Himachal Pradesh High Court: Section 5 Limitation Act Not Applicable To An Application Challenging Arbitral Award U/S 34 A&C Act
The Himachal Pradesh High Court was considering an Application for condonation of delay of 258 days in institution of an Appeal under Section 37 of the Arbitration Act.
The Himachal Pradesh High Court has held that an Application seeking setting aside of an award can only be filed within the prescribed period under Section 34(3) Of Arbitration Act and delay beyond it cannot be condoned in view of Section 5 of the Limitation Act.
The Court was considering an Application for condonation of delay of 258 days in institution of an Appeal under Section 37 of the Arbitration Act.
The single bench of Justice Jyotsna Rewal Dua observed, "It is well settled that Section 5 of the Limitation Act has no application to an application challenging an arbitral award under Section 34 of the Act. Under Section 34(3) of the Act, an application for setting aside the award on the grounds mentioned in Section 34(2) of the Act can be made within three months and the period can only be extended for a further period of thirty days on showing sufficient cause and not thereafter. The use of the words “but not thereafter” in the proviso to Section 34 makes it clear that extension cannot be beyond thirty days."
The Petitioner was represented by Advocate Shreya Chauhan.
Facts of the Case
The Award was passed by the Arbitrator against the Appellant/Applicant on January 03, 2022. The Applicant/Appellant filed objections under Section 34 of the Arbitration and Conciliation Act, 1996, against the award which were dismissed by the District Judge on June 13th 2024 on the ground of that having been preferred beyond three months plus 30 days provided for the purpose under Section 34 of the Act. Feeling aggrieved, Applicant/Appellant instituted this Arbitration Appeal taking recourse to Section 37 of the Act. There was a delay of 258 days in institution of the present Appeal as well. Hence, Application was moved for condoning the delay.
Reasoning By Court
The Court noted that in view of facts and circumstances of the case, there is no necessity for issuing Notice to the Respondents
"In the instant case, three months’ period from the date of receipt of award expired on 22.11.2022. Further period of thirty days lapsed on 22.12.2022. The petition under Section 34 of the Act was instituted on 19.01.2023. There was a delay of about 33 days in moving the application under Section 34 of the Act by the present applicant. Learned District Judge, therefore, did not err in holding that a delay beyond 120 days in moving the application under Section 34 of the Act could not be condoned. Even otherwise, the applicant/appellant has failed to justify the delay in taking recourse to Section 37 of the Act as well," the Court observed.
The Application was accordingly dismissed.
Cause Title: National Highway Authority of India vs. Jagroop Singh & Ors.
Appearance
Appellant- Advocate Shreya Chauhan, Advocate Sneh Bhimta
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