The limitation for filing objections under Section 34 of the Arbitration and Conciliation Act and the applicability of Section 4 of the Limitation Act for condonation of delay.

JUDGMENT :

By way of this appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996, the appellants have challenged order/judgment dated 06.04.2021, passed by the Court of learned District Judge, Shimla, in arbitration case titled as The State of H.P. and another versus Sh. Deepak, vide which, an application filed under Section 36(4) of the Arbitration and Conciliation Act, for condonation of delay in filing the objections under Section 34 of the Arbitration and Conciliation Act, against award dated 01.10.2019, stands dismissed by the learned Court below.

2. Brief facts necessary for the adjudication of this appeal are as under:-

Feeling aggrieved by an award passed under the Arbitration and Conciliation Act, dated 01.10.20219, signed copy whereof was provided to the parties on the same date, Objections were preferred under Section 34 of the Arbitration and Conciliation Act by the State of Himachal Pradesh-Appellants herein. Along with the Objections, an application was filed under Section 36(4) of the Arbitration and Conciliation Act for condonation of delay in filing the same. These Objections along with the application for condonation of delay was filed on 17.02.2020, i.e. on 138th day after passing of the arbitration award.

3. For the purpose of record, it is relevant to mention that post winter vacations, the Court of learned District Judge, Shimla, reopened on 17th February, 2020, on which date, the Objections along with the application for condonation of delay, were filed.

4. This application filed for condonation of delay in filing the objections stood dismissed by the learned District Judge, by placing reliance upon the judgment of Hon’ble Supreme Court of India in Assam Urban Water Supply and Sewerage Board versus M/s Subash Projects and Marketing Limited, (2012) 2 SCC 624.

5. I have heard learned Counsel for the parties and have also gone through the documents appended with the appeal, including the order passed by the learned Court below.

6. It is not in dispute that in the present case, as on the date when the Court reopened after winter vacations and the Objections were preferred by the present appellants against the award passed by the learned Arbitrator, the period of three months plus the extended period of 30 days, benefit whereof can be given by the Court, was over. In this view of the matter, this Court is of the Considered view that there is no infirmity in the order which stands assailed by way of this appeal because learned Court below could not have given the benefit of vacations for the purpose of computing the limitation to the present appellants, in terms of the law laid down by Hon’ble Supreme Court of India in Assam Urban Water Supply and Sewerage Board (supra). In the said judgment, Hon’ble Supreme Court of India has been pleased to hold, while interpreting Section 2(j) and Section 4 of the Limitation Act as under:-

“12. Section 4 of the 1963 Act reads as under :-

"4. Expiry of prescribed period when court is closed.- Where the prescribed period for any suit, appeal or application expires on a day when the court is closed, the suit, appeal or application may be instituted, preferred or made on the day when the court reopens.

Explanation.-A court shall be deemed to be closed on any day within the meaning of this section if during any part of its normal working hours it remains closed on that day."

The above Section enables a party to institute a suit, prefer an appeal or make an application on the day court reopens where the prescribed period for any suit, appeal or application expires on the day when the court is closed.

13. The crucial words in Section 4 of the 1963 Act are “prescribed period”. What is the meaning of these words?

14. Section 2(j) 'period of limitation' {which} means the period of limitation prescribed for any suit, appeal or application by the Schedule, and 'prescribed period' means the period of limitation computed in accordance with the provisions of this Act;”

Section 2(j)