Holding

The principles of Section 14 of the Limitation Act apply to exclude the period spent in a bona‑fide, diligent abortive proceeding before a tribunal, and the pre‑amended 180‑day limitation under Section 128 of the Customs Act governs the present appeal.

Summary

M.P. Steel Corporation imported a vessel and disputed the customs duty assessed on its light displacement tonnage. After paying duty, the corporation appealed the Collector's order before the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT), which allowed the appeal, but the Supreme Court later set aside CEGAT’s order for lack of jurisdiction. The corporation then filed an appeal before the Commissioner (Appeals) under Section 128 of the Customs Act, but it was delayed. It sought condonation of delay invoking Section 14 of the Limitation Act, arguing that the time spent pursuing the abortive CEGAT proceeding should be excluded. The Court held that although Section 14 does not strictly apply to tribunals, its underlying principles do apply to exclude the period spent in a bona‑fide, diligent, abortive proceeding. Consequently, the pre‑amended 180‑day limitation under Section 128 governs, and the appeal is within time. The order of the Commissioner was set aside and the matter remanded to CESTAT.

Issues considered

The applicability of Section 14 of the Limitation Act, 1963 to proceedings before a quasi‑judicial tribunal such as CEGAT.
Whether the principles underlying Section 14 apply even if the provision itself is inapplicable.
Whether the limitation period for an appeal under Section 128 of the Customs Act should be measured according to the pre‑amendment (180 days) or post‑amendment (90 days) regime.
Whether time spent pursuing an abortive appeal before CEGAT can be excluded from the limitation period.

Legislation cited

Arbitration and Conciliation Act, 1996s. 34
Customs Act, 1962s. 128
Limitation Act, 1963s. 13, s. 14, s. 17(2), s. 2(1), s. 21, s. 29(2), s. 30(a), s. 3(2), s. 4, s. 5
U.P. Sales Tax Acts. 10, s. 29(2)

Subjects

Limitation ActSection 14Customs ActSection 128abortive proceedingtribunalquasi‑judicial bodycondonation of delayprocedural lawsubstantive rightretrospective limitation

Judgment

[2015) 7 S.C.R. 291

*M.P. STEEL CORPORATION A
v.
COMMISSIONER OF CENTRAL EXCISE

(Civil Appeal No.4367 of 2004)
B
APRIL23, 2015ANDAPRIL24, 2015

[A.K. SIKRI AND R. F. NARIMAN, JJ.]

Limitation Act, 1963 - s. 14 -Applicability and scope of c
- To the proceedings before Tribunal - Held: s. 14 is
applicable to the suits, appeals and applications filed before
the Court and not before quasi-judicial bodies - However,
even wheres. 14 may not apply, the principles on which s. 14
is based i.e. the principles which advance the cause of o
justice, would nevertheless apply- The principle of s.14
would, therefore, apply to exclude time taken in prosecuting
proceedings which are bonafide and pursued with due
diligence - Even prior to the institution of a particular
proceeding, time taken in steps taken for prosecuting such E
proceedings should a/so be excluded- In the present case,
limitation as provided uls. 128 of Customs Act being not a
complete code by itself, the pnnciples contained in s. 14
would apply- In the facts of the case, the period of pursuing
remedy by the appellant before the wrong forum, ought to F
be excluded - Matter remanded to the Commissioner
(Appeals) - Customs Act, 1962 - s. 128.
Customs Act, 1962 - s. 128 - Limitation period under-
Whether pre-amendment or post-amendment in 2001, G

• Para 53 of the judgement dated 23-4-15 to be read with subsequent order
dated 24-4-15.

291
292 SUPREME COURT REPORTS [2015] 7 S.C.R.

A applicable in the facts of the present'case - Held: Periods
of limitatiog~ are procedural in nature and would ordinarily
be applied retrospectively- In the facts of the case, limitation
period, as provided under pre-amended s. 128, would apply.

B
-
Allowing the appeal, the Court

HELD: 1. The averment of the appellant in the
application for condonation of delay that they were
pursuing a remedy before another appellate forum which
c ought to be excluded, is sufficient for the appellant to
contend that Section 14 of the Limitation Act or principles
laid down under it would be attracted to the facts of the
present casa. [Para 7) [306-B; 307-B]

2. Conditions 1 to 4 mentioned in the **Consolidated
D
Engineering case have, in fact, been met by the appellant
Both the prior and subsequent proceedings are civil
proceedings prosecuted by the same party. The prior
proceeding had been prosecuted with due diligence and
E in good faith. The earlier Supreme Court order dated
12.3.2003 in the previous litigation itself points out that
there was some confusion as to whether what was
appealed against, was the Superintendent's order or the
Collector's order. The appellant bona fide believed that
F it was the Collector's order which was appealed against
and hence an appeal to CEGAT would be maintainable.
Thus, neither was there any negligence, lapse or inaction
on facts nor did the appellant delay proceedings to
harass the Department by pretending that there was a
G mistake. Condition (3) was also directly met- this Court
in the order-dated 12.3.2003 set aside CEGAT's order on
the ground that it was without jurisdiction. It is
indisputable that the earlier proceeding and the later
proceeding relate to the same matter in issue and thus
H condition 4 is also met. [Para 7] [306-C-H]
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 293

3. A perusal of the Limitation Act, 1963 would show A
that the bar of limitation contained in the Schedule to
the Act applies to suits, appeals, and applications. "Suit"
is defined in Section 2(1) as not including an appeal or
an application. The word "Court" is not defined under
the Act. However, it appears in a number of its provisions B
viz. Sections 4,5, 13, 17(2),21 of the Limitation Act. On a
plain reading of the provision' of the Limitation Act, it
becomes clear that suits, appeals and applications are
only to be considered {from the limitation point of view)
if they are filed in courts and not in quasi-judicial bodies. C
[Paras 8 and 16) [307-C-D; 311-H; 312-A]

Bharat Bank Ltd. v. Employees of Bharat Bank Ltd. 1950
SCR 459; Town Municipal Council, Athani v. Presiding Officer,
Labour Court (1969) 1 SCC 873:1970 (1) SCR 51; D
Nityananda, M. Joshi & Ors. v. Life Insurance Corporation &
Ors. (1969) 2 SCC 199: 1970 (1) SCR 396 - relied on.

Cooper v. Wilson - referred to.
E
4. Under the constitutional scheme, the judiciary is
dealt with in Chapter IV of Part V and Chapter V of Part
VI. When the Constitution uses the expression "court",
it refers to this Court system. As opposed to this, court
system is a system of quasi-judicial bodies called F
Tribunals. Thus Articles 136 and 227 refer to 'courts' as
distinctfrom 'tribunals'. [Para 18) [312-H; 313-A-B]

Kera/a State Electricity Boardv. T.P Kunhaliumm, (1976)
4 SCC 634: 1977 (1) SCR 996 ; Athani Municipal Council G
case (1969) 1 SCC 873 : (1970) 1 SCR 51: Commissioner
of Sales Tax, U.P, Lucknow v. Parson Tools and Plants,
Kanpur (1975) 4 SCC 22; Special Duty (Land Acquisition) v.
Shah Manila/Chandu/al (1996) 9 SCC 414: 1996 (2) SCR
366; Consolidated Engg. Enterprises v. Principal secy., H
294 SUPREME COURT REPORTS [2015] 7S.C.R.

A Irrigation Deptt., (2008) 7 SCC 169: 2008 (5) SCR 1108-
relied on ..

C.S. T. v. Madan Lal Das and Sons 1976 (4) SCC 464:
1977 (1) SCR 683-held per-in-curiam.
B
Mukri Gopalan v. Cheppilat Puthanpurayil Aboobacker
(1995) 5 SCC 5: 1995 ( 2 ) Suppl. SCR 1 - Partially
overruled.

Shakti Tubes Ltd. v. State of Bihar (2009) 1 SCC 786 -
C held inapplicable.

Om Prakashv. Ashwani KumarBassi(2010) 9SCC183;
P. Sarathy v. State Bank of India (2000) 5 SCC 355: 2000
(1) Suppl. SCR 402- referred to.
D
4.1 However, even where Section 14 may not apply,
the principles on which Section 14 is based, being
principles which advance the cause of justice, would
nevertheless apply. [Para 31] [331-E]
E
Bhudan Singh & Anr. v. Nabi Bux & Anr.(1970) 2 SCR
1O; J. Kumaradasan Nair v. Irie Sohan (2009) 12 SCC 175:
2009 (3) SCR 238-relied on.

F 4.2 Various provisions of the Limitation Act are based
on advancing the cause of justice. Section 6 (Legal
disability) is one such. On the assumption that Section
6 does not apply on the facts of a given case, it cannot
be said that the principles on which it is based have no
G application. This Section again is a pointer to the fact
that courts always lean in favour of advancing the cause
of justice where a clear case is made out for so doing.
[Para 33] [334-G; 335-H; 336-A, BJ

4.3Section128 is not a complete code by itself which
H necessarily excludes the application of Section 14 of the
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 295

Limitation Act. To infer exclusion of Section 14 or the A
principles contained in Section 14 would be unduly harsh
and would not advance the cause of justice. The principle
of Section 14 which is a principle based on advancing
the cause of justice would certainly apply to exclude time
taken in prosecuting proceedings which are bona fide B
and with due diligence pursued, which ultimately end
without a decision on the merits of the case. [Paras 34
and 35] [336-C; 337-A; 338-A]

Ranbaxy Laboratories Ltd. v. Union of India (2011) 10 C
SCC 292: 2011(13)SCR1; Sree Balaji Nagar Residential
Assn. v. State of Tamil Nadu (2015) 3 SCC 353 - held
inapplicable.

5. The object of Section 14 is that if its conditions o
are otherwise met, the plaintiff/applicant should be put
in the same position as he was when he started an
abortive proceeding. What is necessary is the absence
of negligence or inaction. So long as the plaintiff or
applicant is bonafide pursuing a legal remedy which E
turns out to be abortive, the time beginning from the date
of the cause of action of an appellate proceeding is to
be excluded if such appellate proceeding is from an order
in an original proceeding instituted without jurisdiction
or which has not resulted in an order on the merits of F
the case. The period from the cause of action till the
institution of appellate or revisional proceedings from
original proceedings which prove to be abortive are also
liable to exclusion under the Section. The period prior
to institution of the initiation of any abortive proceeding G
cannot be excluded for the simple reason that Section
14 does not enable a litigant to get a benefit beyond what
is contemplated by the Section - that is to put the litigant
in the same position as if the abortive proceeding had H
296 SUPREME COURT REPORTS (2015] 7 S.C.R.

A never taken place. [Paras 41 and 43] [342-G-H; 343-A;
346-E-F]

Union of India v. West Coast Paper Mills Ltd.(2004) 3
SCC 458: 2004 (2 ) SCR 642; India Electric Works Ltd. v.
B James Mantosh (1971) 1 SCC 24 - relied on.

Tirumareddi Rajarao & Ors. v. The State of Andhra
Pradesh &Ors. AIR 1965 A.P. 388; Mst. Duliyabai & Ors. v.
Vilayatali & Ors. AIR 1959 MP 271 - referred to.
c 6. In the present case, the abortive appeal had been
filed against orders passed in March- April, 1992. The
present appeal was filed under Section 128, which
Section continues on the statute book till date. Before
its amendment in 2001, it provided a maximum period of
0
180 days within which an appeal could be filed. Time
began to run on 3.4.1992 u/s.128 prG-amendment, when
the appellant received the order of the Superintendent
of Customs intimating it about an order passed by the
E Collector of Customs on 25.3.1992. Under Section 128
as it then stood, a person aggrieved by a decision or
order passed by a Superintendent of Customs could
appeal to the Collector (Appeals) within three months
from the date of communication to him of such decision
F or order. The Department preferred an appeal against
the order dated 23.6.1998 passed by CEGAT sometime
in the year 2000 which appeal was decided in their favour
by this court only on 12.3.2003 by which CEGAT's order
was set aside on the ground that CEGAT had no
G jurisdiction to entertain such appeal. The time taken from
12.3.2003 to 23.5.2003, on which date the present appeal
was filed before the Commissioner (Appeals) would be
within the period of 180 days provided by the pre-
amended s.128, when added to the time taken between
H 3.4.1992 ant.I 22.6.1992. The order that is challenged in
the present case was passed before 2001 i.e. before the
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 297

amendement of s.128. The right of appeal within a period A
of 180 days (which includes the discretionary period of
90 days) from the date of the said order was a right which
vested in the appellant. A shadow was cast by the
abortive appeal from 1992 right upto 2003. This shadow
was lifted when it became clear that the proceeding filed B
in 1992 was a proceeding before the wrong forum. The
vested right of appeal within the period of 180 days had
not yet got over. Upon the lifting of the shadow, a certain
residuary period within which a proper appeal could be
filed, still remained. That period would continue to be C
within the period of 180 days notwithstanding the
amendment made in 2001 as otherwise the right to
appeal itself would vanish given the shorter period of
limitation provided by Section 128 after 2001. [Para 52]
0
[352-H; 353-A-H; 354-A]

New India Insurance Co. Ltd. v. Shanti Misra (1975) 2
SCC 840: 1976 ( 2 )SCR 266 ; Vinod Gurudas Raikar v.
National Insurance Co. Ltd. (1991) 4 SCC 333: 1991 (3) SCR
912; Union of India v. Harnam Singh (1993) 2SCC162: 1993 E
( 1 ) SCR 862 ; New India Insurance Co. Ltd. v.Smt Shanti.
Misra (1975) 2 SCC 840 : (1976) 2 SCR 266;. Thirumalai
Chemicals Ltd. v. Union oflndia (2011) 6 SCC 739: 2011 (4)
SCR 838 - distinguished.
F
Tirumareddi Rajarao & Ors. v. The State of Andhra
Pradesh & Ors. AIR 1965 A.P. 388; Mst. Duliyabai & Ors. v.
Vilayatali & Ors. AIR 1959 MP 271 - referred to.

