IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SOMASEKHAR SUNDARESAN, J.
In the Matter Between
Executive Engineer, National Highway Division - Appellant
Versus
Sanjay Shankar Surve & Ors. - Respondents
Interim Application No. 12074 of 2024 In Arbitration Appeal (L) No. 8703 of 2024 With Interim Application No. 12075 of 2024
Decided On : 05-02-2025
(A) Arbitration and Conciliation Act, 1996 - Section 37 - Limitation Act, 1963 - Article 116 - Condonation of delay in filing Arbitration Appeal - Delay of 123 days claimed, but Registry noted 164 days - Application dismissed due to lack of sufficient cause and misleading submissions - The applicant failed to demonstrate a change in representation and the reasons for delay were deemed flimsy. (Paras 9-18)
(B) Legal principles on condonation of delay - The Supreme Court has established that misleading submissions in delay applications must lead to dismissal, as equity demands credibility. (Paras 8-11)
(C) Legislative intent - The Arbitration Act aims for speedy resolution of disputes, which governs appeals under the Act, particularly in land acquisition cases. (Paras 12-13)
Facts of the case:
The applicant sought to condone a delay in filing an appeal against an arbitral award concerning land acquisition for a national highway, claiming procedural difficulties and miscommunication with previous counsel.
Findings of Court:
The court found no sufficient cause for delay and noted that the applicant's claims were based on false premises.
Issues: The main issues included whether the delay could be condoned and the credibility of the applicant's submissions.
Ratio Decidendi: The court ruled that the applicant's misleading statements and lack of credible reasons for delay warranted dismissal of the application.
Result: Interim Application dismissed.
JUDGEMENT :
Context and Background:
1. Interim Application No.12074 of 2024 is an Application seeking condonation of delay in filing of the Arbitration Appeal (L) No. 8703 of 2024 (“Arbitration Appeal”), filed under Section 37 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”).
2. The Arbitration Appeal impugns a Judgment and Order dated April 19, 2023 passed by the District Judge-1, Ratnagiri under Section 34 of the Arbitration Act, which upheld an arbitral award enhancing the compensation amount in respect of land acquisition for construction of a national highway.
3. Ms. Kajal Gupta, Learned Counsel for the Applicant submits that the copy of the order was received on May 9, 2023 and the limitation period had expired on August 10, 2023. Learned Counsel further submits that the Appeal was e-filed on December 11, 2023, which led to an electronic filing number ending with “2023” being assigned. Learned Counsel would submit that the delay is just 123 days, whereas the Registry has wrongly stated that the delay is of 164 days. For the reasons set out in the Interim Application, she seeks condonation of delay.
Reasons Pleaded to Condone Delay:
4. The reasons set out in the Application for condonation of delay essentially make a case that the proceedings under Section 34 had been handled by a local advocate in the District Court, and due to internal procedures and multiple stakeholders being involved, the impugned judgment could not be challenged in time. The case made out in the Application is that a closer inspection of the record was conducted in June 2023 when the erroneous nature of the impugned judgment came to be realized. Consequently, the Applicant feared that if the judgment is not challenged, then it would set a precedent for all other matters and would cause hardship and “unimaginable financial loss” to the Appellant.
5. In these circumstances, it is pleaded that the present advocates were approached with the complete record of the lower Court proceedings. Transferring the papers from Ratnagiri and re-building the paper trail was difficult, it is pleaded, and consequently, the prayer for condonation of delay is said to be worthy of acceptance.
6. Ms. Revati Desai, Learned Counsel for the Respondents opposes the Application for condonation of delay on two primary grounds. First, she draws my attention to the fact that the impugned judgment itself records the name of advocates and the law firm that handled the matter. It is evident that it is the very same advocate that handled proceedings before the District Court who has filed the present Appeal and the Interim Application for condonation of delay. Consequently, according to Ms. Desai, the application is per se a mis-statement. On this ground alone, she would submit, the conduct being inequitable, the delay should not be condoned.
7. Second, Ms. Desai would submit, even the e-filing date of the Court records would show that the electronic filing date was March 20, 2024. Learned Counsel for the Appellant had submitted that considering that the e-filing number ends with 2023, the e-filing had indeed being done in 2023, and after certain objections were removed a stamp number was assigned on March 20, 2024. The Applicant has not tendered a copy of the electronic acknowledgement generated by the e-filing system when an e-filing is done. Normally, I would have asked the Registry to file a report as to when the appeal was actually filed. According to the Registry, the delay is crystallised at 164 days. But this facet of the matter need not detain my attention for the reasons set out below.
8. Learned Counsel for the Respondents also draws my attention to the judgment of the Supreme Court in Mahanagar Telephone Nigam V/s. State of Maharashtra & Ors., [2013 (9) SCC 92] to point out that a party that files misleading submissions when seeking condonation of delay must be non-suited since condonation of delay falls in an equity jurisdiction, and inequitable conduct would erod
Misleading submissions in applications for condonation of delay undermine credibility, leading to dismissal of such applications.
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 emphasized that delay in filing appeals under the Arbitration Act must be justified by sufficient cause, with negligence being insufficient for condonation.
The court emphasized that appeals under the Arbitration Act must adhere to strict timelines, and administrative delays do not constitute sufficient cause for condonation of delay.
Timely filing of appeals under the Arbitration and Conciliation Act is crucial; bureaucratic delays are inadequate reasons for condoning significant delays.
The court emphasized the strict timelines prescribed in the Arbitration and Conciliation Act and the Limitation Act, and held that delays beyond the statutory periods cannot be condoned.
The expression 'sufficient cause' for condonation of delay must be liberally interpreted to ensure substantial justice is done, as long as negligence in action or lack of bona fides cannot be imputed....
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