Section 5 Of The Limitation Act Applies To Arbitration Reference Under National Highways Act, 1956: High Court of Madhya Pradesh

The Division Bench of Chief Justice Ravi Malimath and Justice Purushiandra Kumar Kaurav reiterated that since no limitation is provided under Section 3G(5) of the National Highways Act, the provisions of Article 137 of the Schedule to the Limitation Act would apply to such proceedings.

The Court held that therefore, the limitation period for filing an appeal against the decision of the competent authority before the arbitrator is three years from the date of expiry of 90 days from the decision of the competent authority.

Facts

Mr. Ghanshyam Gupta (Petitioner) was the landowner of the land which was acquired by Madhya Pradesh Road Development Corporation (Respondent). The competent authority determined the quantum of compensation payable to the petitioner and passed an award to that effect on 30.07.2015.

Being dissatisfied with the quantum of compensation determined by the competent authority, the petitioner filed an appeal before the arbitrator on 04.12.2019. The arbitrator dismissed the appeal as time-barred filed after the expiry of three years limitation period.

Aggrieved by the decision of the arbitrator, the petitioner filed a writ petition before the High Court.

The Contention Of The Parties

• Section 5 of the Limitation Act is applicable to arbitration reference under Section 3G(5) of the National Highways Act, 1956.
• The petitioner was unaware of the availability of the remedy of appeal against the decision of the competent authority, it is only after consulting his lawyer, that he came to know that he could seek enhancement. Therefore, there is a valid ground to condone the delay.

The respondents countered the submissions of the petitioner on the following grounds:

• In absence of a period of limitation for filing an appeal under Section 3G(5) of the Act of 1956, it was construed that the provisions of Article 137 of the Limitation Act would stand applicable.
• Article 137 provides for 3 years period, and the petitioner filed the appeal after a delay of 4 years.

Analysis By The Court

The Court held that since no limitation is provided under Section 3G(5) of the National Highways Act, the provisions of Article 137 of the Schedule to the Limitation Act would apply to such proceedings.

The Court held that therefore, the limitation period for filing an appeal against the decision of the competent authority before the arbitrator is three years from the date of expiry of 90 days from the decision of the competent authority.

The Court held that there is nothing in the National Highways Act that excludes the applicability of Section 5 of the Limitation Act, therefore, Section 5 of the Limitation Act would be applicable to reference to arbitration under the National Highways Act, 1956 and the arbitrator has the power to condone the delay in filing an appeal against the award by the competent authority.

The Court held that the petitioner was not aware that an appeal could be filed against the decision of the Competent Authority and it is only after consulting his lawyer that he came aware of any such right, therefore, there is sufficient reason to condone the delay.

The Court allowed the application and directed the arbitrator to decide the case of the petitioner on merit.

Case Title: Ghanshyam Gupta v. State of Madhya Pradesh and Ors. Writ Petition No. 13670 of 2021

Citation: 2022 LiveLaw (MP) 169

Counsel for the Petitioner: Mr. Shambhoo Dayal Gupta

Counsel for the Respondents: Mr. Rohit Jain and Atul Nema

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