Punjab, Small Industries and Exports Corp. Ltd v. M/S Bhullar Const. Co. and Another

o o INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAoATo CHANDIGARHoo o o 2o o o o o CM-117-FCARB-2023oin/ando FAO-CARB-37-2023o(O&M)o o o o o o Dateoofodecision:o11.08.2025o o o PunjaboSmalloIndustriesoandoExportoCorporationoLtd.oo o o o ...Appellanto o o o Versuso o M/soBhullaroConstructionoCompanyoandoanothero o o ...Respondentso o o o o o CORAM:o HON'BLEoMR.oJUSTICEoHARSIMRANoSINGHoSETHIo o o HON'BLEoMR.oJUSTICEoVIKASoSURIo o o Present:o Mrs.oKanwaloS.oWalia,oAdvocateoforotheoappellant.oo o o o Ms.oDeepalioPuri,oAdvocateoforotheorespondents.oo oo o o o o o o o *****o o VIKASoSURI,oJ.o CM-117-FCARB-2023o oo o PrayeroinothisoapplicationounderoSectiono5oofotheoLimitationo Act,o 1963,o iso foro condoningo theo delayo ofo 130o dayso ino filingo theo accompanyingoFirstoAppealofromoOrdero(FAO).oo o o Upononoticeoofotheoapplication,otheorespondentsohaveoputoino appearanceothroughocounseloandoopposedotheosame.oo o o Learnedocounseloforotheoapplicant-appellantosubmitsothatotheo applicant-appellant-corporationohadopreferredoobjectionsounderoSectiono34o ofotheoArbitrationoandoConciliationoAct,o1996o(foroshort,o'ArbitrationoAct')o againsto theo awardo datedo 02.04.2017o passedo byo theo learnedo Arbitrator,o wherebyotheoappellantowasoorderedotoopayoaosumoofoRs.60,74,075/-otootheo claimant-respondento withino threeo months,o failingo whicho theo awardedo CM-117-FCARB-2023oin/andoo -2-o o o amounto wasotoo carryo interesto@o10%opero annumo fromo theodateoofo theo award.o Theo application/objectionso filedo undero Sectiono 34o ofo theo ArbitrationoAct,owereodismissedobyotheolearnedoAdditionaloDistrictoJudge-cum-Presidingo Officer,o Commercialo Court,o Chandigarh,o video judgmento datedo20.01.2023.oo o o Aggrievedo byo theo saido judgment,o theo applicant-appellant-corporationo haso movedo theo presento appealo alongo witho theo instanto applicationoseekingocondonationoofodelayoofo130odaysoinofilingotheoappeal.oo o o Itoisopleadedothatouponoreceiptoofointimationobyotheoappellant-applicantofromoitsocounselobeforeotheolearnedoCommercialoCourt,oaboutotheo passingoofotheoimpugnedojudgmentodatedo23.01.2023,orequestoforoapplyingo foroaocertifiedocopyothereof,owasomade.oTheoapplicationoforoobtainingotheo certifiedo copyo waso movedo ono 08.02.2023,o whicho waso deliveredo ono

