IN THE HIGH COURT OF DELHI AT NEW DELHI
Vibhu Bakhru, J.
New India Assurance Co Ltd. - Appellant
Versus
Rudraksh Laminates Private Limited - Respondent
O.M.P. (Comm) (Original Miscellaneous Petition (Comm)) No. 518 of 2020; I.A. (Interlocutory Application) No. 9835 of 2020, 9836 of 2020, 9838 of 2020, 9839 of 2020
Decided On : 15-02-2021
Delay in Filing Petition - Arbitration and Conciliation Act, 1996 - Section 34 - Summary of Acts and Sections: A&C Act, 1996 - Section 34(3) - The court dismissed the petition due to delay in filing beyond the period stipulated under Section 34(3) of the A&C Act. The court also discussed the orders passed by the Supreme Court in Re: Cognizance for Extension of Limitation and their applicability to the case.
Fact of the Case:
The petitioner filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996, impugning an arbitral award. The court dismissed the petition due to delay in filing beyond the period stipulated under Section 34(3) of the A&C Act. The court also considered the petition on merits and found no reason to interfere with the arbitral award.
Finding of the Court:
The court dismissed the petition due to delay in filing beyond the period stipulated under Section 34(3) of the A&C Act. The court also found no reason to interfere with the arbitral award on merits.
Issues: Delay in filing the petition under Section 34 of the A&C Act, applicability of orders passed by the Supreme Court in Re: Cognizance for Extension of Limitation, and the merit of the arbitral award.
Ratio Decidendi: The court's decision was based on the delay in filing the petition beyond the period stipulated under Section 34(3) of the A&C Act and the lack of merit to interfere with the arbitral award.
Final Decision: The petition was dismissed due to delay in filing beyond the period stipulated under Section 34(3) of the A&C Act, and the court found no reason to interfere with the arbitral award on merits.
JUDGMENT
Vibhu Bakhru, J. - The petitioner has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter the 'A&C Act') impugning an arbitral award dated 25.02.2020 passed by the Arbitral Tribunal (hereafter the 'impugned award'). The above-captioned petition is also accompanied by applications for condonation of delay in filing the petition (IA No. 9836/2020) and an application for condonation of delay in re-filing the petition (IA No. 9839/2020). By an order dated 23.10.2020, a Coordinate Bench of this Court, while issuing notice, had expressly held that before hearing the abovecaptioned petition, these applications (IA No. 9836/2020 and 9839/2020) would be heard and decided.
2. By the application, (IA No. 9836/2020), the petitioner seeks condonation of delay of one hundred and ten days in filing the above-captioned petition. However, it is averred in the said application that there is no delay in filing the above-captioned petition since the period of limitation has been extended by the Supreme Court by an order dated 23.03.2020 passed in Suo Moto Writ Petition (Civil) No. 3/2020 captioned RE: Cognizance for Extension of Limitation. The said contention is stoutly contested by Mr Kakra, learned counsel who appears for the respondent.
3. In order to address the aforesaid controversy, it would be necessary to note a few relevant dates. The impugned award was delivered on 25.02.2020. The learned Arbitrator sent a scanned signed copy of the impugned award to the counsel for the parties by an e-mail sent on that date. The respondent also sent a copy of the impugned award to the petitioner by an e-mail on 28.02.2020. Thereafter, the respondent also sent a copy of the same by post under cover of its letter dated 29.02.2020. According to the respondent, the same was served to the petitioner on 03.03.2020. The tracking report of the courier agency indicating the same is annexed with the reply filed by the respondent. However, the petitioner claims that although its counsel had received the impugned award on 25.02.2020, he had forwarded the same to the petitioner on 12.03.2020. Thus, according to the petitioner, the period of limitation for filing the above-captioned petition would commence on 12.03.2020.
4. The above-captioned petition was filed on 12.09.2020 at 04:20 pm. The same was examined and was found to be defective. This was communicated to the petitioner on 24.09.2020. The petition was once again re-filed on 07.10.2020, that is, after a period of thirteen days (the first re-filing). The petition, as re-filed, was found to be defective and this was communicated to the petitioner on 09.10.2020. It was once again re-filed on the next date, that is, on 10.10.2020 (the second refiling).
5. The petition as originally filed was of 686 pages. The petition as re-filed on 10.10.2020 was of 714 pages but certain objections still remained unaddressed.
6. The petition was, accordingly, marked as defective and the same was communicated to the petitioner on 15.10.2020. The petition was re-filed on 17.10.2020 (the third re-filing). The petition was now 719 pages. However, certain objections still remained and this was communicated to the petitioner on 19.10.2020. The petition was re-filed on 21.10.2020 (the fourth re-filing). It was examined and listed before this Court on 22.10.2020.
7. It is seen from the above, that there has been a considerable delay in re-filing of the above-captioned petition. However, this Court is of the view that the same would not be fatal to the petition. The matter relating to condonation of delay in re-filing the petition stands on a separate footing vis a vis, the question of delay in filing the petition. As noticed above, the number of pages had increased with each subsequent re-filing. However, the petition filed initially was not modified substantially. It is also seen that the defects were not such that would render the initial filing non est.
8. In view of the above, the
Adherence to time limits stipulated under the Arbitration Act and the requirement of due diligence in seeking condonation of delay.
Statutory limitation under Section 34 of the Arbitration Act is strict and cannot be relaxed without sufficient justification; defective petitions lead to being treated as non-est.
The main legal point established in the judgment is that the period of limitation under Section 34(3) of the A&C Act refers to three calendar months, and the benefit of Section 14 of the Limitation A....
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.
The main legal point established in the judgment is the significance of adhering to the prescribed limitation period under the Arbitration Act and the requirement for parties to exercise their rights....
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