Case Law Reference G

1950 SCR 459 relied on Para 17
. I' • •

. 1970 (1) SCR 51 relied on Para 19

1970 (1) SCR 396 rehed on Para 19 H
298 SUPREME COURT REPORTS [2015] 7 S.C.R.

A 1977 (1) SCR 996 relied on Para 20

(1975) 4 sec 22 relied on Para 21

1977 (1) SCR 683 held per-in-curiam Para 22
B 1996 (2) SCR 366 relied on ·Para 24

1995 (2) Suppl. SCR 1 partially overruled Para 25

(2010) 9 sec 183 referred to Para 25
c 2008 (5) SCR 1108 relied on Para 26

2000 (1) Suppl. SCR 402 referred to Para 30

(2009) 1 sec 786 held inapplicable Para 31
D
(1970) 2 SCR 10 relied on Para 31

2009 (3) SCR 238 relied on Para 32

2011 (13) SCR 1 held inapplicable Para 36
E
(2015) 3 sec 353 held inapplicable Para 37

AIR 1965A.P. 388 referred to Para 39

AIR 1959 MP 271 referred to Para 40
F
2004 (2) SCR 642 relied on Para 42

(1971) 1 sec 24 relied on Para 42
.,
1976 (2) SCR 266 referred to Para 45
G
1991 (3) SCR 912 referred to Para 47

1993 (1) SCR 862 referred to Para 47

2011 (4) SCR 838 distinguished Para 50
H
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 299

CIVIL APPELLATE JURISDICTION: Civil Appeal No. A
4367 of 2004. ·

From the Judgment and Order no. C-111/866 WZB/2004
dated 25.02.2004 of the Customs,sExcise & Service Tax
Appellate Tribunal, WZB, Mumbai in Appeal No. C/105/04. B
ail
K. V. Vishwanathan, B. Raghunath, Gautam Bhardwaj,
Abhishek Kaushik, Mehul M. Gupta, Adeeba Mujahid, S. R.
Setia for the Appellant.

A. K. Sanghi, Sunita Rani Singh, Ritesh Kumar, B. Krishna C
Prasad for the Respondent.

The Judgment of the Court was delivered by

R.F. NARIMAN, J. 1. The facts giving rise to the present o
appeal are as follows. The appellant is engaged in ship
breaking activity atAlang Ship Breaking Yard. The appellant
imported a vessel, namely, M.V. Olinda, for the purpose of
breaking the same, and filed a Bill of Entry when the vessel
was imported on 7 .2.1992. It declared in the said Bill of Entry E
that the Light Displacement Tonnage of the vessel was 7009
metric tons. On 19.2.1992, the appellant was informed by the
Superintendent of Customs and Central Excise Alang that the
Light Displacement Tonnage of the ship is actually 8570 tons
and that customs duty was to be levied on this tonnage. On F
3.3.1992, the appellant cleared the vessel on payment of
customs duty on the basis of 7009 metric tons and executed a
bank. guarantee for Rs.19,90,275/- being the difference in
customs duty on 1561 metric tons. On 25.3.1992, the Collector
of Customs, Rajkot, directed the Assistant Collector, G
Bhavnagar to encash the bank guarantee furnished by the
appellant. On 2.4.1992, the Superintendent of Customs and
Central Excise sent a letter to the appellant communicating
the decision of the Collector, as aforesaid. The bank guarantee H
300 SUPREME COURT REPORTS [2015] 7 S.C.R.

A was duly encashed on 3.4.1992. After protesting against the
said illegal action of the Department in encashing the bank
guarantee, the appellant preferred an appeal against the
Superintendent's letter dated 2.4.1992 and the Collector's
order dated 25.3.1992 before CEGAT. On 23.6.1998, the
B Appellate Tribunal allowed the appeal and set aside the order
of the Collector dated 25.3.1992. In the year 2000, the
Department preferred an appeal before this Court. On
12.3.2003, this Court allowed the appeal holding:

c "This appeal is against a judgment dated 23.6.1998
passed by the Customs, Excise And Gold (Control)
Appellate Tribunal, West Regional Bench at Mumbai.

Facts briefly stated are that the respondent filed a Bill of
D Entry in respect of ship M.V. Olinda imported by them for
purposes of breaking. The respondent showed tile light
displacement tonnage (LDT) as 7009 metric tons. This
declaration was not accepted by the Superintendent of
Customs and Central Excise. The respondent, thus,
E approached the Assistant Collector. The question was
how LDT was to be calculated. It appears that between
the Assistant Collector and the Collector there was some
internal correspondence on this aspect. The Collector
took a policy decision on how LDT was to be calculated.
F The Collector conveyed this decision to the Assistant
Collector by his letter dated 25.3.1992. Pursuant thereto
the Superintendent of Customs and Central Excise
passed an order dated 2"dApril, 1992 in respect of vessel
M.V. "Olinda". Of course the order dated 2nd April, 1992
G is based on the decision of the Collector. However, the
order remains that of the Superintendent of Customs and
Central Excise.

The respondent filed an appeal directly before CEGAT.
H CEGAT has disposed of this appeal by the impugned
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 301
[RF. NARIMAN, J]

order. CEGAT negatived a contention that the appeal A
was not :naintainable before them on the basis that the
Superintendent's order is nothing more than a
communication of the order passed by the Collector
(Appeals). CEGAT held that the appeal was in fact
against the Collector's order. B

In our view, the reasoning of CEGAT cannot be
sustained. The decision taken by the Collector was not
taken in his capacity as Collector (Appeals). Also the
order by which respondent is aggrieved is the order C
passed by the Superintendent. An appeal against that
order has to be filed before the Commissioner (Appeals)
under Section 128. By virtue of Section 129-A, CEGAT
has no jurisdiction to entertain such an appeal.
D
It is clear that the impugned order is passed without any
jurisdiction. Therefore, it cannot be sustained. We, thus,
set aside the order. The appeal is accordingly allowed.
There will be no order as to costs.
E
We clarify that we have not gone into the ·merits of the
matter and that it will be open to the respondent to adopt
such remedy as they may be advised, if in law they are
entitled to do so."
F
2. After this judgment, on 23.5.2003, the appellant filed
an appeal before the Commissioner (Appeals) against the
order passed by the Superintendent, Customs dated 2.4.1992.
On 4.8.2003, an application to condone delay in filing the
appeal was made in the following terms: G

''As appeal against the order of the Supdt. of Customs
was filed by us within 60 days of the receipt of the certified
true copy of the judgment of the Hon'ble Supreme Court.
It is our respectful submission that since the appeal was H
filed by us before the correct forum with due dispatch
302 SUPREME COURT REPORTS [2015) 7 S.C.R.

A after receipt of the Supreme Court's judgment, there has
been no delay in filing the appeal. It is well settled now
that the time taken for pursuing a remedy before another
appellate Forum is to be excluded for the purpose of
computing the period for filing an appeal. (Union Carbide
B India Ltd. Vs. CC 1998 (77) ECR 376, Karnataka
Minerals & Mfg. Co. Ltd. Vs. CCE 1998 (101) ELT627)."

3. By an order dated 27.10.2003, the Commissioner of
Customs (Appeals) dismissed.the appeal on the ground of
C delay stating that the appeal had been filed way beyond the
period of 60 days plus 30 days provided for in Section 128 of
the Customs Act. Against this order, CESTAT dismissed the
appeal of the appellant stating that the Commissioner (Appeals)
had no power to condone delay beyond the period specified
D in Section 128.

4. Shri Viswanathan, learned senior advocate appearing
on behalf of the appellant argued before us that the entire
period starting from 25.3.1992 up till 12.3.2003 ought to be
E excluded by applying Section 14 of the Limitation Act.
According to him, Section 14 of the Limitation Act would apply
to exclude this period from the period of 90 days allowed in
filing an appeal filed to the Collector (Appeals) inasmuch as
vide Section 29 (2) of the Limitation Act Section 14 of the
F Limitation Act would also apply to Tribunals set up under special
or local Acts. According to him, the entire period with which he
was prosecuting, with due diligence, the abortive appeal filed
before CEGAT should be excluded, which would include the
period even prior to 22.6.1992 when the abortive appeal was
G filed. As an alternative submission, on the assumption that
Section 14 applied only to Courts and not to Tribunals, he
submitted that the principle of Section 14 would then apply.
According to him, Section 128 of the Customs Act before its
H amendment in 2001 would be attracted on the facts of this
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 303
[R.F. NARIMAN, J]

case giving him a period of 90 days plus an extended period A
of a further period of 90 days within which the present appeal
could be filed. This being the case, on an application of Section
14, the appeal would be filed with no delay at all even if the
period from 3.4.1992 to 22.6.1992 and 12.3.2003 to 23.5.2003
is to be taken into account, as that would be less than 180 B
days.given to file the appeal under the old Section 128. He
cited a number of authorities which we-will deal with in the
course of this judgment in support of all the aforesaid
propositions.
c
5. Shri A.K. Sanghi, learned senior advocate appearing
on behalf of the Department argued that Section 128 of the
Customs Act excluded the application of Section 14 of the
Limitation Act in that the scheme of the Section is that only a
limited period should be given to an assessee beyond which D
the appeal would become time barred. In the present case,
Section 128 as amended post 2001 would apply to the facts
of this case and on the appellant's own showing the appeal is
out of time by eleven and a half years. Section 128 only gives
the appellant 60 days plus another 30 days which have long E
gone. He also argued that Section 14 of the Limitation Act
would not apply to Tribunals but only to Courts, and the Collector
{Appeals) was at best a quasi-judicial Tribunal. Further,
according to him, no question of any principle of section 14 F
would get attracted. In fact, according to him, there is no
pleading qua Section 14 at .all - the only pleading is for
condonation of delay and not for exclusion of time. Section 14
requires that five necessary ingredients must be satisfied on
facts before it can be attracted. The appellant has neither G
pleaded nor proved any of these ingredients. He also cited a
number of authorities which we will refer to in the course of this
judgment.

Ingredients of Section 14.
H
304 SUPREME COURT REPORTS [2015) 7 S.C.R.

A Section 14 of the Limitation Act reads as foilows:

"14. Exclusion of time of proceeding bona fide in
courtwithoutjurisdiction.-(1) In computing the period
of limitation for any suit the time during which the plaintiff
B has been prosecuting with due diligence another civil
proceeding, whether in a court of first instance or of
appeal or rev.ision, against the defendant shall be
excluded, where the proceeding relates to the same
matter in issue and is prosecuted in good faith in a court
C which, from defect of jurisdiction or other cause of a like
nature, is unable to entertain it.

(2) In computing the period of limitation for any
application, the time during which the applicant has been
D prosecuting with due diligence another civil proceeding,
whether in a court of first instance or of appeal or revision,
against the same party for the same relief shall be
excluded, where such proceeding is prosecuted in good
faith in a court which, from defect of jurisdiction or other
E cause of a like nature, is unable to entertain it.
"
(3) Notwithstanding anything contained in Rule 2 of Order
XXlll of the Code of Civil Procedure, 1908 (5 of 1908),
the provisions of sub-section (1) shall apply in relation to
F a fresh suit instituted on permission granted by the court
under Rule 1 of that Order, where such permission is
granted on the ground that the first suit must fail by reason
of a defect in the jurisdiction of the court or other cause
of a like nature.
G
Explanation.-Forthe purposes of this section,-

(a) in excluding the time during which a former civil
'
proceeding was pending, the day on which that
proceeding was instituted and the day on which it ended
H
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 305
[RF. NARIMAN, J]

shall both be counted; A

(b) a plaintiff or an applicant resisting an appeal shall be
deemed to be prosecuting a proceeding;

(c) misjoinder of parties or of causes of action shall be B
deemed to be a cause of a like nature with defect of .
jurisdiction."

6. Shri A. K. Sang hi, learned senior counsel appearing on
behalf of the Department has stated that at no point of time
has the appellant taken up a plea based on Section 14. Neither C
has the appellant met with any of the five conditions set out in
paragraph 21 of Consolidated Engg. Enterprises v.
Principal secy., Irrigation Deptt., (2008) 7SCC169, which
reads as follows:-
D
"21. Section 14 of the Limitation Act deals with exclusion
of time of proceeding bona fide in a court without
jurisdiction. On analysis of the said sectio~. it becomes
evident that the following conditions must be satisfied
before Section 14 can be pressed into service: E

( 1) Both the prior and subsequent proceedings are civil
proceedings prosecuted by the same party; \

(2) The prior proceeding had been prosecuted with due F
diligence and in good faith;

(3) The failure of the prior proceeding was due to defect
of jurisdiction or other cause of like nature;

(4) The earlier proceeding and the latter proceeding must G
relate to the same matter in issue and;

(5) Both the proceedings are in a court."