15.04.2023.oThereafter,oonoretrievingotheoentireorecordofromotheocounselo whoo hado conductedo theo mattero beforeo theo learnedo Commercialo Court,o Chandigarh,o ano opinionohado toobeosoughto fromo theo concernedo officialso regardingosuitabilityoforopreferringoanoappealobeforeotheoHighoCourt.oItoiso furthero pleadedo thato theo applicant-corporationo iso ao Governmento organization,owithoaopedanticosystemohavingomanyoformalitiesothatoinvolveo hierarchicalostructure,owhichoresultedoinotakingosomeotimeoforoappointmento ofo counselo too prefero theo appeal.o Ito iso furthero pleadedo thato thereo iso noo intentionalodelayoonotheopartoofotheoapplicantoinofilingotheoappeal,obutoforo theocircumstancesobeyondoitsocontrol.oo o o Learnedocounseloforotheoapplicantohasosubmittedothatoinitiallyo theoappealowasofiledounderoSectiono37oofotheoArbitrationoActoforowhichotheo CM-117-FCARB-2023oin/andoo -3-o o o periodo ofo limitationo iso 90o days,o providedo undero Articleo 116o ofo theo LimitationoAct,o1973.oThus,otheodelay,oinofact,oisoonlyoofo100odays.oItoiso furthero submittedo thato ono certaino objectionso havingo beeno raisedo byo theo RegistryoofothisoCourt,owhereafter,otheomatterowasorefiledoafteroremovingo theosaidoobjectionsoandouponorefiling,otheoRegistryohasotreatedotheopresento appealoasoFirstoAppealofromoOrdero(CommercialoArbitration)ounderotheo provisionoofoSectiono13(1A)oofotheoCommercialoCourtsoAct,o2015.oTheo periodoofolimitationoforopreferringoanoappealounderotheosaidoprovisionohaso beenoreckonedotoobeo60odaysoandothus,odelayoofo130odaysoinofilingotheo appealohasobeenocalculated.oo o o Perocontra,olearnedocounseloforotheorespondentsohasoopposedo theopresentoapplicationoandodefendedotheoimpugnedoorderopassedobyotheo learnedoCommercialoCourt,oChandigarh.oItoisocontendedoonobehalfoofotheo respondentsothatoinoviewoofotheoprovisionoofoSectiono37oofotheoArbitrationo Act,odelayobeyondoaoperiodoofo120odaysoinofilingotheoappealocannotobeo condoned.oItoisofurtherosubmittedothatotheoprovisionoofoSectiono5oofotheo LimitationoActowouldonotoapplyotooanoappealopreferredounderoSectiono13oofo theo Commercialo Courtso Act,o 2015.o Relianceo haso beeno placedo ono N.V.o Internationalovs.oStateoofoAssamoandoothers,o(2020)o2oSCCo109,owhicho followedo ando appliedo theo ratioo ino Uniono ofo Indiao vs.o Varinderao ConstructionsoLtd.,o(2020)o2oSCCo111.oo o o Heardo learnedo counselo foro theo partieso ando witho theiro ableo assistanceoperusedotheorecord.oo o o Learnedo counselo foro theo applicant-appellanto refutingo theo contentionsoofolearnedocounseloforotheorespondentsohasoarguedothatotheo CM-117-FCARB-2023oin/andoo -4-o o o judgmentorenderedoinoN.V.oInternational'socaseo(supra)ohasosinceobeeno overruledobyoaothree-judgeoBenchodecisionoinotheomatteroofoGovernmentoofo Maharashtrao(WateroResourcesoDepartment)oRepresentedobyoExecutiveo Engineero vs.o Borseo Brotherso Engineerso ando Contractorso Privateo Limited,o(2021)o6oSCCo460.oItoisofurtherosubmittedothatotheojudgmentoino VarinderaoConstructionso(supra)ohasoalsoobeenoimpliedlyooverruledobyo BorseoBrotherso(supra).oItois,othus,ocontendedothatotheoapplicant-appellanto beingoaoGovernmentocorporationohasopainstakingolengthyoproceduresoforo takingotheodecisionotoopreferoanoappealoandotheoapplicantowasonotoatofault.o Hence,otheodelayoinofilingotheoappealobeocondoned.oo o o Theofirstoissueoarisingoforoconsiderationois,owhatowouldobeotheo periodoofolimitationoforopreferringoanoappealotoothisoCourtoagainstoanoordero passedo byo theo Additionalo Districto Judge-cum-Presidingo Officer,o CommercialoCourt,oChandigarh.oo o o Theocontentionoofolearnedocounseloforotheoapplicant-appellanto thatotheoappealowasofiledounderoSectiono37oofotheoArbitrationoActoandoaso such,otheoperiodoofolimitationoforopreferringotheosameoiso90odaysofromotheo dateoofotheoimpugnedoorder,oinotermsoofoArticleo116oofotheoLimitationoAct,o cannotobeoaccepted.oo o o Admittedly,otheoimpugnedoorderodatedo20.01.2023ohasobeeno passedobyotheolearnedoAdditionaloDistrictoJudge-cum-PresidingoOfficer,o Commercialo Court,o Chandigarh.o Undero theo Commercialo Courtso Act,o appealsofromodecreeoofoCommercialoCourtsoandoCommercialoDivisionoareo providedo undero Chaptero IV.o Sectiono 13(1A)o provideso thato anyo persono aggrievedobyotheojudgmentooroorderopassedobyoaoCommercialoCourt,oatotheo CM-117-FCARB-2023oin/andoo -5-o o o leveloofoDistrictoJudge,omayoappealotootheoCommercialoAppellateoDivisiono ofothatoHighoCourtowithinoaoperiodoofo60odaysofromotheodateoofojudgmento oroorder.oTheoprovisoothereto,ostipulatesothatoanoappealoshallolieofromosucho ordersopassedobyoaoCommercialoDivisionooroaoCommercialoCourtothatoareo specificallyoenumeratedounderoOrdero43oofotheoCodeoofoCiviloProcedure,o 1908o(foroshort,o'CPC')oasoamendedobyotheoCommercialoCourtsoActoando Sectiono37oofotheoArbitrationoAct.oSectiono13(2)oibidobeginsowithoaonono obstanteoclauseothatonooappealoshallolieofromoanyoorderoorodecreeoofoao CommercialoDivisionooroCommercialoCourtootherwiseothanoinoaccordanceo witho theo provisionsoofo theo CommercialoCourtso Act.o Chaptero IVo ofo theo CommercialoCourtsoActoreadsoasothus:-o CHAPTERoIVo APPEALSo

