Kirpal Singh vs Government Of India New Delhi

Court
Supreme Court
Case type
Civil Appeal
Decided on
21-11-2024
<pre> 1
2024 INSC 944
<b>REPORTABLE</b>
<b>IN THE SUPREME COURT OF INDIA</b>
<b>CIVIL APPELLATE JURISDICTION</b>
<b>CIVIL APPEAL NOS.12849-12856/2024</b>
<b>(@ Special Leave Petition(C)Nos. 15368-15375/2020)</b>
<b>KIRPAL SINGH Appellant(s)</b>
<b> VERSUS</b>
<b>GOVERNMENT OF INDIA, NEW DELHI &amp; ORS. Respondent(s)</b>
<b>O R D E R</b>
<b>1.</b> <b>Leave granted.</b>
<b>2.</b> <b>These appeals arise from the judgment and order passed by</b>
<b>the High Court of Punjab &amp; Haryana at Chandigarh dated</b>
<b>19.10.2019 in FAO Nos. 800/2013, 7453, 7454, 8136/2014, 1278,</b>
<b>1290, 2000 and 2887/2015. The short question that arises for</b>
<b>consideration is whether the period commencing from 20.10.2011</b>
<b>to 20.01.2012 should be condoned under Section 14 of the</b>
<b>Limitation Act while reckoning the period of limitation for</b>
<b>filing objections under Arbitration and Conciliation Act,</b>
<b>1</b> <b>2</b>
<b>1996</b> <b> incorporated in the National Highways Act, 1956</b> <b>. </b>
<b>3.</b> <b>The facts relevant for our decision are that the land</b>
Signature Not Verified
Digitally signed by
INDU MARWAH
Date: 2024.12.09
17:44:52 IST
Reason:
<b>belonging to the appellant was acquired under the NH Act</b>
1 Hereinafter referred to as “the Arbitration Act”
2 Hereinafter referred to as “the NH Act”

2
<b>leading to passing of an award dated 25.07.2011. Application</b>
<b>for a certified copy of the award was made on 12.08.2011 and</b>
<b>the same was received on 08.09.2011. Thereafter, a Regular</b>
<b>First Appeal was filed before the High Court on 20.10.2011 on</b>
<b>an erroneous understanding.</b>
<b>4.</b> <b>The Registry of the High Court notified certain defects</b>
<b>on 09.11.2011 and it is said to have been received by the</b>
<b>concerned Advocate only on 20.01.2012. It is only thereafter</b>
<b>when the appellant came to know about the appropriate action</b>
<b>available to him, being the statutory remedy under Section 34</b>
<b>of the Arbitration Act, and he took steps and instituted</b>
<b>proceedings under Section 34 of the said Act on 23.02.2012.</b>
<b>5.</b> <b>The District Judge took up the application under Section</b>
<b>34 of the Act and by his order dated 16.05.2012 dismissed the</b>
<b>same on the ground that it is barred by limitation as</b>
<b>determined by this Court in the case of </b> <b><i>Union of India Vs.</i></b>
<b>3</b>
<b><i>Popular Construction Co</i></b> <b>.</b> <b>. The appeal under Section 37 of the</b>
<b>Arbitration Act was also dismissed by the order impugned</b>
<b>before us.</b>
<b>6.</b> <b>Mr. Gaurav Agarwal, learned Senior Advocate appearing for</b>
<b>the appellant has submitted that his client is entitled to the</b>
<b>exclusion of period from 20.10.2011 to 20.01.2012 under</b>
<b>Section 14 of the Limitation Act. For this purpose, he relied</b>
3 2002( 1) RCR (Civil) 124

3
<b>on the judgment of this Court in </b> <b><i>Consolidated Engineering</i></b>
<b><i>Enterprises vs. Principal Secretary, Irrigation Department and</i></b>
<b><i>4</i></b>
<b><i>Others</i></b> <b>. The relevant portion of the judgment is quoted</b>
<b>hereunder:</b>
<b>“23.</b> <b>At this stage it would be relevant to</b>
<b>ascertain whether there is any express provision in</b>
<b>the Act of 1996, which excludes the applicability</b>
<b>of Section 14 of the Limitation Act. On review of</b>
<b>the provisions of the Act of 1996 this Court finds</b>
<b>that there is no provision in the said Act which</b>
<b>excludes the applicability of the provisions of</b>
<b>Section 14 of the said Act…..</b>
<b>Hence, Section 43 incorporating the Limitation</b>
<b>Act will apply to the proceedings in the</b>
<b>arbitration as it applies to the proceedings of a</b>
<b>suit in the court. Sub-section (4) of Section 43,</b>
<b>inter alia, provides that where the court orders</b>
<b>that an arbitral award be set aside, the period</b>
<b>between the commencement of the arbitration and the</b>
<b>date of the order of the court shall be excluded in</b>
<b>computing the time prescribed by the Limitation</b>
<b>Act, 1963, for the commencement of the proceedings</b>
<b>with respect to the dispute soc submitted. If the</b>
<b>period between the commencement of the arbitration</b>
<b>proceedings till the award is set aside by the</b>
<b>court, has to be excluded in computing the period</b>
<b>of limitation provided for any proceedings with</b>
<b>respect o the dispute, there is no good reason as</b>
<b>to why it should not be held that the to provisions</b>
<b>of Section 14 of the Limitation Act would be</b>
<b>applicable to an application submitted under</b>
<b>Section 34 of the Act of 1996, more particularly d</b>
<b>where no provision is to be found in the Act of</b>
<b>1996, which excludes the applicability of Section</b>
<b>14 of the Limitation Act, to an application made</b>
<b>under Section 34 of the Act. It is to be noticed</b>
<b>that the powers under Section 34 of the Act can be</b>
<b>exercised by the court only if the aggrieved party</b>
<b>makes an application. The jurisdiction under</b>
<b>Section 34 of the Act, cannot be exercised suo</b>
<b>motu. The total period of four months within which</b>
<b>an application, for setting aside an arbitral</b>
<b>award, has to be made is not unusually long.</b>
<b>Section 34 of the Act of 1996 would be unduly</b>
4 2008 (7) SCC 169

