI

Mangu Ram v. Municipal Corporation of Delhi, [1976) I SCC 392,
relied on.

G 1.4. The words of Section 4(2) are unequivocal and unqualified and there
is no scope for reading in a power of Court to dispense with the time limit on
the basis of any principle of interpretation of statutory provisions. [Sl2-F)

R. Rudraiah v. State of Karnataka, [1998[ 3 SCC 23, relied on.

H l.S. It is not for the Courts to determine whether the period of30 days
FAIRGROWTH INVESTMENTS LTD. v. THE CUSTODIAN 507

is too short to take into account the various misfortunes that may be faced by A
notified persons who wish to file objections under Section 4(2) of the Act nor
can the Section be held to be directory because of such alleged inadequacy of
time. (513-G)

Sangram Singh v. Election Tribunal, Kotah Bhurey Lal Baya, [1955] 2
SCR 1 and Syndicate Bank v. Prabha D. Naik and Anr., (20011 4 SCC 713 B
and C. Beepathumma and Ors. v. Kudambalithaya and Ors., (1964) 5 SOR
836, distinguished.

Nagendra Nath v. Suresh, AIR (1932) P.C. 165 and Antonysami v.
Arulanandam Pillai (dead) by Lrs. and Anr., (2001) 9 SCC 666, referred to. C
1.6. If the power to condone delay were implicit in every statutory
provision providing for a period of limitation in respect of proceedings before
Courts, Section 29(2) of the Limitation Act 1963 would be rendered redundant.
[513-FJ
D
1.7. Prescribed periods for initiating or taking steps in legal
proceedings are intended to be abided by subject to any power expressly
conferred on the Court to condone any delay. [512-C)

1.8. The statute itself does not provide for condoning the delay in filing
a petition under Section 4(2). A possible source of the power could be Section E
5 of the Limitation Act, 1963, provided it applies to the Act. Section 29(2) of
the Limitation Act provides for the application of the provisions of Section 4
to Section 24 of the 1963 Act including Section 5, to any special or local law
whiclLprescribes a period of limitation in respect· of any suit, appeal or
application different from the period prescribed under the Limitation Act. In F
other words, the general rule as far as special and local Acts are concerned
is that the specified provisions including Section 5 of the Limitation Act will
apply provided the special or Local Act provides a period of limitation different
from that prescribed under the limitation Act. There is an additional
requirement viz. that the Special/Local Act does not expressly exclude the
application of the Limitation Act. [515-D-F] G
1.9. The Act expressly or necessarily excludes the provisions of the
Limitation Act. The fact that it has provided for a power to condone delay under
Section 10(3) of the Act, shows thatParliament had consciously excluded the
,,.. power of the Court in relation to Section 4(2). An expres~ provision for
condonation of delay is also under the n·on-obstante provision in Section l3 of H
508 SUPREME COURT REPORTS [2004] SUPP. S S.C.R.

A the Act. The provisions of the Limitation Act have no application in relation
to a petition under Section 4(2) of the Act. [515-G; 516-A; 516-F]

Gopal Sardar v. Karuna Sardar, [2004) 4 SCC 252, relied on.

Competent Authority Tarana v. Vijay Gupta, [1991) Supp. 2 SCC 631
B Mangu Ram v. Municipal Corporation of Delhi, [1976) 1SCC392 and Vidya
Charan Shukla v. Khub Chand, [1964] 6 SCR 129, distinguished.

2. Word 'exclusion' also includes 'exclusion by necessary implication'.
[515-F]

C Union of India v. Popular Construction Co., [2001] 8 SCC 470, relied
on.

3. Given the view expressed by a larger Bench, it would not be appropriate
to proceed on the opinion expressed earlier by a smaller Bench. (515-B]

D Union ofIndia and Ors. v. K.S. Subramanian, AIR (1976) SC 2433, relied
on.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4065 of2004.

From the Judgment and Order dated 8.8.2003 of the Special Court (Trial
E of Offences relating to Transactions in Securities) at Bombay in Misc.
Application No. 575 of2002.

Krishan Venugopal, Uday N.Tiwari, Sri Prasad V.K. and A. Raghunath
for the Appellant.

Subramonium Prasad, Gopala Krishnan, R., Abhay Kumar and Rahul
F Kumar for the Respondent.

