2018 (9) TMI 2037 - SC - Indian Laws

Validity of Arbitral Award - delay of 142 days in filing the appeal and 103 days in refiling the appeal - HELD THAT - An appellate proceeding is a continuation of the original proceeding, as has been held in LACHMESHWAR PRASAD SHUKUL AND ORS. VERSUS KESHWAR LAL CHAUDHURI AND ORS. 1940 (12) TMI 26 - FEDERAL COURT , it is felt that any delay beyond 120 days in the filing of an appeal under Section 37 from an application being either dismissed or allowed under Section 34 of the Arbitration and Conciliation Act, 1996 should not be allowed as it will defeat the overall statutory purpose of arbitration proceedings being decided with utmost despatch. Since even the original appeal was filed with a delay period of 142 days, these Special Leave Petitions are inclined on the facts of this particular case - SLP disposed off.

Summary

Issues:
Delay in filing appeal under Section 37 of the Arbitration and Conciliation Act, 1996.

Analysis:
The Supreme Court considered the issue of delay in filing an appeal under Section 37 of the Arbitration and Conciliation Act, 1996. The Court noted a previous judgment where an appeal was dismissed due to a delay of 142 days in filing the appeal and 103 days in refiling it. The Division Bench emphasized that a Section 34 application must be filed within 120 days, including a grace period of 30 days. The Court held that an appeal under Section 37, being a continuation of the original proceeding, should also adhere to the same timeline. Citing the precedent set in Lachmeshwar Prasad Shukul v. Keshwar Lal Chaudhuri, the Court stated that delays beyond 120 days would defeat the purpose of expeditious arbitration proceedings.

Furthermore, the Court highlighted that the principle of treating an appellate proceeding as a continuation of the original proceeding is well-established in previous judgments. Considering the delay in the original appeal and the importance of timely resolution of arbitration matters, the Court declined to entertain the Special Leave Petitions in this specific case. The Court concluded that any delay beyond the prescribed period for filing an appeal under Section 37 from a decision under Section 34 should not be allowed to ensure the statutory objective of resolving arbitration proceedings promptly.

In light of the above analysis, the Supreme Court disposed of the Special Leave Petitions and any pending applications accordingly, maintaining the importance of adhering to the prescribed timelines for filing appeals under the Arbitration and Conciliation Act, 1996 to uphold the efficiency and expediency of arbitration proceedings.