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2023 Supreme(MP) 263

IN THE HIGH COURT OF MADHYA PRADESH
Vivek Rusia, J.
Noumla Brothers (M/s) v. M/s Ruchi World Wide Limited & Another
Arbitration Appeal No. 36 of 2023 (Indore): against the award dated 23.1.2013 passed by the 22nd District Judge, Indore in MJC-AV No. 14/2018; Decided on 6.7.2023

Advocates appeared:
Chetan Jain for appellant; Kshitij Vyas for respondent No. 1; Romesh Dave for respondent No. 2.

Headnote:

(1) Limitation -- issue of limitation is a blended question of fact and law. [Para 8]

(2) Arbitration and Conciliation Act, 1996 -- S. 34 -- Limitation Act, 1963 -- S. 14 -- limitation -- appellant’s Special Leave Petition dismissed -- according to appellant, dismissal of SLP came to its knowledge when notice of execution case was received -- appellant preferred application u/s. 34 of Act of 1996, challenging award -- application u/s. 14 of Limitation Act was also filed -- respondent No. 1 opposed application by submitting that delay beyond 120 days cannot be condoned, hence, application u/s. 34 of Act of 1996 not maintainable -- District Judge dismissed application u/s. 14 of Limitation Act as well as appeal -- held -- appellant was required to file two applications -- first u/s. 14 of Limitation Act for exclusion of time spent in proceedings bona fide in Court without jurisdiction -- another under proviso to S. 34 (3) of Act of 1996 for further extension of one month -- impugned order quashed – matter remitted back to District Judge for fresh adjudication of issue of limitation after recording evidence. (2017) 7 SCC 678, AIR 2019 SC 3658, AIR 2005 SC 214, (2003) 4 SCC 147, AIR 2021 SC 2493, (2010) 12 SCC 210, (2008) 7 SCC 169, W. P. No. 28896 of 2022 decided on 15.12.2022, 2009 (3) GCD 2143 : 2009 (0) Supreme (Guj.) 93 and 2023 SCC Online SC 382 referred to. [Paras 3, 10 & 11]

¼1½ ifjlhek & ifjlhek dk fook|d rF; v©j fofèk dk fefJr ç'u g¨rk gSA ¼iSjk 8½
¼2½ ekè;LFke~ v©j lqyg vfèkfu;e] 1996 & èkkjk 34 & ifjlhek vfèkfu;e] 1963 & èkkjk 14 & ifjlhek & vihykFkÊ dh fo'ks"k btktr ;kfpdk [kkfjt gqà & vihykFkÊ d¢ vuqlkj] fo'ks"k btktr ;kfpdk dh [kkfjth dh tkudkjh mls rc gqÃ] tc fu"iknu çdj.k dk lwpuki= çkIr gqvk & vihykrÊ us vfèkfu.kZ; ij vk{ksi djrs gq, lu~ 1996 d¢ vfèkfu;e dh èkkjk 34 d¢ vèkhu vkosnu çLrqr fd;k & ifjlhek vfèkfu;e dh èkkjk 14 d¢ vèkhu vkosnu Òh çLrqr fd;k & çR;FkÊ Øekad 1 us ;g fuosnu djrs gq, vkosnu dk foj¨èk fd;k fd 120 fnol d¢ okn foyac ekQ ugha fd;k tk ldrk blfy, lu~ 1996 d¢ vfèkfu;e dh èkkjk 34 d¢ vèkhu vkosnu pyus ;¨X; ugha & ftyk U;k;kèkh'k us ifjlhek vfèkfu;e dh èkkjk 14 d¢ vèkhu vkosnu d¢ lkFk gh vihy [kkfjt dh & vfÒfuèkkZfjr & vihykFkÊ }kjk n¨ vkosnu çLrqr fd, tkuk v{ksfir Fks & çFke] vfèkdkfjrkjfgr U;k;ky; esa ln~Òkfod dk;Zokgh esa O;rhr le; vioftZr fd, tkus d¢ fy, ifjlhek vfèkfu;e dh èkkjk 14 d¢ vèkhu & ,d vU;] lu~ 1996 d¢ vfèkfu;e dh èkkjk 34¼3½ d¢ ijarqd d¢ vèkhu ,d ekl vfrfjDr le;lhek foLrkj d¢ fy, & vkf{kIr vkns'k vfÒ[kafMr & lk{; vfÒfyf[kr fd, tkus d¢ i'pkr~ ifjlhek d¢ fook|d d¢ u, fljs ls U;k;fu.kZ;u d¢ fy, ekeyk ftyk U;k;kèkh'k d¨ okfil çsf"krA ¼2017½ 7 ,l lh lh 678] , vkb vkj 2019 ,l lh 3658] , vkb vkj 2005 ,l lh 214] ¼2003½ 4 ,l lh lh 147] , vkb vkj 2021 ,l lh 2493] ¼2010½ 12 ,l lh lh 210] ¼2008½ 7 ,l lh lh 169] fjV ;kfpdk Øekad 28896 lu~ 2022 fu.kÊr fnukad 15-12-2022] 2009 ¼3½ th lh Mh 2143 % 2009 ¼0½ lqçhe½ ¼xqtjkr½ 93 rFkk 2023 ,l lh lh vkWuykbu ,l lh 382 fufnZ"VA ¼iSjk 3] 10 ,oa 11½