The Judgment of the Court was delivered by

RUMA PAL, J. The question raised in this appeal is whether the Special
Court constituted under The Special Courts (Trial of Offences Relating to
G Transactions in Securities) Act, 1992 (hereinafter referred to as 'the Act') has
power to .condone the delay in filing a petition under Section 4(2) of the Act.

The object of the Act as stated in the Statement of Objects and Reasons
is to deal with the situation created by large scale irregularities and malpractices
in transactions in securities indulged in by some brokers in collusion with the
H employees of various banks and financial institutions. In particular, the Act ....
FAIR GROWTH INVESTMENTS LTD. v. THE CUSTODIAN [RUMA PAL, J.] 509

seeks to ensure speedy recovery of the funds which have been diverted from A
banks and financial institutions to the individual accounts of brokers. The
other objectives of the Act are to punish the guilty and to restore confidence
in and maintain the basic integrity and credibility of the banks and financial
institutions.

With these objectives in view the Act provides for the appointment of B
one or more Custodians to take action against any person involved in any
offence relating to transactions in securities for the period after l st April, 1991
upto and including 6th June, 1992. In terms of sub-section (2) of Section 3
of the Act, the Custodian may notify the name of the such person in the
Official Gazette. From the date of such notification, any property moveable or C
immoveable or both, belonging to any person so notified stands attached
under Sub-section (3). of Section 3. Such attached properties may be dealt
with by the Custodian in such manner as the Special Court may direct.

The Special Court was established under Section 5 of the Act. It has
the same jurisdiction as a Civil Court inter alia in relation to any matter D
relating to any property attached under Sub-section (3) of Section 3 of the
Act as well as in relation to transactions in securities entered into during the
aforesaid period in which the person notified is involved as a party, broker,
intermediary or in any other manner (Section 9-A(l) ).

Sub-Section (2) of Section 4, ( in so far as it is relevant) permits any E
person aggrieved by a notification issued under Sub-section (2) of Section
3 to file a petition objecting to the notification within 30 days of the issuance
of the notification. The Special Court after hearing the parties may make such
order as it deems fit on such petition. While dealing with such a case, the
Special Court is not bound by the procedure laid down by the Code of Civil F
Procedure, 1908, but shall be guided by the principles of natural justice and,
subject to the other provisions of the Act and of any Rules, the Special Court
has the power and under Sub-section (4) of Section 9 to regulate its own
procedure. Section 10(3) of the Act, provides for an appeal to this Court from
any judgment, sentence or order of the Special Court within a period of 30
days from the date of such judgment etc. Under the proviso to Section 10(3) G
,if"
this Court has been empowered to entertain the appeal even after the expiry
of a period of 30 days if the court is satisfied that the appellant had sufficient
cause for not preferring appeal within the period of limitation. Section 13
provides that the provisions of the Act would have overriding effect over
other laws. These, in short, are the provisions of the Act which are material H
510 SUPREME COURT REPORTS (2004) SUPP. 5 S.C.R.

A for the purposes of this appeal.

The Act came into force on 6th June, 1992. The appellant was notified
along with others under Section 3(2) on 20th November, 200 l. On 23rd
November, 2001, the Custodian informed the appellant that it had been notified
under Section 3(2) of the Act and its properties stood attached with effect
B from the date of the notification. The appellant was requested to furnish the
Custodian the details of its properties as on the date of the notification. In
answer to the Custodian's letter, the appellant asked for the reasons and
circumstances which formed the basis of the Custodian's decision to notify
the appellant. The appellant also stated that it was in the process of submitting
C details of its properties. On 8th October, 2002, the appellant filed a petition
of objection to the notification under Section 4(2) of the Act. The Special
Court rejected the application solely on the ground that it was filed beyond
the period of limitation prescribed by Sub-section (2) of Section 4.