7. Technically speaking, ShriA.K. Sanghi, may be correct. H
306 SUPREME COURT REPORTS [2015) 7 S.C.R.

A However, in an application for condonation of delay the
appellant pointed out that they were pursuing a remedy before
another appellate forum which ought to be excluded. We deem
this averment sufficient for the appellant to contend that Section
14 of the Limitation Act or principles laid down under it would
B be attracted to the facts of this case.

We might also point out that conditions 1 to 4 mentioned
in the Consolidated Engineering case have, in fact, been met
by the appellant. It is clear that both the prior and subsequent
C proceedings are civil proceedings prosecuted by the same
party. The prior proceeding had been prosecuted with due
diligence and in good faith, as has been explained in
Consolidated Engineering itself. These phrases only mean that
the party who invokes Section 14 should not be guilty of
D negligence, lapse or inaction. Further, there should be no
pretended mistake intentionally made with a view to delaying
the proceedings or harassing the opposite party. On the facts
of this case, as the earlier Supreme Court order dated
12.3.2003 itself points out, there was some confusion as to
E whether what was appealed against was the Superintendent's
order or the Collector's order. The appellant bona fide believed
that it was the Collector's order which was appealed against
and hence an appeal to CEGATwould be maintainable. This
F contention, however, ran into rough weather in this Court.
Further, the time taken between 3.4.1992 and 22.6.1992 to
file an appeal cannot be said to be inordinately long. Thus,
neither was there any negligence, lapse or inaction on facts
nor did the appellant delay proceedings to harass the
G Department by pretending that there was a mistake. Condition
(3) was also directly met - this Court in the order dated
12.3.2003 set aside CEGAT's order on the ground that it was
without jurisdiction. It is indisputable that the earlier proceeding
and the later proceeding relate to the same matter in issue
H and thus condition 4 is also met. Condition 5, however, has
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 307
[R.F. NARIMAN, J]

not been met as both the proceedings are before a quasi- A
judicial Tribunal and not in a Court. This, however, is not fatal
to the present proceeding as what is being held by us in this
judgment is that despite the fact that Section 14 of the Limitation
Act may not apply, yet the principles of Section 14 will get
attracted to the facts of the present case. It is in this way that B
we now proceed to consider the law on the subject.

Whether the Limitation Act applies only to Courts
and not to Tribunals
c
8. A perusal of the Limitation Act, 1963 would show that
the bar of limitation contained in the Schedule to the Act ap-
plies to suits, appeals, and applications. "Suit" is defined in
Section 2(1) as not including an appeal or an application. The
word "Court" is not defined under the Act. However, it appears o
in a number of its provisions (See: Sections 4,5, 13, 17(2),21).
A perusal of the Schedule would show that it is divided into
three divisions. The first division concerns itself with suits. Ar-
ticles 1 to 113 all deal with "suits".
E
9. Sections 2(a),(e) and (i) are material in that they define
what is meant by an applicant, a plaintiff and a defendant.

"2. Definitions.-ln this Act, unless the context otherwise
requires,-
F
(a) "applicant" includes-

(1) a petitioner;

(i1) any person from or through whom an applicant derives G
his right to apply;

(iii) any person whose estate is represented by the
applicant as executor, administrator or other
representative;
H
308 SUPREME COURT REPORTS [2015] 7 S.C.R.

A (e) "defendant" includes-

(1) any person from or through whom a defendant derives
his liability to be sued;

(it) any person whose estate is represented by the
B
defendant as executor, administrator or other
representative;

(1) "plaintiff" includes-

C (1) any person from or through whom a plaintiff derives
his right to sue;

(it) any person whose estate is represented by the plaintiff
as executor, administrator or other representative;"
D
10. Section 3(2) which is material states as follows:

"3(2) For the purposes ofthisAct-

(a) A suit is instituted-
E
(i)ln an ordinary case, when the plaint is presented to the
proper officer;

(ii) In the case of a pauper, when his application for leave
to sue as a pauper is made; and
F
(iii) In the case of a claim against a company which is
being wound up by the court, when the claimant first sends
in his claim to the official liquidator;

G (b)Any claim byway of a set off or a counterclaim, shall
be treated as a separate suit and shall be deemed to
have been instituted -

(i)in the case of a set off, on the same date as the suit in
H which the set off is pleaded;
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 309
[R.F. NARIMAN, J]
/
(ii)in the case of a counter claim, on the date on which A
the counter claim is made in court;

(c)an application by notice of motion in a High Court is
made when the application is presented to the proper
officer of that court." B

11. A perusal of Section 3(2) shows that "suits" are under-
stood as actions begun in courts of law established under the
Constitution of India.

12. In the Schedule, the second division concerns itself C
with appeals. These appeals under Articles 114 to 117, are
either under the Civil Procedure Code, the Criminal Proce-
dure Code, or intra-court appeals so far as the High Courts
are concerned. These appeals again are only to "Courts" es-
0
tablished under the Constitution.

13. Equally, in the third division, all applications that are
referred to are under Articles 118 to 137 only to "Courts", ei-
ther under the Civil Procedure Code or under other enactments.
E
14. Sections 13, 21andArticles124, 130and 131 ofthe
Limitation Act are again important in understanding what is
meant by the expression "Court". They are set out below:

"13. Exclusion of time in cases where leave to sue F
· or appeal as a pauper is applied for.-ln computing
the period of limitation prescribed for any suit or appeal
in any case where an application for leave to sue or
appeal as a pauper has been made and rejected, the
time during which the applicant has been pros~cuting in G
good faith his application for such leave shall be
excluded, and the court may, on payment of the court fees
prescribed for such suit or appeal, treat the suit or appeal
as having the same force and effect as if the court fees
had been paid in the first i.nstance. H
310 SUPREME COURT REPORTS [2015] 7 S.C.R.

'
A 21. Effect of substituting or adding new plaintiff or
defendant.-( 1) Where after the institution of a suit, a
new plaintiff or defendant is substituted or added, the
suit shall, as regards him, be deemed to have been
instituted when he was so made a party:
B
Provided that where the court is satisfied that the
omission to include a new plaintiff or defendant was due
to a mistake made in good faith it may direct that the suit
as regards such plaintiff or defendant shall be deemed
C to have been instituted on any earlier date.

(2) Nothing in sub-section (1) shall apply to a case where
a party is added or substituted owing to assignment or
devolution of any interest during the pendency of a suit
o or where a plaintiff is made a defendant or a defendant
is made a plaintiff.
Schedule

124. For a review of judgment lrhirty days ,The date of the
E by a court other than the decree or order.
Supreme Court.
'
130. c: or leave to appeal as a
ba uper --

a) to the High Court; Sixty days The date of
F decree
~ppealed from.
b) to any other court. '""hirty days The date of
decree
appealed from.

G 131. lro any court for the Ninety days The date of the
exercise of its powers ol decree or order
evision under the Code ol or sentence
L-civil Procedure, 1908 (5 ol sought to be
h9 08), or the Code of revised.
Criminal Procedure, 1898 (5 i
)f 1898).
H
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 311
[R.F. NARIMAN, J]

It will be seen that suits and appeals that are covered by A
the Limitation Act are so covered provided court fees
prescribed for such suits or appeals are paid. Under Section
13, set out hereinabove, this becomes clear. That is why time
is excluded in cases where leave to file a suit or an appeal as
a pauper is granted in the circumstances mentioned in the B
Section. 'Courts' that are mentioned in this Section are
therefore courts as understood in the strict sense of being part
of the Judicial Branch of the State.

15. Section 21 also makes it clear that the suit that the C
Limitation Act speaks of is instituted only by a plaintiff against
a defendant. Both plaintiff and defendant have been defined
as including persons through whom they derive their right to
sue and include persons whose estate is represented by
persons such as executors, administrators or other D
representatives. This again refers only to suits filed in courts
as is understood by the Code of Civil Procedure. In this regard,
Section 26 of the CPC states:

"Section 26- Institution of suits E

(1 )Every suit shall be instituted by the presentation of a
plaint or in such other manner as may be prescribed.

(2) In every plaint, facts shall be proved by affidavit." '
F
16. When it comes to applications, again Articles 124,
130 and 131 throw a great deal of light. Only .review of
judgments by a "court" is contemplated in the Third Division in
the Schedule. Further, leave to appeal as a pauper again can
be 1"1ade either to the High Court or only to any other court G
vide Article 130. And by Article 131, a revision petition filed
only before Courts under the Code of Civil Procedure Code
or the Code of Criminal Procedure are referred to. On a plain
reading 0f the provisions of the Limitation Act, it becomes clear H
that suits, appeals and applications are only to be considered
312 SUPREME COURT REPORTS [2015] 7 S.C.R.

A (from the limitation point of view) if they are filed in courts and
not in quasi-judicial bodies.

17. Now to the case law. A number of decisions have
established that the Limitation Act applies only to courts and
B not tu Tribunals. The distinction between courts and quasi-
judicial decisions is succinctly brought out in Bharat Bank
Ltd. v. Employees of Bharat Bank Ltd., 1950 SCR 459.
This root authority has been followed in a catena of judgments.
This judgment refers to a decision of the King's Bench in
C Cooper v. Wilson. The relevant quotation from the said
judgment is as follows:-

"A true judicial decision presupposes an existing dispute
between two or more parties, and then involves four
D requisites: (1) The presentation (not necessarily orally)
of their case by the parties to the dispute; (2) if the dispute
between them is a question of fact, the ascertainment of
the fact by means of evidence adduced by the parties to
the dispute and often with the assistance of argument by
E or on behalf of the parties on the evidence; (3) if the
dispute between them is a question of law, the
submission of legal argument by the parties, and (4) a
decision which disposes of the whole matter by a finding
upon the facts in dispute and application of the law of the
F land to the facts so found, including where required a
ruling upon any disputed question of law. A quasi-judicial
decision equally presupposes an existing dispute
between two or more parties and involves (1) and (2),
but does not necessarily involve (3) and never involves
G (4). The place of (4) is in fact taken by administrative
action, the character of which is determined by the
Minister's free choice."

18. Under our constitutional scheme of things, the judiciary
H is dealt with in Chapter IV of Part V and Chapter V of Part VI.
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 313
[R.F. NARIMAN, J]

Chapter IV of Part V deals with the Supreme Court and (:haµter A
Vof Part VI deals with the High Courts and courts subo1Jinate
thereto. When the Constitution uses the expression "court", it
refers to this Court system. As opposed to this court system is
a system of quasi-judicial bodies called Tribunals. Thus, Articles
136 and 227 refer to "courts" as distinct from "tribunals". The B
question in this case is whether the Limitation Act extends
beyond the court system mentioned above and embraces
within its scope quasi-judicial bodies as well.

19. A series of decisions of this Court have clearly held C
that the Limitation Act applies only to courts and does not apply
to quasi-judicial bodies. Thus, in Town Municipal Council,
Athani v. Presiding Officer, Labour Court, (1969) 1 SCC
873, a question arose as to what applications are covered
under Article 137 of the Schedule to the Limitation Act. It was D
argued that an application made under the Industrial Disputes
Act to a Labour Court was covered by the said Article. This
Court negatived the said plea in the following terms:-

"12. This point, in our opinion, may be looked at from E
another angle also. When this Court earlier held that all
the articles in the third division to the schedule, including
Article 181 of the limitation Act of 1908, governed
applications under the Code of Civil Procedure only, it
clearly implied that the applications must be presented F
to a court governed by the Code of Civil Procedure. Even
the applications under the Arbitration Act that were
included within the third division by amendment of Articles
158 and 178 were to be presented to courts whose
proceedings were governed by the Code of Civil G
Procedure. As best, the further amendment now made
enlarges the scope of the third division of the schedule
so as also to include some applications presented to
courts governed by the Code of Criminal Procedure. One H
factor at least remains constant and that is that the
314 SUPREME COURT REPORTS [2015] 7 S.C.R.

A applications must be to courts to be governed by the
articles in this division. The scope of the various articles
in this division cannot be held to have been so enlarged
as to include within them applications to bodies other
than courts, such as a quasi judicial tribunal, or even an
B executive authority. An Industrial Tribunal or a Labour
Court dealing with applications or references under the
Act are not courts and,they are in no way governed either
by the Code of Civil Procedure or the Code of Criminal
Procedure. We cannot, therefore, accept the submission
c made that this article will apply even to applications made
to an Industrial Tribunal or a Labour Court. The alterations
made in the article and in the new Act cannot, in our
opinion, justify the interpretation that even applications
presented to bodies, other than courts, are now to be
D
governed for purposes of limitation by Article 137."

