2024 Supreme(Online)(KER) 37935
HIGH COURT OF KERALA
A. Muhamed Mustaque, S.MANU, JJ
NATIONAL HIGHWAYS AUTHORITY OF INDIA – Appellant
Versus
P.V.GEORGE – Respondent
WA 1600/2022
The Limitation Act does not apply to arbitration under the National Highway Act, and the appropriate remedy against an Arbitrator's decision is through Section 34 of the Arbitration and Conciliation Act.
Headnote:(A) National Highway Act, 1956 - Limitation for arbitration - Arbitration and Conciliation Act, 1996 - Section 43 - Limitation Act, 1963 - The court ruled that there is no limitation prescribed under the National Highway Act for arbitration, thus Limitation Act does not apply. (Paras 4-6)
(B) Writ petition maintainability - The court found that the remedy against the Arbitrator's decision lies under Section 34 of the Arbitration and Conciliation Act, rendering the writ petition not maintainable. (Paras 7)
Facts of the case:
The District Collector rejected an arbitration request on 06.09.2012 due to delay, and a subsequent request was made in 2022, challenging the earlier decision.
Findings of Court:
The court held that the writ petition challenging the Arbitrator's decision was not maintainable and set aside the impugned judgment.
Issues: Whether limitation applies to arbitration under the National Highway Act and the maintainability of a writ petition against an Arbitrator's decision.
Ratio Decidendi: The court clarified that the Limitation Act does not apply to arbitration under the National Highway Act, and the appropriate remedy is under Section 34 of the Arbitration and Conciliation Act.
Result: Writ appeal allowed.
JUDGMENT
Dated this the 23 rd day of July 2024 A.Muhamed Mustaque, Acg.C.J.
There are two questions to be decided in this matter. One is in regard to the application of limitation for arbitration under the National Highway Act . The second question is whether the writ petition is maintainable, challenging a decision of the Arbitrator under the National Highway Act , 1956, in a petition filed under Article 226 of the Constitution of India.
2. The facts in this case clearly establish that as early as on 06.09.2012, the District Collector, who is the Arbitrator under the National Highway Authority, rejected the arbitration request on the ground of delay. Thereafter, the writ petitioner, filed another request for arbitration in the year 2022. The writ petitioner relying on the judgment of this Court in W.P.(C)21796/2019, approached this Court in the writ petition challenging a decision of the Arbitrator of the year 2012. This Court, noting that such a delay can be condoned in the light of the judgment of this Court in W.P. (C)No.21796/2019, allowed the writ petition and ordered the District Collector to reconsider the request for arbitration.
3. It is now submitted at the Bar by the learned Counsel for the National Highway Authority, the appellant in this case that a Division Bench of this Court has set aside the judgment of this Court in W.P.(C)No.21796/2019 in writ appeal No.1364/2020.
4. On the ground of limitation, for clarity, we refer to the relevant statutory provision. Under Section 3G (5) of the National Highway Act , it is stipulated as follows:
There is no prescription of limitation under the National Highway Act .
5. Under the Arbitration and Conciliation Act , 1996, limitation has been prescribed in Section 43 as follows:
In Section 43 , it is stipulated that the Limitation Act , 1963 shall apply to all arbitrations as it applies to proceedings in court. Therefore, in the light of the Arbitration and Conciliation Act , the the limitation would apply to all arbitrations. However, Section 2(4) of Part -I of , reads as follows:
6. It is clear from Section 2(4) of the Arbitration and Conciliation Act that Section 43 will not apply to every arbitration under any other enactment. This means that if no limitation is prescribed under any other enactment, provisions of the Limitation Act would not apply to such arbitration under such enactment. In the light of the above, we are of the view that will not apply for arbitration under the National Highway Act .
7. The question of interfering with the writ petition challenging the decision has been dealt with by the Division Bench of this Court in writ appeal No.1364/2024. This Court, in categorical terms, held that the remedy to challenge the decision of the Arbitrator, who is the District Collector, is by invoking the provisions under Section 34 of the Arbitration and Conciliation Act . Thus it is clear that the writ petition is not maintainable against the decision of the Arbitrator, who happens to be a District Collector. Thus, holding that the writ petition is not maintainable, we set aside the impugned judgment and allow this writ appeal.