The appellant has contended that the Custodian had issued the
D notification under Section 3(2) of the Act almost. 10 years after coming into
force of the Act. It is submitted that the notification was also otherwise
invalid. According to the appellant the right of notified persons to object to
a notification under Section 4(2) was a valuable right, since the consequences
of being notified were drastic viz. the attachment of all properties both
E immoveable and moveable. It is submitted that the notified persons could not
be deprived of the right merely on the ground of limitation. It is submitted
that the rule of limitation was a procedural requirement and like all matters of
procedure should serve to further the ends of justice and not defeat it.
Learned counsel for the appellant has referred to the decisions of this Court
in Chairman, Thiruvalluvar Transport Corporation v. Consumer ProtectiOn
~~ F Council [ 1995] 2 SCR 1, Syndicate Bank v. Prabha D. Naik and Anr., [2001]
4 SCC 713 and C. Beepathumma and Ors. v. Kudambalithaya and Ors., [1964]
5 SCR 836 in support of this submission. According to the appellant the
provision prescribing a period of limitation in Section 4(2) was directory and
therefore the Special Court could not reject the application only because of
G non compliance with such a directory provision. The absence of any penal
consequence, according to the appellant's counsel, showed that the non
fulfilment of the requirement to file an objection within a specified time would
not vitiate the substantive right of the notified person to question the
notification. The decision of this Court in Top/ine Shoes Ltd v. Corporation
Bank [2002] 6 SCC 33, has been relied on as an authority for this proposition.
H The next submission of the appellants' counsel was based on the applicability
FAIRGROWTH INVE~TMENTS LTD. v. THE CUSTODIAN [RUMA PAL, J.] 511

of Section 29(2) of the Limitation Act, 1963 whereby, according to him, the A
provisions of inter alia Section 5 of the Limitation Act would be applicable
to petitions under Section 4(2) of the Act. The contention is that Section 29
(2) of the Limitation Act, 1963 would be automatically applicable to all Special
Acts such as the Act in question, since the Act provides for a period of
limitation different from the period prescribed under the Limitation Act, 1963 B
and since the provisions of Limitation Act had not been excluded either
expressly or by necessary implication. It is also argued on the basis of the
decision of this Court in Mangu Ram v. Municipal Corporation of Delhi,
[1976] l SCC 392 and Vidyacharan Shukla v. Khub Chand Baghel [1964] 6
SCR 129 that merely because a power to condone the delay had been granted
under Section 10(3), it could not be construed as a necessary exclusion of the C
same power under Section 5 of the Limitation Act in respect of Section 4(2).
It is, however conceded by learned counsel appearing on behalf of the
appellant that this Court has in L.S. Synthetics Ltd v. Fairgrowth Financial
Services Ltd and Anr., (2004) 7 ,SCALE 427 held that the provisions of
Limitation Act, 1963 did not apply to the Act. However, it is submitted that
irrespective of the wide language in which the conclusion of the Court had D
been stated in that case, the reasoning showed that it was limited to the
question whether the periods prescribed under the Limitation Act applied t()
Section I I of the Act. It is submitted that the decision in L.S. Synthetics must
be narrowly construed, as otherwise the conclusion would be based on a
factual error. Our attention was drawn to paragraphs 38 and 39 of the decision E
as reported where this Court has held that the provisions of the Limitation
Act were excluded because the Act did not provide for any period of Limitation.
It is pointed out that the Act was not a complete code since Sections 4(2)
and 10(3) did provide for a period of Limitation.

Learned counsel appearing on behalf of the Custodian has stated that F
the period of limitation prescribed under Section 4(2) could not be said to be
merely directory. The decision in Topline (supra) was said to be distinguishable
and in any event not good law in view of the subsequent decision of a larger
Bench in Dr. J.J. Merchant v. Shrinath Chaturvedi: [2002] 6 SCC 635. It is
submitted that Section 29 (2) of the Limitation Act would have no application G
to the Act because it is clear from the object and scheme of the Act that the
•'
period prescribed under Section 4(2) of the Act was not extendable by Court.
The conferment of such power expressly in connection with appeals under
Section l 0 according to the learned counsel for the Custodian necessarily
implied the exclusion of such power in the Court under Section 4(2). This fact
H
512 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A coupled with Section 13 which gives overriding effect to the provisions of the
Act, it was submitted, a clear indication that the provisions of the Limitation
Act would not apply. Reliance has been placed on the decision of this Court
in Gopal Sardar v. Karuna Sardar, [2004] 4 SCC 252, in this connection.
Finally, it is contended that the question raised in this appeal must be taken
B to have been concluded by the decision of three Judges in L.S. Synthetics
case (supra).

