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IN THE HIGH COURT OF DELHI
Vibhu Bakhru, J.
Employees' State Insurance Corporation - Appellant
Versus
Mathur and Kapre Associates Pvt. Ltd. - Respondent
O.M.P. (COMM) 216 of 2022 & I.A. Nos. 6872 of 2022, 6873 of 2022 and 6874 of 2022 (delay)
Decided On : 05-05-2022




A petition to set aside an arbitral award is barred by limitation if not filed within the prescribed period, and failure to adequately pursue legal remedies undermines the legitimacy of claimed delays.

Headnote:(A) Limitation Act, 1963 - Sections 5 and 14 - Arbitration - The petitioner sought to set aside an arbitral award but failed to establish that the petition was filed within the limitation period. The Supreme Court's decision in Perkins Eastman Architects DPC and Anr. v. HSCC (India) Limited is cited on the appointment of arbitrators. (Paras 1, 3, 5)

(B) Perjury - The court cautions against false statements in affidavits and deliberated on initiating perjury proceedings against the deponent. (Para 2)

(C) Procedural diligence - The court noted that the petitioner had not pursued the petition diligently and failed to exercise proper oversight over previous counsel. (Paras 6, 8)

Facts of the case:
The petitioner received the arbitral award on 22.04.2018 but made conflicting statements on its receipt. The petition to set aside the award was filed on 17.11.2021, well after the limitation period that the petitioner recognized to have begun on 23.07.2018.

Findings of Court:
The court held the petition barred by limitation, noting that no valid application for condonation of delay under Section 14 was filed.

Issues: The primary question was whether the petition was filed in time and whether the appointment of the arbitrator was valid.

Ratio Decidendi: The court emphasized that without a sworn statement showing continuous pursuit of the remedy, the petition appears to be an afterthought and is characterized as barred by the limitation.

Result: Petition dismissed.

Table of Content
1. affidavits must be truthful. (Para 1)
2. caution against casual affidavits. (Para 2)
3. petition barred by limitation. (Para 3)
4. application under limitation act discussed. (Para 4 , 5)
5. no bona fide belief in delay. (Para 6 , 7)
6. petition dismissed due to limitation. (Para 8)
7. arbitrator eligibility question left open. (Para 9)
8. final order on the petition made. (Para 10)

JUDGMENT

Vibhu Bakhru, J. (Oral)--At the outset, it is pointed by Mr Batra, learned senior counsel appearing for the respondent, that the arbitral award dated 22.04.2018 was received by the petitioner on the same date. This was affirmed on behalf of the petitioner in the proceedings filed before the District Court. A photocopy of the petition filed by the respondent on 23.02.2018 before the District Judge has been shown to this Court, wherein it has been so affirmed. However, the affidavit affirmed before this Court is in variance with the said statement. In the above captioned petition, the petitioner states that it had received the impugned award on 09.05.2018. It is thus, obvious that at least one of the statements affirmed on behalf of the petitioner (one made before the District Court and the other made before this Court) is false.

2. The said affidavit has been affirmed by Mr Murthy, Superintending Engineer, ESIC. He is cautioned not to file such affidavits in a casual manner. Although, this Court was inclined to initiate proceedings for perjury against the deponent, this Court is refraining from doing so.

3. Mr Batra also states that the present petition is barred by limitation. The petitioner had filed the petition before the District Court on 23.07.2018 and withdrew the same on 25.03.2021. However, there is no application seeking any condonation of delay. Since the petitioner has filed the petition before the District Court on 23.07.2018, which was subsequently withdrawn on 25.03.2021 and the present petition was filed on 17.11.2021, the petition is ex facie barred by limitation. The petitioner has also not filed any application under Section 14 of the Limitation Act, 1963 seeking exclusion of the period spent before the District Court.

4. Mr V.K. Singh, learned counsel appearing for the petitioner, submits that although the petitioner has filed an application seeking condonation of delay in filing the petition but has incorrectly mentioned the same as an application under Section 5 of the Limitation Act, 1963. He submits that the said application may be considered as an application under Section 14 of the Limitation Act, 1963.

5. On merits, the counsel for the petitioner has assailed the impugned award on a solitary ground. He states that the impugned award is non-est since it was rendered by the Sole Arbitrator appointed by the petitioner and the same is impermissible in view of the decision of the Supreme Court in Perkins Eastman Architects DPC and Anr. v. HSCC (India) Limited, Arbitration Application No 32 of 2019, decided on 26.11.2019 and as further followed by this Court in Proddatur Cable TV Digi Services v. Citi Cable Network Limited, (2020) 267 DLT 51.

6. A perusal of the said application filed by the petitioner under Section 5 of the Limitation Act, 1963 seeking condonation of delay (IA 6874/2022) indicates that there is no averment to the effect that the petitioner had pursued the petition before the District Court in a bona fide belief that the said court had jurisdiction. On the contrary, the first four paragraphs of the application advert to the decision of the Supreme Court in Re: Cognizance for Extension of Limitation, Suo Moto Writ Petition (Civil) No. 3 of 2020 and the orders passed by the Court. In the fifth paragraph, the petitioner has referred to certain authorities in support of the contention that liberal approach should be applied in condonation of delay. Paragraph nos. 6 and 7 are relevant and read as under:

    "6. That the previous counsel who was appearing in the Ld. Trial Court could not fil

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