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2021 Supreme(Guj) 612

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R.M. Chhaya, Nirzar S. Desai, JJ.
The New India Assurance Company Limited – Appellant
Versus
Alps Chemicals Private Limited – Respondent
R/First Appeal No. 1837 of 2021 with Civil Application (For Stay) No. 1 of 2021 with Civil Application (For Orders) No. 2 of 2021
Decided On : 17-09-2021

Advocates:
Advocate Appeared:
For the Appellant : Mr. Vibhuti Nanavati
For the Defendant : Mr. Apurva Vakil for Mr. Anmol A Mehta

Point of Law : Even if the period of delay is considered to be of 21 days. Since Section 34(3) of the Act, 1996 bars condonation of delay beyond the period of 30 days after the period of 3 months is over as Section 5 of Limitation Act is not applicable to Act, 1996. The Commercial Court has rightly dismissed the application made by the appellant praying for condonation of delay.

Headnote:

Limitation Act, 1963 – Section 5 and 29(2) - Arbitration and Conciliation Act, 1996 – Section 34,37 and 116-A(3) – Disputes - Resolution of disputes - In respect of disputes between parties, various claims were raised by present defendant - Hon’ble retired Judge of this Court was appointed as Sole Arbitrator for resolution of disputes - Learned Sole Arbitrator after hearing both sides passed an award to effect, that present defendant – original claimants shall recover from present appellant – New India Assurance Company Limited a sum till realization of the said amount from present appellant - It was further ordered that present appellant was directed to pay a sum to Commissioner of Central Excise, along with interest thereon in view of direction given by Principal Commissioner of Central Excise, in his order - Whether appeal against award of Sole Arbitrator is required to be filed or not.

Finding of the Court :

Court does not have power to condone delay beyond period of 30 days after a period of 3 months from the date of receipt of arbitral award or from date on which request under Section 33 had been disposed by Arbitral Tribunal, and therefore, in instant case, it is an admitted position that application for condonation of delay was made beyond extended period of 30 days after 3 months period was over - In view of discussion, court find that view taken by the learned Judge, Commercial Court, City Civil Court, while dismissing Commercial Civil Misc. Application is correct and court do not find any reason to interfere with findings and conclusions arrived at by Commercial Court - Accordingly, present appeal deserves to be dismissed and same is dismissed.

Result: Disposed of

JUDGMENT :

NIRZAR S. DESAI, J.

1. Admit.

2. This appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (for short, ‘Act, 1996’) arises out of the judgment dated 25.06.2021 passed below Exh.12 in Commercial Civil Misc. Application No.313 of 2021 (Old Commercial Civil Misc. Application No.11 of 2019) whereby the learned Judge, Commercial Court, Ahmedabad dismissed the application preferred by the present appellant being Commercial Civil Misc. Application No.313 of 2021 for condonation of delay of 51 days in filing application for setting aside the arbitral award under Section 34 of the Act, 1996. Vide order dated 02.09.2021 this Court recorded the agreement arrived at between the parties to the effect that the matter be finally disposed of taking into consideration the written arguments submitted by both the sides and hence in view of that agreement arrived at between the parties while disposing of this appeal, we have taken into consideration the papers supplied by both the sides, which is forming part of the record of the trial court, and not disputed by either side and none of the parties raised any grievance in respect of the fact that any of the paper, which is important to determine the issue involved in this appeal are not placed on record. Accordingly, we have heard and considered the present appeal on the basis of material placed on record by both the sides and in view of the agreement to hear and decide the appeal finally.

3. By way of the present appeal the appellant has prayed for the following reliefs:

    “a This Honourable Court may be pleased to quash and set aside the judgment and order dated 25.06.2021 passed by the Hon’ble Commercial Court, Ahmedabad, in Commercial C.M.A. No.313 of 2021;

c This Honourable Court may be pleased to condone delay caused in filing the application under Section 34 of the Arbitration and Conciliation Act, 1996, in challenging the Arbitral Award dated 30.08.2018 passed by the learned Arbitral Tribunal comprising of Justice J.C.Upadhyay (Retd.);

c This Honourable Court may be pleased to direct the Hon’ble Commercial Court, Ahmedabad, to decide the application filed by the Appellant under Section 34 of the Arbitration and Conciliation Act, 1996, in challenging the Arbitral Award dated 30.08.2018 passed by the learned Arbitral Tribunal comprising of Justice J.C.Upadhyay (Retd.);

d Such other and further order or orders as this Honourable Court may deem fit in the facts and circumstances of the case be passed;”

4. The brief facts leading to filing of the present appeal are stated as under.

4.1 In respect of the disputes between the parties, various claims were raised by the present defendant. Hon’ble retired Judge of this Court was appointed as Sole Arbitrator for resolution of disputes. Learned Sole Arbitrator after hearing both the sides passed an award to the effect, that the present defendant – original claimants shall recover from the present appellant – New India Assurance Company Limited a sum of Rs.2,30,55,170/- (Rupees two crores thirty lakhs fifty five thousand one hundred seventy only) together with interest there on @9% p.a. from 21.11.2016 till realization of the said amount from the present appellant. It was further ordered that the present appellant was directed to pay a sum of Rs.89,60,649/- (Rupees eighty nine lakhs sixty thousand six hundred forty nine only) to the Commissioner of Central Excise, Ahmedabad along with interest thereon in view of direction given by the Principal Commissioner of Central Excise, Ahmedabad-I in his order dated 31.11.2015.

4.2 The aforesaid award was passed on 30.08.2018. Against the said award, the present appellant preferred appeal under Section 34 of Act, 1996 along with an application for condonation of delay praying for condoning delay of 51 days occurred in filing the appeal under Section 34 of the Act, 1996 before the Commercial

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