We are of the view that the provision prescribing a time limit for filing
a petition for objection under Section 4(2) of the Act is mandatory in the
sense that the period prescribed cannot be extended by the Court under any
C inherent jurisdiction of the Special Court. Prescribed periods for initiating or
taking steps in legal proceedings are intended to be abided by, subject to any
power expressly conferred on the court to condone any delay. Thus the
Limitation Act 1963 provides for different periods of limitation within which
suits, appeals and applications may be instituted or filed or made as the case
may be. It also provides for exclusion of time from the prescribed periods in
D certain cases, lays down bases for computing the period of limitation prescribed
and expressly provides for extension of time under Section 5 in respect of
certain proceedings. If the periods prescribed were not mandatory, it was not
necessary to provide for exclusion or extension of time in certain circumstances
nor would the method of computation of time have any meaning.
E Section 4 (2) of the Act plainly read similarly requires a person objecting
to a notification issued under sub-section (2) of Section 3 to file a petition
raising such objections within 30 days of the issuance of such notification.
The words are unequivocal and unqualified and there is no scope for reading
in a power of Court to dispense with the time limit on the basis of any
F principle of interpretation of statutory provisions. In R. Rudraiah v. State of
Karnataka, [ 1998] 3 SCC 23 it was comended on behalf of the appellants that
Section 48-A of the Kamataka Land Reforms Act, 1961 which provided for
the making of an application within a particular period should be construed
liberally in favour of tenants so that the period was to be read as extendable.
G The submission was rejected on the ground that the language of Section 48-
A was unambiguous and could not be interpreted differently only on the
ground of hardship to the tenants.

The mere fact that the Special Court may have been imbued with the
same status of a High Court would not alter the situation. We are of the view
H that it was not necessary for Section 4(2) of the Act to use additional
FAIRGROWTH INVESTMENTS LTD. v. THE CUSTODIAN [RUMA PAL,J.] 513

peremptory language such as "but not thereafter" or "shall" to mandate that A
an objection had to be made within 30 days. The mere use of the word "may"
in Sections 4 (2) of the Act does not indicate that the period prescribed under
the Section is merely directory. The word 'may' merely enables or empowers
the objector to file an objection. The language in Section 4(2) of the Act may
be compared with Sections 4 and 6 of the Limitation Act, 1963. Section 4 of B
the Limitation Act provides:

"4. Expiry of prescribed period when court is closed:- Where the
prescribed period for any suit, appeal or application expires on a day
when the court is closed, the suit, appeal or application may be
instituted, preferred or made on the day when the court reopens." C
Certain sub-sections of Section 6 of the Limitation Act also provide for the
period within which a minor or insane or an idiot may institute suits. It cannot
be contended that the word "may" in these Sections indicate that the prescribed
periods were merely directory. This Court in Mangu Ram v. Municipal
Corporation of Delhi, [1976] 1 sec 392 described statutory provisions of D
periods of limitation as "mandatory and compulsive" and also said:-

"It is because a bar against entertainment of an application beyond
the period of limitation is created by a Special or local law that it
becomes necessary to invoke the aid of Section 5 (of the Limitation
Act) in order that the application may be entertained despite such E
bar".

If the power to condone delay were implicit in every statutory provision
providing for a period of limitation in respect of proceedings before Courts,
Section 29(2) of the Limitation Act 1963 would be rendered redundant. We will
F'
discuss the scope and applicability of Section 29(2) in greater detail
subsequently.

It is not for the Courts to determine whether the period of 30 days is
too short to take account the various misfortunes that may be faced by
notified persons who wish to file objections under Section 4(2) of the Act nor G
can the Section be held to be directory because of such alleged inadequacy
of time. As was held by the Privy Council in Nagendra Nath v. Suresh, AIR
(1932) P.C. 165:-

"The fixation of periods of limitation must always be to some extent
arbitrary and may frequently result in hardship. But in construing H
514 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A such provisions equitable considerations are out of place, and the
strict grammatical meaning of the words is, their Lordships think, the
only safe guide."