13.oAppealsofromodecreesoofoCommercialoCourtso andoCommercialoDivisions.―(1)oAnyopersonoaggrievedo byotheojudgmentooroorderoofoaoCommercialoCourtobelowo theo levelo ofo ao Districto Judgeo mayo appealo too theo CommercialoAppellateoCourtowithinoaoperiodoofosixtyodayso fromotheodateoofojudgmentooroorder.oo

(1A)o Anyo persono aggrievedo byo theo judgmento oro orderoofoaoCommercialoCourtoatotheoleveloofoDistrictoJudgeo exercisingooriginalocivilojurisdictionoor,oasotheocaseomayo be,oCommercialoDivisionoofoaoHighoCourtomayoappealotoo theo Commercialo Appellateo Divisiono ofo thato Higho Courto withino ao periodo ofo sixtyo dayso fromo theo dateo ofo theo judgmentooroorder:o Providedothatoanoappealoshallolieofromosuchoorderso passedobyoaoCommercialoDivisionooroaoCommercialoCourto thatoareospecificallyoenumeratedounderoOrderoXLIIIoofotheo CodeoofoCiviloProcedure,o1908o(5oofo1908)oasoamendedobyo thisoActoandosectiono37oofotheoArbitrationoandoConciliationo Act,o1996o(26oofo1996).o CM-117-FCARB-2023oin/andoo -6-o o o

(2)o Notwithstandingo anythingo containedo ino anyo otherolawoforotheotimeobeingoinoforceooroLettersoPatentoofoao HighoCourt,onooappealoshallolieofromoanyoorderoorodecreeo ofo ao Commercialo Divisiono oro Commercialo Courto otherwiseothanoinoaccordanceowithotheoprovisionsoofothiso Act.oo

14.o Expeditiouso disposalo ofo appeals.―Theo Commercialo Appellateo Courto ando theo Commercialo AppellateoDivisionoshalloendeavourotoodisposeoofoappealso filedobeforeoitowithinoaoperiodoofosixomonthsofromotheodateo ofofilingoofosuchoappeal.o o o o Aobareoreadingoofotheoaforesaidoprovisionsowouldoshowothato ano ordero passedo byo ao Commercialo Courto iso onlyo appealableo undero theo provisionsoofoCommercialoCourtsoAct,owhichobyotheoprovisootooSectiono 13(1A)oibidoprovidesoforoanoappealoenumeratedounderoOrdero43oCPCoaso wello aso Sectiono 37o ofo theo Arbitrationo Act.o Theo saido provisiono alsoo prescribeso theo periodo ofo limitationo withino whicho theo appealo iso too beo preferred.oThus,oanoappealoagainstotheoimpugnedoorderodatedo20.01.2023o couldoonlyobeofiledounderotheoCommercialoCourtsoActoandotheoperiodoofo limitationoforopreferringosuchoanoappealoiso60odaysofromotheodateoofotheo impugnedojudgmentooroorder.oTheoaforesaidopositionostandsoaffirmedobyo theoApexoCourtoinoBorseoBrothers'ocaseo(supra),otheorelevantoportionoofo theosaidodecision,oisoasofollows:o "32.o Thus,o fromo theo schemeo ofo theo Arbitrationo Actoasowelloasotheoaforesaidojudgments,ocondonationoofo delayounderoSectiono5oofotheoLimitationoActohasotoobeoseeno ino theo contexto ofo theo objecto ofo speedyo resolutiono ofo disputes.o o CM-117-FCARB-2023oin/andoo -7-o o o o

