IN THE HIGH COURT OF DELHI AT NEW DELHI
HARISH VAIDYANATHAN SHANKAR, J.
Union Of India – Petitioner
Versus
M/S Varindera Constructions Limited – Respondent
O.M.P. (COMM) 452 of 2024, I.A. 43176 of 2024 (Stay), I.A. 43177 of 2024 (Delay of 25 days in filing the petition) & I.A. 45918 of 2024 (Dismissing the Petition challenging the impugned award as the same is barred by limitation), OMP (ENF.) (COMM.) 208 of 2025
Decided On : 26-02-2026
| Table of Content |
|---|
| 1. petition under arbitration act seeking to set aside an arbitral award. (Para 1 , 2) |
| 2. preliminary issues on delay and maintainability of the objection petition. (Para 4 , 6 , 8) |
| 3. petitioner's arguments for condonation of delay in filing. (Para 9 , 10 , 11 , 12 , 13 , 19) |
| 4. respondent's counterarguments emphasizing strict limitation. (Para 15 , 16 , 18 , 21) |
| 5. court's analysis on sufficiency of cause for condonation of delay. (Para 23 , 24 , 30) |
| 6. conclusion on non-est filing and its impact on limitation. (Para 34 , 35 , 46) |
| 7. final conclusion dismissing the objection petition due to limitation. (Para 47 , 48 , 49) |
JUDGMENT :
HARISH VAIDYANATHAN SHANKAR, J.
1. The Objection Petition, beingO.M.P. (COMM) 452/2024, has been instituted under Section 34 of theArbitration and Conciliation Act, 1996, A&C Act, seeking setting aside of theArbitral Award dated 02.05.2024,as subsequently amended/corrected vide Order dated 12.06.2024 , Impugned Arbitral Award, rendered by the learned Sole Arbitrator in the disputes arising between M/s Varindera Constructions Limited and Union of India.
2. The Enforcement Petition, beingO.M.P.(ENF.)(COMM.) 208/2025, has been filed by the Award Holder (who is the Respondent in the Objection Petition) under Section 36 of the A&C Act, read with Order XXI and Section 151 of theCode of Civil Procedure, 1908 , CPC seeking enforcement of the aforesaid Impugned Arbitral Award against the Award Debtor (who is the Petitioner in the Objection Petition).
3. For the sake of convenience and consistency, the ranks and references of the parties hereinafter shall be described as in the Objection Petition, unless the context otherwise requires.
I.A.-43177/2024 (delay 25 days in filing the present petition) in O.M.P. (COMM) 452/2024 I.A.-45918/2024 (dismissal of Petition U/S 34 of A&C Act) in O.M.P. (COMM) 452/2024
4. In the Objection Petition, a preliminary issue has arisen regarding delay in filing the said petition. The Petitioner, along with the Petition, has filed I.A. No. 43177/2024 seeking condonation of a delay of 25 days in filing of the Objection Petition.
5. The Respondent, on the other hand, has filed I.A. No. 45918/2024 seeking dismissal of the Objection Petition on the ground of limitation.
6. In view of these competing applications, it has become necessary and expedient to determine the said applications at the threshold. Accordingly, prior to examining the challenge to the Impugned Arbitral Award on merits under Section 34 of the A&C Act, this Court considers it appropriate to first adjudicate upon the issue of condonation of delay and the objection regarding non est filing raised by the Respondent in the present Petition.
7. The determination of these preliminary objections goes to the very root of maintainability and shall decide whether the Objection Petition can be entertained on merits. The fate of the Objection Petition is therefore contingent upon the outcome of these applications, and consequently, the fate of the Enforcement Petition shall also abide by the determination thereof.
8. Before adverting to the aspect of limitation, it is necessary to briefly set out the factual background relevant to the present proceedings:
(a) The Respondent is a public limited company engaged for over three decades in the business of execution of construction contracts and projects and has had a longstanding association with the Military Engineer Services, MES, whereas the Petitioner is an organisation under the Ministry of Defence, MoD, Government of India, entrusted with the award of contracts for construction of married accommodation and allied infrastructure for personnel of the Defence Force.
(b) A contract was entered into between the Parties under the aegis of the Married Accommodation Project, MAP for the execution of construction works as well as completion of incomplete dwelling units at a defence establishment at Meerut (East).
(c) Upon disputes having arisen with regard to measurements, payments
An application to set aside an arbitral award must adhere strictly to procedural requirements, failing which it may be deemed non-est, thereby barring the challenge by limitation.
The court ruled that statutory timelines under the Arbitration and Conciliation Act are strict and failure to properly file within these limits results in dismissal as barred by limitation.
The Court emphasized the importance of diligence in addressing procedural defects and allowed the condonation of delay based on the petitioner's consistent efforts to rectify the objections.
The failure to file essential documents alongside a Section 34 application renders the filing 'non-est', thus failing to stop the limitation period, leading to dismissal of the petition.
Scanned signed copy of the award/order of the Arbitral Tribunal to the parties would be a valid delivery as envisaged under Section 31(5) of the Arbitration and Conciliation Act, 1996.
The Court emphasized the importance of due diligence and dispatch in exercising the right to challenge an Arbitral Award within the prescribed time, as per the provisions of the Arbitration Act.
The main legal point established in the judgment is the significance of adhering to the prescribed limitation period under the Arbitration Act and the requirement for parties to exercise their rights....
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