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Madras High Court· 20 August 2026

Does liberty granted while dismissing a special leave petition extend the period of limitation?

Bell Tower Enterprises LLP v. The Deputy Director, Directorate of Enforcement
CMA.SR106394/2026 · C.M.P.No.17568 of 2026 and C.M.A.SR.No.106394 of 2026
Coram: Justice G.Arul Murugan · Justice Sushrut Arvind Dharmadhikari
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Answer

No. Liberty to challenge a final order in appropriate proceedings does not automatically extend the time to file. Any appeal ultimately filed would be subject to limitation, and it remains for the appellant to show sufficient cause for the delay.

Headnote

Prevention of Money Laundering Act, 2002 — s.42 — Limitation Act, 1963 — ss.5, 14, 29(2) — Appeal to High Court — Condonation of delay — Exclusion of time — Prevention of Money Laundering Act, 2002 — s.42 — Appeal to High Court — Outer limit of 120 days — Held: An appeal against an order of the Appellate Tribunal lies within sixty days, and may be filed within a further period not exceeding sixty days on sufficient cause. No appeal can be entertained after the expiry of this total 120 days. (¶7) Limitation Act, 1963 — s.14 — Exclusion of time — Applicability to special enactments — Held further: The benefit of Section 14 extends even to special enactments, provided the applicability of Sections 4 to 24 is not expressly barred. The five conditions set out in Consolidated Engineering Enterprises must co-exist before the section can be pressed into service. (¶14) Limitation Act, 1963 — s.14 — Same matter in issue — Due diligence and good faith — Held further: Where the final order of the Appellate Tribunal was never the subject matter of challenge in the earlier proceedings, the same matter in issue condition fails. A party who consciously ignored the statutory appeal is not prosecuting with due diligence and good faith. (¶24, 26) Limitation Act, 1963 — s.14 — Liberty to challenge — Limitation not automatically extended — Held further: Liberty granted while dismissing a special leave petition as withdrawn allows the final order to be challenged in appropriate proceedings, but does not automatically extend the period of limitation. Condonation of delay dismissed and the appeal rejected as not maintainable. (¶28, 30, 33)

In the Court's own words
Paragraph 28Next, it is contended by the learned counsel for the petitioner that since the Hon'ble Supreme Court had given liberty to challenge the final order of the Appellate Authority dated 03.02.2026 in appropriate proceedings, the time to file automatically stands extended. We are unable to agree with this contention, in view of the fact that the Hon'ble Supreme Court, while dismissing the SLP as withdrawn, had only given liberty to challenge the final order in appropriate proceedings. If any appeal is ultimately filed, it would be subject to limitation.
Paragraph 30When an appeal is filed along with a petition to condone the delay, it is for the petitioner to show sufficient cause and satisfy the legal provisions for the delay to be condoned. When Section 42 of the PML Act allows the appeal to be filed only within a period of 60 days, which could be extended by another 60 days by this Court on showing sufficient cause, the argument sought to be advanced that in view of the liberty granted by the Hon'ble Supreme Court, the period of limitation stood automatically extended is totally misplaced.
Acts & Sections
s.42 Prevention of Money Laundering Act, 2002s.14 Limitation Act, 1963s.29(2) Limitation Act, 1963s.5 Limitation Act, 1963

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Also decided in this judgment
Can time spent prosecuting a special leave petition be excluded under Section 14 of the Limitation Act?Can delay beyond 120 days in an appeal under Section 42 of the PML Act be condoned?Does Section 14 of the Limitation Act apply to appeals under special enactments?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections