Facts
The Petitioner (DDA) challenged an arbitral award dated 31.05.2024, which it received physically on 24.06.2024
Source reference: para. 2, 5The Petitioner initially filed an objection petition under Section 34 of the Arbitration and Conciliation Act, 1996 ("the Act") before the District Judge, Commercial Court, on 27.09.2024
Source reference: para. 2This petition was withdrawn on 19.05.2025 due to a lack of pecuniary jurisdiction, with liberty to seek appropriate remedies
Source reference: para. 2, 3Subsequently, the Petitioner filed the present petition before the Delhi High Court on 29.08.2025
Source reference: para. 3, 6The Petitioner moved an application (I.A. 25007/2025) seeking condonation of delay in filing the Section 34 petition
Source reference: para. 1Issues
1. Whether the petition under Section 34 of the Act was filed within the statutory limitation period prescribed under Section 34(3)
Source reference: para. 82. Whether the delay in filing the petition beyond the three-month period and the additional 30-day grace period can be condoned by the Court
Source reference: para. 9Law Applied
The Court applied Section 34(3) of the Arbitration and Conciliation Act, 1996, which mandates that an application for setting aside an award must be made within three months, extendable by a further thirty days if sufficient cause is shown, "but not thereafter"
Source reference: para. 8The Court also considered Section 14 of the Limitation Act, 1963, regarding the exclusion of time spent bona fide in a court without jurisdiction
Source reference: para. 7It relied on the Supreme Court precedent in Union of India v. Popular Construction Co. (2001), which held that the phrase "but not thereafter" constitutes an express exclusion of Section 5 of the Limitation Act, making the 120-day limit absolute and unextendible
Source reference: para. 11It further cited the Division Bench decision in Union of India v. M/S GR-GAWAR (J.V.) (2025), reiterating that no application can be entertained beyond the absolute outer limit of 120 days
Source reference: para. 10Reasoning
The Court observed that the Petitioner received the award on 24.06.2024, yet the first filing before the Commercial Court on 27.09.2024 was already beyond the initial three-month limit
Source reference: para. 5Even if the Petitioner were granted the benefit of Section 14 of the Limitation Act for the period it spent litigating in the wrong forum (from 27.09.2024 to 19.05.2025), the subsequent filing before the High Court on 29.08.2025 occurred more than three months after the withdrawal of the first petition
Source reference: para. 6, 7The Court calculated that the total delay, even after excluding the bona fide period, exceeded the maximum permissible limit of three months plus 30 days
Source reference: para. 7The Court reasoned that the statutory language "but not thereafter" in Section 34(3) is an absolute bar that leaves the court with no discretion to condone delays beyond the 120-day window, regardless of the reasons provided
Source reference: para. 9, 10Holding
The Court held that the petition was filed beyond the absolute statutory limit prescribed under Section 34(3) of the Act and that such delay cannot be condoned
Consequently, the Court dismissed the application for condonation of delay (I.A. 25007/2025)
Source reference: para. 12As the primary petition was time-barred, the Court dismissed O.M.P. (COMM) 407/2025 along with the pending application for stay (I.A. 25006/2025)
Source reference: para. 13Original Court PDF
Delhi Development AuthorityvsKunal Food Products Pvt Ltd
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