Similarly, in Nityananda, M. Joshi & Ors. v. Life
Insurance Corporation & Ors., (1969) 2 SCC 199, this Court
followed the judgment in Athani's case and turned down a
E plea that an application made to a Labour Court would be
covered under Article 137 of the Limitation Act. This Court
emphatically stated that Article 137 only contemplates
applications to courts in the following terms:
F "3. In our view Article 137 only contemplates applications
to Courts. In the Third Division of the Schedule to the
Limitation Act, 1963 all the other applications mentioned
in the various articles are applications filed in a court.
Further Section 4 of the Limitation Act, 1963, provides
G for the contingency when the prescribed period for any
application expires on a holiday and the only contingency
contemplated is "when the court is closed." Again under
Section 5 it is only a court which is enabled to admit an
application after the prescribed period has expired if the
H
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 315
[RF. NARIMAN, J]

court is satisfied that the applicant had sufficient cause A
for not preferring the application. It seems to us that the
scheme of the Indian Limitation Act is that it only deals
with applications to courts, and that the Labour Court is
not a court within the Indian Limitation Act, 1963."'
B
20. In Kerala State Electricity Board v. T.P.
Kunhaliumma, (1976) 4 SCC 634, a 3-Judge Bench of this
Court followed the aforesaid two judgments and stated:-

"22. The conclusion we reach is that Article 137 of the c
1963 Limitation Act will apply to any petition or application
filed under any Act to a civil court. With respect we differ from
the view taken by the two-judge bench of this Court in Athani
Municipal Council case [(1969) 1 SCC 873 : (1970) 1 SCR
51) and hold that Article 137 of the 1963 Limitation Act is not o
confined to applications contemplated by or under the Code
of Civil Procedure. The petition in the present case was to the
District Judge as a court. The petition was one contemplated
by the Telegraph Act for judicial decision. The petition is an
application falling within the scope of Article 137 of the 1963 E
Limitation·Act." ·i:-

This judgment is an authoritative pronouncement by_ a 3-
Judge Bench that the Limitation Act applies only to courts and
not to quasi-judicial Tribunals. Athani's case was dissented F
from on a different proposition - that Article 137 is not confined
to applications under the Code of Civil Procedure alone. So
long as an application is made under any statute to a Civil
Court, such application will be covered by Article 137 of the
Limitation Act. G

21. The stage is now set for a decision on which wide
ranging arguments were made by counsel on both sides. In
Commissioner of Sales Tax, U.P., Lucknow v. Parson
~ ··oj

Tools and Plants, Kanpur, (1975) 4 SCC 22, a 3-Judge H
316 SUPREME COURT REPORTS [2015] 7 S.C.R.

A Bench was confronted with whether Section 14 of the Limitation
Act applied to the Sales Tax authorities underthe.U.P. Sales
TaxAct. In no uncertain terms, this Court held·:-

"8. Mr Karkhanis is right that this matter is no longer res
B lntegra. In Shrimati Ujjam Baiv. State ofU.P [AIR 1962
SC 1621 : (1963) 1 SCR 778] Hidayatullah, J. (as he
then was) speaking for the Court, observed:

"The Taxing authorities are instrur;ientalities of the State.
c They are not a part of the legislature, nor are they a part
of the Judiciary. Their functions are the assessment and
collection of taxes and in the process of assessing taxes,
they follow a pattern of action which is considered judicial.
They are not thereby converted into courts of civil
D judicature. They still remain the instrumentalities of the
State and are within the definition of 'State' in Article 12."

9. The above observations were quoted with approval
by this Court in Jagannath Prasad case [AIR 1963 SC
E 416: (1963) 2 SCR 850: 14 STC 536] and it was held
that a Sales Tax Officer under U.P. Sales Tax Act, 1948
was not a court within the meaning of Section 195 of the
Code of Criminal Procedure although he is required to
perform certain quasi-judicial functions. The decision in
F Jagannath Prasad case it seems, was not brought to
the notice of the High Court. In view of these
pronouncements of this Court, there is no room for
argument that the Appellate Authority and the Judge
(Revisions) Sales tax exercising jurisdiction under the
G Sales Tax Act, are "courts". They are merely
Administrative Tribunals and "not courts". Section 14.
Limitation Act. therefore, does not, in terms apply to
proceedings before such tribunals."

H It then went on to discuss whether the general principle
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 317
[RF. NARIMAN, J]

underlying Section 14 would be applicable and held:- A

"12. Three features of the scheme of the above provision
are nc,teworthy. The first is that no limitation has been
prescribed .for the suo motu exercise of its jurisdiction
by the revising authority. The second is that the period of s
one year prescribed as limitation for riling an application
for revision by the aggrieved party is unusually long. The
third is that the revising authority has no discretion to
extend this period beyond a further period of six months,
even on sufficient cause shown. As rightly pointed out in C
the minority judgment of the High Court, pendency of
proceedings of the nature contemplated by Section 14(2)
of the Limitation Act, may amount to a sufficient cause
for condoning the delay and extending the limitation for
filing a revision application, but Section 10(3-8) of the D
Sales Tax Act gives no jurisdiction to the revising authority
to extend the limitation, even in such a case, for a further
period of more than six months.

13. The three stark features of the scheme and language E
of the above provision, unmistakably show that the
legislature has deliberately excluded the application of
the principles underlying Sections 5 and 14 of the
Limitation Act, except to the extent and in the truncated
form embodied in sub-section (3-B) of Section 1Oof the F
Sales Tax Act. Delay in disposal of revenue matters
adversely affects the steady inflow of revenues and the
financial stability of the State. Section 10 is therefore
designed to ensure speedy and final determination of
fiscal matters within a reasonably certain time-schedule. G

14. It cannot be said that by excluding the unrestricted
application of the principles of Sections 5 and 14 of the
Limitation Act, the legislature has made the provisions
of Section 1O unduly oppressive. In most cases, the H
318 SUPREME COURT REPORTS [2015] 7 S.C.R.

A discretion to extend limitation, on sufficient cause being
shown for a further period of six months only, given by
sub-section (3-B) would be enough to afford relief. Cases
are no doubt conceivable where an aggrieved party,
despite sufficient cause, is unable to make an application
B for revision within this maximum period of 18 months.
Such harsh cases would be rare. Even in such
exceptional cases of extreme hardship, the revising
authority may, on its own motion, entertain revision and
grant relief."
c
22. It is clear that this judgment clearly laid down two things
- one that authorities under the Sales Tax Act are not "courts"
and thus, the Limitation Act will not apply to them. It also laid
down that the language of Section 1O(3-B) of the U.P. Sales
D Tax Act made it clear that an unusually long period of limitation
had been given for filing a revision application and therefore
said that the said Section as construed by the Court would not
be unduly oppressive. Most cases would, according to the
Court, be tiled within a maximum period of 18 months but even
E in cases, rare as they are, filed beyond such period, the
revising authority may on its own motion entertain the revision
and grant relief. Given the three features of the U.P. Sales Tax
Act scheme, the Court held that the legislature deliberately
F excluded the application of the principle underlying Section
14 except to the limited extent that it may amount to sufficient
cause for condoning delay within the period of 18 months.

23. Close upon the heels of this judgment comes another
3-Judge Bench decision under the same provision of the U.P.
G Sales Tax Act. In this judgment, another 3-Judge Bench in
C.S.T. v. Madan Lal Das and Sons, 1976 (4) SCC 464,
without adverting to either Parson Tools or the three other
judgments mentioned hereinabove went on to apply Section
H 12 (2) of the LimitationActto proceedings underthe U.P. Sales
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 319
[RF. NARIMAN, J]

Tax Act. None of the aforesaid four decisions were pointed A
out to the court and it was not argued that the Limitation Act
· applies only to courts andnot to Sales Tax authorities who are
quasi-judicial Tribunals. This judgment, therefore, is not an
authority for the proposition that the Limitation Act would apply
to Tribunals as opposed to courts. Clearly the conclusion B
reached would be contrary to four earlier decisions three of
which are 3-Judge Bench decisions.

24. In fact, even after this judgment, in Officer on Special
Duty (Land Acquisition) v. Shah Manilal Chandulal, (1996) C
9 SCC 414, this Court held that a Land Acquisition Officer
under the Land Acquisition Act not being a court, the provisions
of the Limitation Act would not apply. The court concluded, after
adverting to some of the previous judgments of this Court as
follows:- D

"18. Though hard it may be, in view of the specific
limitation provided under proviso to Section 18(2) of the
Act, we are of the considered view that sub-section (2)
of Section 29 cannot be applied to the proviso to sub- E
section (2) of Section 18. The Collector/LAO, therefore,
is not a court when he acts as a statutory authority under
Section 18(1). Therefore, Section 5 of the Limi{ationAct
cannot be applied for extension of the period of limitation
prescribed under proviso to sub-section (2) of Section F
18. The High Court, therefore, was not right in its finding
that the Collector is a court under Section 5 of the
Limitation Act.

19. Accordingly, we hold that the applications are barred G
by limitation and the Collector has no power to extend
time for making an application under Section 18(1) for
reference to the court."

25. Two other judgments of this Court need to be dealt H
320 SUPREME COURT REPORTS [2015] 7 S.C.R.

A with at this stage. In Mukri Gopalan v. Cheppilat
Puthanpurayil Aboobacker, (1995) 5 SCC 5, a 2-Judge
Bench of this Court held that the Limitation Act would apply to
the appellate authority constituted under Section 13 of the
Kerala Buildings (Lease and Rent Control) Act , 1965. This
B was done by applying the provision of Section 29(2) of the
Limitation Act. Despite referring to various earlier judgments
of this Court which held that the Limitation Act applies only to
courts and not to Tribunals, this Court in this case held to the
contrary. In distinguishing the Parson Tools' case, which is a
C 3-Judge Bench binding on the Court that decided Mukri
Gopalan's case, the Court held:-

"lf the Limitation Act does not apply then neither Section
29(2) nor Section 14(2) of the Limitation Act would apply
D to proceedings before him. But so far as this Court is
concerned it did not go into the question whether Section
29(2) would not get attracted because the U.P. Sales
Tax Act Judge (Revisions) was not a court but it took the
view that because of the express provision in Section
E 10(3)(8) applicability of Section 14(2) of the Sales Tax
Act was ruled out. Implicit ·in this reasoning is the
assumption that but for such an express conflict or contrary
intention emanating from Section 10(3)(8) of the U.P.
Sales Tax Act which was a special law, Section 29(2)
F
would have brought in Section 14(2) of the Limitation Act
even for governing period of limitation for such revision
applications. In any case, the scope of Section 29(2) was
not considered by the aforesaid decision of the three
G learned Judges and consequently it cannot be held to
be an authority for the proposition that in revisional
proceedings before the Sales Tax authorities functioning
under the U.P. Sales TaxAct Section 29(2) cannot apply
as Mr. Nariman would like to have it."
H
It then went on to follow the judgment reported in The
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 321
[R.F. NARIMAN, J]

Commissioner of Sales Tax, U.P. v. Mis. Madan Lal Das A
& Sons, Bareilly, (1076) 4 SCC 464 which, as has been .
pointed out earlier, is not an authority for the proposition that
the Limitation Act would apply to Tribunals. In fact, Mukri
Gopalan's case was distinguished in Om Prakash v.
Ashwani Kumar Bassi, (2010) 9 SCC 183 at paragraph 22 B
as follows: ,

"22. The decision in Mukri Gopa/an case [( 1995) 5 SCC
5] relied upon by Mr Ujjal Singh is distinguishable from
the facts of this case. In the facts of the said case, it was C
the District Judges who were discharging the functions
of the appellate authority and being a court, it was held
that the District Judge, functioning as the appellate
authority, was a court and not persona designata and
was, therefore, entitled to resort to Section 5 of the D
Limitation Act. That is not so in the instant case where
the Rent Controller appointed by the State Government
is a member of the Punjab Civil Services and, therefore,
a persona designata who would not be entitled to apply
the provisions of Section 5 of the Limitation Act, 1963, E
as in the other case."

The fact that the District Judge himself also happened to
be the appellate authority under the Rent Act would have been
sufficient on the facts of the case for the Limitation Act to apply F
without going into the proposition that the Limitation Act would
apply to tribunals.

26. Quite apart from Mukri Gopalan's case being out of
step with at least five earlier binding judgments of this Court, it G
does not square also with the subsequent judgment in
Consolidated Engg. Enterprises v. Principal secy.,
Irrigation Deptt., (2008) 7 SCC 169. A 3-Judge Bench of this
Court was asked to decide whether Section 14 of the Limitation
H
322 SUPREME COURT REPORTS [2015] 7 S.C.R.