33.oo Theo bulko ofo appeals,o however,o too theo appellateocourtounderoSectiono37oofotheoArbitrationoAct,o areo governedo byo Sectiono 13o ofo theo Commercialo Courtso Act.oSub-sectiono(1-A)oofoSectiono13oofotheoCommercialo CourtsoActoprovidesotheoforumoforoappealsoasowelloasotheo limitationo periodo too beo followed,o Sectiono 13o ofo theo CommercialoCourtsoActobeingoaospecialolawoasocomparedo withotheoLimitationoActowhichoisoaogeneralolaw,o whicho followsofromoaoreadingoofoSectiono29(2)oofotheoLimitationo Act.oSectiono13(1-A)oofotheoCommercialoCourtsoActolayso downoaoperiodoofolimitationoofo60odaysouniformlyoforoallo appealso thato areo preferredo undero Sectiono 37o ofo theo ArbitrationoAct."o oo o o Perusaloofotheorecordowouldofurtheroshowothatouponoinstitutiono ofotheopresentoappealobeforeothisoCourtoono21.08.2023,ocertainoobjectionso wereoraisedobyotheoRegistry,owhichowereoaccordinglyocompliedowithobyo learnedocounseloforotheoappellantoandotheomatterowasorefiledoono23.08.2023o byoappendingoaonoteo'Refiledoafterocompliance.oKindlyoputoupoasoitois.'oTheo periodo ofo limitationo calculatedo byo theo Registry,o aftero deductingo theo requisiteodaysoconsumedoinotheopreparationoofotheocertifiedocopy,oi.e.o23o days,ohasocorrectlyoconcludedothatoasoono21.08.2023,otheopresentoappealo wasobarredobyo130odays.oAometiculousoperusaloofotheoinstantoapplicationo wouldo alsoo showo thato theo sameo waso apparentlyo amended,o whereino theo prayeroisoforocondonationoofo130odaysoinofilingotheoappeal,oandonoto100o days,oasoarguedobyolearnedocounseloforotheoapplicant-appellant.oo o o Theo nexto issueo whicho ariseso foro considerationo iso whethero Sectiono5oofotheoLimitationoActowouldobeoapplicableotooanoappealopreferredo CM-117-FCARB-2023oin/andoo -8-o o o undero Sectiono 37o ofo theo Arbitrationo Acto reado witho Sectiono 13o ofo theo Commercialo Courtso Act.o Theo saido questiono iso noo moreo reso integra.o Ao three-judgeobenchoofotheoHon'bleoSupremeoCourtoinoBorseoBrothers'ocaseo (supra)ohasosettledotheoaforesaidoissueoandolaidodownothatotheoapplicationoofo Sectiono5oofotheoLimitationoActoisonotoexcluded.oTheorelevantoportionoofo theojudgment,oreadsoasothus:-o "34.oo Theo vexedo questiono whicho faceso uso iso whether,ofirstoandoforemost,otheoapplicationoofoSectiono5o ofotheoLimitationoActoisoexcludedobyotheoschemeoofotheo Commercialo Courtso Act,o aso haso beeno arguedo byo Dro George.oTheofirstoimportantothingotoonoteoisothatoSectiono 13(1-A)oofotheoCommercialoCourtsoActodoesonotocontaino anyo provisiono akino too Sectiono 34(3)o ofo theo Arbitrationo Act.oSectiono13(1-A)oofotheoCommercialoCourtsoActoonlyo providesoforoaolimitationoperiodoofo60odaysofromotheodateo ofotheojudgmentooroorderoappealedoagainst,owithoutofurthero goingointoowhetherodelayobeyondothisoperiodocanoorocannoto beocondoned.o

