IN THE HIGH COURT OF DELHI AT NEW DELHI
SURESH KUMAR KAIT, NEENA BANSAL KRISHNA, JJ.
United India Insurance Co. Ltd. – Appellant
Versus
Bansal Wood Product Pvt. Ltd. – Respondent
FAO (COMM) 76 of 2022
Decided on : 02-02-2023
Limitation Act, 1963 - Section 5 - Code of Civil Procedure, 1908 - Section 151 - Arbitration & Conciliation Act, 1996 - Section 37, 34 - Commercial Courts Act, 2015 - Section 13 (1-A) - Condonation of delay - Application has been filed for condonation of delay of 76 days in filing appeal – Held, Court find that Arbitral Tribunal had given adequate reasons as to why it had resorted to adopting manufacturing and trading account route instead of Surveyors Report, in arriving at value of stock - It is now well established that domestic awards can be challenged on ground of patent illegality only if such an error go to root of award - Mere erroneous application of law, or appreciation of evidence, does not call for interference of Award on ground of patent illegality or perversity - Court cannot re-appreciate evidence to overturn an Arbitral Award, which is essentially not within scope of Section 34 or Section 37 of Arbitration & Conciliation Act, 1996 - Appeal dismissed.
JUDGMENT :
NEENA BANSAL KRISHNA, J
CM APPL.23535/2022
1. An application has been filed under Section 5 of the Limitation Act, 1963 read with Section 151 of the Code of Civil Procedure, 1908 for condonation of delay of 76 days in filing the appeal under Section 37 of Arbitration & Conciliation Act, 1996.
2. It is submitted in the application that the learned Counsel for the appellant on receiving the copy of the impugned judgment dated 13.09.2019, had sought clarifications from the appellant and thereafter had prepared the draft of Appeal which was forwarded to the appellant for necessary corrections. The learned Counsel finalised the Appeal and filed the same before this Court, but there was a delay of 76 days.
3. It has been explained that the Appeal was first filed in the Registry, Delhi High Court on 26.02.2020 vide Diary No.304052/2020. The file was returned with certain objections. The appellant removed the objections and re-filed the appeal, but again further objections were noted. In the mean while, on account of the COVID-19 Pandemic a complete lockdown was imposed in the country from March, 2020, which continued for a long time. The Registry of the Delhi High Court was not returning or accepting the hard copies of the cases and only e-filing was permissible during that period. The appellant made sincere efforts to determine the status of the Appeal, but was unable to get any concrete information. In was only in January, 2021 that the Registry returned the file of the aforesaid Appeal with certain objections. Again, because of lockdown in Delhi due to the second wave of COVID-19, the Registry could not take up the appeal. Thereafter, the file was found not traceable and the appellant was told to file the appeal afresh under the old diary number by indicating it as a re-filing.
4. The appellant re-filed it through e-filing vide diary No.562479 dated 12.08.2021, but certain objections were again noted on 13.08.2021 and on 29.08.2021. Eventually all the objections were removed and the appeal was accepted.
5. The appellant has stated that he suffered from Corona in the month of December, 2020 and remained admitted in the Hospital for many days. Thereafter, the learned counsel for the appellant also suffered from COVID-19. In the second wave of pandemic, the counsel for the appellant was again admitted in the hospital due to COVID-19 and remained in ICU for 20 days. On recovery from COVID-19, he suffered a fracture in his leg and was confined for more than one and half months. It is submitted that for these various reasons there was a delay in refilling the present appeal. A prayer is made that the delay of 76 days in filing the appeal may be condoned.
6. Submissions heard.
7. The appellant has explained that the counsel for the appellant was unwell due to which he was unable to instruct his associates or finalise the appeal himself, which resulted in a delay of 76 days.
8. The Arbitration & Conciliation Act, 1996 does not prescribe the period of limitation for filing of Appeal under Section 37 of Arbitration & Conciliation Act, 1996. The period of Limitation is 60 days as prescribed uniformly for all the Appeals including those that are preferred under Section 37 of the Arbitration & Conciliation Act, 1996 by virtue of Section 13 (1-A) of the Commercial Courts Act, 2015, as explained in the case of Government of Maharashtra (Water Resources Department) through Executive Engineer vs. Borse Brothers Engineers and Contractors Private Limited (2021) 6 SCC 460.
9. It has been explained that there was a delay of 76 days in preparation and of finalisation of the Appeal on account of health issues suffered by the counsel for the appellant. This was followed by the COVID-19 Pandemic which led to nationwide lockdown. The delay in filing the Appeal can to be condoned by way of an exception and not by way of a rule, in the light of the Objec
Dyna Technologies (P) Ltd. vs. Cromption Greaves Ltd. (2019) 20 SCC 1
MMTC Ltd. vs M/s Vedanta Ltd. (2019) 4 SCC 163
Mc Dermott International Inc. Vs. Burn Standard Co. Ltd. (2006) 11 SCC 181
National Highway Authority of India vs. M. Hakeem (2021) 9 SCC 1
Oriental Insurance vs. Amira Food (India) Ltd. 2010 (166) DLT 27
Ssangyong Engineering and Construction Company Limited v. NHAI
Sumitomo Heavy Industries Limited vs. ONGC Ltd. (2010) 11 SCC 296
Point of Law : Merely because the appellant is Government organization, lenience cannot be shown to condone such a long delay.
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 clarified the limited grounds for interference with arbitral awards under Section 34 and emphasized the importance of timely goods delivery in contractual obligations.
The main legal point established in the judgment is that the applicants were entitled to the benefit of the amendment made to Section 34 of the Arbitration and Conciliation Act, 1997, and that the de....
The court affirmed that judicial intervention in arbitral awards is limited to grounds of public policy or patent illegality, emphasizing respect for the Arbitrator's findings.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.