A Act would apply to Section 34(3) of the Arbitration and
Conciliation Act, 1996. After discussing the various provisions
of the Arbitration Act and the Limitation Act, this Court held:

"23. At this stage it would be relevant to ascertain whether
B there is any express provision in the Act of 1996, which
excludes the applicability of Section 14 of the Limitation
Act. On review of the provisions of the Act of 1996 this
Court finds that there is no provision in the said Act which
excludes the applicability of the provisions of Section 14
c of ttie Limitation Act to an application submitted under
Secti9n 34 of the said Act. On the contrary, this Court
finds that Section 43 makes the provisions of the
Limitation Act, 1963 applicable to arbitration
proceedings. The proceedings under Section 34 are for
D the .purpose of challenging the award whereas the
proceeding referred to under Section 43 are the original
proceedings which can be equated with a suit in a court.
Hence, Section 43 incorporating the Limitation Act will
apply to the proceedings in the arbitration as it applies
E to the.proceedings of a suit in the court. Sub-section (4)
of Section 43, inter alia, provides that where the court
ordern that an arbitral award be set aside, the period
between the commencement of the arbitration and the
date of the order of the court shall be excluded in
F
computing the time prescribed by the Limitation Act,
1963, for the commencement of the proceedings with
respect to the dispute so submitted. If the period between
the commencement of the arbitration proceedings till the
G award is set aside by the court, has to be excluded in
computing the period of limitation provided for any
proceedings with respect to the dispute, there is no good
reason as to why it should not be held that the provisions
of Section 14 of the Limitation Act would be applicable
H to an application submitted under Section 34 of the Act
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 323
[RF. NARIMAN, J]

of 1996, more particularly where no provision is to be A
found in the Act of 1996, which excludes the applicability
of Section 14 of the Limitation Act, to an application made
under Section 34 of the Act. It is to be noticed that the
powers under Section 34 of the Act can be exercised by
the court only ifthe aggrieved party makes an application. B
The jurisdiction under Section 34 of the Act, cannot be
exercised suo motu. The total period of four months within
which an application, for setting aside an arbitral award,
has to be made is not unusually long. Section 34 of the
Act of 1996 would be unduly oppressive. if it is held that C
the provisions of Section 14 of the Limitation Act are not
applicable to it. because cases are no doubt conceivable
where an aggrieved party. despite exercise of due
diligence and good faith, is unable to make an application
0
within a period of four months. From the scheme and
language of Section 34 of the Act of 1996, the intention
of the legislature to exclude the applicC!bility of Section
14 of the Limitation Act is not manifest. It is well to
remember that Section 14 of the Limitation Act does not E
provide for a fresh period of limitation but only provides
for the exclusion of a certain period. Having regard to
the legislative intent, it will have to be held that the
provisions of Sectjon 14 of the Limitation Act, 1963 would
be applicable to an application submitted under Section F
34 of the Act of 1996 for setting aside an arbitral award."

While discussing Parson Tools, this Court held:

"25 ...... In appeal, this Court held that ( 1) if the legislature
in a special statute prescribes a certain period of G
limitation, then the Tribunal concerned has no jurisdiction
to treat within limitation, an application, by excluding the
time spent in prosecuting in good faith, on the analogy of
Section 14(2) of the Limitation Act, and (2) the appellate H
authority and the revisional authority were not "courts"
324 SUPREME COURT REPORTS [2015] 7 S.C.R.

A but were merely administrative tribunals and, therefore,
Section 14 of the Limitation Act did not, in terms, apply
to the proceedings before such tribunals.

26. From the judgment of the Supreme Court in CST
B f(1975) 4 sec 22: 1975 sec (Tax) 185: (1975) 3 SCR
7431 it is evident that essentially what weighed with the
Court in holding that Section 14 of the Limitation Act was
not applicable, was that the appellate authority and the
revisional authority were not "courts". The stark features
c of the revisional powers pointed out by the Court, showed
that the legislature had deliberately excluded the
application of the principles underlying Sections 5 and
14 of the Limitation Act. Here in this case, the Court is
not called upon to examine scope of revisional powers.
D The Court in this case is dealing with Section 34 of the
Act which confers powers on the court of the first instance
to set aside an award rendered by an arbitrator on
specified grounds. It is not the case of the contractor that
the forums before which the Government of India
E undertaking had initiated proceedings for setting aside
the arbitral award are not "courts". In view of these glaring
distinguishing features, this Court is of the opinion that
the decision rendered in CST[(1975) 4 SCC 22 : 1975
SCC (Tax) 185 : (1975) 3 SCR 743] did not decide the
F
issue which falls for consideration of this Court and,
therefore, the said decision cannot be construed to mean
that the provisions of Section 14 of the Limitation Act
are not applicable to an application submitted under
G Section 34 of the Act of 1996."

In a separate concurring judgment Justice Raveendran
specifically held:

"44. It may be noticed at this juncture that the Schedule
H to the Limitation Act prescribes the period of limitation
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 325
[R.F. NARIMAN, J]
I
only to proceedings in courts and not to any proceeding A
before a tribunal or quasi-judicial authority. Consequently
Sections 3 and 29(2) of the Limitation Act will not apply
to proceedings before the tribunal. This means that the
Limitation Act will not apply to appeals or applications
before the tribunals, unless expressly provided. B

While dealing with Parson Tools, the learned Judge held:

"56. In Parson Tools [(1975) 4 SCC 22] this Court did
not hold that Section 14(2) was excluded by reason of c
the wording of Section 10(3-B) of the Sales Tax Act. This
Court was considering an appeal against the Full Bench
decision of the Allahabad High Court. Two Judges of the
High Court had held that the time spent in prosecuting
the application for setting aside the order of dismissal of o
appeals in default, could be excluded when computing
the period of limitation for filing a revision under Section
10 of the said Act, by application of the principle
underlying Section 14(2) of the Limitation Act. The
minority view of the third Judge was that the revisional E
authority under Section 10 of the U.P. Sales Tax Act did
not act as a court but only as a Revenue Tribunal and
therefore the Limitation Act did not apply to the
proceedings before such Tribunal, and consequently,
neither Section 29(2) nor Section 14(2) ofthe Limitation F
Act applied. The decision of the Full Bench was
challenged by the Commissioner of Sales Tax before this
Court, contending that the Limitation Act did not apply to
tribunals, and Section 14(2) of the Limitation Act was
excluded in principle or by analogy. This Court upheld G
the view that the Limitation Act did not apply to tribunals.
and that as the revisional authority under Section 10 of
the U.P. Sales Tax Act was a tribunal and not a court. the
Limitation Act was inapplicable. This Court further held H
326 SUPREME COURT REPORTS [2015] 7 S.C.R.

A that the period of pendency of proceedings before the
wrong forum could not be excluded while computing the
.period of limitation by applying Section 14(2) of the
limitation Act. This Court, however, held that by applying
the principle underlying Section 14(2), the period of
B pendency before the wrong forum may be considered
as a "sufficient cause" for condoning the delay, but then
having regard to Section 10(3-8), the extension on that
ground could not extend beyond six months. The
observation that pendency ofproceedings of the nature
c contemplated by Section 14(2) of the Limitation Act,
may amount to a sufficient cause for condoning the
delay and extending the /imitation and such extension
cannot be for a period in excess of the ceiling period
prescribed, is in the light of its finding that Section 14(2)
D
of the Limitation Act was inapplicable to revisions under
Section 10(3-8) of the U.P. Sales Tax Act. These
observations cannot be interpreted as laying down a
proposition that even where Section 14(2) of the
E Limitation Act in terms applied and the period spent
before wrong forum could therefore be excluded while
computing the period of limitation, the pendency before
the wrong forum should be considered only as a sufficient
cause for extension of period of limitation and therefore,
F subjected to the ceiling relating to the extension of the
period of limitation. As we are concerned with a
proceeding before a court to which Section 14(2) of the
Limitation Act applies, the decision in Parson Tools
[(1975) 4 sec 22 : 1975 sec (Tax) 185 : (1975) 3 SCR
G 743] which related to a proceeding before a Tribunal to
which Section 14(2) of the Limitation Act did not apply,
has no application."

27. Obviously, the ratio of Mukri Gopalan does not square
H with the observations of the 3-Judge Bench in Consolidated
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 327
[R.F. NARIMAN, J]

Engineering Enterprises. In the latter case, this Court has A
unequivocally held that Parson Tools is an authority for the
proposition that the Limitation Act will not apply to quasi-judicial
bodies or Tribunals. To the extent that Mukri Gopalan is in
conflict with the judgment in the Consolidated Engineering
Enterprises case, it is no longer good law. B

28. The sheet anchor in Mukri Gopalan was Section 29(2)
of the Limitatior;i Act. Section 29(2) states:-

"29. Savings.-
c
(2) Where any special or 1.ocal law prescribes for any
a
sUit; appeaf or af:>pltcation period of limitation different
from the period prescribed by the Schedule, the
provisions of Section 3 shall apply as if such period were
0
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, the provisions contained in Sections
4 to 24 (inclusive) shall apply only insofar as, and to the E
extent to which, they are not expressly excluded by such
special or local law."

A bare reading of this Section would show that the special
or local law described therein should prescribe for any suit, F
appeal or application a period of limitation different from the
period prescribed by the schedule. This would necessarily
mean that such special or local law would have to lay down
that the suit, appeal or application to be instituted under it
should be a suit, appeal or application of the nature described G
in the schedule. We have already held that such suits, appeals
or applications as are referred to in the schedule are only to
courts and not to quasi-judicial bodies or Tribunals. It is clear,
therefore, that only when a suit, appeal or application of the
description in the schedule is to be filed in a court under a H
328 SUPREME COURT REPORTS [2015] 7 S.C.R.

A special or local law that the provision gets attracted. This is
made even clearer by a reading of Section 29(3). Section 29(3)
states:-

"29. Savings.-
B
(3) Save as otherwise provided in any law for the time
being in force with respect to marriage and divorce,
nothing in this Act shall apply to ~ny suit or other
proceeding under any such law."
c 29. When it comes to the law of marriage and divorce, the
Section speaks not only of suits but other proceedings as well.
Such proceedings may be proceedings which are ,neither
appeals nor applications thus making it clear thattrne laws
relating to marriage and divorce, unlike the law oflimitation,
0
may contain proceedings other than suits, appeals or
applications filed in courts. This again is an important pointer
to the fact that the:entirety of the Limitation Act including Section
29(2) would apply only to-the three kinds,offproceedings
E mentioned all of which-are to be filed in courts.· · ~ -.~ 1·
r~ ' •"" 1· -o .t ·1 t1·1··-- · ...,F r ' •· ·- £ ., ' ,..... ~,.,c;;;;ty;'.'"l

30. It now remains to consider.the. decision
' ' of. a2~Judge
.. --

Bench reported in P. Sarathy v. State Bank of India, (2000)
5 SCC 355. This judgment has held that an abortive proceeding
F before.the, appellate authority under Section 41.of:the Tamil
NaduShops!Smd EstablishmentActwould attract the provisions
of Section: 14.of the Limitation Act inasmuch as the' appellant
m this case bad-been prosecuting with due dittgence another
·civilproceedtng·before the appellate authority under the Tamil
G !Nadu-Stiops·-and·EstabJis-h~ntAct,-iwhich appeal was
dismissoo onrthe-groundibat the'said:Aot wasootapplicable
to natjonalized.banl<s and tbatrtherefora, such'.appeatwoukl
not be maintainable. This CQurt-made a: distinction1batween
·~'Oiv-il Gourt'i'1and ·~court' and expandechthe,scope of.Section
iH ~14 catating,that any authority,or Jribt:JOal baving'the trappings· of
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 329
[RF. NARIMAN, J]

a Court would be a "court" within the meaning of Section 14. It A
must be remembered that the word "Court" refers only to a
proceeding which proves to be abortive. In this context, for
Section 14 to apply, two conditions have to be met. First, the
primary proceeding must be a suit, appeal or application filed
in a Civil Court. Second, it is only when it comes to excluding B
time in an abortive proceeding that the word "Court" has been
expanded to include proceedings before tribunals.

31. This judgment is in line with a large number of authorities
which have held that Section 14 should be liberally construed C
to advance the cause of justice - see: Shakti Tubes Ltd. v.
State of Bihar, (2009) 1 SCC 786 and the judgments cited
therein. Obviously, the context of Section 14 would require that
the term "court" be liberally construed to include within it quasi-
judicial Tribunals as well. This is for the very good reason that D
the principle of Section 14 is that whenever a person bonafide
prosecutes with due diligence another proceeding which
proves to be abortive because it is without jurisdiction, or
otherwise no decision could be rendered on merits, the time
taken in such proceeding ought to be excluded as otherwise E
the person who has approached the Court in such proceeding
would be penalized for no fault of his own. This judgment does·
not further the case of Shri Viswanathan in any way. The
question that has to be answered in this case is whether suits, F
appeals or applications referred to by the Limitation Act are to
be filed in courts. This has nothing to do with "civil proceedings"
referred to in Section 14 which may be filed before other courts
or authorities which ultimately do not answer the case before
them on merits but throw the case out on some technical G
ground. Obviously the word "court" in Section 14 takes its colour
from the preceding words "civil proceedings". Civil proceedings
are of many kinds and need not be confined to suits, appeals
or applications which are made only in courts stricto sensu.
This is made even more clear by the explicit language of H
330 SUPREME COURT REPORTS (2015] 7 S.C.R.

A Section 14 by which a civil proceeding can even be a revision
which may be to a quasi-judicial tribunal under a particular
statute.

Whether the Principle of Section 14 would apply to
B an appeal filed under Section 128 Customs Act.