35.oo Itomayoalsoobeopointedooutothatothoughotheo objectoofoexpeditiousodisposaloofoappealsoisolaidodownoino Sectiono14oofotheoCommercialoCourtsoAct,otheolanguageoofo Sectiono14omakesoitoclearothatotheoperiodoofosixomonthso spokeno ofo iso directoryo ando noto mandatory.o Byo wayo ofo contrast,oSectiono16oofotheoCommercialoCourtsoActoreado withotheoScheduleothereofoandotheoamendmento madeotoo Ordero 8o Ruleo 1o CPC,o wouldo makeo ito clearo thato theo defendanto ino ao suito iso giveno 30o dayso too fileo ao writteno statement,owhichoperiodocannotobeoextendedobeyondo120o daysofromotheodateoofoserviceoofotheosummons;oandoono expiryoofotheosaidoperiod,otheodefendantoforfeitsotheorighto toofileotheowrittenostatementoandotheocourtocannotoallowo theo writteno statemento too beo takeno ono record.o Thiso provisionowasoenactedoasoaoresultoofotheojudgmentoofothiso CM-117-FCARB-2023oin/andoo -9-o o o CourtoinoSalemoAdvocateoBaroAssn.o(2)oUnionoofoIndia,o

(2005)o6oSCCo344."oo o "39.oo UnlikeotheoschemeoofotheoCentraloExciseoActo reliedouponoinoHongo,othereoareonoootheroprovisionsoinotheo Commercialo Courtso Acto whicho provideo foro ao periodo ofo limitationocoupledowithoaocondonationoofodelayoprovisiono whichoisoeitheroopen-endedoorocapped.oAlso,otheoperiodoofo 180odaysoprovidedowasooneoindiciaowhicholedotheoCourtotoo excludeo theo applicationo ofo Sectiono 5o ofo theo Limitationo Act,oasoitowasodoubleoandotripleotheoperiodoprovidedoforo appealso undero theo othero provisionso ofo theo sameo Act.o Sectiono13(1-A)oofotheoCommercialoCourtsoAct,obyowayo ofocontrast,oappliesoanointermediateoperiodoofo60odaysoforo filingoanoappeal,othatois,oaoperiodothatoisohalfwayobetweeno 30odaysoando90odaysoprovidedobyoArticleso116oando117oofo theoLimitationoAct.o

40.oo Theo othero judgmentso reliedo upono byo Dro Georgeoareoallodistinguishableoinothatotheyoareojudgmentso whichodealowithoprovisionsothatoprovideoforoaoperiodoofo limitationoandoaoperiodoofocondonationoofodelayobeyondo whichodelayocannotobeocondoned,osuchoasoSectiono125oofo theoElectricityoAct.oo

41.oo Sectiono 21o ofo theo Commercialo Courtso Acto wasoalsoopressedointooserviceostatingothatotheononoobstanteo clauseo containedo ino theo Commercialo Courtso Acto wouldo overrideo othero Acts,o includingo theo Limitationo Act,o aso ao resulto ofo which,o theo applicabilityo ofo Sectiono 5o thereofo wouldobeoexcluded.oThisoargumentohasobeenoaddressedoino theocontextoofotheoIBCoinoB.K.oEducationaloServiceso(P)o Ltd.ov.oParagoGuptao&oAssociates,o(2019)o11oSCCo633,oaso followso:o(SCCop.o664,oparao41)o "41.o Shrio Dholakiao arguedo thato theo Codeo beingo completeo ino itself,o ano intrudero sucho aso theo CM-117-FCARB-2023oin/andoo -10-o o o LimitationoActomustobeoshutooutoalsoobyoapplicationo ofoSectiono238oofotheoCodeowhichoprovidesothat,o 'notwithstandingo anythingo inconsistento therewitho containedoinoanyootherolawoforotheotimeobeingoino force',otheoprovisionsoofotheoCodeowouldooverrideo sucho laws.o Ino fact,o Sectiono 60(6)o ofo theo Codeo specificallyostatesoasofollows:o '60.o Adjudicatingo authorityo foro corporateo persons.―(1)-(5)-o

(6)o Notwithstandingo anythingo containedo ino theoLimitationoAct,o1963o(36oofo1963)ooroinoanyo otherolawoforotheotimeobeingoinoforce,oinocomputingo theo periodo ofo limitationo specifiedo foro anyo suito oro applicationo byo oro againsto ao corporateo debtoro foro whicho ano ordero ofo moratoriumo haso beeno madeo undero thiso Part,o theo periodo duringo whicho sucho moratoriumoisoinoplaceoshallobeoexcluded.'o Thiso provisiono wouldo haveo beeno whollyo unnecessaryo ifo theo Limitationo Acto waso otherwiseo excludedo eithero byo reasonoofotheoCodeobeingocompleteoinoitselfoorobyovirtueoofo Sectiono 238o ofo theo Code.o Both,o Sectiono 433o ofo theo CompaniesoActoaso welloasoSectiono238-AoofotheoCode,o applyotheoprovisionsoofotheoLimitationoActo"asofaroasomayo be".o Obviously,o therefore,o whereo periodso ofo limitationo haveobeenolaidodownoinotheoCode,otheseoperiodsowilloapplyo notwithstandingoanythingotootheocontraryocontainedoinotheo LimitationoAct.oFromothis,oitodoesonotofollowothatotheobabyo mustobeothrownooutowithotheobathwater.oThisoargument,o therefore,omustoalsoobeorejected."o

