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2026 Supreme(Sikk) 37

THE HIGH COURT OF SIKKIM: GANGTOK
A.MUHAMED MUSTAQUE, BHASKAR RAJ PRADHAN
Union of India – Appellant
Versus
Nar Bahadur Dahal (NBD) – Respondent


Advocates appeared:
Ms. Sangita Pradhan, Deputy Solicitor General of India with Ms. Sittal Balmiki and Mr. Amit Kumar Sharma, Advocates, for the Appellant.
Mr. Jorgay Namka, Senior Advocate with Mr. Lahang Limboo and Mr. Sawal Rai, Advocates for the Respondent.

Table of Content
1. factual overview of the arbitral award, the nature of the contract, and procedural history regarding limitation objections. (Para 1 , 2 , 3 , 5 , 6 , 7)
2. the court's initial analysis of the limitation issue and its inherent power to evaluate the legality of claims despite procedural waiver questions. (Para 8 , 9 , 10 , 11 , 12)
3. requirement to produce and examine the arbitral record as a mandatory prerequisite for deciding proceedings under section 34. (Para 13 , 14)
4. the court's order to set aside the impugned judgment and remand the matter for fresh consideration upon the examination of arbitral records. (Para 15 , 16 , 17 , 18 , 19)

JUDGMENT

A. Muhamed Mustaque, C.J.

This appeal was preferred by the Union of India under Section 37(1) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act).

2. In an arbitral award passed by the Hon’ble Justice Pranab Kumar Chattopadhyay, Former Judge of the Calcutta High Court, as the Sole Arbitrator, the Union of India was directed to pay a sum of Rs.23,21,54,534/- (Rupees Twenty-Three Crores Twenty-One Lakhs Fifty-Four Thousand Five Hundred and Thirty-Four only).

3. The Arbitral Tribunal allowed a cou

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