(See also: Antonysami v. Arulanandam J!illai (dead) By Lrs. and
Anr., [2001] 9 SCC 658, 666).
B
In any event the statutory attachment of the property of the notified
party under Section 3, sub-section 3, of the Act, is subject to a final decision
on the matter by the Special Court under Section 9(A) and Section 11 of the
Act. It is, in that sense just an interim measure.

C The three decisions relied upon by the appellant, namely, Sangram
Singh v. Election Tribunal, Kotah Bhurey Lal Baya, [1955] 2 SCR 1, Syndicate
Bank v. Prabha (supra) and C. Beepathumma (supra) do not deal with
statutes which could be said to be in pari materia with the Act. In Sangram
Singh, this Court had to consider whether the Election Tribunal was justified
D in refusing to recall an order directing that an election petition should be
disposed of ex-parte. It was noted that Section 19(2) of the Representation
of Peoples Act, 195 i directed the Tribunal to follow the procedure prescribed
for trials under the Civil Procedure Code. It was found on a construction of
the provisions of the Code of Civil Procedure as they then stood, ·that the
Court had the power to allow a defendant to participate in the proceedings
E even after the passing of an order that the trial should be proceeded with ex-
parte. Both the cases i.e. Syndicate Bank and C. Beepathuma have been
cited as authorities for the proposition that the law of limitation is a procedural
law and the provisions existing on the date of the suit would apply. We have
no quarrel with this proposition but we fail to see the relevance of the
F decisions to the question to be decided in this appeal. None of these decisions
touch the question whether a statutory provision such as Section 4(2) of the
Act should be treated as mandatory or directory.

The decision which does deal with this question is Topline Shoes Ltd
v. Corporation Bank, [2002] 2 SCC 33. The subject matter of interpretation
G in that case was Section 13(l)(a) of the Consumer Protection Act, 1986 which
provides that a person opposing the complaint under the Act was required
to file an answer to the complaint "within a period of 30 days or such
extended period not exceeding fifteen days as may be granted by the District
Forum". The Court took into account the provisions of the Consumer Protection
Act, 1986 and came to the conclusion that the period for extension of time
H
FAIRGROWTHINVESTMENTS LTD. v. THE CUSTODIAN [RUMA PAL,J.] 515

"not exceeding fifteen days" was directory in nature and was an expression A
of "desirability in strong terms". While expressing our reservation about the
correctness of the view expressed in Topline Shoes Ltd., it is not necessary
for us to expatiate on such reservation in view of the subsequent decision
of this Court in Dr. J.J. Merchant's case by a larger Bench in which the
provisions of Section IJ(l)(a) of the Consumer Protection Act were also'. B
construed. The Court categorically held that the outer period of 45 days to
submit an answer of a complaint had to be adhered to strictly. Given the view'
expressed by a larger Bench, it would not be appropriate for us to proceed
on the opinion expressed earlier by a smaller Bench in Topline Shoes. See
in this connection Union of India and Ors. v. K.S. Subramanian, AIR [1976],
SC 2433. We are therefore of the view that the period for filing an objection C
in Section 4(2) in the Act is a mandatory provision given the language of the .
Section and having regard to the objects sought to be served by the Act.

This brings us to the question whether the power to condone the delay
in filing a petition under Section 4(2) exists in the Special Court. We have held
that the statute itself does not provide for it. A possible source of the power D
could be Section 5 of the Limitation Act, 1963, provided it applies to the Act.
Section 29(2) of the Limitation Act, 1963 provides for the application of the
provisions of Section 4 to Section 24 of the 1963 Act including Section 5, to
any special or local law which prescribes a period of limitation in respect of
any suit, appeal or application different from the period prescribed under the .E
Limitation Act. In other words, the general rule as far as special and local Acts
are concerned, is that the specified provisions including Section 5 of the
Limitation Act will apply provided the Special or Local Act provides a period
of limitation different from that prescribed under the Limitation Act. There is
an additional requirement viz that the Special/Local Act does not expressly
exclude the application of the Limitation Act. It has been held in Union of F
India v. Popular Construction Co., [2001] 8 SCC 470 that the word 'exclusion'
also includes 'exclusion by necessary-implication'. This proposition of law
is not in dispute. The only question is does the Act expressly or necessarily
exclude the provisions of Limitation Act? We think it does. The fact that
it has provided for a power to condone delay under Section 10(3) of the Act, G