42.oo Foroallotheseoreasonsoweorejectotheoargumento madeobyoShrioGeorgeothatotheoapplicationoofoSectiono5oofo theoLimitationoActoisoexcludedogivenotheoschemeoofotheo CommercialoCourtsoAct."o o CM-117-FCARB-2023oin/andoo -11-o o o o o Inoviewoofotheoaforesaid,otheoinstantoapplicationounderoSectiono 5oofotheoLimitationoActoforocondonationoofo130odaysoinofilingotheoappeal,oiso thus,otoobeoconsideredoonomeritsobyothisoCourt.oo o o Ao carefulo perusalo ofo theo instanto applicationo seekingo condonationo ofo delayo showso thato theo sameo iso devoido ofo materialo particulars.oTheoonlyogroundoraisedothereinoisothatotheoapplicant-appellant-corporation,obeingoanoinstrumentalityoofotheoState,ohasolengthyoprocedureso andoaohierarchicalostructureoforotakingoaodecisionotoopreferoanoappealoando foroengagingoaocounsel.ooo o o Itoisowellosettledothatonoospecialotreatmentoisotoobeogivenotooao litigantoifotheosaidolitigantohappensotoobeotheoGovernmentoandotheolawohaso toobeouniformlyoapplied.oInoPostoMasteroGeneralovs.oLivingoMediao(India)o Ltd.,o(2012)o3oSCCo563,oitowasoheldothatomerelyobecauseotheoGovernmento isoinvolved,oaodifferentoyardstickoforocondonationoofodelayocannotobeolaido down.o Theo saido decisiono haso beeno followedo ino manyo subsequento judgmentsobyotheoApexoCourt.oTheorelevantoportionoofotheojudgmentoiso extractedohereunder:-o "27.oo Ito iso noto ino disputeo thato theo person(s)o concernedowereowelloawareooroconversantowithotheoissueso involvedoincludingotheoprescribedoperiodoofolimitationoforo takingo upo theo mattero byo wayo ofo filingo ao specialo leaveo petitionoinothisoCourt.oTheyocannotoclaimothatotheyohaveoao separateoperiodoofolimitationowhenotheoDepartmentowaso possessedo witho competento personso familiaro witho courto proceedings.oInotheoabsenceoofoplausibleoandoacceptableo explanation,oweoareoposingoaoquestionowhyotheodelayoisotoo beo condonedo mechanicallyo merelyo becauseo theo CM-117-FCARB-2023oin/andoo -12-o o o Governmento oro ao wingo ofo theo Governmento iso ao partyo beforeous.o

28.oo Thoughoweoareoconsciousoofotheofactothatoino aomatteroofocondonationoofodelayowhenothereowasonoogrosso negligenceoorodeliberateoinactionoorolackoofobonaofides,oao liberalo concessiono haso too beo adoptedo too advanceo substantialojustice,oweoareoofotheoviewothatoinotheofactsoando circumstances,otheoDepartmentocannototakeoadvantageoofo variouso earliero decisions.o Theo claimo ono accounto ofo impersonalo machineryo ando inheritedo bureaucratico methodologyoofomakingoseveralonotesocannotobeoacceptedo ino viewo ofo theo moderno technologieso beingo usedo ando available.o Theo lawo ofo limitationo undoubtedlyo bindso everybody,oincludingotheoGovernment.o

