JAMMU AND KASHMIR HIGH COURT BENCH AT SRINAGAR
Ali Mohd. Magrey, J.
Ut of J&K & Ors. – Appellants
Versus
Mirsons Constructions Pvt. Ltd. – Respondent
CR No. 21 of 2020, CM No. 6991 of 2020, CONC No. 29 of 2019 and CM No. 361 of 2020
Decided On : 10-10-2022
Condonation of Delay - Arbitration and Conciliation Act - Section 34, Section 37 - [ARBITRATION] - [ARBITRATION AND CONCILIATION ACT, 1997, Section 34, Section 37] - The court allowed the application for condonation of delay in filing the application under Section 34 of the Arbitration and Conciliation Act, 1997, and set aside the interim award. The court considered the amendment made to Section 34, which substituted the period for filing the application and its further condonation of delay, and held that the applicants were entitled to the benefit of the amendment. The court also discussed the merit in the application for setting aside the interim award, finding that the interim award was passed without detailing out the reasons and without material support, and therefore, set it aside.
Fact of the Case:
The applicants, Chief Engineer and Executive Engineer, filed an application seeking condonation of delay in filing the application under Section 34 of the Arbitration and Conciliation Act, 1997, for setting aside the interim award dated 28.06.2018. The interim award was for an amount of Rs. 203.00 lacs passed by the sole Arbitrator, Er. Mian Bashir Ahmad (Retired Chief Engineer). The applicants received the interim award on 29.06.2018 and filed the application on 26.02.2019, resulting in a delay of 270 days. The applicants sought the benefit of the amendment made to Section 34, which substituted the period for filing the application and its further condonation of delay.
Finding of the Court:
The court allowed the application for condonation of delay and set aside the interim award. The court held that the applicants were entitled to the benefit of the amendment made to Section 34 of the Arbitration and Conciliation Act, 1997, and that the delay in filing the application was well explained and sufficient cause provided. The court also found that the interim award was passed without detailing out the reasons and without material support, and therefore, set it aside.
Issues: The main issue was whether the applicants were entitled to the benefit of the amendment made to Section 34 of the Arbitration and Conciliation Act, 1997, and whether the delay in filing the application for setting aside the interim award should be condoned.
Ratio Decidendi: The court held that the applicants were entitled to the benefit of the amendment made to Section 34 of the Arbitration and Conciliation Act, 1997, and that the delay in filing the application was well explained and sufficient cause provided. The court also found that the interim award was passed without detailing out the reasons and without material support, and therefore, set it aside.
Final Decision: The court allowed the application for condonation of delay and set aside the interim award. The court also set aside the orders passed in the execution petition related to the interim award.
JUDGMENT
Ali Mohd. Magrey, J. - The instant application is filed by the applicants namely the Chief Engineer, PW(R&B) Department, Srinagar and Executive Engineer, PW(R&B) Department, Division, Budgam, seeking condonation of delay in filing the application under Section 34 read with Section 37 of the Arbitration and Conciliation Act, 1997, for setting aside the interim award dated 28.06.2018, for an amount of Rs. 203.00 lacs passed by the sole Arbitrator, Er. Mian Bashir Ahmad (Retired Chief Engineer).
2. Keeping in view the prayer made and relief sought in the application in a petition filed under Sections 34 and 37, Mr. M.A. Chashoo, learned AAG, appearing counsel for the applicants was asked as to under which provision of law the interim award is passed, enabling the applicants to seek its reversal under appropriate provision of law, submits that the interim award is passed under Section 31(6) of Arbitration and Conciliation Act, 1997, therefore, the application, seeking setting aside of the award be treated under Section 34 of the Arbitration and Conciliation Act, 1997. In view of the statement of Mr. M.A. Chashoo, learned AAG, the Court has now to decide the application by treating the same, seeking condonation of delay in filing the application filed under Section 34 of the Arbitration and Conciliation Act, 1997.
3. Admittedly, the interim award is passed on 28.06.2018 and received by the Chief Engineer PW(R&B) Department, Srinagar, on 29.06.2018 and the application, seeking setting aside of the interim award is filed on 26.02.2019. The period spends for filing of the application commencing from 30.06.2018 till 25.02.2019 is 270 days.
4. Mr. M.A. Chashoo, learned AAG, submits that in terms of amendment of Section 34 made by Act No. XXXV of 1997, the words in Sub-Section 3 for the words 'three months' are substituted by the words 'six months' and in proviso for the words 'three months' and the words 'thirty days', the words 'six months' and the words 'sixty days' shall be substituted respectively, therefore, the application seeking condonation of delay requires to be allowed as the Court can condone the delay, which is permissible in terms of Sub-Section 1 of Section 34 of the J&K Arbitration and Conciliation Act, 1997.
5. Mr. Sharik R. Jan, learned counsel appearing for the non-applicant-respondent submits that there is no scope for giving benefit of the amendment made to the Sub-Section 1 of Section 3 in terms of the Act No. XXXV of 1997, as the said amendment is prospective in nature, therefore, the applicants were supposed to file the application within three months and could seek condonation of delay for another thirty days. However, the application is filed beyond the prescribed period of limitation, as such, the delay cannot be condoned, which is not permissible under law. Learned counsel further submits that the Court cannot by any stretch of imagination extend the period of filing of the application, as the said period is fixed by the statute and only power with the Court is to condone the delay to the permissible extent, which in the present case is only one month beyond the period of three months in terms of Sub-Section 1 of Section 3 of the J&K Arbitration and Conciliation Act, 1997. It is submitted that the applicants had received the order on 29.06.2018, and had to file the application by 30th September, 2018, which they admittedly have filed on 26.02.2019. It is further submitted that though there is no sufficient cause shown by the applicants for condonation of delay of thirty days yet in the event Court is satisfied with such explanation, the thirty days delay can be condoned, which means the applicants had filed the appeal on 30th October, 2018 and beyond that there is no scope for filing such application. Learned counsel while strengthening the arguments has referred to and relied upon the Judgment of Hon'ble Supreme Court reported as (2019) 2 SCC 145.
6. Mr. M.A. Chashoo, learned AAG, appearing counsel for th
The main legal point established in the judgment is that the applicants were entitled to the benefit of the amendment made to Section 34 of the Arbitration and Conciliation Act, 1997, and that the de....
The court emphasized a pragmatic approach in determining 'sufficient cause' for delays attributed to government entities, asserting equal application of limitation laws for all parties involved.
The court adopted a liberal and justice-oriented approach in the matter of condonation of delay, allowing the delay of 23 days to be condoned as sufficient cause was explained by the DDA.
The court upheld limitations on condonation applications under the Arbitration and Conciliation Act, emphasizing adherence to statutory timelines.
Delay beyond 120 days (90+30) in Section 34 petitions or corresponding appeals under Section 37 of Arbitration Act not condonable via Limitation Act Section 5; negligence, inaction, lack of bonafides....
The limitation period for challenging an arbitral award commences upon receipt of a signed order, not an unsigned draft, emphasizing strict adherence to statutory timelines.
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