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2026 Supreme(Del) 56

IN THE HIGH COURT OF DELHI AT NEW DELHI
PRATHIBA M. SINGH, MADHU JAIN, JJ.
Braham Din Pandey & Ors. – Petitioner
Versus
The Sahu Cooperative Urban Tc Soceity Ltd & Anr. – Respondent
W.P.(C) 2095 of 2026 & CM APPL. 10245 of 2026
Decided On : 26-02-2026

Advocates Appeared:
For the Petitioner: Mr. Rakesh Kumar, Adv.
For the Respondent: Ms. Urvi Mohan, Adv. for RCS Mr. Akshay Bhardwaj, Adv.

The failure to provide a signed copy of the arbitral award invalidates the presumption of service, thus impacting the limitation period for appeals.

Headnote:(A) Constitution of India - Articles 226 and 227 - Limitation in appeals - Petitioners challenged the order dismissing their appeal as barred by limitation, asserting they never received a copy of the arbitral award - The DCT dismissed the application for condonation of delay on grounds of lack of justification for a 12-year delay in filing - The arbitral award dated 25th January, 2012 was ex-parte due to non-appearance of Petitioners - Notably, there was insufficient evidence to establish service of the award upon the Petitioners - The court modified the interest component of the award to 7.5% if paid by 30th April, 2026, otherwise 9.5% thereafter. (Paras 6, 8, 28, 29)

(B) Ex-parte awards - The court noted that the arbitral award procedure should have evidence of service to fulfill due process, failing which the award may be questioned; the lack of proof raised concerns about fairness in the arbitration process. (Paras 20, 26)

Facts of the case:
Petitioners, having defaulted on loans from the Society, contested an ex-parte arbitral award after years, citing failure to receive its copy until it appeared in their consumer complaint.

Findings of Court:
The court concluded that the appeal was not barred by limitation and modified the interest payable in the arbitral award based on timely payment conditions.

Issues: The court addressed whether the Petitioners were properly notified of the arbitral proceedings and award, and whether the delay in filing their appeal could be condoned.

Ratio Decidendi: The lack of services records created ambiguity around the fairness of the arbitral process and established the necessity for transparent communication and due process in arbitration.

Result: Petition disposed of with modifications to the award's interest terms.

Table of Content
1. grounds for challenging arbitral award. (Para 2 , 3 , 5 , 6 , 8)
2. court's observations on service issues. (Para 13 , 19 , 21 , 22 , 24)
3. arguments about notice and service of award. (Para 14 , 17 , 18)
4. modification of award regarding interest. (Para 29 , 30)
5. court's directive for mediation in pending disputes. (Para 32 , 33 , 34 , 35)

Judgment :

Prathiba M. Singh, J.

1. This hearing has been done through hybrid mode.

2. The present petition has been filed by the Petitioners under Articles 226 and 227 of the Constitution of India, inter alia, assailing the impugned order dated 22nd January, 2026 passed by the Chairman, Delhi Co-operative Tribunal (hereinafter ‘DCT’) inAppeal No. 032/2023/DCT titledBraham Din Pandey and Ors. v. The Sahu Co-operative Urban T/C Society Ltd.(hereinafter, ‘the impugned order’).

3. Vide the impugned order, the DCT has dismissed the appeal filed by the Petitioners challenging the Arb. Case No. 1006/Ar/Arb/11-12 dated 25th January, 2012 (hereinafter, ‘the arbitral award’). The appeal has been dismissed on the ground that the same is barred by limitation. Further, the DCT has also refused to condone the delay on the ground that there is no justifiable explanation for seeking condonation of delay after almost12years. 4. The background of the present case is that, the Petitioners had availed certain personal loans from the Sahu Co-operative Urban T/C Society Ltd (hereinafter, ‘the Society’) and had defaulted in repayment of the same. The Society had commenced arbitral proceedings which had culminated in the Arbitral Award dated 25th January2012 against the Petitioners.The same was an ex-parte Award as the Petitioners had not appeared in the arbitral proceedings.

5. The Petitioners case is that they did not receive a copy of the arbitral award, thereby they filed an application under the RTI Act, 2005 and application under Section139 of the Delhi Co-operative SocietyAct,2003 on 16th November, 2019. However, despite the same, the Petitioners were not provided with a copy of the arbitral award. Subsequently, sometime in October 2019, Society sought from the Petitioners a lump sum amount of Rs. 10,00,000/- for settling the matter.

6. Pursuant thereto, in August 2021, the Petitioners filed a consumer complaint No. 136/2021 against the Society before the District Consumer Disputes Redressal Forum, North-East. In response to the said complaint, the Registrar Co-operative Societies (hereinafter, ‘RCS’) filed a copy of the arbitral award.

7. Thereafter, Petitioners filed an appeal challenging the Arbitral Award, before the DCT. Vide the impugned order, the appeal of the Petitioners was dismissed on the ground that the same is barred by limitation.

8. The case of the Petitioners is that they did not receive the signed copy of the arbitral award. It is also stated that the Petitioners became aware of the arbitral award for the first time sometime in January, 2023, when the same was attached by the RCS in pleadings before the District Consumer Disputes Redressal Forum, North-East.

9. On the last date of hearing i.e., 13th February, 2026, notice was issued to the Society and RCS.

10. On the said date, Mr. Akshay Bhardwaj and Ms. Urvi Mohan, ld. Counsels accepted notice for the Society and RCS, respectively. Ld. Counsel for the RCS was to inform the Court as to when the signed copy of the arbitral award was served upon the Petitioners.

11. Today, Ms. Urvi Mohan, ld. Counsel for the RCS submits that she is unable to obtain the instructions as to when the signed copy of the arbitral award was served upon the Petitioners.

12. Mr. Akshay Bhardwaj, ld. Counsel for the Society also submits that he is not aware as to when the arbitral award was served on the Petitioners.

13. Further, ld. Counsel for the Society relies upon paragraph 5.1, 7 and 8 of the impugned order to argue that the DCT has passed a reasoned order.

14. Ld. Counsel for the Petitioners submits that the ld. Arbitrator has proceeded in an extremel

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