IN THE HIGH COURT OF KARNATAKA AT KALABURAGI BENCH
S. VISHWAJITH SHETTY, J.
M/s. M.B. Patil Constructions Limited – Petitioner
Versus
The Executive Engineer, PWP & IWTD Division, Raichur – Respondent
W.P. Nos. 223253, 223254, 223255, 223256 of 2020
Decided On : 15-07-2022
Arbitration and Conciliation Act, 1996 - Sections 33 , 34(3) , 34(1) - Commercial Act - General Clauses Act, 1897 - Section 9 - Limitation Act, 1963 - Section 12(1) and 5 - Halsbury’s Laws of England - Article 1175 at page 637 - Condonation of delay - Agreements were also executed - Arbitration and Conciliation - Tender notification- Petitioner herein was awarded four different contracts pursuant to tender notification published by respondent no. 1 and agreements were also executed by respondent no. 1 in favour of petitioner for the project “Improvements Road - Since there were certain disputes between the parties arising out of the contract, petitioner had approached this Court was disposed of by this Court appointing respondent no. 2 as Sole Arbitrator - Learned Arbitrator had thereafter entered appearance and pursuant to the notices issued by him, parties have filed claim petition, statement of objections and also counter claim - Learned Arbitrator partly allowed claim petition vide his common award and as against the said common award, respondent no. 1 had filed four separate arbitration suits before Principal District & Sessions – Held, learned Arbitrator under Section 33 of the Act of 1996, period of three months should be calculated the same would expire on 08.06.2019. The period of thirty days under the proviso to Section 34(3) required to be calculated would expire - Application under Section 34 of the Act of 1996 was filed before the Commercial Court and therefore the said application is within the period of limitation as provided under Section 34(3) of the Act of 1996 and the Commercial Court in its discretion has exercised its power under Section 34(3) of the Act of 1996 and has condoned the delay in filing the application which was beyond the period of three months from the date of order passed under Section 33 of the Act of 1996, but was within the thirty days after the expiry of the three months period - Order passed by a Commercial Court having regard to the facts and circumstances of this case cannot be therefore held to be bad in law and question for consideration in the affirmative - Writ petitions dismissed.
ORDER :
1. These four writ petitions arise from a common award between the same parties and the dispute involved in all these writ petitions are identical, and therefore, with the consent of the learned Counsel appearing on both sides, all the petitions are clubbed, heard together and disposed of by this common order.
2. Brief facts of the case that would be relevant for the purpose of disposal of these writ petitions are, the petitioner herein was awarded four different contracts pursuant to the tender notification published by respondent no. 1 and agreements were also executed by respondent no. 1 in favour of the petitioner for the project “Improvements to Basavakalyan - Raichur Road” from KM 67 to 99.80 in Chittapur of Gulbarga District. Since there were certain disputes between the parties arising out of the contract, petitioner had approached this Court in CMP Nos. 20005-20009/2014 which was disposed of by this Court on 19.01.2015 appointing respondent no. 2 as the Sole Arbitrator.
3. The learned Arbitrator had thereafter entered appearance and pursuant to the notices issued by him, parties have filed claim petition, statement of objections and also counter claim. The learned Arbitrator partly allowed the claim petition vide his common award dated 30.10.2018 and as against the said common award, respondent no. 1 herein had filed four separate arbitration suits before the Principal District & Sessions Judge, Kalaburagi (hereinafter referred to as ‘the Commercial Court’) under Section 34 of the Arbitration and Conciliation Act, 1996 (for short ‘the Act of 1996’). Along with the suit, respondent no. 1 had also filed an application under Section 5 of the Limitation Act for condonation of delay, if any, caused in filing the arbitration suit.
4. The learned Judge of the Commercial Court vide the impugned order dated 30.01.2020 has allowed the said applications and the delay caused in filing the arbitration suit was condoned. Being aggrieved by the same, the petitioner is before this Court.
5. Sri Ameet Kumar Deshpande, learned Senior Counsel appearing for the petitioner submits that the arbitration suits under Section 34 of the Act of 1996 were filed by respondent no. 1 before the Commercial Court beyond the period of limitation and the Commercial Court has got jurisdiction to condone the delay only as provided under Section 34(3) of the Act of 1996. He submits that the arbitration suit is required to be filed within three months from the date the applicant has received the copy of the award and the Commercial Court can condone a maximum of 30 days delay thereafter, and if the delay is more than that, the same cannot be condoned. He submits that in the case on hand, the delay is much more than 30 days after expiry of three months period and therefore, the Commercial Court could not have condoned the same.
6. He submits that the application for correction of award is required to be filed within 30 days from the date of receipt of award as provided under Section 33 of the Act of 1996. In the case on hand, the award is passed on 30.10.2018 and the application is filed on 06.02.2019 which is much beyond the period provided under Section 33 of the Act of 1996. He submits that the learned arbitrator has no power to consider the application under Section 33 of the Act of 1996 if the same is filed after expiry of thirty days and therefore the order passed by him is a nullity and nonest in the eye of law. He submits that since the order under Section 33 of the Act of 1996 is passed without jurisdiction the limitation for filing application under Section 34(1) of the Act of 1996 commences from the date of receipt of award by applicant and not from the date the learned arbitrator has disposed of Section 33 application. He submits that no application was filed under Section 33 of the Act of 1996 but only a request letter was issued by respondent No. 1. He submits that the petitioner was not heard by the learned Arbitrator before the award was co
Bokaro and Ramgur Ltd. vs. Prasun Kumar Banerjee
Bibi Salma Khatoon vs. State of Bihar
Hindusthan Commercial Bank Ltd vs. Punnu Sahu
Ircon International Ltd. vs. Budhraj Mining
M/s Simplex Infrastructure Ltd. vs. Union of India
Nusli Neville Wadia vs. Ivory Properties and Others
Rafique Bibi (Dead) by LRs. vs. Syed Waliuddin (Dead) by LRs. and Others
State of Himachal Pradesh and Another vs. Himachal Techno Engineers and Another
Simplex Infrastructure vs. Union of India
State of Himachal Pradesh vs. Himachal Techno Engineers
Vasudev Dhanjibhai Modi vs. Rajabhai Abdul Rehman and Others
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.