"128. Appeals to Commissioner (Appeals).-(1) Any
person aggrieved by any decision or order passed under
this Act by an officer of customs lower in rank than a
c Commissioner of Customs may appeal to the
Commissioner (Appeals) within [sixty days] from the date
of the communication to him of such decision or order: . .
'
[Provided that the Commissioner (Appeals) may, if he is
satisfied that the appellant was prevented by sufficient
D
cause from presenting the appeal within the aforesaid
period of sixty days, allow it to be presented within a
further period of thirty days.J

[(1-A) The Commissioner (Appeals) may, if sufficient
E cause is shown, at any stage of hearing of an appeal,
grant time, from time to time, to the parties or any of them
and adjourn the hearing of the appeal for reasons to be
recorded in writing :
F Provided that no such adjournment shall be granted more
than three times to a party during hearing of the appeal.]
(2) Every appeal under this section shall be in such form
and shall be verified in such manner as may be specified
G by rules made in this behalf."
Prior to its amendment in 2001, the said Section read as
under:-
"128. Appeals to Collector (Appeals).-( 1) Any person
H
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 331
[R.F. NARIMAN, J]

aggrieved by any decision or order passed under this A
Act by an officer of customs lower in rank than a Collector
of Customs may appeai to the Collector (Appeals) within
three months from the date of the communication to him
of such decision or order:
B
Provided that the Collector (Appeals) may, if he is
satisfied that the appellant was prevented by sufficient
cause from presenting the appeal within the aforesaid
period of three months, allow it to be presented within a
further period of three months. C
(2) Every appeal under this section shall be in such form
and shall be verified in such manner as may be specified
by rules made in this behalf."
D
We have already held that the- Limitation Act including
Section 14 would not apply to appeals filed before a quasi-
judicial Tribunal such as the Collector (Appeals) mentioned in
Section 128 of the Customs Act. However, this does not
conclude the issue. There is authority for the proposition that E
even where Section 14 may not apply, the principles on which
Section 14 is based, being principles which advance the cause
of justice, would nevertheless apply. We must never forget, as
stated in Bhudan Singh & Anr. v. Nabl Bux & Anr., (1. 970)
2 SCR 10, that justice and reason is at the heart of all legislation F
by Parliament. This was put in very felicitous terms by Hegde,J.
as follows:
"Before considering the meaning of the word "held'' in
Section 9, it is necessary to mention that it is proper to G
assume that the lawmakers who are the representatives
of the people enact laws which the society considers as
honest, fa!r and equitable .1'he object of &very tegislafion
is to advance public welfare. In other words as observed
by Crawford in his book on Statutory Cons~ructions the H
• I

I
)
332 SUPREME COURT REPORTS [2015] 7 S.C.R.

A entire legislative process is influenced by considerations
of justice and reason. Justice and reason constitute the
great general legislative intent in every piece of
legislation. Consequently where the suggested
construction operates harshly, ridiculously or in any other
B manner contrary to prevailing conceptions of justice and
reason, in most instances, it would seem that the
apparent or suggested meaning of the statute, was not
the one intended by the law-makers. In the absence of
some other indication that the harsh or ridiculous effect
c was actually intended by the legislature, there is little
reason to believe that it represents the legislative intent."

32. This is why the principles of Section 14 were applied
in J. Kumaradasan Nairv. lric Sohan, (2009) 12 SCC 175
D to a revision application filed before the High Court of Kerala.
The Court held:

"16. The provisions contained in Sections 5 and 14 of
the Limitation Act are meant for grant of relief where a
E person has committed some mistake. The provisions of
Sections 5 and 14 of the Limitation Act alike should, thus,
be applied in a broad based manner. When sub-section
(2) of Section 14 of the Limitation Act per se is not
applicable, the same would not mean that the principles
F akin thereto would not be applied. Otherwise, the
provisions of Section 5 of the Limitation Act would apply.
There cannot be any doubt whatsoever that the same
would be applicable to a case of this nature.

G 17. There cannot furthermore be any doubt whatsoever
that having regard to the definition of "suit" as contained
in Section 2(1) of the Limitation Act, a revision application
will not answer the said description. But, although the
provisions of Section 14 of the Limitation Act per se are
H not applicable, in our opinion, the principles thereof would
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 333
[R.F. NARIMAN, J]

be applicable for the purpose of condo nation of delay in A
filing an appeal or a revision application in terms of
Section 5 thereof.

18. It is also now a well-settled principle of law that
mentioning of a wrong provision or non-mentioning of B ,
any provision of law would, by itself, be not sufficient to
take away the jurisdiction of a court if it is otherwise vested
in it in law. While exercising its power, the court will merely
consider whether it has the source to exercise such
power or not. The court will not apply the beneficent C ;
provisions like Sections 5 and 14 of the LimitationAct in
a pedantic manner. When the provisions are .m~ant to
apply and in fact found to be applicable to the facts and
circumstances of a case, in our opinion; thg.re is no
reason as to why the court will refuse to apply ~h~ same o:
only because a wrong provision has beer mentione,d. In
a case of this nature, sub-section (2) of Section 14 of the
Limitation Act per se may not be applicable, but, as
indicated hereinbefore, the principlesthereqfw9µlp be
1
applicable for the purpose of condon,ation of delay in E
terms of Section 5 thereof."
j ' . !f ' • ·1
The Court further quoted from Consolidated Engineering
Enterprises an instructive passage: · ·
Fl
I ', •

"21. In Consolidated Engg. Enterprises v. Irrigation
Deptt. [(2008) 7 SCC 169] thisCoi.Jrt·held: (SCC p. 181,
para 22)

"22. The policy of the section is to'afford protection to.a1. G 1
litigant against the bar of limitation when he institutes1a:r,
proceeding which by reason of some technical defect
.· I '· · i · ··l .: t" I~ r"'. '
cannot be decided on merits and'is dismissed. While
t . 1 . I '' 1 • • •
.' ' ;' ~ • 1 ,

considering the provisions of Section 14 of the L1m1tation
Act, proper approach will have to be adopted and the HI ·
334 SUPREME COURT REPORTS [2015) 7 S.C.R.

A provisions will have to be interpreted so as to advance
the cause of justice rather than abort the proceedings. It
will be well to bear in mind that an element of mistake is
inherent in the invocation of Section 14. In fact, the section
is intended to provide relief against the bar of limitation
B in cases of mistaken remedy or selection of a wrong
forum. On reading Section 14 oftheAct it becomes clear
that the legislature has enacted the said section to
exempt a certain period covered by a bona fide litigious
activity. Upon the words used in the section, it is not
c possible to sustain the interpretation that the principle
underlying the said section, namely, that the bar of
limitation should not affect aperson honestly doing his
best to get his case tried on merits but failing because
the court is unable to give him such a trial, would not be
o. applicable to an application filed under Section 34 of
the Act of 1996. The principle is clearly applicable not
only to a case in which a litigant brings his application in
the court, that is, a court having no jurisdiction to entertain
E it but also where he brings the suit or the application in
the wrong court in consequence of bona fide mistake or
(sic of) law or defect of procedure. Having regard to the
intention of the legislature this Court is of the firm opinion
that the equity underlying Section 14 should be applied
F to its fullest extent and time taken diligently pursuing a
remedy, in a wrong court, should be excluded. See Shakti
Tubes Ltd. V. State of Bihar [(2009) 1 sec 786]."
33. Various provisions of the Limitation Act are based on
G advancing the cause of justice. Section 6 is one such. It reads
as follows:-
"6. Legal disability.-(1) Where a person entitled to
institute a suit or make an application for the execution
of a decree is, at the time from which the prescribed
H
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 335
[RF. NARIMAN, J]

period is to be reckoned, a minor or insane, or an idiot, A
he may institute the suit or make the application within
the same period after the disability has ceased, as would
otherwise have been allowed from the time specified
therefor in the third column of the Schedule.
B
(2) Where such person is, at the time from which the
prescribed period is to be reckoned, affected by two such
disabilities, or where, before his disability has ceased,
he is affected by another disability, he may institute the
suit or make the application within the same period after C
both disabilities have ceased, as would otherwise have
been allowed from the time so specified.
(3) Where the disability continues up to the death of that
person, his legal representative may institute the suit or o
• make the application within the same period after the
death, as would otherwise have been allowed from the
time so specified.
(4) Where the legal representative referred to in sub- E
section (3) is, at the date of the death of the person whom
he re.presents, affected by any such disability, the rules
contained in sub-sections (1) and (2) shall apply.
(5) Where a person under disability dies after the F
disability ceases but within the period allowed to him
under this section, his legal representative may institute
the suit or make the application within the same period
after the death, as would otherwise have been available
to that person had he not died. G
Explanation.-Forthe purposes of this section, 'minor'
includes a child in the womb." .
On the assumption that Section 6 does not apply on the
facts of a given case, can It be said that the principles on which H
336 SUPREME COURT REPORTS [2015] 7 S.C.R.

A it is based have no application? Suppose, in a given case,
the person entitled to institute a proceeding not governed by
the Limitation Act were a minor, a lunatic or an idiot, would he
not be entitled to institute such proceedings after such disability
has ceased, for otherwise he would be barred by the period of
B limitation contained in the particular statute governing his rights.
· This Section again is a pointer to the fact that courts always
lean in favour of advancing the cause of justice where a clear
case is made out for so doing.

C 34. However, it remains to consider whether Shri Sang hi
is right in stating that Section 128 is a complete code by itself
which necessarily excludes the application of Section 14 of
the Limitation Act. For this proposition he relied strongly on
Parson Tools which has been discussed hereinabove. As has
D already been stated, Parson Tools was a judgment whicb
turned on the three features mentioned in the said case. Unlike
the U.P. Sales Tax Act, there is no provision in the Customs
Act which enables a party to invoke suo moto the appellate
power and grant relief to a person who institutes an appeal
E out of time in an appropriate case. Also, Section 10 of the U. P.
Sales Tax Act dealt with the filing of a revision petition after a
first appeal had already been rejected, and not to a case of a
first appeal as provided under Section 128 of the Customs
F Act. Anotherfeature, which is of direct relevance in this case,
is that for revision petitions filed under the U.P. Sales Tax Act a
sufficiently long period of 18 months had been given beyond
which it was the policy of the legislature not to extend limitation
any further. This aspect of Parson Tools has been explained in
G Consolidated Engineering in some detail by both the main
judgment as well as the concurring judgment. In the latter
judgment, it has been pointed out that there is a vital distinction
between extending time and condoning delay. Like Section
34 of the Arbitration Act, Section 128 of the Customs Act is a
H Section which lays down that delay cannot be condoned beyond
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 337
[R.F. NARIMAN, J]

a certain period. Like Section 34 of the Arbitration Act, Section A
128 of the Customs Act does not lay down a long period. In
these circumstances, to infer exclusion of Section 14 or the
principles contained in Section 14 would be unduly harsh and
· would not advance the cause of justice. It must not be forgotten
as is pointed out in the concurring judgment in Consolidated B
Engineering that:

"Even when there is cause to apply Section 14, the
limitation period continues to be three months and not
more, but in computing the limitation period of three C
months for the application under Section 34( 1) of the AC
Act, the time during which the applicant was prosecuting
such application before the wrong court is excluded,
provided the proceeding in the wrong court was
prosecuted bona fide, with due diligence. Western D
Builders ((2006) 6 SCC 239) therefore lays down the
correct legal position."

35. Merely because Parson Tools also d.ealt with a
provision in a tax statute does not make the ratio of the said E
decision apply to a completely differently worded tax statute
with a much shorter period of limitation - SectTOri 128 of the
Customs Act. Also, the principle of Section 14 would apply not
merely in condoning delay within the outer period prescribed
for condonation but would apply de hors such period for the F
reason pointed out in Consolidated Engineering above, being
the difference between exclusion of a certain period altogether
under Section 14 principles and condoning delay. As has been
pointed out in the said judgment, when a certain period is
excluded by applying the principles contained in Section 14, G
there is no delay to be attributed to the appellant and the
limitation period provided by the concerned statute continues
"
to be the stated period and not more than the stated period.
We conclude, therefore, that the principle of Section 14 which H
338 SUPREME COURT REPORTS [2015] 7 S.C.R.

A is a principle based on advancing the cause of justice would
certainly apply to exclude time taken in prosecuting
proceedings which are bona fide and with due diligence
pursued, which ultimately end without a decision on the merits
of the case.
8
36. Shri Sanghi also cited Ranbaxy Laboratories Ltd.
v. Union of India, (2011) 10 SCC 292. He relied upon
paragraph 14 of this judgment which reads as follows:-
C "14. It is a well-settled proposition of law that a fiscal
legislation has to be construed strictly and one has to
look merely at what is said in the relevant provision; there
is nothing to be read in; nothing to be implied and there
is no room for any intendment. (See Cape Brandy
o Syndicat~v. /RC ((1921) 1KB64] and Ajmera Housing
Corpn. v.C/T[(2010) asec 739] .)".
37. We do not see how this judgment furthers the argument
of Shri Sang hi. This is only reiteration of the classic statement
E of law contained in the Cape Brandy Syndicate case. Further,
the context of this paragraph is that a literal meaning has to be
given to a charging Section in a tax statute. When it comes to
machinery provisions in tax statutes and provisions which
provide for appeals and the limitation period within which such
F appeals have to be filed, it is clear that the aforesaid
observations would have no application whatsoever.
38. Shri Sanghi then referred us to Sree Balaji Nagar
Residential Assn. v. State of Tamil Nadu, (2015) 3 SCC
G 353 and read out paragraphs 10 and 11 from the said
judgment. What was held by this Court in that case was that
Section 24(2) of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 does not exclude any period during
H which a land acquisition proceeding which might have remain
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 339
[R.F. NARIMAN, J]

stayed on account of an injunction granted by any Court. This A
was so held by contrasting the language of section 24(2) with
the language of Section 19 and Section 69 of the same Act.
This judgment again would have no direct bearing on the
proposition canvassed by Shri Sang hi that Section 128 of the
Customs Act forms a complete code by itself. . B

What periods are to be excluded under Section 14

39. Shri Viswanathan, learned senior counsel appearing
for the appellant, placed before us a judgment of the Andhra c
Pradesh High Court in which it was held that even prior to the
institution of a particular proceeding, time taken in steps taken • .;,~
i.';.: ;' -'
~·"' ·'". for pro$st~trng sucli proeee&n9s $1'iouid Ms'o~r>~ exci'~d~J. ln' '' . .. ,

Tirumareddi Rajarao & Ors. v. The State of Andhra
Pradesh & Ors., AIR 1965A.P. 388, theAndhra Pradesh High o
Court held that the period taken for preparatory steps before
instituting proceedings should also be excluded. It said:
"13. We may now turn to the Chambers Twentieth Century
Dictionary for the meanings of the expression "to E
prosecute". It means:

To follow onwards or pursue in order to reach or
accomplish; to engage in practise to follow up to pursue,
chase, to pursue by law; to bring before a Court.
F
14. These meanings do not vouch the construction of the
section advanced by the learned Government Pleader.
In our opinion, the section does not render it essential
that the prosecution of the proceedings should be
continued exclusively in the Court, i.e. the actual G
proceeding in the Court. There is justification for the view
that it is only the actual period between th~ presentation
of a proceedings and the disposal of that particular
proceeding should be allowed under the sub~section. The H
340 SUPREME COURT REPORTS [2015] 7 S.C.R.

