KRISTAL VISION PROJECTS PRIVATE LIMITED vs UNION OF INDIA

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(Del) 4891

IN THE HIGH COURT OF DELHI AT NEW DELHI
KRISTAL VISION PROJECTS PRIVATE LIMITED – Appellant
Versus
UNION OF INDIA – Respondent
FAO(OS) (COMM)-206/2024

Judgement Key Points

Case Summary

This is an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, challenging the order dated 27.05.2024 dismissing a Section 34 application due to limitation. (!) (!) (!) (!)
Appellant: Kristal Vision Projects Private Limited; Respondent: Union of India. (!)
Decided on 23.05.2025 by Justices Vibhu Bakhru and Tejas Karia. (!) (!) (!)

Factual Background

Dispute arose from a contract dated 26.02.2010 (letter of acceptance 10.03.2010) for constructing 826 dwelling units in Meerut; contract terminated by both parties on 31.03.2016. (!)
Appellant invoked arbitration via Section 11 petition (ARB.P. 208/2017); sole arbitrator appointed on 22.02.2018. (!)
Arbitral award dated 16.10.2023 in favor of Respondent: Appellant to pay Rs. 25,98,58,132.05 plus 7% interest (total Rs. 35,11,57,328.91 as of award date); 9% interest post 30 days if unpaid. (!)
Pre-pronouncement: Parties directed to submit Rs. 500 stamp papers by 05.10.2023; virtual hearing on 16.10.2023 at 10:30 AM for pronouncement. (!) (!)
During hearing: Award signed; 3 copies printed (2 on stamp papers, 1 plain); pronounced via VC attended by reps (Appellant's: Mr. Rama Varma Ch.; Respondent's: Mr. R.K. Kayesth); parties directed to collect hard copies; scanned copy emailed at 5:00 PM. (!)
Mr. Rama Varma Ch. emailed at 5:24 PM on 16.10.2023 confirming receipt, copied to Appellant's MD (Mr. Avva Sita Rama Rao). (!) (!) (!) (!)
Appellant collected/received Award copy on 09.03.2024 from arbitrator's office; filed Section 34 petition on 21.05.2024. (!) (!)

Impugned Order (Single Judge)

Dismissed Section 34 petition as time-barred; held award pronounced/signed in parties' presence via VC; scanned copy emailed; parties directed to collect; no due diligence by Appellant. (!) (!) (!) (!) (!) (!)
Mr. Avva Sita Rama Rao affirmed Mr. Rama Varma Ch. as deputed rep (technical person), though employment ended June 2023; no denial of prior authorization. (!) (!)
Distinguished prior rulings; held "signed copy" includes signing in VC presence; "delivered" includes pronouncement/direction to collect + email. (!) (!)

Proceedings in Appeal

Interim order on 03.12.2024 noted Appellant's claim (Mr. Rama Varma Ch. not employee); Respondent highlighted confirmation email copied to MD; Appellant filed additional affidavit (05.01.2025) by Mr. Avva Sita Rama Rao denying authorization, awareness, delivery; claimed email "missed"; company in financial distress. (!) (!) (!) (!) (!) (!) (!)

Appellant's Submissions

Core issue: No delivery under Section 31(5); "party" means party itself (per Section 2(h)), not agent/rep/counsel; Mr. Rama Varma Ch. unauthorized post-June 2023; first receipt 09.03.2024; petition within time. (!) (!) (!)

Respondent's Submissions

Mr. Rama Varma Ch. was authorized rep throughout (affidavits, emails, vakalatnama, hearing minutes); confirmed receipt on 16.10.2023; Appellant's stand afterthought to evade limitation. (!) (!)

Court's Analysis and Legal Principles on Section 31(5)

Mandatory: Tribunal must deliver signed copy to each party; limitation under Section 34(3) starts from such delivery. (!) (!) (!)
"Signed copy": Authenticated/certified copy (not necessarily ink-signed original; photocopy/scanned if authenticated). (!) (!) (!) (!)
Delivery obligation on Tribunal: Pronouncement + direction to collect insufficient alone; must ensure/dispatch if not collected. (!) (!) (!)
To "party": Directly to party (not just counsel/agent unless duly authorized); but authorized rep's receipt valid if held out as such. (!) (!) (!)
Electronic delivery valid if authenticated (scanned signed copy via email). (!) (!) (!)
Summary of principles: Strict compliance; Tribunal ensures delivery; electronic OK if authenticated; to parties/authorized counsel. [p_69 to p_75]

Decision

Mr. Rama Varma Ch. validly represented Appellant (no revocation notice to Tribunal; consistent role). (!) (!)
No physical delivery evident, scanned email to counsel inadequate (not to parties, not digitally signed). (!) (!)
Valid delivery on 16.10.2023 cumulatively: Stamp papers supplied; rep present at VC pronouncement/signing; confirmation email by rep (copied to MD, admitted but "missed"); direction to collect. (!) [p_80 to p_85]
Section 34 petition time-barred; impugned order upheld; appeal dismissed. (!)

