2015 (9) TMI 1733 - HC - Indian Laws

Condonation of delay of 65 days in re-filing the petition - It is alleged that the explanation for delay of nearly two months in re-filing is not satisfactory - Section 34 of the Arbitration Conciliation Act, 1996 - HELD THAT - There are no infirmity with the view taken by the learned Single Judge in not condoning the delay. It is noticed that the petition was originally filed without the requisite court fees. Even an application seeking enlargement of time for filing the requisite court fees was not filed. The only explanation given is that the matter was filed in a rush without the requisite court fees. It may be noticed that despite the fact that the matter was filed in a rush, the court fees was not filed for over a period of one month from the date of filing. The explanation tendered is that the amount was substantial and as such it took some time in the amount being credited into the account of the counsel and then being credited to the account of the Stock Holding Corporation for the purposes of obtaining the court fees. The appellant should have been diligent in obtaining and filing the requisite court fees. Merely because a substantial amount was required to be paid as court fees, cannot be a ground to circumvent the statutory provision of limitation. In arbitration matters, the limitation has to be strictly construed and the parties cannot be permitted to frustrate the very purpose of the Act. Even after the court fee was paid, the appellant took over thirty days in removing the defects. Merely because a soft copy was required would not take the appellant over thirty days in preparation of a soft copy. The appellant re-filed the petition repeatedly without curing the defects - the appellant has not been diligent in pursuing the petition and has taken substantial time in removal of the defects. No satisfactory explanation has been forthcoming for the condonation of delay of 66 days in re-filing the petition. Appeal dismissed.

Summary

Issues:
1. Condonation of delay in re-filing the petition under Section 34 of the Arbitration & Conciliation Act, 1996.
2. Adequacy of explanation for delay in re-filing.
3. Compliance with court fee requirements.
4. Diligence in pursuing the petition.
5. Interpretation of statutory provisions regarding limitation in arbitration matters.

Analysis:

Issue 1: Condonation of delay in re-filing the petition under Section 34 of the Act
The appellant challenged the order dismissing the application for condonation of delay of 65 days in re-filing the petition under Section 34. The initial petition was filed on 23.01.2013, and after multiple re-filings due to defects, the final re-filing was done on 01.05.2013. The appellant sought condonation based on delays in obtaining and affixing the required court fees and preparing a soft copy of the petition. The respondent contended that the delays were due to negligence and lack of diligence on the appellant's part.

Issue 2: Adequacy of explanation for delay in re-filing
The appellant explained the delay by citing difficulties in obtaining the substantial court fees required for the petition, including issues with a cheque and administrative processes. However, the court found the explanation unsatisfactory, noting that the delays in filing and re-filing were substantial and not adequately justified. The court emphasized the importance of timely compliance with statutory provisions and the need for a satisfactory explanation for delays in legal proceedings.

Issue 3: Compliance with court fee requirements
The court highlighted the significance of adhering to court fee requirements, noting that the petition was initially filed without the requisite court fees. Despite the substantial amount involved, the appellant's failure to promptly pay the fees and address the defects in the petition was considered a lapse in diligence. The court emphasized that the statutory provisions regarding court fees and limitation periods must be strictly followed in arbitration matters.

Issue 4: Diligence in pursuing the petition
The court found that the appellant had not been diligent in pursuing the petition, as evidenced by the delays in addressing defects and re-filing the petition. The explanations provided for the delays, including the preparation of a soft copy of the petition, were deemed insufficient to justify the extended timeline for re-filing. The court emphasized the need for parties to actively and promptly address procedural requirements in legal proceedings.

Issue 5: Interpretation of statutory provisions regarding limitation in arbitration matters
The court underscored the importance of strict adherence to limitation periods in arbitration matters to prevent the frustration of the objectives of the Arbitration & Conciliation Act. The court held that the appellant's failure to promptly address defects and re-file the petition within the prescribed timelines demonstrated a lack of diligence. The court referred to previous judgments to support the principle that condonation of delay in re-filing required a satisfactory explanation and diligent pursuit of legal remedies.

In conclusion, the court upheld the decision of the learned Single Judge in not condoning the delay, dismissing the appeal and emphasizing the importance of diligence and compliance with statutory provisions in legal proceedings.