Sec. 29(2)(b) :- Where any special or local law prescribes for any suit, appeal or
application a period of limitation different from the period prescribed by the Schedule,
the provisions of section 3 shall apply as if such period were the period prescribed by
the Schedule and for the purpose of determining any period of limitation prescribed
for any suit, appeal or application by any special or local law, provisions contained in
section 4 to 24 (inclusive) shall apply only in so far as and to the extent to which they '
are not expressly excluded by such special or local law." H
516 . SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A shows that Parliament had consciously excluded the power of the Court in
relation to Section 4(2). This view also finds support in the decision of this
Court in Gopa/ Sardar v. Karuna Sardar, [2004] 4 SCC 252. The statutory
provision under consideration in that case was Section 8 of the West Bengal
Land Reforms Act, 1955. It was held:

B "When in the same statute in respect of various other provisions
relating to ·filing of appeals and revisions, specific provisions are
made so as to give benefit of Section 5 of the Limitation Act and such
provision is not made to an application to be made under Section 8
of the Act, it obviously and necessarily follows that the legislature
c consciously excluded the application of Section 5 of the Limitation
Act.

The decision relied upon by learned counsel for the appellant, namely,
Mangu Ram (supra) has been distinguished in Gopal Sardar v. Karuna
Sardar, in our opinion, correctly. In Mangu Ram's case the Court had to deal
D with the question whether despite the mandatory period of limitation provided
in sub-Section (4) of Section 417 of the Criminal Procedure Code, 1898, it
excluded the application of Section 5 of the Limitation Act 1963. The provisions
of Section 29(2)(b) of the Limitation Act, 1963, were construed and it was
held:-

E "Mere provision of a period of limitation in howsoever peremptory
or imperative language is not sufficient to displace the applicability of
Section 5".

But in this case apart from the mandatory and compulsive provisions
F of sub-Section (2) of Section 4 of the Act, there are in addition two provisions
of the Act which show that the provisions of Section 5 of the Limitation Act,
1963 cannot be invoked. These are: an express provision for condonation of
delay under Section 10(3) and the non-obstante provision in Section 13 of the
Act which states that the provisions of the Act :-

G "..... shall have effect notwithstanding anything inconsistent herewith
contained in any other law for the time being in force or in any
instrument having effect by virtue of any law, other than this Act, or
in any decree or order of any Court, tribunal or other authority."

The decision in Competent Authority Tarana v. Vijay Gupta, [1991]
H Supp. 2 sec 631 no doubt held that the provisions of the Madhya Pradesh
FAIRGROWTH INVESTMENTS LTD v. THE CUSTODIAN [RUMA PAL, J.) 517

Ceiling of Agricultural Holdings Act, 1960 will not exclude the provisions of A
Section 5 of the Limitation Act. However, there is no reference to the provisions
of the Madhya Pradesh Act which persuaded the Court to arrive at such
conclusion.

