IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Reserved on: 04.07.2025 Date of decision: 08.07.2025 M/S VIJAY RICE AND GENERAL MILLS LTD AND ANR.

..Appellants Versus PUNJAB STATE CIVIL SUPPLIES CORPORATION LIMITED AND ORS.

..Respondents CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MR. JUSTICE ROHIT KAPOOR Present: Ms. Alka Chatrath, Advocate with Nishant Maini, Advocate Mr. Ritik Kapur, Advocate for the appellants.

ANIL KSHETARPAL, J.

I. Brief Facts of the case:

1. Through this appeal filed under Section 37 of Arbitration and Conciliation Act, 1996 (in short ‘1996 Act’) read with Section 13 of the Commercial Courts Act, 2015, the appellants assail the correctness of the judgment passed by the Commercial Court, Chandigarh on 24.03.2023, while dismissing their petition under Section 34 of the ‘1996 Act’. Along with the appeal, the appellants have also filed an application seeking condonation of delay of 26 days in filing the appeal, whereas, 652 days in refiling the appeal, which shall be examined if required; in the later part of this judgment.

2. An arbitration award was passed on 04.05.2016 against the appellants and in favour of the respondents for an amount of Rs.4,94,93,405/- along with interest accrued as on 13.03.2004, with future interest at the rate of 13% per annum with effect from 14.03.2004 till the date of realization.

3. The appellants have not filed a copy of objection petition. At the time of hearing, the attention of learned counsel representing the appellant was drawn to this fact, however, she only referred to the summary of objections as reproduced by the Commercial Court in para 8 of the judgment, which is extracted as under:-

“8. It is mainly averred that the award dated 4.5.2016 rendered by the arbitrator is wholly illegal, wrong, without jurisdiction and has been passed without complying with the provisions of the Act and is thus liable to be set aside. It is also averred that the issues arising out between the parties have not been decided by the arbitrator and thus the impugned award is liable to be set aside. It is also averred that specific objection was raised that the claim petition is bad for non-joinder and mis- joinder of necessary parties. The claim has been filed by Punsup through its District Manager, Amritsar whereas the agreement in the present case has been entered into by District Manager on behalf of Punjab State Civil Supplies through its Managing Director. The Punjab State Civil Supplies Corporation or the Managing Director has not been arrayed as a party. This fact is clear from the claim petition filed before the Arbitrator in which the claim has been filed only on behalf of District Manager, Punsup, Amritsar. Thus the claim of the claimant is liable to be dismissed. The arbitrator of its own has added the Managing Director, Punsup as a party. Thus the present award is liable to be set aside. It is also averred that the claim before the Arbitrator has not been filed by a person authorized by law. Even the authorization has been given by the board of Directors to Additional Manager, legal/Arbitrator or Additional Managing Director or Manager Personnel alongwith District Manager to sign the claim, written statements etc. whereas the claim in the present case has been filed and signed by District Manager only who has no authority to sign and verify the claim. Even through the issue of authorization was raised before the arbitrator, but it has not been decided and it has been stated that it is a matter of thorough investigation, which has not been conducted. Thus the impugned award is liable to be set aside on this score only. It is also averred that the award of the arbitrator deals with a dispute and decisions beyond the scope of arbitration and is thus liable to be set aside. It is an admitted fact that the capacity of the rice mill is 1.5 tonne milling capacity and thus paddy to the extent of 2250 MT was to be stored by respondent Punsup for milling and as per the capacity of t