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REKHA PALLI, SAURABH BANERJEE
National Health Authority – Appellant
Versus
M S Intermarc – Respondent
JUDGMENT :
REKHA PALLI, J.
1. The present appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “Act”) seeks to assail order dated 07.05.2024 passed by the learned District Judge, Commercial Court, Patiala House Courts, New Delhi in OMP (Comm.) 121/2023.
2. Vide the impugned order, the learned Trial Court has rejected the application preferred by the appellant under Section 34 (3) of the Act for setting aside of the arbitral award dated 21.02.2023 on the sole ground of the same having been filed beyond the period of limitation as provided under the Act.
3. The brief factual matrix as emerging from the record shows that the appellant is a Government body under the aegis of the Ministry of Health and Welfare, Government of India and the respondent is a contractor who was awarded the contract for renovation of the office of the appellant in the Jeevan Bharti Building, Connaught Place, New Delhi.
4. On 19.08.2019, the appellant issued a tender inviting bids for renovation of its office at the third floor of the said Jeevan Bharti Building. The respondent, being the lowest bidder was awarded the contract for “Refurbishment and Renovation of approx.
The statutory limitation period under Section 34(3) of the Arbitration and Conciliation Act is inflexible, and applications filed beyond this period cannot be entertained.
The court emphasized the peremptory language of section 34 of the Arbitration and Conciliation Act, 1996, and the requirement for sufficient cause to condone any delay in filing the application.
The court affirmed that claims in arbitration must be asserted within the limitation period, and undue delays in invoking arbitration can render claims invalid.
The period of limitation under the Arbitration and Conciliation Act should exclude non-working days, allowing for sufficient cause extension beyond three months.
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