High Court of Karnataka Dismisses Appeal for Condonation of Delay in Arbitration Matter — Delay of 270 Days Not Sufficiently Explained. Internal administrative procedures do not constitute sufficient cause for condonation of delay under Section 5 of the Limitation Act, 1963.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The case involves an appeal filed by the National Highways Authority of India (NHAI) and the Special Land Acquisition Officer against an order dated 30.03.2021 passed in A.S. No.1/2019 by the Principal District and Sessions Judge, Mandya, dismissing a petition under Section 34 of the Arbitration and Conciliation Act. The appeal was filed under Section 37(1)(c) of the Arbitration and Conciliation Act. Along with the appeal, the appellants filed an application under Section 5 of the Limitation Act seeking condonation of a delay of 270 days in filing the appeal. The appellants, represented by Sri Prakasha Angadi B.V., argued that the delay occurred due to internal administrative procedures: after the judgment was passed on 30.03.2021, a copy was sent for obtaining legal opinion, and upon receipt of the opinion, it was decided to challenge the order. They further stated that on account of the procedure involved in finalizing and processing the papers, there was a delay. The respondent, Smt. Meerashivalingaiah, represented by Sri P.V. Chandrashekar, opposed the application, filing a statement of objections. The court, presided over by Justice H.P. Sandesh, examined whether the explanation constituted 'sufficient cause' under Section 5 of the Limitation Act. The court noted that the only reasons given were internal administrative delays, which are not beyond the control of the party and indicate negligence. The court held that such delays cannot be condoned as they do not constitute sufficient cause. The court dismissed the application for condonation of delay, and consequently, the appeal was also dismissed as barred by limitation.

Headnote

A) Limitation Act - Condonation of Delay - Section 5 - Sufficient Cause - The appellants sought condonation of 270 days delay in filing an appeal under Section 37 of the Arbitration and Conciliation Act, citing internal administrative procedures for obtaining legal opinion and processing papers. The Court held that such internal delays do not constitute 'sufficient cause' as they are not beyond the control of the party and reflect negligence. The application was dismissed. (Paras 1-6)

B) Arbitration and Conciliation Act - Appeal - Section 37 - Limitation - The appeal under Section 37(1)(c) of the Act is subject to the Limitation Act, and delay beyond the prescribed period must be explained with sufficient cause. The Court found the explanation of 'procedure involved in finalizing papers' as vague and insufficient. (Paras 2-6)

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Issue of Consideration

Whether the delay of 270 days in filing the appeal under Section 37 of the Arbitration and Conciliation Act should be condoned on the ground of internal administrative procedures?

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Final Decision

The application for condonation of delay is dismissed. Consequently, the appeal is also dismissed as barred by limitation.

Law Points

  • Condonation of delay
  • Sufficient cause
  • Limitation Act
  • Section 5
  • Arbitration and Conciliation Act
  • Section 37
  • Internal administrative delay
  • Liberal approach
  • Negligence
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Case Details

2023 LawText (KAR) (07) 22

M.F.A. No.1402/2023 (AA)

2023-07-28

H.P. Sandesh

Sri Prakasha Angadi B.V. for appellants; Sri P.V. Chandrashekar for respondent 1; Mrs. Leena C. Shivapurmath, HCGP for respondent 2

National Highways Authority of India, Project Implementation Unit-Ramanagara, Rep. by its Project Director B.T. Sridhara and Special Land Acquisition Officer and Competent Authority, NH-275, Bangalore Mysore Division, Mandya

Smt. Meerashivalingaiah, D/o S.T. Nagalakshmi, W/o B. Shivalingaiah, R/at Taveregere, Mandya City and The Arbitrator and Deputy Commissioner, Mandya District, Mandya

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Nature of Litigation

Appeal under Section 37(1)(c) of the Arbitration and Conciliation Act against an order dismissing a petition under Section 34 of the Act, along with an application for condonation of delay.

Remedy Sought

The appellants sought condonation of 270 days delay in filing the appeal and setting aside of the order dated 30.03.2021.

Filing Reason

The appellants claimed that the delay occurred due to internal administrative procedures for obtaining legal opinion and processing papers.

Previous Decisions

The Principal District and Sessions Judge, Mandya, dismissed the petition filed under Section 34 of the Arbitration and Conciliation Act read with Order VII Rule 1 of CPC on 30.03.2021.

Issues

Whether the delay of 270 days in filing the appeal should be condoned on the ground of internal administrative procedures?

Submissions/Arguments

Appellants: The delay was due to internal administrative procedures, including obtaining legal opinion and processing papers, which caused a delay of 270 days. Respondent: The application for condonation of delay was opposed by filing a statement of objections.

Ratio Decidendi

Internal administrative delays, such as obtaining legal opinion and processing papers, do not constitute 'sufficient cause' under Section 5 of the Limitation Act, as they are within the control of the party and reflect negligence. The court must adopt a liberal approach but cannot condone delay where the explanation is vague and lacks diligence.

Judgment Excerpts

The only ground urged in the affidavit is that the judgment was sent for obtaining legal opinion and after receipt of the opinion, it is observed that the impugned judgment passed was erroneous and it requires to be challenged and hence decided to challenge the impugned order by filing the above appeal. On account of the procedure involved in finalizing the papers and processing the same, there is a bit delay in filing the above appeal. The said grounds are not sufficient to condone the delay of 270 days.

Procedural History

The Principal District and Sessions Judge, Mandya, passed an order on 30.03.2021 in A.S. No.1/2019 dismissing a petition under Section 34 of the Arbitration and Conciliation Act. The appellants filed an appeal under Section 37(1)(c) of the Act along with an application under Section 5 of the Limitation Act to condone the delay of 270 days. The High Court heard the application and dismissed it on 28.07.2023.

Acts & Sections

  • Limitation Act, 1963: Section 5
  • Arbitration and Conciliation Act, 1996: Section 37(1)(c), Section 34
  • Code of Civil Procedure, 1908: Order VII Rule 1
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