The main legal point established in the judgment is that the limitation to challenge an award continued during the COVID-19 pandemic, and there was no need to file an application for condonation of delay. The court emphasized the impact of COVID-19 on limitation periods and the orders passed by the Hon'ble Supreme Court extending the limitation period.

JUDGMENT :

CM(7533/2021)

1. Petitioners-applicants have knocked the doors of this Court, after suffering an award dated 02.03.2020 fastening it with a liability of Rs. 6,04,97,579/- on account of interest on delayed payment by the Micro and Small Enterprises Facilitation Council, (MSEFC, for short) under Section 15 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter for brevity referred to as MSMED Act) with the petition (Arb. P. No. 51/2021) challenging the same on the grounds that the statutory conciliation proceedings were continuing, but, MSEFC, Jammu without adhering to the provisions, procedures and mandate of MSMED Act as also that of Arbitration & Conciliation Act, 1996 (for short A&C Act) and passed the award dated 02.03.2020 at the back of as well as without hearing the applicants, which is against public policy and also natural justice as the same came to be passed during the times when COVID-19 cases in the entire country were seeing a dangerous uncontrolled upsurge resulting in unprecedented death rate. To ensure that the said petition filed by the applicants under Section 34 of the A&C Act does not fail on account of the applicability of law of limitation, the applicants filed an application (CM No. 7533/2021) seeking condonation of delay in instituting the same on the footing that the limitation for all proceedings under General or Special laws, whether condonable or not, has initially been extended with effect from 15 of March 2020 by the Hon'ble Supreme Court vide its order dated 23.03.2020 and finally vide its order dated 23.09.2021 whereby the period to be excluded from limitation has been specified to be w.e.f. 15.03.2020 to 03.10.2021 besides additional 90 days period of limitation for all the persons by virtue of said order.

2. Since, the non-applicant/respondent, namely, M/s Gulati Metals & Alloys was on caveat, so on issuance of notice the non-applicant/respondent entered appearance and filed objections resisting the petition challenging the award dated 02.03.2020 as also the application for condonation of delay on the grounds inter-alia that the petition filed under Section 34 of Arbitration and Conciliation Act is misconceived as the same had to be initiated in accordance with SRO 251 of 2017, Jammu and Kashmir Micro and Small Enterprises Facilitation Council Rules, 2017 and not under Arbitration and Conciliation Act; that the impact on the working of the petitioner's office due to onslaught of Covid-19 pandemic was only for a brief period, i.e. from March, 2020 to 6th May, 2020 and that the Petitioners-applicants admit to have reopened the offices w.e.f. 07.05.2020 as per communication of Dy. Chief Engineer/Personnel, PSPCL, Patiala dated 04.05.2020 bearing memo No. 1970/2019. With regard to the order passed by Hon'ble Supreme Court in suo moto proceedings in SMW(C) No. 3/2020, it has been urged by the respondent that the petitioners-applicants cannot bank upon the said order of the Supreme Court and claim extension of limitation period after admitting that its offices started functioning w.e.f. 07.05.2020. Moreover, restrictions imposed on movement in the State of Punjab w.e.f. March, 2020 due to lockdowns were relaxed subsequent to 01.05.2020 permitting the Government offices to work. Further it has been contended that the Government in the order dated 23.03.2020 amended its guidelines allowing activities even in the containment zones. Besides that, the Government offices throughout the State of Punjab, including that of the petitioners-applicants were functioning and performing all essential duties w.e.f. 07.05.2020 and the same was the position, particularly in the court proceedings in the Courts of UT of Jammu and Kashmir and Ladakh at Jammu. The Petitioners-applicants participated in the execution proceedings w.e.f. July, 2020 but applied for sanction for contesting the proceedings only after passing of order of personal appearance of the Managing Director by the execut