IN THE HIGH COURT AT CALCUTTA CIVIL APPELLATE JURISDICTION (COMMERCIAL DIVISION) APPELLATE SIDE
I.P. MUKERJI, ANIRUDDHA ROY, JJ.
State of West Bengal – Appellant
Versus
M/s. Chowdhury Construction – Respondent
CAN 1, 2 of 2021 in FMAT 124 of 2021
Decided on : 06-09-2021
Arbitration and Conciliation Act, 1996 - Section 34 - Application - Delay of 355 days - Challenged - Appeal against award - Held, An application to explain delay may not be possible to be prepared without physical interaction with officers responsible for handling the litigation - It may also not be possible without a physical conference with learned lawyers - Physical conference may not be feasible at all - There is the task of getting an application ready, affirming it before an Oath Commissioner and filing it in court - These unforeseen difficulties which have arisen during Covid pandemic should be taken into account in assessing whether there was sufficient cause which prevented appellant from preferring the appeal within time - Appeal allowed.
JUDGMENT :
P. MUKERJI, J.
CAN 1 of 2021-
1. We have to decide on the application under Section 5 of the Limitation Act, 1963, first before considering admission of the appeal. There a delay of 355 days in filing the appeal.
2. This appeal arise from a judgment and order dated 21st December, 2019 made by the learned Judge, Commercial Court at Asansol, in an application under Section 34 of the Arbitration and Conciliation Act, 1996 by the appellant. It challenged an award dated 27th June, 2018 made by the learned Arbitrator. The petitioner before the court was the State of West Bengal.
3. This arbitration arose out of a typical works contract. The learned Arbitrator awarded Rs.33,19,300/- on account of onsite expenses incurred by the respondent for “prolongation of the work”, Rs.1,01,40,800/- on account of hire charges of machinery deployed at the site, Rs.16,54,790/- for “additional cost of execution….”, Rs.3,61,653/- on account of “unusual increment in the price of bitumen” together with interest @12 per annum, the claim aggregating to Rs.13,28,690/-. The counter claim of the government was dismissed.
4. The learned judge in the impugned judgment and order dismissed the Section 34 application which had the effect of upholding the award.
5. Very promptly immediately after the award the respondent had levied execution thereof by filing an application in this court on 14th December, 2018. It was taken up for consideration on 4th February, 2021. An order was made that day to the effect that on deposit of Rs.1.68 crores with the learned Registrar Original Side, further execution, would be stayed. The appellant has duly deposited that amount with the said official.
6. The period of limitation for filing the appeal expired on 22nd February, 2020. This appeal was filed on 12th February, 2021 with a delay of 355 days.
7. Mr. Tilak Kumar Bose, learned senior advocate appearing for the respondent, very seriously opposed the prayer for condonation of delay. He argued that this question should be decided threadbare by the court.
8. The material dates should now be noticed.
9. The impugned order was made on 21st December, 2019. The period of limitation for preferring the appeal expired on 22nd February, 2020. This appeal was filed i.e. on 12th February, 2021.
10. On 23rd March, 2020 the Supreme Court in re: “In cognizance for extension of limitation,” passed the following order:-
To obviate such difficulties and to ensure that lawyers/litigants do not have to come physically to file such proceedings in respective Courts/Tribunals across the country including this Court, it is hereby ordered that a period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. 15th March 2020 till further order/s to be passed by this Court in present proceedings.
We are exercising this power under Article 142 read with Article 141 of the Constitution of India and declare that this order is a binding order within the meaning of Article 141 on all Courts/Tribunals and authorities.
This order may be brought to the notice of all High Courts for being communicated to all subordinate Courts/Tribunals within their respective jurisdiction.
Issue notice to all the Registrars General of the High Courts, returnable in four weeks.”
11. On 24th March, 2020 a complete lock down following the onset Covid-19 pandemic was declared all over the country.
12. As pointed by the Supreme Court in N.V. International Vs. State of Assam & Ors. reported in (2020) 2 SCC 109
N.V. International Vs. State of Assam & Ors. reported in (2020) 2 SCC 109
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 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....
A delay beyond the prescribed period can only be condoned in exceptional cases. The court has the discretion to condone a short delay if the party has acted bona fide and not in a negligent manner. T....
Limitations under the Arbitration and Conciliation Act, 1996 may be waived in light of extraordinary circumstances, such as a pandemic, as per relevant Supreme Court orders.
The main legal point established in the judgment is that when a special statute provides a specified period of limitation, Section 5 of the Limitation Act has no application, and challenges against a....
Setting aside or refusing to set aside arbitral award under Section 34 of Act and an appeal lies where an order is passed under Section 34.
The main legal point established in the judgment is that the limitation to challenge an award continued during the COVID-19 pandemic, and there was no need to file an application for condonation of d....
The court ruled that failure to provide a bona fide explanation for a significant delay in filing a Writ Appeal results in a dismissal of the appeal as barred by limitation.
The court permitted the condonation of delay due to previous proceedings in a wrong forum and pandemic-related delays, emphasizing liberal construction of the Limitation Act.
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