29.oo Inoouroview,oitoisotheorightotimeotooinformoallo theo governmento bodies,o theiro agencieso ando instrumentalitieso thato unlesso theyo haveo reasonableo ando acceptableoexplanationoforotheodelayoandothereowasobonao fideo effort,o thereo iso noo needo too accepto theo usualo explanationo thato theo fileo waso kepto pendingo foro severalo months/yearso dueo too considerableo degreeo ofo proceduralo redotapeoinotheoprocess.oTheogovernmentodepartmentsoareo undero ao specialo obligationo too ensureo thato theyo performo theirodutiesowithodiligenceoandocommitment.oCondonationo ofodelayoisoanoexceptionoandoshouldonoto beousedoasoano anticipatedobenefitoforotheogovernmentodepartments.oTheo lawosheltersoeveryoneounderotheosameolightoandoshouldonoto beoswirledoforotheobenefitoofoaofew."o o o o Theoapplicant-appellantowasonotoonlyorequiredotoopleadobuto alsoodemonstrateofromotheorecordothato'sufficientocause'owasomadeooutoforo notopreferringotheoappealowithinotheoprescribedoperiodoofolimitation.oItoiso alsoowellosettledothatotheoexpressiono'sufficientocause'ocontainedoinoSectiono CM-117-FCARB-2023oin/andoo -13-o o o 5o ofo theo Limitationo Acto iso elastico enougho too yieldo differento resultso dependingouponotheoobjectoandotheocontextoofoaostatute.oHowever,ohavingo regardotootheoobjectosoughtotoobeoachievedounderobothotheoArbitrationoando theo Commercialo Courtso Act,o i.e.o speedyo resolutiono ofo disputes,o theo expressiono 'sufficiento cause'o cannoto beo stretchedo too covero longo delayso beyondo theo periodo prescribedo foro filingo ano appeal.o Theo delayo iso too beo condonedobyowayoofoexceptionoandonotobyowayooforule.oTheosaidoaspectohaso beeno discussedo ino detailo byo theo Apexo Courto ino Borseo Brothers'o caseo (supra).oTheorelevantofindingsoinothatoregardoreadoasounder:-o "62.o Also,o ito musto beo rememberedo thato merelyo becauseosufficientocauseohasobeenomadeooutoinotheofactsoofo aogivenocase,othereoisonoorightoinotheoappellantotoohaveo delayocondoned.oThisowasofelicitouslyoputoinoRamlalov.o RewaoCoalfieldsoLtd.,o(1962)o2oSCRo762oasofollowso(SCRo p.o771o:oAIRop.o365,oparao12)oo "12.oItois,ohowever,onecessaryotooemphasiseo thatoevenoafterosufficientocauseohasobeenoshownoao partyoisonotoentitledotootheocondonationoofodelayoino questiono aso ao mattero ofo right.o Theo proofo ofo ao sufficiento causeo iso ao conditiono precedento foro theo exerciseoofotheodiscretionaryojurisdictionovestedoino theocourtobyo Sectiono 5.oIfosufficientocauseoisonoto provedo nothingo furthero haso too beo done;o theo applicationo foro condoningo delayo haso too beo dismissedoonothatogroundoalone.oIfosufficientocauseo isoshownothenotheoCourtohasotooenquireowhetheroino itso discretiono ito shouldo condoneo theo delay.o Thiso aspecto ofo theo mattero naturallyo introduceso theo considerationoofoallorelevantofactsoandoitoisoatothiso stageothatodiligenceoofotheopartyooroitsobonaofideso mayo fallo foro consideration;o buto theo scopeo ofo theo CM-117-FCARB-2023oin/andoo -14-o o o enquiryo whileo exercisingo theo discretionaryo powero afterosufficientocauseoisoshownowouldonaturallyobeo limitedoonlyotoosuchofactsoasotheoCourtomayoregardo asorelevant.oItocannotojustifyoanoenquiryoasotoowhyo theo partyo waso sittingo idleo duringo allo theo timeo availableotooit.oInothisoconnectionoweomayopointoouto thatoconsiderationsoofobonaofidesoorodueodiligenceo areoalwaysomaterialoandorelevantowhenotheoCourtoiso dealingowithoapplicationsomadeounderoSectiono14oofo theo Limitationo Act.o Ino dealingo witho sucho applicationsotheoCourtoisocalledouponotooconsidero theoeffectoofotheocombinedoprovisionsoofoSectionso5o ando14.oTherefore,oinoouroopinion,oconsiderationso whicho haveo beeno expresslyo madeo materialo ando relevantobyotheoprovisionsoofoSectiono14ocannototoo theo sameo extento ando ino theo sameo mannero beo invokedoinodealingowithoapplicationsowhichofallotoo beodecidedoonlyounderoSectiono5owithoutoreferenceo tooSectiono14."o

