The court emphasized the absolute nature of the time limit prescribed under Section 34(3) of the Arbitration and Conciliation Act, 1996, highlighting the legislative intent to minimize the supervisory role of courts in the arbitral process and the court's lack of power to condone the delay beyond the statutory and discretionary periods of limitation.

JUDGMENT

Jyoti Singh, J. (Oral)

I.A. 12397/2023 (exemption)

1. Allowed, subject to all just exceptions.

2. Application stands disposed of.

O.M.P. (COMM) 233/2023 & I.A. 12398/2023 (delay in filing)

3. Present petition has been filed by the Petitioner under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the `Act') seeking setting aside of the impugned arbitral award dated 30.01.2023 passed by the learned sole Arbitrator with respect to Claim Nos. 1, Part K (EI 3/7) and 5 and the interest awarded.

4. Factual matrix to the extent relevant is that Petitioner issued an open tender for work at Dr. B.R. Ambedkar National Memorial Complex at 26, Alipur Road, Delhi for Civil Work, Internal and external electrical work, firefighting, D.G. Sets and Lifts, etc. The estimated cost of the work was a sum of Rs.40,27,46,531/-. On 29.03.2016, Respondent submitted its Expression of Interest, with a financial bid of Rs.41,08,01,462/-.

5. Tender was awarded to the Respondent on 07.04.2016 and an agreement was executed between the parties, with 22.04.2016 being the date of commencement of construction work and 21.07.2017 being the stipulated date of completion. Extension of time was granted by the Competent Authority on 25.05.2018, without levy of compensation. Final bill of the Respondent was passed by the Petitioner on 05.07.2018, however, on account of certain grievances, Respondent invoked the Arbitration Clause on 02.05.2020 and sought appointment of the sole Arbitrator. Sole Arbitrator was appointed by the Competent Authority on 13.04.2021 and the Award was passed on 30.01.2023.

6. Challenge to the Award is restricted to award of Claims Nos.1, Part K (EI 3/7) and 5 as well as interest awarded in favour of the Respondent. Claim No.1 was for balance payment of Rs.11,12,10,924/- from the final bill for a sum of Rs.54,98,16,190/- as Petitioner had paid only Rs.43,86,05,266/- to the Respondent. Claim No.5 was with respect to bonus under Clause 2A of the Agreement which provided that in case the contractor completed the work ahead of updated stipulated date of completion, he would be entitled to incentive/bonus @ 1% of the tender value per month computed on per day basis, subject to maximum limit of 5% of the tender value. Objection is raised to the grant of interest on the legal ground that Arbitrator has the discretion to award interest but cannot go outside the contract albeit this Court is unable to discern on what ground the challenge is laid by the Petitioner in the facts of this case.

7. Court is not delving any further into the merits of the grounds raised in the present petition, in view of the preliminary objection raised by the Respondent that the petition has been filed not only beyond the period of three months, which is the statutory period of limitation for filing a petition under Section 34 of the Act, but also beyond the 30 days period, within which Court has the power and discretion to condone the delay, if the Applicant is able to show that he was prevented by sufficient cause from making the application, invoking proviso to Section 34(3) of the Act.

8. Learned counsel for the Petitioner has urged this Court to condone the delay of 63 days for the reasons set out in the application. It is argued that after the Award was received, Petitioner requested the Government Counsel who was defending the matter on behalf of the Petitioner before the learned Arbitral Tribunal to give his legal opinion, which was received on 18.02.2023. Thereafter, the file had to be processed through various channels for examination of the Award for the purpose of deciding if the same was to be challenged. The reasons for delay as stated in the application being I.A. No.12398/2023 for condonation of delay are as follows:

"3. That thereafter the case file of the department alongwith opinion of the Govt. Counsel was submitted to the S. E..On 28.02.2023 the case file of present matter was submitted by SE & PD, DPC-1,