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2025 Supreme(Del) 368

IN THE HIGH COURT OF DELHI AT NEW DELHI
ANIL KSHETARPAL, HARISH VAIDYANATHAN SHANKAR, JJ.
Union Of India - Appellant
Versus
Pt Munshi Ram & Associates Pvt Ltd - Respondent
FAO(OS) 1 of 2014 & CM No. 93 of 2014
Decided on : 03-09-2025

Advocates Appeared:
For the Appellant :Mr. Farman Ali, SPC and Ms. Usha Jamnal, Advocates.
For the Respondent:Ms. Anusuya Salwan, Advocate.

Timely filing of appeals under the Arbitration and Conciliation Act is crucial; bureaucratic delays are inadequate reasons for condoning significant delays.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 and Section 37 - Limitation Act, 1963 - Articles 116, 117 - Intra-court appeal against the dismissal of a petition under Section 34 challenging an Arbitral Award. Delay of 303 days in filing the appeal, for which adequate explanation was not provided, led to dismissal of the appeal. (Paras 6, 10, 21)

(B) Limitation - Necessity of adhering to statutory timelines and the burden on the appellant to demonstrate sufficient cause for delay. (Paras 12, 20)

(C) Judicial Perspective - The court reaffirmed that bureaucratic delays and clerical errors do not constitute sufficient cause for condonation of delay in appeals involving arbitration matters. (Paras 13, 19)

Facts of the case:
The appellant challenged an arbitral award rendered against it on grounds of delay caused by obtaining necessary approvals and internal procedural clearances. The appeal was filed 303 days late without sufficient justification.

Findings of Court:
Condonation of delay was denied due to lack of cogent explanation demonstrating sufficient cause, with reaffirmation of strict adherence to timelines in arbitral proceedings.

Issues: Whether the appellant demonstrated sufficient cause for the delay in filing the appeal and implications of administrative inefficiencies on the judicial timeline.

Ratio Decidendi: The court emphasized that adherence to statutory timelines is essential under arbitral law and that mere bureaucratic procedures or clerical errors cannot justify significant delays.

Result: The appeal is dismissed due to delay.

Table of Content
1. introduction and procedural history of the appeal. (Para 1 , 2 , 3)
2. details on condonation of delay and its requirements. (Para 4 , 5 , 6 , 7)
3. judicial scrutiny of grounds for condonation. (Para 8)
4. application of limitation act to appeals. (Para 9)

JUDGMENT :

HARISH VAIDYANATHAN SHANKAR, J.

1. The present appeal under Section 37 of the Arbitration and Conciliation Act, 1996, [A&C Act.] , arises from the Judgment dated 21.12.2012, [Impugned Judgement.], passed by the learned Single Judge of this Court in O.M.P. No. 432/2011. By the said judgment, the petition filed by the Appellant under Section 34 of the A&C Act was partly allowed against the Arbitral Award dated 24.02.2011, [Arbitral Award.], passed in Case No.ARB/RJB/122 by the Sole Arbitrator.

2. At the outset, it is apposite to recount the chequered procedural history of the matter. The present appeal was initially disposed of by this Court on 08.01.2014. Dissatisfied with that decision, the Appellant preferred Review Petition No. 323/2015, which, however, met with the same fate and was dismissed on 02.09.2016. Against these Orders, the Appellant thereafter invoked the jurisdiction of the Hon’ble Supreme Court by filing Civil Appeal Nos. 1050-1051 of 2025, [SLP(C) No. 17307-17308/2017.]

3. The Hon’ble Supreme Court, by its order dated 27.01.2025, set aside the aforesaid orders and directed restoration of the present appeal to the file of this Court. While so directing, the Hon’ble Supreme Court rendered certain observations and issued directions in the following terms:-

“1. Leave granted.

2. Heard learned counsel appearing for the parties.

3. An award was made by the Arbitral Tribunal against the appellant. A petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, 'the Act') was dismissed.

4. Being aggrieved, the appellant preferred an appeal under Section 37 of the Act. By the impugned order, the appeal has been dismissed only on the ground that the impugned award has been executed.

5. On first principles, the appeal could not have been dismissed on that ground. If the award is set aside, principles of restitution will apply. The impugned order is set aside only on that ground and FAO No (OS) No.1/2014 along with CM No.93 of 2014 is restored to the file of the High Court.

6. The restored case shall be listed before the Roster Bench on 14'" February, 2024 in the morning. Parties who are represented today shall be under an obligation to remain present before the Roster Bench on that day and no further notice will be issued by the High Court. All questions on merits are left open to be decided by the High Court in that behalf.

7. The High Court shall proceed to decide the application for condonation of delay in accordance with law. Registry to communicate this order to the Registrar (Judicial) of the High application(s), if any, shall stand disposed of.”

8. The appeals are accordingly allowed.
9. Pending application(s), if any, shall stand disposed of.”

4. In compliance with the aforesaid directions, at the outset, without going into the factual controversies of the appeal, we now propose to examine the Appellant’s application seeking condonation of delay in filing the present appeal bearing C.M. No. 93/2014.

5. It is, therefore, appropriate to set out the material averments contained in the application for condonation of delay, which read as follows:-

1. That Appellant above-named has preferred the present appeal against the judgment and order dated 21.12.2012 passed by Ld. Single Bench of this Hon'ble Court in a Original Miscellaneous Petition bearing number OMP No. 432 of 2011 disposing of the objections petition preferred by the Appellant herein under Section 34 of the Arbitration and Conciliation Act, 1996, titled "Union of India versus Pt. Munshi Ram & Associates Pvt Ltd.", and thereby upholding arbitration award, dated 24.02.2011, passed by the Ld. Arbitrator. The detailed facts are set out in the appeal are not being repeate



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