63.oo Givenotheoaforesaidoandotheoobjectoofospeedyo disposalosoughtotoobeoachievedobothounderotheoArbitrationo Acto ando theo Commercialo Courtso Act,o foro appealso filedo underoSectiono37oofotheoArbitrationoActothatoareogovernedo byoArticleso116oando117oofotheoLimitationoActooroSectiono 13(1-A)oofotheoCommercialoCourtsoAct,oaodelayobeyondo 90o days,o 30o dayso oro 60o days,o respectively,o iso too beo condonedobyowayoofoexceptionoandonotobyowayooforule.oIno aofitocaseoinowhichoaopartyohasootherwiseoactedobonaofideo andonotoinoaonegligentomanner,oaoshortodelayobeyondosucho periodocan,oinotheodiscretionoofotheocourt,obeocondoned,o alwaysobearingoinomindothatotheootherosideoofotheopictureoiso thatotheooppositeopartyomayohaveoacquiredobothoinoequityo ando justice,o whato mayo nowo beo losto byo theo firsto party'so inaction,onegligenceoorolaches."o o CM-117-FCARB-2023oin/andoo -15-o o o o o Ito iso notableo thato ino theo decisiono ino Borseo Brothers'o caseo (supra),o ino oneoofotheo appeals,oarisingo fromo SLPo (C)o No.665o ofo2021,o impugningotheojudgmentoofotheoHon'bleoHighoCourtoofoBombay,othereowaso aodelayoofo131odaysoinofilingotheoappeal.oInotheosaidocase,olikeoinotheopresento case,o thereo waso noo explanationo wortho theo nameo containedo ino theo condonationoofodelayoapplication,obeyondoadministrativeoexigency.oTheo Hon'bleoApexoCourtoconsideringotheoinordinateolongodelayoofo131odays,o dismissedotheosaidoappeal.oInotheopresentocase,otheosituationoisonoodifferent,o thereobeingoaolongodelayoofo130odaysobeyondotheo60odaysoperiodoprovidedo forofilingoanoappealounderoSectiono13(1A)oofotheoCommercialoCourtsoAct.o o o Itoisoalsoonotableothatotheoofficeoofotheoappellant-corporationoiso situatedo ato Chandigarho ando theo mattero haso beeno decidedo byo theo Commercialo Court,o ato theo Districto Judgeo level,o ato Chandigarho ando apparently,o theo counselo representingo theo corporationo beforeo theo CommercialoCourtoconcernedowasoaolocalocounsel.oThus,otheoapplicant-appellantohasobeenogrosslyonegligentoinopursuingotheomatter.oItooughtotoo haveoensuredotimelyofilingoofotheoappealowithinotheoprescribedoperiodoofo limitation.oItoisoalsoowellosettledothatotheotimeoconsumedoforopreparationoofo aocertifiedocopyoisoonlyouptootheodateoofopreparationoofotheocertifiedocopyo byotheocopyingoagencyoconcernedoandonotouptootheodateoofoitsodelivery.oIno theo presento case,o theo certifiedo copyo ofo theo impugnedo judgmento datedo

20.01.2023owasopreparedoono02.03.2023obutotheosameowasocollectedoonlyo ono 15.04.2023.o Noo explanationo iso forthcomingo foro theo saido inordinateo delayoofonearlyo1½omonthsosinceopreparationoofotheocertifiedocopyoandoito beingocollectedofromotheocopyingoagencyoconcerned.o CM-117-FCARB-2023oin/andoo -16-o o o o o Onoaoconspectusoofotheoaforesaid,otheoapplicant-appellantohaso miserablyofailedotooshowosufficientocause,omucholessoanyocogentogroundooro materialo too establisho theo existenceo ofo anyo exceptionalo circumstanceo warrantingocondonationoofodelayoofo130odaysoinofilingotheoappealobeyondo theoperiodoofolimitationoprescribedobyolaw.oo o o Accordingly,otheopresentoapplicationoisodismissed.oo o o Theomainoappeal,obeingotimeobarred,oisodismissed.ooo o o o o o oo(HARSIMRANoSINGHoSETHI)o ooooooooooooooo(VIKASoSURI)o oooooooooooJUDGEo oooooooooooo o oooooooooooJUDGEo o o o

11.08.2025o o sumit.ko o o o o o Whetherospeaking/reasonedo:o o Yesoo Noo o WhetheroReportableo:o o o Yeso Noo