Union Of India vs Phulwanti Devi

Heard Mr. Pratyush Kumar, counsel appearing on behalf of the appellant.

This appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 challenging the judgment and order dated 31.05.2018

passed by the learned Civil Judge (Sr. Div.) I, Ranchi in Misc. Case No. 29 of 2013 whereby the application filed on behalf of the appellant under

Section 34 of the Arbitration and Conciliation Act, 1996 for setting aside the Award passed by the learned Arbitrator, has been rejected.

An interlocutory application being I.A. No. 4871 of 2019 has been filed for condonation of delay of 230 days in filing the present arbitration appeal.

The impugned order is dated 31.05.2018 and the appeal has been filed on 14.05.2019.

During the course of hearing of this I.A., counsel for the appellant was informed about recent judgment of the Hon’ble Supreme Court in Civil

Appeal No. 9244 of 2019 (M/S N.V. International Vs. The State of Assam & Ors.) decided on 06.12.2019 wherein it has been held that the appeal

under Section 37 of the Arbitration and Conciliation Act, 1996 has to be necessarily filed within a period of 90 days with a further period of

condonable delay of 30 days i.e. within a total period of 120 days and any further delay cannot be condoned. Counsel for the appellant has gone

through the said judgment and is not in a position to advance any argument for condonation of delay of 230 days which is involved in the present

appeal.

After hearing the counsel for the appellant, this Court finds that the point regarding condonation of delay in filing an appeal under Section 37 of the

Arbitration and Conciliation Act, 1996 is squarely covered by the aforesaid judgment of the Hon’ble Supreme Court passed in Civil Appeal No.

9244 of 2019 decided on 06.12.2019 wherein it has been clearly observed that so far as the filing of appeal is concerned, Article 116 of the Limitation

Act would come into play and ultimately, it has been held in para 5 that a period of 90 days is available to file an appeal under Section 37 of the

Arbitration and Conciliation Act, 1996 and the grace period of 30 days of condonable delay under Section 5 of the Limitation Act is available. It has

also been held that delay beyond 120 days is not liable to be condoned. The Hon’ble Supreme Court has followed the earlier judgment and order

dated 17.09.2018 passed in SLP (C) No. 23155 of 2013 (Union of India Vs. Varindera Const. Ltd.), wherein it has been held as under:

“… that an appellate proceeding is a continuation of the original proceeding, as has been held in Lachmeshwar Prasad Shukul and

Others Vs. Keshwar Lal Chaudhuri and Others, AIR 1941 Federal Court ,5 and repeatedly followed by our judgments, we feel that any

delay beyond 120 days in the filing of an appeal under Section 37 from an application being either dismissed or allowed under Section 34

of the Arbitration and Conciliation Act, 1996 should not be allowed as it will defeat the overall statutory purpose of arbitration proceedings

being decided with utmost despatch.â€​

Admittedly, in the present case, the delay in filing the appeal is 230 days and considering the judgment passed by the Hon’ble Supreme Court,

the delay of 230 days cannot be condoned by this Court, therefore, the petition for condonation of delay being I.A. No. 4871 of 2019, is hereby

rejected.

Accordingly, this arbitration appeal is also dismissed.

Let a copy of this order be communicated to the learned court below through ‘FAX’.