TARUN CHATTERJEE AND H.S. BEDI, JJ.
BHARAT ENGINEERING SERVICE TECHNOCRATS & CO. – Appellant
Versus
EXECUTIVE ENGINEER, KABINI CANAL DIVISION AND OTHERS – Respondents
Civil Appeals No. 4683 of 2004 with Nos. 4684-85 and 4713-15 of 2004,
Decided on February 26, 2008
Limitation - Arbitration - The court set aside the judgment of the High Court and the trial court, and remitted the matter back to the trial court for decision on the objection filed under Section 33 of the Arbitration Act. The objections filed by the respondent State against the award should have been entertained by the civil court despite the delay in filing, and the explanations offered constituted sufficient cause for filing the objection under Section 33 of the Act.
Fact of the Case:
The High Court set aside the reasoned award passed by the arbitrator under the Arbitration Act, remitted the matter to a different arbitrator for a fresh decision on merits, and the appeals were directed against this judgment.
Finding of the Court:
The judgment of the High Court was set aside, and the matter was remitted back to the trial court for decision on the objection filed under Section 33 of the Act. The objections filed by the respondent State against the award should have been entertained by the civil court despite the delay in filing, and the explanations offered constituted sufficient cause for filing the objection under Section 33 of the Act.
Issues: The main issue was whether the objections filed by the respondent State against the award should have been entertained by the civil court despite the delay in filing.
Ratio Decidendi: The explanations offered for the delay in filing the objection under Section 33 of the Arbitration Act constituted sufficient cause, and the objections should have been entertained by the civil court.
Final Decision: The appeals were allowed, and the judgment of the High Court as well as of the trial court were set aside. The matter was remitted back to the trial court for decision on the objection filed under Section 33 of the Act.
Judgment
TARUN CHATTERJEE, J.- These appeals are directed against the cornman final judgment and order dated 12-9-2003 passed by the High Court of Karnataka at Bangalore in MFAs Nos. 1466-68 of 1998.
2. The common reasoned award passed by the learned arbitrator on 23-51996 under the Arbitration Act, 1940 (in short "the Act") and made a rule of the court by the civil court on 20-12-1997 was set aside in its entirety by the High Court only on the ground that the arbitrator had erroneously decided the issue whether the claims preferred by the appellant were barred by limitation. It is on record that the entire matter was remitted by the High Court, despite the lapse of over 10 years since the reference was made, to a different arbitrator for a fresh decision on merits.
3. In our view, the judgment of the High Court is not sustainable in law and the objections filed by the respondent State against the award ought to have been entertained by the civil court despite there being a considerable delay in filing the same and in spite of the fact that there was, in the first instance, no application for condonation of delay. For this purpose, we have looked into the explanations given in the application for condonation of delay in filing the objection under Section 5 of the Limitation Act. We are of the view that the explanations offered do constitute sufficient cause in filing the objection under Section 33 of the Act. In this view of the matter, we set aside the judgment of the High Court as well as of the trial court and the matter may be remitted back to the trial court for decision on the objection filed under Section 33 of the Act. The objection under Section 33 of the Act shall be decided by the trial court positively within six months from the date of supply of a copy of this order to it after giving hearing to the parties and after passing a reasoned order in accordance with law.
4. For the reasons aforesaid, the appeals are allowed to the extent C indicated above. There will be no order as to costs.
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