Proviso to Section 34(3) of the Arbitration Act is applicable only when there is sufficient cause for not making the application within the prescribed period #indianlaws

Delhi High Court in a recent judgment has held that for application of the provisions of Section 34(3) of the Arbitration Act and, in particular, the proviso thereto, before the further period of 30 days is triggered, the condition precedent is that the court must be satisfied that the applicant was prevented by sufficient cause from making the application within the prescribed period of three months. As long as there is no satisfaction of the court that the applicant was prevented by sufficient cause from making the application within the period of three months, there is no question of the applicant seeking to avail the further period of 30 days under the proviso of the said section. In the instant case, one OMP was withdrawn when there was only one day left out of the initial period of three months for making the application. But, the petition was refiled only 29 days later. No reason was given as to why the petition could not have been filed on the very next day and therefore delay cannot be condoned.

Steel Authority of India Limited vs. Everest Rolling Industries Private Limited

FAO (OS) 231/2016