A time during which a party has been taking the
indispensable and necessary steps preparatory to initiate
the proceedings in a court should als') be regarded as
the time during which he has been prosecuting the civil
proceeding.
B
It is also to be borne in mind that sub-section (1) makes
no reference to the pend ency of the suit, appeal or other
proceeding in a Court of law. The legislature had used
words of general import and of widest amplitude. So,
c we do not find any justification for reading a restriction
into that sub-section and to hold that the time during which
a party was engaged in taking steps for invoking the aid
of the Court falls outside the contemplation urged on
behalf of the respondents, while the pendency of a
D proceeding in a Court could be deducted in computing
the period of limitation, the time occupied in obtaining
certified copies of the judgment which is an essential
requisite for the filing of an appeal or revision in the higher
Court has to be disregarded for purposes of S. 14. We
E do not think that the legislature would have contemplated
such a situation. It would certainly result in an anomaly to
hold that the time covered by taking the steps absolutely
necessary for initiating proceedings in a Court should
be included in calculating the period of limitation while
F
the time during which a former suit or application was
~ pending in a Court should be excluded. In our considered
,~''judgment the section does not make any distinction
·· ' , 'betWeen the steps which a litigant has to take to initiate
,G .. , ' i:)roceedings !n a Court and the actual pendency of those
· · · "proceedings in the Court."
- . .

40. In Mst; Duliyabai & Ors. v. Vitayatali & Ors., AIR
1959MP 271, a Division Bench of the High Court held:-

H "What would be the time during which the plaintiff has
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 341
[RF. NARIMAN, J]

been prosecuting with due diligence another civil A
proceeding in a Court of appeal? Certainly the time
requisite for obtaining the certified copies under Section
12 of the Limitation Act would be included within the
meaning of the section. Also the limitation prescribed
for the filing of an appeal would be included, if the appeal B
be filed on the last day of limitation. ·

But ifthe appeal be filed earlier, the time from the date of
the order impugned upto the actual date of filing of the
appeal would certainly be the time during which the C
plaintiff can be said to be prosecuting another civil
proceeding in a court of appeal. We are unable to
1
' '' ., endorse the view of the learned trial Judge on this point.

-, ; · " A {)ivision Bench of this Court consisting of Sir Gilbert
· ·, Stone;C. J.and Niyogi, J., in the case of Kasturchand v.
1
D
_;~t;CL'Wazir'Begum': (AIR't937 Nag 1) : ILR (1937) Nag 291,
~ '··. 'bheldwith reference1oAitiCte 11 (1) of the Limitation Act
as follows:
':4t • '.c-.

· , • "'"Then it is said thattheplaintiff is outbftime owing to the E
~ ·~.,,operation of Article 1t(:1) of the Limitation. Act which, in
" . ,, the case ofa suit by a person against whom an order is
· , passed on his objection in execution proceedings, fixes
- ~ ,· ·one year. The dates are as follows: the objection order
was passed on 5-3-1928. The plaint was presented in F
one Court on 15-9-1928, of course in time .. That was
10 1-'t::.· returned'oythat court on _14~ 12~192a:'t0r presentation
1
tl•:,;i, 2 t6\vhatthat Cou'rtheld to be the proper-Court. Theplaintiff
d: •• :0 cha'11~hgfrl9 tt\~ 15o~ess bf'ttlatofderappeatecf orf6-
.,,.J ;,1u,~119~9·a1nami1 ~p~eai~a~l:H5misse81lin 2~9~1s29;and , G
· <;:JVd .c 'ffie'ptaint-waspresEfilt~cf tOtfl~ co\!i'rP!iS'i:l®ided oy die

"';J'•"i•.:first''Cou?t;rowz5'-1'11lild29'?tnouropirlrH~vihfi)tamtifffias
sbitsn6fk'ii fitigating'th'ematlerth%"Court'Wffi~hEro8na'tlae
er1t .S'£s6lW'effibttle1h1?6BrtetftritJu~a~Belfe\5iRg~ to ttlli~ent '
ns to 6MhCbrfrn~j?costsc5fia\9app~a'l'9glil'RSt tfi~B~Clslbrrffi~t H
1
342 SUPREME COURT REPORTS [2015] 7 S.C.R.

A it was not the correct tribunal, for something like 10
months.

Those 10 months must be taken into account in
considering the period that has elapsed between the
B date of suit and the date when the plaint was eventually
filed in the correct Court, and if this is so taken into
account the time that has expired is less than a year. The
limitation point, therefore, in our opinion, fails."

c In the case of Abdul Sattar v. Abdul Husan, AIR 1936 Cal
400, the plaintiffs had applied for execution of their
! .
decree.
, .. - '
The
...
judgment-debtors
- - '
raised, objections
. .
to• the
•

· execution on the ground of adjustment of the decree. the
question of adjustment was fought in appeals upto the
o highest Court. Ultimately it was decided against the
plaintiffs by the final appellate Court. The learned Judges
constituting the Division Bench held that the plaintiffs
were entitled to exclude the entire period from the date~
of the order recording the adjustment upto the date of
E the final order of the highest appellate Court. We feel
that this interpretation of Sectioil 14 is in consonance
with the wording of the Section. Therefore, differing from
the learned trial Judge, we hold that the appellants were
entitled to exclude the period from 18-9-1948 to 15-12-
F 1948."
41. The language of Section 14, construed in the light of
the object for which the provision has been made, lends itself
to such an interpretation. The object of Section 14 is that if its
G conditions are otherwise met, the plaintiff/applicant should be
put in the same position as he was when he started an abortive
proceeding. What is necessary is the absence of negligence
or inaction. So long as the plaintiff or applicant is bonafide
pursuing a legal remedy which turns out to be abortive, the
H time beginning from the date of the cause of action of an
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 343
[R.F. NARIMAN, J]

appellate proceeding is to be excluded if such appellate A
proceeding is from an order in an original proceeding instituted
without jurisdiction or which has not resulted in an order on the
merits of the case. If this were not so, anomalous results would
follow. Take the case of a plaintiff or applicant who has
succeeded at the first stage of what turns out to be an abortive B
proceeding. Assume that, on a given state of facts, a defendant
- appellant or other appellant takes six months more than the
prescribed period for filing an appeal. The delay in filing the
appeal is condoned. Under explanation (b) of Section 14, the
plaintiff or the applicant resisting such an appeal shall be C
deemed to be prosecuting a proceeding. If the six month period
together with the original period for filing the appeal is not to
be excluded under Section 14, the plaintiff/applicant would not
get a hearing on merits for no fault of his, as he in the example
0
given is not the appellant. Clearly therefore, in such a case,
the entire period of nine months ought to be excluded. If this is
so for an appellate proceeding, it ought to be so for an original
proceeding as well with this difference that the time already
taken to file the original proceeding, i.e. the time prior t~ E
institution of the original proceeding cannot be excluded. Take
a case where the limitation period for the original proceeding
is six months. The plaintiff/applicant files such a proceeding
on the ninetieth day i.e. after three months are over. The said
proceeding turns out to be abortive after it has gone through a F
chequered career in the appeal courts. The same plaintiff/
applicant n.:>w files a fresh proceeding before a court of first •
instance having the necessary jurisdiction. So long as the said
proceeding is filed within the remaining three month period,
section 14 will apply to exclude the entire time taken starting G
from the ninety first day till the final appeal is ultimately
dismissed. This example also goes to show that the expression
"the time during which the plaintiff has been prosecuting with
due diligence another civil proceeding" needs to be construed
in a manrierwhich advances the object sought to be achieved, H

•'
344 SUPREME COURT REPORTS [2015] 7 S.C.R.

A thereby advancing the cause of justice.

42. Section 14 has been interpreted by this Court extremely
liberally inasmuch as it is a provision which furthers the cause
of justice. Thus, in Union of India v. West Coast Paper Mills
B Ltd., (2004) 3 SCC 458, this Court held:

"14 . ... In the submission of the learned Senior Counsel,
filing of civil writ petition claiming money relief cannot be
sair:l to be a proceeding instituted in good faith and
C secondly, dismissal of writ petition on the ground that it
was not an appropriate remedy for seeking money relief
cannot be said to be 'defect of jurisdiction or other cause
of a like nature' within the meaning of Section 14 of the
Limitation Act. It is true that the writ petition was not
o dismissed by the High Court on the ground of defect of
jurisdiction. However, Section 14 of the Limitation Act is
wide in its application, inasmuch a& it is not confined in
its applicability only to cases of defect of jurisdiction but
it is applicable also to cases where the prior proceedings
E have failed on account of other causes of like nature.
The expression 'other cause of like nature' came up for
the consideration of this Court in Roshanlal Kuthalia v.
R.B. Mohan Singh Oberot1{1975) 4 SCC 628] and it
was held that Section 14 of the Limitation Act is wide
F enough to cover such cases where the defects are not
merely jurisdictional strictly so called but others more or
less neighbours to such deficiencies. Any circumstance,
legal or factual, which inhibits entertainment or
consideration by the court of the dispute on the merits
G comes within the scope of the section and a liberal touch
must inform the interpretation of the Limitation Act which
deprive~ the remedy of one who has a right."

Similarly, in India Electric Works Ltd. v. James
H
M.P. STEEL CORP. v. COMMNR.10F CENTRAL EXCISE 345
[R.F. NARIMAN, J]

Mantosh, (1971) 1 SCC 24, this Court held: A

"7. It is well settled that although all questions of limitation
must be decided by the provisions of the Act and the
courts cannot travel beyond them the words 'or other
cause of a like nature' must be construed liberally. Some B
clue is furnished with regard to the intention of the
legislature by Explanation Ill in Section 14(2). Before the
enactment of the Act in 1908, there was a conflict
amongst the High Courts<bn the question whether
misjoinder and non-joinder were defects which were C
covered by the words 'or other cause of a like nature'. It
was to set at rest this conflict that Explanation Ill was
added. An extended meaning was thus given to these
words. Strictly speaking misjoinder or non-joinder of
parties could hardly be regarded as a defect of D
jurisdiction or something similar or analogous to it."

43. As has been already noticed, Sarathy's case i.e.
(2000) 5 sec 355 has also held that the court referred to in
Section 14 would include a quasi-judicial tribunal. There E
appears to be no reason for limiting the reach of the expression
"prosecuting with due diligence" to institution of a proceeding
alone and not to the date on which the cause of action for such
proceeding might arise in the case of appellate or revisional
proceedir.gs from original proceedings which prove to be F
abortive. Explanation (a) to Section 14 was only meant to clarify
that the day on which a proceeding is instituted and the day on
which it ends are also to be counted for the purposes of Section
14. This does not lead to the conclusion that the period from
the cause of action to the institution of such proceeding should G
be left out. In fact, as has been noticed above, the explanation
expands the scope of Section 14 by liberalizing it. Thus, under
explanation (b) a person resisting an appeal is also deemed
to be prosecuting a proceeding. But for explanation (b), on a H
346 SUPREME COURT REPORTS (2015] 7 S.C.R.

A literal reading of Section 14, if a person has won in the first
round of litigation and an appeal is filed by his opponent, the
period of such appeal would not be liable to be excluded under
the Section, leading to an absurd result. That is why a plaintiff
or an applicant resisting an appeal filed by a defendant shall
B also be deemed to prosecute a proceeding so that the time
taken in the appeal can also be the subject matter of exclusion
under Section 14. Equally, explanation (c) which deems
misjoinder of parties or a cause of action to be a cause of a
like nature with defect of jurisdiction, expands the scope of the
C section. We have already noticed that the India Electric Works
Ltd. judgment has held that strictly speaking misjoinder of
parties or of causes of action can hardly be regarded as a
defect of jurisdiction or something similar to it. Therefore
properly construed, explanation (a) also confers a benefit and
0
does not by a side wind seek to take away any other benefit
that a purposive reading of Sectior. 14 might give. We,
therefore, agree with the decision of the Madhya Pradesh High
Court that the period from the cause of action till the institution
E of appellate or revisional proceedings from original
proceedings which prove to be abortive are also liable to
exclusion under the Section. The viewoftheAndhra Pradesh
High Court is too broadly stated. The period prior to institution
of the initiation of any abortive proceeding cannot be excluded
F for the simple reason that Section 14 does not enable a litigant
to get a benefit beyond what is contemplated by the Section -
that is to put the litigant in the same position as if the abortive
proceeding had never taken place.

