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2026 Supreme(Del) 800

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. HARI SHANKAR, OM PRAKASH SHUKLA, JJ.
 
Delhi Development Authority – Appellant
Versus
M/S Integrated Techno Systems Pvt Ltd – Respondent 
FAO (COMM) 233 of 2025, CM APPLs. 52264 of 2025, 52265 of 2025 & 52266 of 2025
Decided On : 15-05-2026
 

Advocates Appeared:
For the Appellant : Mr. Rajeev Lochan Mahunta, Mr. Sahil S Panwar and Mr. Rahul, Advs.
For the Respondent: Mr. Vijay Kumar, AR and Mr. Sandeep Singh Mahar, Adv.

In commercial and arbitral matters, courts must adopt a rigorous approach to limitation. Administrative lethargy and bureaucratic delays are insufficient grounds to condone failure to file or refile appeals within the statutory timeframe, as prompt resolution is paramount.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 and 37 - Commercial Courts Act - Section 13(1-A) - Limitation Act - Articles 116 and 117 - Condonation of delay - Commercial matters require strict adherence to limitation periods - Courts must be circumspect in condoning delay in arbitral matters to ensure expeditious finality - Administrative lethargy and lack of diligence by public authorities or state instrumentalities are insufficient grounds for condoning delay - (Para 2, 3, 4)

(B) Appeals - Condonation of delay in refiling - Delay in refiling is treated with the same seriousness and rigor as delay in initial filing in commercial disputes. (Para 16)

Facts of the case:
The appellant sought condonation of significant delays in the filing and subsequent refiling of an appeal against an order passed by a commercial court upholding an arbitral award. The explanations provided cited internal procedural hierarchies, deliberation processes between departments, and personal exigencies of legal counsel, which resulted in a substantial lapse of time beyond the statutory limitation period.

Findings of Court:
The court observed that the provided explanations for the delays were insufficient and lacked the necessary justification required for exercising discretion in condoning the lapse. The court emphasized that in commercial and arbitral litigation, delays cannot be excused due to internal administrative sluggishness or lack of professional diligence by counsel, as the objective of the relevant legislation is the prompt resolution of disputes.

Issues: The central issues were whether the procedural delays caused by the appellant’s internal administrative processes and the counsel's personal circumstances constituted sufficient cause to warrant condonation under the relevant laws.

Ratio Decidendi: The court maintained that in matters involving commercial disputes and arbitral awards, the judiciary must be highly circumspect. It held that administrative lethargy is not a valid legal justification for seeking a waiver of limitation periods, and failing to account for specific intervals of delay is fatal to an application for condonation.

Result: Appeals for condonation of delay in filing and refiling were dismissed, and consequently, the appeal against the arbitral order was rejected.

Table of Content
1. strict approach to condonation of delay in commercial and arbitral matters (Para 1 , 2 , 3 , 4 , 5)
2. factual timeline of delay and justification provided by the state instrumentality (Para 6 , 7 , 8 , 9 , 10 , 11)
3. judicial scrutiny of administrative lethargy and failure to explain specific delay periods (Para 12 , 13 , 14 , 15 , 16 , 17)
4. dismissal of appeal and applications due to unexcused delay (Para 18 , 19)

JUDGMENT :

C. HARI SHANKAR, J.

CM APPLs. 52265/2025 & 52266/2025 (for delay)

1. We have heard learned Counsel for the appellant as well as the respondent, who appears in person, on the aspect of delay in filing and refiling of the present FAO (COMM) 233/2025.

2. It is settled, by now, that in commercial matters, Courts have to be extremely strict while dealing with applications for condonation of delay. Moreover, the present case emanates from an arbitral award in which case the Court has to be additionally circumspect, keeping in mind the requirement of ensuring expeditious finality to arbitral proceedings.

3. We may reproduce, in this context, the following passages from Government of Maharashtra v. Borse Brothers Engineers & Contractors Pvt. Ltd, (2021) 6 SCC 460:

“63. Given the aforesaid and the object of speedy disposal sought to be achieved both under the Arbitration Act and the Commercial Courts Act, for appeals filed under Section 37 of the Arbitration Act that are governed by Articles 116 and 117 of the Limitation Act or Section 13(1-A) of the Commercial Courts Act, a delay beyond 90 days, 30 days or 60 days, respectively, is to be condoned by way of exception and not by way of rule. In a fit case in which a party has otherwise acted bona fide and not in a negligent manner, a short delay beyond such period can, in the discretion of the court, be condoned, always bearing in mind that the other side of the picture is that the opposite party may have acquired both in equity and justice, what may now be lost by the first party's inaction, negligence or laches.”

The principle that high value commercial disputes are required to be speedily resolved and that, therefore, Courts have to be circumspect in condoning delay, was also reiterated in Jharkhand Urja Utpadan Nigam v. BHEL ,2025 SCC OnLine SC 910.

4. Additionally, the Supreme Court has, in Shivamma v. Karnataka Housing Board ,2025 SCC OnLine SC 1969, held that administrative lethargy and laxity by State instrumentalities and public functionaries cannot be ignored by Courts while considering applications for condonation of delay.

5. We have, therefore, examined this matter keeping in mind this perspective.

6. This appeal arises out of a judgment dated 16 July 2024 passed by the learned District Judge (Commercial Court-02) North-West District Rohini Courts, “learned Commercial Court”, in OMP (Comm) 77/2023, preferred by the respondent under Section 34(2) of the Arbitration and Conciliation Act, 1996,“the 1996 Act”, hereinafter.

7. The learned Commercial Court has, by the said decision, rejected the objection to the arbitral award and upheld the award in its entirety. The Section 34 petition of the appellant was, therefore, dismissed.

8. The time for filing the appeal against the aforesaid decision, under Section 37 of the 1996 Act expired on 14 September 2024. The appeal, however, came to be filed on 23 November 2024. Thereafter, it was taken back with objections on 28 November 2024 and refiled on 20 August 2025.

9. Two periods of delay, therefore, are to be explained. The first is that the delay between 14 September 2024 to 23 November 2024, which would constitute delay in filing the appeal. The second is the period between 28 November 2024 to 20 August 2025, which constitutes the delay in refiling the appeal.

10. The appellant has filed CM APPL. 52265/2025 for condonation of the former and CM APPL. 52266/2025 for condonation of the latter period of delay.

11. Insofar as the delay in filing is concerned, the explanation, tendered in the application, read

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