Facts
The parties’ disputes were referred to arbitration, and the learned Arbitrator delivered an award dated 27 July 2018.
Source reference: no citationThe appellant filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996, on 9 October 2018.
Source reference: no citationThat petition was dismissed for default on 6 March 2025 because the appellant’s advocate did not appear; the explanation was that the advocate had noted the old case number in the diary, whereas the matter appeared under a newly assigned number in the cause list.
Source reference: paras. 13–14The appellant thereafter filed an application under Order IX Rule 4 of the Code of Civil Procedure, 1908, along with an application under Section 5 of the Limitation Act, 1963, seeking restoration of the Section 34 petition and condonation of a 25-day delay.
Source reference: paras. 2, 4–6, 15The Commercial Court refused to condone the delay, observing, inter alia, that the Section 5 application was undated.
Source reference: paras. 2, 4–6, 15The appellant preferred the present appeal with a further application for condonation of delay, explaining that the certified copy of the impugned order was issued only on 21 May 2026; the appeal was filed on 22 May 2026.
Source reference: paras. 8–10Issues
Whether the delay in making and filing the appeal against the Commercial Court’s order should be condoned on account of the delay in issuance of the certified copy.
Source reference: paras. 8–10Whether the 25-day delay in filing the application under Order IX Rule 4 CPC should be condoned.
Source reference: paras. 14–17Whether the appellant had shown sufficient and plausible grounds for restoration of the Section 34 petition dismissed for default.
Source reference: paras. 14–18Law Applied
The Court applied Order IX Rule 4 of the Code of Civil Procedure, 1908, which permits restoration of a suit or proceeding dismissed for default upon sufficient cause being shown.
Source reference: paras. 3–5, 13–15Section 5 of the Limitation Act, 1963, permits condonation of delay where sufficient cause is established.
Source reference: paras. 3–5, 13–15Section 34 of the Arbitration and Conciliation Act, 1996, governs the challenge to an arbitral award.
Source reference: paras. 3–5, 13–15The Court reiterated that, while considering restoration and condonation applications, courts should adopt a lenient approach where a plausible explanation is offered; the quality of the explanation, rather than merely the length of the delay, is material.
Source reference: para. 16However, such leniency cannot permit frivolous applications or render limitation provisions nugatory.
Source reference: para. 16Reasoning
The Court found that the delay in the appeal was attributable to the late issuance of the certified copy: the copy was applied for on 20 February 2026, issued on 21 May 2026, and the appeal was filed the following day.
Source reference: paras. 9–11Since that delay could not fairly be attributed to the appellant, the Court condoned it in the interests of justice.
Source reference: paras. 9–11On the merits, the Court considered the advocate’s mistaken reference to the old case number a plausible explanation for non-appearance on 6 March 2025 and, consequently, for the dismissal of the Section 34 petition for default.
Source reference: para. 14It further accepted the appellant’s explanation that time was required to obtain authorization for filing the restoration and condonation applications.
Source reference: paras. 15–18Applying the principle that a plausible explanation should ordinarily be accepted in restoration matters, particularly where the delay was only 25 days, the Court held that the Commercial Court had adopted an unduly strict approach.
Source reference: paras. 15–18Holding
The Court condoned the delay in filing the appeal and disposed of IA No. CAN/1/2026.
It set aside the Commercial Court’s order dated 5 February 2026, allowed Misc. Judicial Case No. 03 of 2025, and restored the appellant’s Section 34 petition to its original file and number.
Source reference: paras. 18–20AO-COM/27/2026 was accordingly allowed, and CAN/2/2026 was disposed of.
Source reference: para. 21Acts & Sections Cited
2 provisions across 2 statutes referred to in this judgment. Each provision opens on LawLens.
Arbitration and Conciliation Act, 19961
Limitation Act, 19631
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UNION OF INDIAvsMS S CHATURVEDI AND CO
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