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgement delivered on: 23.05.2025 + FAO(OS) (COMM) 206/2024, CM APPL. 52678/2024 KRISTAL VISION PROJECTS PRIVATE LIMITED ....Appellant versus UNION OF INDIA .....Respondent Advocates who appeared in this case For the Appellant : Mr. Arvind Nayyar, Sr. Advocate with Mr.

Vinay Tripathi, Mr. Akshay Joshi, Mr. Shravanth Shanker, Ms. Grahita Agarwal, Advocates for the appellant.

For the Respondent : Ms. Nidhi Raman, CGSC with Ms. Archana Surve, Government Pleader, Mr. Zubin Singh and Mr. Aakash Mishra, Advocates.

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA

JUDGMENT

TEJAS KARIA, J

1. The present appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 (“Act”) being aggrieved by the order dated 27.05.2024 passed by the learned Single Judge of this Court in OMP (COMM) No. 239/2024 (“impugned order”).

Signature Not Verified FAO(OS) (COMM) 206/2024 Page 1 of 21 Signed By:NEELAM

2. Vide impugned order, the application filed by the Appellant under Section 34 of the Act assailing the Arbitration Award dated 16.10.2023 (“Award”) was dismissed on the ground of delay in the filing of the said application as the same was filed beyond the prescribed period of limitation under Section 34 of the Act.

FACTUAL BACKGROUND

3. The dispute between the parties arose out of a contract dated 26.02.2010 entered into for the construction of dwelling units for the armed forces in Meerut, Uttar Pradesh and the letter of acceptance was issued subsequently on 10.03.2010. The contract was entered into for the construction of 826 dwelling units which was awarded to the Appellant. The Respondent issued Termination Letter on 31.03.2016 and the Appellant issued the letter rescinding the contract on the same day. The ground for termination of contract by the Respondent was that the Appellant had committed a breach of Clause 48 of the General Conditions of Contract, whereas the Appellant‟s termination was due to delay in issuing extension of time, violation of the contractual terms of illegal deductions from the RA bills, non-payment for extra works, abnormal delay in decision-making and for failure to issue completion certificate by the Respondent.

4. Pursuant to the termination of the contract, the Appellant preferred an application under Section 11 of the Act before this Court being Arbitration Petition No. 208/2017 for appointment of an arbitrator and vide order dated 22.02.2018, the learned Sole Arbitrator was appointed. The Arbitral Tribunal passed the Award dated 16.10.2023, in favour of the Respondent, directing the Appellant to make the payment of Rs. 25,98,58,132.05/- to the Respondent along with interest at the rate of 7% per annum from the date of Signature Not Verified FAO(OS) (COMM) 206/2024 Page 2 of 21 Signed By:NEELAM filing of the Statement of Claim till the date of pronouncement of the Award. The total interest amount as on the date of passing the Award was Rs. 9,12,99,196.86/-. Accordingly, the total amount awarded by the learned Arbitral Tribunal was Rs. 35,11,57,328.91/-. The Award further granted 30 days to the Appellant to make the payment of the awarded amount, failing which the Appellant was liable to pay interest at the rate of 9% per annum from 15.11.2023 till the date of payment.

5. On 30.09.2023, the learned Arbitral Tribunal informed the counsels for the parties that the Award was prepared and ready for pronouncement and, therefore, both parties were directed to submit a non-judicial stamp paper of Rs. 500/- each by 05.10.2023.

6. The learned Arbitral Tribunal held a virtual hearing on 16.10.2023 at 10:30 AM for pronouncement of the Award. During the said hearing, the learned Arbitral Tribunal passed a procedural order recording the proceedings and the minutes of the hearing was circulated to the parties. As per the said minutes, the Appellant was represented through Mr. Rama Varma Ch. and the Respondent was represented through Mr. R. K. Kayesth. The m

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