IN THE HIGH COURT OF DELHI AT NEW DELHI
Vipin Sanghi, Jasmeet Singh, JJ.
Oriental Insurance Co. Ltd. - Appellant
Versus
Air India Ltd - Respondent
First Appeal From Order (OS) (COMM) No. 6 of 2020, Civil Miscellaneous No. 688 of 2020
Decided On : 26-11-2021
Condonation of Delay - Arbitration and Conciliation Act - Section 34 - Summary
Fact of the Case:
The appellant filed an objection petition under Section 34 of the Arbitration and Conciliation Act, seeking condonation of delay in filing the objection petition. The learned Single Judge dismissed the application on the ground that the initial filing was 'Non-est' due to serious defects.
Finding of the Court:
The Court found that the initial filing, although with defects, was not 'Non-est' as it was signed by the petitioner. The Court also noted that the delay in filing and refiling may be fatal if disproportionately large to the period of limitation prescribed under Section 34 of the Act.
Issues: The issues revolved around the validity of the initial filing, the nature of defects that render a filing as 'Non-est', and the condonation of delay in filing the objection petition.
Ratio Decidendi: The Court held that a filing can be considered as 'Non-est' only if it is filed without any signatures of either the party or its authorised counsel. The Court also emphasized that the delay in filing and refiling may be fatal if disproportionately large to the period of limitation prescribed under Section 34 of the Act.
Final Decision: The Court set aside the impugned order, allowed the application for condonation of delay, and restored the objection petition filed by the appellant. The appellant was subjected to costs of Rs.25,000/- to be paid to the respondent.
JUDGMENT
Vipin Sanghi, J. - The present appeal is directed against the order dated 27.09.2019 passed I.A. No. 13340/2019 in O.M.P. (COMM.) 400/2019 by the learned Single Judge. The learned Single Judge has dismissed the said application preferred by the appellant/ petitioner to seek condonation of delay in filing the objection petition under Section 34 of the Arbitration and Conciliation Act, on the ground that though the objection petition was initially preferred within the 120-day period of the receipt of the copy of the majority award by the petitioner on 11.04.2019, the same could not be considered as a valid filing due to several serious defects in the original filing itself which took place on 03.08.2019. Consequently, the objection petition also stands dismissed.
2. The impugned order takes note of the defects which were found in the initial filing, namely the absence of Vakalatnama, Court fees, impugned Award, requisite documents, signed & attested Statement of Truth and affidavits in support of the application.
3. The factual position taken note of in the impugned order is that the after the initial filing of the objection petition on 03.08.2019, the defects were, firstly, notified on 06.08.2019 and there were 18 defects notified by the Registry. The petition was re-filed on 31.08.2019 when 17 defects were notified. Apparently, it was re-filed on 02.09.2019 when one defect was notified. It was re-filed on 03.09.2019, and five old defects remained and one new defect dated 02.09.2019 also remained. On 04.09.2019, all old defects were cured by the petitioner. On the same day, three new defects were notified. Two new defects were notified on 11.09.2019; and one new defect was notified on 13.09.2019. Yet again, on 20.09.2019, one new defect was notified; and on 21.09.2019 another new defect was notified. Eventually, the petition was registered on 23.09.2019.
4. From the above, it would be seen that the Registry kept raising new defects upon, practically, each re-filing. In our view, the Registry should raise all objections which exist in a petition as filed, in the first instance only, unless new defects crop-up and are noticed on account of the re-filing of the petition, with fresh documents or any other changes that may have been made in the petition as originally filed. Otherwise, it would be unfair to the party filing the petition, and it would also result in delaying the registration and listing of the petition before the Court.
5. The Ld. Single Judge has proceeded to dismiss the aforesaid application seeking condonation of delay in initial filing of the objection petition by concluding that the said filing was "Non-est", i.e. no filing in the eyes of law. The issue we need to consider is, whether, this is the correct view in the facts of the present case.
6. From the objections taken note of hereinabove, it is evident that the petition as originally filed, was signed by the petitioner, since no such objection was raised that the petition was not signed when originally filed.
7. Reliance placed by the respondent on the judgment of a Division Bench of this Court in Director-cum-Secretary, Department of Social Welfare Vs. Sarvesh Security Services Pvt. Ltd, FAO(OS) (COMM) 240/2019 decided on 25.09.2019 to claim that the originally filed petition was, as good as, no filing, in our view is inapposite inasmuch, as, in the facts of the case dealt with by the Division Bench, the petition when originally filed, was neither signed by the party, nor by the counsel. Thus, the ownership of the document/ petition as filed in the Registry, was not fixed and the party in whose name the petition was filed, as well as the counsel in whose name it was filed, could disown having filed the said petition/document, at any stage. It was in this background that the Division Bench took the view that the original filing could be considered as no filing at all.
8. A perusal of the aforesaid decision would show that the Division Bench sought to disting
AI
The main legal point established in the judgment is that a filing can be considered as 'Non-est' only if it is filed without any signatures of either the party or its authorised counsel, and that the....
The Court emphasized the importance of diligence in addressing procedural defects and allowed the condonation of delay based on the petitioner's consistent efforts to rectify the objections.
The limitation for filing objections under Section 34 of the Arbitration Act begins from the date a related application is disposed of, not just from receipt of the award.
Formal defects in the initial filing do not render it non-est, and consistent steps to remove defects justify the condonation of delay in re-filing.
An application to set aside an arbitral award must adhere strictly to procedural requirements, failing which it may be deemed non-est, thereby barring the challenge by limitation.
The judgment establishes the strict interpretation and application of the limitation period under Section 34(3) of the Arbitration Act, emphasizing the requirement for sufficient cause and the mandat....
The court adopted a liberal and justice-oriented approach in condoning the delay, considering the petitioner's explanation for the delay and citing relevant case laws.
The law of limitation aims to prevent outdated, fictitious, or fraudulent claims and requires parties to exercise their rights within the prescribed time. The Court emphasized the need for due dilige....
The Court emphasized the importance of due diligence and dispatch in exercising the right to challenge an Arbitral Award within the prescribed time, as per the provisions of the Arbitration Act.
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