ORDER

1. The appellant has filed the present arbitration appeal being aggrieved by the award dated 23.1.2013 passed by 22nd District Judge, Indore in MJC AV No.14/2018 whereby the application filed u/s. 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act of 1996” for short) has been dismissed as time-barred.

2. Facts of the case, in short, are as under :

2.1 The appellant is a proprietorship firm engaged in the business of supply of cotton bales and other materials having its registered office at 111, Sri Kanyaka Parameswari Enclave, Etukuru Road, Guntur. Respondent No.1 contacted the appellant for the purchase of cotton bales and placed a purchase order dated 30.9.2010 for a suply of 600 cotton bales. The purchase order contains an arbitration clause and according to which, all the disputes will be settled amicably or will be referred to arbitration in accordance with the Rules and By-laws of the Cotton Association of India and the contract shall be subject to Indore jurisdiction. Since the specified quantity of cotton bales could not be supplied within the agreed time by the appellant, respondent No.1 issued a debit-note on 8.2.2011 to the appellant but the payment was not made. Respondent No.1 approached the Cotton Association of India for settlement of the dispute by way of arbitration. Shri Pankaj D. Mepani was appointed as a sole Arbitrator who registered the claim of respondent No.1 as Arbitration Case No. 19/2012-13. The appellant did not participate in the arbitration proceedings and proceeded ex-parte. The Arbitrator passed the final award dated 24.8.2012 for sum of Rs.18,89,677/- with interest @ 15% per annum.

2.2 The appellant received notice of Execution Case No.128/2014 from the Court of 3rd District & Sessions Judge, District Guntur, Andhra Pradesh. Thereafter, the appellant inquired and came to know that an ex-parte award dated 24.8.201 had been passed against it in Arbitration Case No. 19/2012-13. The appellant further came to know that respondent No.1 had approached the High Court of Bombay by filing an application for transfer of the Execution Case from Mumbai to Guntur, Andhra Pradesh as the properties of the appellant are situated there. The said application was allowed vide order dated 19.9.2013.

2.3 The appellant filed Notice of Motion No.254/2015 challenging the ex-parte award and also for setting aside the order of transfer of execution case. The High Court of Bombay vide order dated 26.2.2015 held that the appellant should file an arbitration petition u/s. 34 of the Act of 1996 before the Single Judge of the High Court of Bombay. In compliance of the said order, the appellant filed the petition u/s. 34 of the Act challenging award dated 24.8.2012, according the appellant filed and same was registered as Arbitration Petition No.1635/015. Respondent No.1 appeared and opposed the petition on the ground of territorial jurisdiction. The High Court of Bombay vide order dated 20.7.2016 dismissed the said Arbitration Petition on the ground of lack of territorial jurisdiction.

2.4 The appellant challenged the aforesaid order of the learned Single Judge by way of an appeal (Appeal (L) No.402/2016 before the Division Bench of the High Court of Bombay which too was dismissed vide order dated 6.2.017. Thereafter, the appellant approached the apex Court by way of a Special Leave Petition (SLP) which was also dismissed after condoning the delay vide order dated 4.10.2017.

3. According to the appellant, the fact regarding the dismissal of the SLP came to its knowledge on 28.11.017 when notice of the Execution Case No.153/2017 was received t for appearance. Then, the appellant preferred application 34 of the Act of 1996 before the District Court, Indore challenging the award dated 4.8.2012. Since there was a delay in applying, therefore, an application u/s. 14 of the Limitation Act was also filed . Respondent No.1 opposed the application by submitting that the limitation beyond 120 days can

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