Reliance on the decision in Vidya Charan Shukla v. Khub Chand,
[1964] 6 SCR 129 by the appellant is equally misplaced. One of the issues B
raised in that case related to the question whether Section 116-A of the
Representation of People Act, 1951 could be construed as expressly or
impliedly excluding the provisions of the Limitation Act, 1908 as would
otherwise be applicable under Section 29(2)(a) of that Act. The argument was
that sub-section 3 of Section 116-A of the 1951 Act not only provided for a C
period of 30 days to prefer an appeal from the date of an order of the Tribunal
to the High Court, but also provided that the High Court could entertain an
appeal after the expiry of the period only if it was satisfied that the appellant
had sufficient cause for not preferring an appeal within such period. The sub-
section under consideration in Vidya Charan Sukhla was, therefore,
substantially similar to Section 10(3) of the Act which is required to be D
construed by us. But that is where the similarity ends. The Court in that case
held that the proviso did not amount to an express or implied exclusion
because of the wording of Section 29(2)(a) of the Limitation Act, 1908. Section
29(2) (a) of the 1908 Act is dissimilar from the provisions of section 29(2)(b)
of the Limitation Act, 1963. The earlier version of Section 29 made the E
provisions of Section 4, 9 to.18 and Section 22 applicable to a Special or Local
Act unless the Special or Local law expressly excluded such applicability. In
other words, even in the absence of any exclusionary clause in the Special
or Local Act, the other provisions of the Limitation Act including Section 5
would not apply. It was, therefore, held that the proviso in sub-section 3 of
Section 116-A of the Limitation Act, 1951 had become necessary, because, if F
the proviso was not enacted, then by virtue of Section 29 (3)(a) of the
Limitation Act, 1908 it would have excluded the operation of Section 5 of the
Limitation Act with the result that even if sufficient cause for the delay existed
the High Court would have been helpless to exclude the delay. It was held
that proviso to sub-Section (3) of Section 116-A of the 1951 Act only restored G
the power under Section 5 denied to the Court under Section 29(2)(b) of the
Limitation Act, 1908. The same reasoning would not apply with regard to
Section 29(2)(b) of the Limitation Act, 1963. Under the 1963 Act, Section
29(2)(b), inter-alia, provides that Section 5 of the Limitation Act would apply
+ under that section to a Special/Local Act unless specifically excluded. The
decision in Vidya Charan Shukla was noted in Hukumdev Narayan Yadav H
518 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A v. l.N. Mishra [ 19741 2 sec 13 3 and it was held that this particular controversy
was no longer relevant for determining whether such a special or local Act
excluded tbe provisions of the Limitation Act within the meaning of the word
"exclude" in Section 29(2)(b) of the Act. The decision of Hukumdev Narayan
has in tum been considered and followed by this Court in Gopal Sardar v.
B Karuna Sardar, [2004] 4 sec 252.

The argument of the appellant then is that the provisions for exclusion
of time contained in Section 4 to 24 of the Limitation Act ifnot included would
lead to an incongruous result. For example an appeal would be barred by time
even though a copy of the order of the Special Court was not made available
C to the appellant, because Section 12(2) of the Limitation Act would not be
available. The argument is unacceptable. The time taken by the appellant for
obtaining a copy of the ordt;_r appealed against may be a factor relevant to
the exerci~e of discretion by this Court under Section l 0(3) of the Act. The
exclusion of Sections 4 to 24 of the Limitation Act would only mean that the
appellant could not claim the exclusion of time as provided under those
D Sections as a matter of right but could raise pleas on grounds available under
those Sections to establish 'sufficient cause' under Section 10(3).

The decision by a larger Bench in l.S. Synthetics Ltd (supra) holding
that the provisions of the Limitation Act, 1963 do not apply to the Act may
E not have, by itself, concluded the question formulated by us at the outset.
That case was, as has been rightly contended by learned counsel appearing
on behalf of the appellant, limited to a consideration of Section 11 of the Act
and the proceedings by the Special Court thereunder. It was in that context
that the Court had said that the Act had not provided for any period of
limitation. But for the reasons already stated by us we concur in the final
F conclusion reached by the Court in L.S. Synthetics to the extent that the
provisions of the Limitation Act 1963 have no application in relation to a
petition under Section 4(2) of the Act.

Finally, Section 29(2) of the Limitation Act speaks of application of the
provisions contained in Sections 4 to 24 "only in so far as, and to the extent
G to which they are not expressly excluded by such special or local laws". This
language, together with our earlier reasoning, particularly with regard to L.S.
Synthetics, would answer the further question raised by the appellant, namely,
whether the question of exclusion of the provisions of the Limitation Act
must be separately considered with reference to different provisions of a
H Special/Local Act or in connection with the provisions of the Special/Local
FAIRGROWTH INVESTMENTS LTD. v. THE CUSTODIAN [RUMA PAL, J.) 519

Act, as a whole, by affirmation of the first alternative. We are therefore not A
called upon to decide whether claims either preferred for the first time before
the Special Court or transferred to the Special Court under Section 9-A(2)
would attract the provisions of Sections 4 to 24 of the Limitation Act. It is
enough for the purpose of this appeal to hold that Section 29(2) of the
Limitation Act, 1963 does not apply to proceedings under Section 4(2) of the
Special Courts (Trial of Offences Relating to Transactions in Securities), Act B
1992. Since the appellant's petition of objection had been filed much beyond
the period prescribed under that Section, the Special Court was .right in
rejecting the petition in limine. The appeal is accordingly dismissed but
without any order as to costs.

K.K.T. Appeal dismissed.
c