G What applies to the facts of this case: the limitatio.1
period in Section 128 pre-amendment or post
amendment

44. Shri A.K. Sanghi, learned senior counsel appearing
H on behalf of the revenue, has strongly contended before us
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 347
[R.F. NARIMAN, J)

that the present appeal must attract the limitation period as on A
the date of its ~iling. That beir.g so, it is clear that the present
appeal having been filed b~fore CESTAT only on 23.5.2003,
it is Section 128 post amendment that would apply and
therefore the maximum period available to the appellant would
be 60 plus 30 days. Even if time taken in the abortive B
proceedings is to be excluded, the appeal filed will be out of
time being beyond the aforesaid period.

45. It is settled law that periods of limitation are procedural
in nature and would ordinarily be applied retrospectively. This, C
however, is subject to a rider. In New India Insurance Co.
Ltd. v. Shanti Misra, (1975) 2 SCC 840, this Court held:

"5. On the plain language of Sections 110-A and 110-F
there should be no difficulty in taking the view that the o
change in law was merely a change offorum i.e. a change
of adjectival or procedural law and not of substantive law.
It is a well-established proposition that such a change of
law operates retrospectively and the person has to go to
the new forum even if his cause of action or right of action E
accrued prior to the change of forum. He will have a
vested right of action but not a vested right of forum. If by
express words the new forum is made available only to
causes of action arising after the creation of the forum,
then the retrospective operation of the law is taken away. F
Otherwise the general rule is to make it retrospective."

46. In answering a question which arose under Section
110Aofthe Motor Vehicles Act, this Court held:
G
"7 ..... "(1) Time for the purpose of filing the application
under Section 110-A did not start running before the
constitution of the tribunal. Time had started running for
the filing of the suit but before it had expired the forum
was changed. And for the purpose of the changed forum, H
348 SUPREME COURT REPORTS [2015] 7 S.C.R.

A time could not be deemed to have started running before
a remedy of going to the new forum is made available.

(2) Even though by and large the law of limitation has
been held to be a procedural law, there are exceptions
B to this principle. Generally the law of limitation which is in
vogue on the date of the commencement of the action
governs it. But there are certain exceptions to this
principle. The new law of limitation providing a longer
period cannot revive a dead remedy. Nor can it suddenly
C extinguish a vested right of action by providing for a
shorter period of limitation."

47. This statement of the law was referred to with approval
in Vinod Gurudas Raikar v. National Insurance Co. Ltd.,
D (1991) 4 SCC 333 as follows:-

"7. It is true that the appellant earlier could file an
application even more than six months after the expiry of
the period of limitation, but can this be treated to be a
E right which the appellant had acquired. The answer is in
the negative. The claim to compensation which the
appellant was entitled to, by reason of the accident was
certainly enforceable as a right. So far the period of
limitation for commencing a legal proceeding is
F concerned, it is adjectival in nature, and has to be
governed by the new Act- subject to two conditions. If
under the repealing Act the remedy suddenly stands
barred as a result of a shorter period of limitation, the
same cannot be held to govern the case, otherwise the
G result will be to deprive the suitor of an accrued right.
The second exception is where the new enactment leaves
the claimant with such a short period for commencing
the legal proceeding so as to make it unpractical for him
to avail of the remedy. This principle has been followed
H
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 349
[R.F. NARIMAN, J]

by this Court in many cases and by way of illustration we A
would like to mention New India Insurance Co. Ltd. v.Smt
Shanti Misra [(1975) 2 SCC 840: (1976) 2 SCR 266].
The husband of the respondent in that case died in an
accident in 1966. A period of two years was available to
the respondent for instituting a suit for recovery of B
damages. In March, 1967 the Claims Tribunal under
Section 110 of the Motor Vehicles Act, 1939 was
constituted, barring the jurisdiction of the civil court and
prescribed 60 days as the period of limitation. The
respondent filed the application in July, 1967. It was held C
that not having filed a suit before March, 1967 the only
remedy of the respondent was by way of an application
before the Tribunal. So far the period of limitation was
concerned, it was observed that a new law of limitation
0
providing for a shorter period cannot certainly extinguish
a vested right of action. In view of the change of the law it
was held that the application could be filed within a
reasonable time after the constitution of the Tribunal; and,
that the time of about four months taken by the respondent E
in approaching the Tribunal after its constitution, could
be held to be either reasonable time or the delay of about
two months could be condoned under the proviso to
Section 110-A(3)."
F
Both these judgments were referred to and followed in
Union of India v. Harnam Singh, (1993) 2 SCC 162, see
paragraph 12.

48. The aforesaid principle is also contained in Section
30(a) of the Limitation Act, 1963. G

"30. Prov.ision for suits, etc., for which the
prescribed period is shorter than the period
prescribed by the Indian Limitation Act, 1908.-
Notwithstanding anything contained in this Act,- H
350 SUPREME COURT REPORTS (2015] 7 S.C.R.

A (a) any suit for which the period of limitation is shorter
than th.e period of limitation prescribed by the Indian
Limitation Act, 1908, may be instituted within a period of
[seven years] next after the commencement of this Act
or within the period prescribed for such suit by the Indian
B Limitation Act, 1908, whichever period expires earlier:"

49. The reason for the said principle is not far to seek.
Though periods of limitation, being procedural law, are to be
applied retrospectively, yet if a shorter period of limitation is
C provided by a later amendment to a statute, such period would
render the vested right of action contained in the statute
nugatory as such right of action would now become time barred
under the amended provision.

o 50. This aspect of the matter is brought out rather well in
Thirumalai Chemicals Ltd. v. Union of India, (2011) 6 SCC
739 as follows:

"22. Law is well settled that the manner in which the appeal
E has to be filed, its form and the period within which the
same has to be filed are matters of procedure, while the
right conferred on a party to file an appeal is a substantive
right. The question is, while dealing with a belated appeal
under Section 19(2) of FEMA, the application for
F condonation of delay has to be dealt with under the first
proviso to sub-section (2) of Section 52 of FERA or under
the proviso to sub-section (2) of Section 19 of FEMA.
For answering that question it is necessary to examine
the law on the point.
G
Substantive and procedural law

23. Substantive law refers to a body of rufes that creates,
defines and regulates rights and liabilities. Right
conferred on a party to prefer an appeal against an order
H
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 351
[R.F. NARIMAN, J]

is a substantive right conferred by a statute which A
remains unaffected by subsequent changes in law, unless
modified expressly or by necessary implication.
Procedural law establishes a mechanism for determining
those rights and liabilities and a machinery for enforcing
them. Right of appeal being a substantive right always B
acts prospectively. It is trite law that every statute is
prospective unless it is expressly or by necessary
implication made to have retrospective operation.

24. Right of appeal may be a substantive right but the C
procedure for filing the appeal including the period of
limitation cannot be called a substantive right, and an
aggrieved person cannot claim any vested right claiming
that he should be governed by the old provision
pertaining to period of limitation. Procedural law is D
retrospective meaning thereby that it will apply even to
acts or transactions under the repealed Act.

25. Law on the subject has also been elaborately dealt
with by this Court in various decisions and reference may E
be made to a few of those decisions. This Court in
Garikapati Veeraya v. N. Subbiah Chaudhry [Al R 1957
SC 540] , New India Insurance Co. Ltd. v. Shanti Misra
[(1975) 2 SCC 840], Hitendra Vishnu Thakurv. State of
Maharashtra [(1994) 4 SCC 602: 1994 SCC (Cri) 1087] F
, Maharaja Chintamani Saran Nath Shahdeo v. State
ofBihar[(1999) 8 SCC 16] and Shyam Sunderv. Ram
Kumar[(2001) 8 SCC 24], has elaborately discussed
the scope and ambit of an amending legislation and its
retrospectivity and held that-every litigant has a vested G
right in substantive law but no such right exists in
procedural law. This Court has held that the law relating
to forum and limitation is procedural in nature whereas
law relating to right of appeal even though remedial is H
substantive in nature.
352 SUPREME COURT REPORTS [2015] 7 S.C.R.

A 26. Therefore, unless the language used plainly manifests
in express terms or by necessary implication a contrary
intention a statute divesting vested rights is to be
construed as prospective, a statute merely procedural
is to be construed as retrospective and a statute which
B while procedural in its character, affects vested rights
adversely is to be construed as prospective."

51. This judgment was strongly relied upon by Shri A.K.
Sang hi for the proposition that the law in force on the date of
C the institution of an appeal, irrespective of the date of accrual
of the cause of action for filing an appeal, will govern the period
of limitation. Ordinarily, this may well be the case. As has been
noticed above, periods of limitation being procedural in nature
would apply retrospectively. On the facts in the judgment in the
D Thirumalai case, it was held that the repealed provision
contained in the Foreign Exchange Regulation Act, namely,
Section 52 would not apply to an appeal filed long after
1.6.2000 when the Foreign Exchange ManagementAct came
into force, repealing the Foreign Exchange Regulation Act. It
E is significant to note that Section 52(2) of the repealed Act
provided a period of limitation of 45 plus 45 days and no more
whereas Section 19(2) of FEMA provided for 45 days with no
cap thereafter provided sufficient cause to condone delay is
F shown. On facts, in that case, the appeal was held to be properly
instituted under Section 19, which as has been stated earlier,
had no cap to condonation of delay. It was, therefore, held that
the Appellate Tribunal in that case could entertain the appeal
even after the period of 90 days had expired provided sufficient
G cause for the delay was made out.

52. The present case stands on a slightly different footing.
The abortive· appeal had been filed against orders passed in
March-April, 1992. The present appeal was filed under Section
H 128, which Section continues on the statute book till date.
Before its amendment in 2001, it provided a maximum period
M.P. STEEL CORP. v. COMMNR. OF CENTRAL EXCISE 353
[R.F. NARIMAN, J]

of 180 days within which an appeal could be filed: Time began A
to run on 3.4.1992 under Section 128 pre amendment when
the appellant received the order of the Superintendent of
Customs intimating it about an order passed by the Collector
of Customs on 25.:3.1992. Under Section 128 as it then stood
a person aggrieved by a decision or order passed by a B
Superintendent of Customs could appeal to the Collector
(Appeals) within three months from the date of communication
to him of such decision or order. On the principles contained
in Section 14 of the Limitation Act the time taken in prosecuting
an abortive proceeding would have to be excluded as the C
appellant was prosecuting bona fide with due diligence the
appeal before CEGAT which was allowed in its favour by
CEGAT on 23.6.1998. The Department preferred an appeal
against the said order sometime in the year 2000 w_hich appeal
0
was decided in their favour by this court only on 12.3.2003 by
which CEGAT's order was set aside on the ground that CEGAT
had no jurisdiction to entertain such appeal. The time taken
from 12.3.2003 to 23.5.2003, on which date the present appeal
was filed before the Commissioner (Appeals) would be within E
the period of 180 days provided by the pre amended Section
128, when added to the time taken between 3.4.1992 and
22.6.1992. The amended Section 128 has now reduced this
period, with effect from 2001, to 60 days plus 30 days, which
is 90 days. The order that is challenged in the present case F
was passed before 2001. The right of appeal within a period
of 180 days (which includes the discretionary period of 90
days) from the date of the said order was a right which vested
in the appellant. A shadow was cast by the abortive appeal
from 1992 right upto 2003. This shadow was lifted when it G
became clear that the proceeding filed in 19~2 was a
proceeding before the wrong forum. The vested right 9f appeal
within the period of 180 days had not yet got over. Upon the
lifting of the shadow, a certain residuary period within which a
proper appeal could be filed still remain_ed. That period would H
354 SUPREME COURT REPORTS [2015] 7 S.C.R.

A continue to be within the period of 180 days notwithstanding
the amendment made in 2001 as otherwise the right to appeal
itself would vanish given the shorter period of limitation
provided by Section 128 after 2001.

B 53. We, therefore, set aside the order dated 25.2.2004
and remand the case to CESTAT for a decision on merits.
The appeal is allowed in the aforesaid terms. There will be no
order as to costs.

C CIVIL APPELLATE JURISDICTION: Civil Appeal No.
4367 of2004

From the Judgment and Order No. C-111/866 WZB/2004
dated 25.02.2004 of the Customs, Excise & Service Tax
D Appellate Tribunal, WZB, Mumbai in Appeal No. C/105/04 of
1997.

S. R. Setia for the Appellant.

K. V. Viswanathan Sunita Rani Singh, B. Krishna Prasad
E for the Respondent.

The following Order of the Court was delivered.

ORDER

F On being mentioned learned senior counsel has pointed
out the typographical error in para 53 of the judgment where
the remand is to be to jurisdictional Commissioner (Appeals)
instead of CESTAT. The error is corrected accordingly.

G Kalpana K Tripathy Appeal allowed.