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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
VIBHU BAKHRU, CJ., C.M.POONACHA
S.K. Construction, Rep. By Its Managing Partner Shri K. Sridhar Reddy – Appellant
Versus
Union Of India, (CAO/CN/BNC), South Western Railway, Represented By Deputy Chief Engineer/CN/N/BNC – Respondent
| Table of Content |
|---|
| 1. background of the arbitration appeal. (Para 1 , 2 , 3 , 4 , 5) |
| 2. court's critique of arbitral decision. (Para 6 , 10 , 14) |
| 3. supreme court's stance on delay in appeals. (Para 17 , 18 , 19) |
| 4. final order on appeal and remedies available. (Para 20 , 21) |
JUDGMENT :
VIBHU BAKHRU, CJ.
1. The appellant has filed the present appeal under Section 37 (1)(c) of the Arbitration and Conciliation Act, 1996 [the A&C Act impugning the common order dated 20.08.2024 [impugned order passed by the learned Commercial Court in COM.A.P.No.90/2022 and COM.A.P.No.100/2022. The present appeal is confined to the impugned order insofar as it relates to COM.A.P.No.90/2022.
2. The appellant had filed the said petition under Section 34 of the A&C Act assailing an arbitral award dated 23.08.2011 [impugned award] delivered by the Arbitral Tribunal.
3. The impugned award is rendered in context of the disputes that had arisen between the parties in connection with the contract agreement dated 19.08.2011 [the Agreement] for execution of the works described as:
"Arsikere - Birur Patch doubling - Kadur yard remodeling including formation, ballast, track linking, regrading, construction of minor bridges
Inordinate delays in filing appeals under the Arbitration and Conciliation Act cannot be condoned without sufficient cause, emphasizing the need for expedient dispute resolution.
The court emphasized that delay in filing appeals under the Arbitration Act must be justified by sufficient cause, with negligence being insufficient for condonation.
The court established that delays in appeals under the Arbitration Act are to be strictly limited, with condonation only in exceptional circumstances where compelling reasons are provided.
Delay beyond 120 days (90+30) in Section 34 petitions or corresponding appeals under Section 37 of Arbitration Act not condonable via Limitation Act Section 5; negligence, inaction, lack of bonafides....
The Court held that the 60-day limitation for appeals under the Arbitration Act is strict and can only be extended in exceptional cases where sufficient cause is demonstrated, which was not establish....
The court may condone delays in filing appeals where sufficient cause is shown, including circumstances beyond a party's control, advocated particularly in light of unprecedented events like a pandem....
The main legal point established in the judgment is that the doctrine of condonation of delay should be applied judiciously, taking into account the circumstances and the impact of external factors s....
The court emphasized that the law of limitation binds all parties, and mere bureaucratic delays are insufficient for condoning delays in filing appeals.
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