4
<b>oppressive, if it is held that the provisions of</b>
<b>Section 14 of the Limitation Act are not applicable</b>
<b>to it, because cases are no doubt conceivable where</b>
<b>an aggrieved party, despite exercise of due</b>
<b>diligence and good faith, is unable to make an</b>
<b>application within a period of four months. From</b>
<b>the scheme and language of Section 34 of the Act of</b>
<b>1996, the intention of the legislature to exclude</b>
<b>the applicability of Section 14 of the Limitation</b>
<b>Act is not manifest. It is well to remember that</b>
<b>Section 14 of the Limitation Act does not provide</b>
<b>for a fresh period of limitation but only provides</b>
<b>for the exclusion of a certain period. Having</b>
<b>regard to the legislative intent, it will have to</b>
<b>be held that the provisions of Section 14 of the</b>
<b>Limitation Act, 1963 would be applicable to g an</b>
<b>application submitted under Section 34 of the Act</b>
<b>of 1996 for setting aside an arbitral award.”</b>
<b>7.</b> <b>On the other hand, Mr. Rajat Sangwan, learned counsel</b>
<b>appearing for respondent Nos.1 and 2 (National Highway</b>
<b>Authority of India) has vehemently contended that the periods</b>
<b>of limitation under the Arbitration Act are sacrosanct and</b>
<b>these provisions are strictly interpreted by the Courts. He</b>
<b>would further submit that, even assuming that Section 14 of</b>
<b>the Limitation Act is applicable, the benefit of the said</b>
<b>section cannot be extended beyond 20.10.2011. In other words,</b>
<b>his submission is that the period commencing from 09.11.2011</b>
<b>to the filing of Section 34 petition being 23.02.2012, should</b>
<b>not be condoned.</b>
<b>8.</b> <b>Further, Mr. Rajat Sangwan, would also submit that the</b>
<b>language of Section 14 is mandatory and on the basis of the</b>
<b>said provision it cannot be said that the appellant has</b>
<b>exercised due diligence in approaching the Court by filing the</b>

5
<b>Section 34 petition. He also argued that strict enforcement of</b>
<b>time-lines under the Arbitration Act are recognized and</b>
<b>incorporated under the National Highways Act. For this</b>
<b>purpose, he referred to sub-section 7 of Section 3(G) of the</b>
<b>NH Act.</b>
<b>9.</b> <b>Having considered the matter in detail, we are of the</b>
<b>opinion that the issue is covered by the decision of this</b>
<b>court in</b> <b> </b> <b><i>Consolidated Engg. Enterprises v. Principal</i></b>
<b><i>5</i></b>
<b><i>Secretary, Irrigation Dept.</i></b> <b><i> </i></b> <b>(supra).</b>
<b>10.</b> <b>We may hasten to add that when the substantive remedies</b>
<b>under Sections 34 and/or 37 of the Arbitration Act are by</b>
<b>their very nature limited in their scope due to statutory</b>
<b>6</b>
<b>prescription</b> <b>, it is necessary to interpret the limitation</b>
<b>provisions liberally, or else, even that limited window to</b>
<b>challenge an arbitral award will be lost. The remedies under</b>
<b>Sections 34 and 37 are precious. Courts of law will keep in</b>
<b>mind the need to secure and protect such a remedy while</b>
<b>calculating the period of limitation for invoking these</b>
<b>jurisdictions.</b>
<b>11. Applying Section 14 of the Limitation Act, we hold that</b>
<b>there is sufficient cause for excluding the period commencing</b>
<b>from 20.10.2011 to 23.02.2012.</b> <b>In view of the fact that this</b>
5 2008 (7) SCC 169.
6 Arbitration and Conciliation Act, 1996.

6
<b>period is excluded, the appellant will be entitled to the</b>
<b>statutory remedy under Section 34 of the Act. </b>
<b>12.</b> <b>In view of the above, we allow the appeals, set aside the</b>
<b>judgment and order passed by the High Court in FAO Nos.</b>
<b>800/2013(O&amp;M), 2000/2015(O&amp;M), 1278/2015(O&amp;M), 1290/2015(O&amp;M),</b>
<b>7453/2014(O&amp;M), 7454/2014(O&amp;M), 2887/2015(O&amp;M) and 8136/2014</b>
<b>(O&amp;M) dated 19.10.2019 and also the order of the District</b>
<b>Judge, Jalandhar dated 16.05.2012 and restore the Section 34</b>
<b>petition in Arbitration No.3435/2012 to its original number.</b>
<b>We further direct the District Judge, Jalandhar to issue</b>
<b>notice to all the parties, hear them and decide the petition</b>
<b>as per law. </b>
<b>13.</b> <b>With the above observations, the civil appeals are</b>
<b>disposed of.</b>
<b>14.</b> <b>There shall be no order as to costs.</b>
<b>…………………………………………J.</b>
<b> [PAMIDIGHANTAM SRI NARASIMHA]</b>
<b> </b>
<b>…………………………………………J.</b>
<b>[MANOJ MISRA]</b>
<b>New Delhi</b>
<b>November 21,2024. </b></pre>