Restriction in the power of the Court to condone delay in re-filing objections to Arbitration Award

Court has the Jurisdiction to condone delay in re-filing even if the period extends beyond the time specified in Section 34(3) of the Arbitration and Conciliation Act, 1996

Court has the Jurisdiction to condone delay in re-filing even if the period extends beyond the time specified in Section 34(3) of the Arbitration and Conciliation Act, 1996 Whether the delay in re-filing of any pleading beyond the time prescribed in the statute can be condoned, and the jurisdiction to condone the delay rest with the Court was the question that arose for consideration before the Delhi High Court. In the instant matter there was a delay in re-filing the application and the question before the Court was as to whether a court has the jurisdiction to condone delay in re-filing of an application under section 34 of the Arbitration and Conciliation Act, 1996 (Act) where the aggregate period of delay exceeds the period of limitation specified under section 34(3) thereof the Act and if so, whether the delay in re-filing ought to be condoned?. Section 34(3) prescribes time limit for making an application to set aside an award. It nowhere provides for further steps once such an application is made. Thus, the Act is silent on time limit in respect of re-filing of application under section 34 of the Act, which infact was returned to remove to certain defects. The Court further observed that the cases of delay in re-filing are different from cases of delay in fresh filing. It is imperative to be seen that the petitions or applications filed by a party are not hopelessly inadequate and insufficient or contain such defects which are basic for the filings. In such event the filing done by the party would be considered non est and of no consequence and no benefit can be given to the party so far as the initial filing and the date on which the defects were cured is concerned. Even though if there is no specific statute barring jurisdiction of the Court in considering the question of delay in refiling, the courts are not powerless to entertain such application where the delay in re-filing was beyond the time limit specified. The Court however even if is empowered to have the jurisdiction to condone the delay, such jurisdiction should not be exercised liberally and the conduct of the applicant has to be seen as to whether applicant acted with due diligence and dispatch. The applicant would have to show that the delay was on account of reasons beyond the control of the applicant and could not be avoided despite all possible efforts by the applicant. Delhi Development Authority vs. M/s. Durga Construction Co. [Delhi HC, 07.11.2013]