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2022 Supreme(Bom) 394

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
Bharati Dangre, J.
National Highways Authority Of India, Project Implementation Unit, Jalgaon Thr. It’s Project Director C.M. Sinha – Petitioner
Versus
Avinash Purushottam Supe – Respondent
Arbitration Appeal No.105, 109, 111 of 2020
Decided On : 19-01-2022

Advocates:
Advocate Appeared:
For the Appellant :Mr. D. S. Manorkar, Advocate
For the Respondent:Mr. Kumar Gaurav M. More, Advocate

Headnote:

Arbitration and Conciliation Act, 1996 - Section 34, 34(3), 37 - National Highways Act - Section 3-G(5) - Limitation Act, 1963 – Section 4 – Appeal - Expiry of prescribed period when Court is closed - Seeking condonation of delay - Whether application seeking condonation of delay preferred by applicant/Appellant is maintainable under proviso of Section 34(3) for extension of period of 30 days – Held, It is no doubt true that by virtue of Section 43 of Arbitration and Conciliation Act, 1996, Limitation Act, 1963 apply to arbitrations, as it apply to proceedings in Court, but by virtue of Section 29 (2) of Limitation Act, if any other period has been prescribed under special enactment, then that period of limitation will govern proceedings under that enactment and not provisions of Limitation Act - In present case, under Act of 1996, period of limitation for setting aside award on any of ground mentioned in Section 34(2), has been prescribed and that will govern challenge to Arbitral Award - Likewise, additional period of delay viz. 30 days, as per proviso to Section 34 (2) will govern proceedings under Section 34. By virtue of Section 29(2) of Limitation Act, what is excluded in respect of an application for setting aside an award under Section 34 of Act of 1996, is applicability of Sections 5 and 3, read with Schedule to Limitation Act - As a consequence, application for condonation of delay upto period of 30 days can only be made before Court in respect of application under Section 34 and not beyond that - Appeals are dismissed.

JUDGMENT :

1. All the three appeals pose challenge to identical orders passed by the learned District Judge, involving identical dates, and in support of the appeals, I have heard the learned Counsel Shri. D. S. Manorkar appearing for the appellants and the learned Counsel Shri. Kumar Gaurav More for the respondents.

2. By the present arbitration appeals, instituted under Section 37 of the Arbitration and Conciliation Act, 1996 (the ‘Act of 1996’), the appellants, the National Highways Authority of India, Project Implementation Unit, Jalgaon, raise a challenge to a decision at the hands of the Principal District Judge, Jalgaon in Civil M. A. Nos.383/2019, 334/2019 and 372/2019, respectively, thereby rejecting the applications filed by the appellants along with the appeals filed under Section 34 of the Act of 1996, seeking condonation of delay, in setting aside the Arbitration Award dated 15/01/2019, passed by the learned Arbitrator and District Collector, Jalgaon in Case Nos.1105/2015, 608/2015 and 1077/2015.

Shorn of unnecessary details, it would be suffice to state that the lands of the respondents was acquired for widening of the National Highways No.6 by the competent authority (land Acquisition and Special Land Acquisition Officer, Jalgaon), vide award dated 15/01/2019. The Central Government appointed the District Collector, Jalgaon as the Arbitrator for dealing with the matters under Section 3-G(5) of the National Highways Act in respect of the acquisition made for widening of National Highway No.6. The respondents filed an application for enhancement of compensation and the learned Arbitrator passed three distinct awards on 15/01/2019, under which the claimants were held entitled for enhanced compensation for acquired area, and they were also held entitled for interest at the rate of 9% p.a. on the enhanced amount. The competent authority was directed to deposit the said amount along with interest within seven days.

3. On the awards being passed, the certified copy was received by the Appellant on 17/01/2019 and since the limitation began to run from the said date and the appellant, after going through the procedural formalities of obtaining permission to file an application, challenging the Arbitral Award, the Project Director, National Highways Authority, Jalgaon was instructed to challenge the arbitral awards on 10/04/2019. The procedural rigmarole consumed sometime and the Appeal under Section 34, could not be filed within prescribed period of three months, as prescribed under Section 34(3) of the Act of 1996, which expired on 17/04/2019. The Appeal could not be filed within grace period of 30 days also, as the said period also expired on 17/05/2019. Since the period of 30 days prescribed under the Proviso to Section 34(3) expired within the period of summer vacation of the Court, the application came to be filed on the first reopening day of the Court after the vacation i.e. on 03/06/2019, alongwith an application for condonation of delay of 30 days with a specific pleading as under :-

    “6. It is respectfully submitted that as per Section 34 (3) of the Arbitration and Conciliation Act, 1996, an Award has to be challenged within 3 months plus another 30 days from the date of receipt of the Award. The limitation of 30 days expired on 17.05.2019 i.e. during the summer vacation of this Hon’ble Court. It is respectfully submitted that, since the Hon’ble Court was closed due to summer vacation, the present application is filed first day of opening (after vacation) of this Hon’ble Court I.e on 03.06.2019. It is respectfully submitted that this Civil M. A. has been filed on 03/06/2019, thus, there is delay of 30 days in filing the same which may be condoned in the interest of justice. It is respectfully submitted that, the Applicant has therefore, made out a sufficient cause for condonation of delay in filing this Civil M. A. It is respectfully submitted that the delay is not on account of any deliberate negligence or in action

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