Arbitration | View That Delay Beyond 120 Days For S.37 Appeals Can't Be Condoned May Require Reconsideration: Supreme Court

The Supreme Court has observed that the view expressed in an earlier judgment that delay beyond the period of 120 days in preferring an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 cannot be condoned may require reconsideration.

The Court observed that in view of Section 43 of the Act, the above-said view might require reconsideration. As per Section 43, the Limitation Act, 1963, is applicable to proceedings under the Arbitration and Conciliation Act.

A bench comprising Justices Abhay S Oka and Augustine George Masih was hearing a challenge to an order of the Himachal Pradesh High Court which condoned the delay of 166 days in filing an appeal under Section 37 of the Act.

Questioning the High Court's judgment, the petitioner relied on the Supreme Court's judgment in Union of India vs. Varindera Constructions Ltd (2020) 2 SCC 111.

Expressing prima facie disagreement with the view, the bench observed :

"Learned counsel appearing for the petitioner places reliance on a decision of this Court in the case of Union of India vs. Varindera Constructions Ltd., (2020) 2 SCC 111. This judgment takes a view that the delay beyond the period of 120 days in preferring an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 cannot be condoned.

Prima facie, it appears to us that in view of Section 43 of the 1996 Act, the said view may require reconsideration."

It may be noted in 2021, the Court had raised a similar issue in Union of India v. M/s Associated Construction, where it agreed to consider the question what would be the appropriate period of limitation applicable to appeals filed under Section 37 of the Arbitration and Conciliation Act, 1996?

Case : M/S SAB INDUSTRIES LIMITED v. THE STATE OF HIMACHAL PRADESH & ANR. SLP(c) No. 21111/2024

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