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2022 Supreme(Del) 1980

IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, Sudhir Kumar Jain, JJ.
Indian Oil Corporation Ltd. - Appellant
Versus
Standardcasting Pvt. Ltd. - Respondent
CM No. 12926 of 2021 in FAO (COMM.) No. 84 of 2021
Decided On : 13-05-2022

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 such as the Covid-19 pandemic on the filing of appeals.

Headnote:

DELAY CONDONATION - ARBITRATION - LIMITATION ACT, 1963, ARBITRATION & CONCILIATION ACT, 1996, COMMERCIAL COURTS ACT, 2015 - The court discussed the provisions of the Limitation Act, 1963, the Arbitration & Conciliation Act, 1996, and the Commercial Courts Act, 2015. It emphasized the importance of speedy resolution of disputes and the application of the doctrine of condonation of delay in the context of appeals filed under section 37 of the Arbitration Act. The court considered the impact of the Covid-19 pandemic on the functioning of the judicial system and the extension of the limitation period by the Supreme Court. It concluded that the appellant was entitled to condonation of delay in filing the present appeal.

Fact of the Case:

The appellant, a large corporation, filed an appeal after a delay of 338 days due to various reasons, including administrative issues, Covid-19 lockdown, and lack of coordination among officers. The respondent contested the application, arguing that the delay was intentional and deliberate.

Finding of the Court:

The court found that the appellant's delay in filing the appeal was not intentional or deliberate. It considered the impact of the Covid-19 pandemic and the extension of the limitation period by the Supreme Court. The court allowed the application and condoned the delay in filing the appeal.

Ratio Decidendi: The court held that the appellant was entitled to condonation of delay in filing the appeal due to the exceptional circumstances, including the Covid-19 pandemic and the extension of the limitation period by the Supreme Court.

Final Decision: The court allowed the application and condoned the delay in filing the appeal.

ORDER

Sudhir Kumar Jain, J.

This order shall decide an application dated 10.02.2021 filed by the appellant under Section 5 of Limitation Act, 1963 read with Section 151 of the Code of Civil Procedure, 1908 for condonation of delay of 338 days in filing the present appeal.

1. Brief facts of the case are that the appellant is one of the largest Corporations engaged in supply of fuel and other allied products throughout India. The respondent is largest manufacturer of refuellers in India and is serving the appellant since the last over 30 years. The appellant vide letter dated 12.02.2002 containing terms and conditions placed an order with the respondent for fabrication and supply of 5 Nos. 27 KL capacity aviation articulated refuellers with tank made up of mild steel material. Due to disputes and differences arose between the appellant and the respondent, the respondent vide legal notice dated 19.08.2006 invoked the Arbitration Clause contained in the contract and sought for an appointment of an Arbitrator. The appellant through Director (Marketing) appointed M K Jain as Sole Arbitrator who entered on reference on 29.08.2007. The Sole Arbitrator vide Arbitral Award dated 16.03.2011 (hereinafter referred to as "the Impugned Award") dismissed claim of the respondent. Thereafter, the respondent filed the petition under Section 34 of Arbitration & Conciliation Act, 1996 titled as Standard Casting Pvt. Ltd. v. Indian Oil Corporation Ltd. bearing OMP No. 539/2011 for setting aside Impugned Award before this Court, which was subsequently transferred to Dwarka District Courts and numbered as Arbtn. No. 81/2017 (73/2019). The Court of Additional District Judge-01, South-West District, Dwarka Courts (hereinafter referred to as "the Trial Court") vide judgment dated 13.01.2020 (hereinafter referred to as "the Impugned Judgment") allowed the petition under section 34 of the Arbitration Act and set aside the Impugned Award. The appellant being aggrieved filed present appeal under section 37(1) (B) of the Act read with section 13 of the Commercial Courts Act, 2015 against Impugned Judgment but after a delay of 338 days.

2. The appellant in the application under disposal stated that the appellant has filed present appeal on 17.03.2021 i.e., after delay of 338 days. The respondent had initially filed the petition under Section 34 of the Arbitration Act bearing OMP No. 539/2011before High Court of Delhi, which was subsequently transferred to the Dwarka District Courts and registered as Arbtn.No.81/2017. The petition was tried as Arbtn.No.81/2017 and fixed for orders on 06.01.2020. The Trial Court at the time of pronouncing impugned judgment also inserted 73/2019 after 81/2017.The counsel for appellant was never made aware that the trial court has started treating Arbtn. No. 81/2017 as 73/2019. The counsel for the appellant handed over application for obtaining certified copy of the impugned judgment to his clerk but he stopped reporting for duty on 15.02.2020 as he was blessed with a son. The clerk of the counsel for the appellant did not join back and never informed about status of the application submitted for obtaining certified copy of the impugned judgment. The lock down was announced in the country due to Covid-19 pandemic. The Supreme Court in Writ Petition (Civil) No.3 of 2020 issued direction for exclusion of period from 15.03.2020 till 14.03.2021 while computing the limitation for any suit, appeal, application or proceeding. The counsel for respondent was unable to apply for certified copy of impugned judgment due to old age and also infected by Covid-19. He applied for the certified copy on 21.09.2020 which was received on 21.10.2020. The respondent also filed a petition under section 11(6) of Arbitration & Conciliation Act, 1996. The decision to file appeal against impugned judgment could not be taken till December, 2020due to lack of coordination amongst officers of the appellant caused by prevailing Covid-19 pandemic. The appeal th

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