The court ruled that Section 14 of the Limitation Act applies to Section 34 applications under the Arbitration Act, allowing for the exclusion of certain periods in computing limitation.

ORDER

1. Leave granted.

2. These appeals arise from the judgment and order passed by the High Court of Punjab & Haryana at Chandigarh dated 19.10.2019 in FAO Nos. 800/2013, 7453, 7454, 8136/2014, 1278, 1290, 2000 and 2887/2015. The short question that arises for consideration is whether the period commencing from 20.10.2011 to 20.01.2012 should be condoned under Section 14 of the Limitation Act while reckoning the period of limitation for filing objections under Arbitration and Conciliation Act, 1996 [Hereinafter referred to as “the Arbitration Act”] incorporated in the National Highways Act, 1956 [Hereinafter referred to as “the NH Act”].

3. The facts relevant for our decision are that the land belonging to the appellant was acquired under the NH Act leading to passing of an award dated 25.07.2011. Application for a certified copy of the award was made on 12.08.2011 and the same was received on 08.09.2011. Thereafter, a Regular First Appeal was filed before the High Court on 20.10.2011 on an erroneous understanding.

4. The Registry of the High Court notified certain defects on 09.11.2011 and it is said to have been received by the concerned Advocate only on 20.01.2012. It is only thereafter when the appellant came to know about the appropriate action available to him, being the statutory remedy under Section 34 of the Arbitration Act, and he took steps and instituted proceedings under Section 34 of the said Act on 23.02.2012.

5. The District Judge took up the application under Section 34 of the Act and by his order dated 16.05.2012 dismissed the same on the ground that it is barred by limitation as determined by this Court in the case of Union of India Vs. Popular Construction Co., 2002 (1) RCR(Civ) 124. The appeal under Section 37 of the Arbitration Act was also dismissed by the order impugned before us.

6. Mr. Gaurav Agarwal, learned Senior Advocate appearing for the appellant has submitted that his client is entitled to the exclusion of period from 20.10.2011 to 20.01.2012 under Section 14 of the Limitation Act. For this purpose, he relied on the judgment of this Court in Consolidated Engineering Enterprises vs. Principal Secretary, Irrigation Department and Others, 2008 (7) SCC 169. The relevant portion of the judgment is quoted hereunder:

“23.At this stage it would be relevant to ascertain whether 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 of the said Act…..

Hence, Section 43 incorporating the Limitation Act will apply to the proceedings in the arbitration as it applies to the proceedings of a suit in the court. Sub-section (4) of Section 43, inter alia, provides that where the court orders 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 computing the time prescribed by the Limitation Act, 1963, for the commencement of the proceedings with respect to the dispute soc submitted. If the period between the commencement of the arbitration proceedings till the award is set aside by the court, has to be excluded in computing the period of limitation provided for any proceedings with respect o the dispute, there is no good reason as to why it should not be held that the to provisions of Section 14 of the Limitation Act would be applicable to an application submitted under Section 34 of the Act of 1996, more particularly d where no provision is to be 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 if the aggrieved party makes an application. The jurisdiction under Section 34 of the Act, cannot b