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2024 Supreme(Tri) 4

HIGH COURT OF TRIPURA AGARTALA
Aparesh Kumar Singh, CJ. , Arindam Lodh, JJ.
Sri Ashes Deb - Appellant
Versus
State of Tripura - Respondent
Arb. A. 05 of 2023 & Arb. A. 06 of 2023
Decided On : 10-04-2024

Advocates appeared:
Mr. Somik Deb, Senior Advocate and Mr. P Chakraborty, Advocate, for the Appellant; Mr. P Sahu, Advocate, for the Respondent

The limitation period for an application under Section 34 of the Arbitration and Conciliation Act cannot be extended beyond specified timelines, maintaining strict adherence to legal provisions.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34(3) - Delay in application for setting aside arbitral award - The appellant contended that the application was time-barred by three months and thirty days, questioning jurisdiction and grounds for delay condonation - The court ruled that the application under Section 34(3) was indeed barred by limitation as timely filing was crucial for maintenance of lawfulness in arbitration. (Paras 1, 2, 10, 46)

(B) Limitation Period - The court acknowledged the necessity for strict adherence to the limitation period specified in Section 34(3) regarding setting aside arbitral awards, where 'three months' and 'thirty days' must be calculated from the date of receipt of the arbitral award. (Paras 39, 46)

Facts of the case:
The appellant, a contractor, faced disputes resulting in the termination of contracts, leading to arbitration. Following an award favoring the contractor, the respondent’s application to set it aside was deemed delayed by the court.

Findings of Court:
The learned Commercial Court's decision to condone the delay was set aside, reaffirming that limitations are foundational to arbitral adjudication.

Issues: 1) Whether the application under Section 34 was filed within the prescribed limitation period? 2) Did the court have the requisite jurisdiction?

Ratio Decidendi: The court concluded that the Limitation Act does not alter the specific timing requirements set forth in the Arbitration Act, emphasizing strict compliance to maintain procedural integrity.

Result: Appeals allowed.

Table of Content
1. jurisdiction issues under arbitration act (Para 1 , 2)
2. details of disputed contracts (Para 3 , 4)
3. awards issued by arbitrator and case number references (Para 5 , 6 , 7)
4. condonation of delay issues raised (Para 8)
5. court's decision analysis on jurisdiction (Para 9 , 27)
6. arguments on limitation calculations (Para 10 , 11 , 12 , 13 , 14)
7. statutory jurisdiction competency arguments (Para 15 , 16 , 17)
8. claims on delay explanations and counter-arguments (Para 18 , 19)
9. arguments surrounding the appropriateness of the commercial court's actions. (Para 20 , 24)
10. interpretation of effective dates for limitation (Para 31 , 32 , 33 , 34)
11. final ruling on limitation highlights adherence to statutory timely applications. (Para 39)
12. final ruling on limitation adherence and implications (Para 40 , 41 , 42 , 46)

JUDGMENT & ORDER (ORAL)

Aparesh Kumar Singh, CJ. - The primary question involved in these two appeals is whether an application under Section 34 of the Arbitration and Conciliation Act, 1996, as amended (for short, the Act) before the learned Commercial Court, West Tripura, Agartala was barred by the delay being beyond the period of three months and thirty days in terms of Section 34 (3) of the Act and its proviso.

2. The appellant is a contractor who has raised three more grounds of challenge in the present appeal preferred under Section 37 (1)(c) of the Act read with Section 13 (1-A) of the Commercial Courts Act , 2015 (hereinafter referred to as the Act of 2015), i.e. (ii) Whether the learned Commercial Court, West Tripura at Agartala had the jurisdiction to entertain a petition under Section 34 of the Act as the subject matter of the dispute pertains to Longtharai Valley which is in Dhalai District? (iii) Whether the Court of Additional District Judge, West Tripura at Agartala would be the competent court as prescribed under Section 2(1)(e) of the Act read with Section 10 of the Act of 2015? and (iv) whether the explanations offered by the respondent seeking condonation of delay constitute sufficient cause to condone the delay?

3. In order to appreciate the issues at hand the relevant facts of both the appeals are being chronicled in a brief manner hereinafter. In Arbitration Appeal No.5 of 2023, the appellant was appointed for execution of works contract, namely, construction of RCC Bridge (under RIDF-XIV) on Chailengta-Chawmanu road (i) over local Durgacherra at chainage 6.85 km Job No.TP/COM/258/08-09, (ii) over local Gurucharancherra at Chainage 8.35 km (Job No.TP/COM/259/08-09, (iii) Over local Hezacherra at Chainage 9.35 km (Job No. TP/COM/260/08-09. On account of a dispute which arose during the execution of the agreement, the respondent employer terminated the contract on December 11, 2018.

4. In Arbitration Appeal No.6 of 2023 the appellant was appointed for execution of works contract, namely, replacement of existing SPT Bridge by RCC Bridge over (i) Localcherra on the road from AA road to Maslimukh via Mundapara at Ch.5.00 km (length-15.00m) Job No.TP/COM/57/2012-13, (ii) Jarulcherra on the road from Manu Fire Service Station to Bichitra Das para at Ch.0.25 km (length-30.00 km), Job No. TP/COM/58/2012-13, (iii) Malidharcherra on the road from Kacharicherra TSR Camp to Kacharicherra Regrouping Centre road at Ch.0.21 km (length-60.00m), Job No. TP/COM/59/2012-13, sanctioned for implementation under NABARD (RIDF-XVIII). On account of a dispute which arose during the execution of the agreement, the respondent employer terminated the contract on July 1st, 2019.

5. On an application under Section 11 (6) of the Act, this Court appointed an Arbitrator in respect of both the disputes vide order dated 5th February, 2021. The learned Arbitrator registered case No. 2/ARB/SS/2021 in respect of Arbitration Appeal No. 05 of 2023 and case No. 1/ARB/SS/2021 in respect of Arbitration Appeal No. 06 of 2023. After exchange of pleadings and upon hearing the learned counsel for the parties and on going t

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