M/S SIMPLEX INFRASTRUCTURE LTDversusUNION OF INDIA

676                SUPREME[2018]
                           COURT 14REPORTS
                                   S.C.R. 676              [2018] 14 S.C.R.


A                  M/S SIMPLEX INFRASTRUCTURE LTD
                                        v.
                              UNION OF INDIA
                        (Civil Appeal No. 11866 of 2018)
B                            DECEMBER 05, 2018
              [DR. DHANANJAYA Y CHANDRACHUD AND
                           VINEET SARAN, JJ.]
            Arbitration and Conciliation Act, 1996:
C            s. 34 – Application under – Delay of 514 days in filing –
      Condonation of delay – If permissible – Held: By virtue of s. 34(3),
      recourse to the court against an arbitral award cannot be beyond
      the period prescribed therein i.e. three months – The proviso thereto
      allows this period to be further extended by another period of thirty
      days on sufficient cause being shown – The words ‘but not
D
      thereafter” in the proviso makes the legislative intent clear that
      statutory period of three months is extendable by another period of
      upto thirty days and no more – Section 5 of Limitation Act has no
      application to the application u/s. 34 – However, the provisions of
      s. 14 of Limitation Act would be applicable to the application u/s.
E     34 – In the present case, even if benefit of s.14 of Limitation Act is
      given, in view of the proviso to s.34, only 30 days can be condoned
      beyond the limitation period of three months – There will still be a
      delay of 131 days in filing the application, which cannot be
      condoned – Administrative difficulties would not be a valid reason
      to condone a delay above and beyond the statutory period
F
      prescribed u/s. 34 – High Court was not justified in condoning the
      delay of 514 days in filing the application u/s. 34 – Application
      u/s. 34 is dismissed on the ground that it is barred by limitation –
      Limitation Act, 1963 – ss.5 and 14.
            Allowing the appeal, the Court
G
            HELD : 1. Section 34 of Arbitration and Conciliation Act,
      1996 provides that recourse to a court against an arbitral award
      may be made only by an application for setting aside such award
      “in accordance with” sub-section (2) and sub-section (3). Sub-
      section (2) relates to the grounds for setting aside an award. An
H
                                       676
 M/S SIMPLEX INFRASTRUCTURE LTD v. UNION OF INDIA                       677


application filed beyond the period mentioned in sub-section (3)        A
of Section 34, would not be an application “in accordance with”
that sub-section. By virtue of Section 34(3), recourse to the court
against an arbitral award cannot be beyond the period prescribed.
Sub-section (3) of Section 34, read with the proviso, makes it
abundantly clear that the application for setting aside the award
                                                                        B
on one of the grounds mentioned in sub-section (2) will have to
be made within a period of three months from the date on which
the party making that application receives the arbitral award. The
proviso allows this period to be further extended by another
period of thirty days on sufficient cause being shown by the party
for filing an application. The intent of the legislature is evinced     C
by the use of the words “but not thereafter” in the proviso. These
words make it abundantly clear that as far as the limitation for
filing an application for setting aside an arbitral award is
concerned, the statutory period prescribed is three months which
is extendable by another period of upto thirty days (and no more)
                                                                        D
subject to the satisfaction of the court that sufficient reasons were
provided for the delay. [Para 8][681-C, G-H]
      2. Section 5 of the Limitation Act, 1963 deals with the
extension of the prescribed period for any appeal or application
subject to the satisfaction of the court that the appellant or
applicant had sufficient cause for not preferring the appeal or         E
making the application within the prescribed period. Section 5
of the Limitation Act has no application to an application
challenging an arbitral award under Section 34 of the 1996 Act.
[Para 9][682-F-G]
      Union of India v. Popular Construction Company (2001)             F
      8 SCC 470 : [2001] 3 Suppl. SCR 619 – relied on.
      3. Section 14 of the Limitation Act deals with the “exclusion
of time of proceeding bona fide” in a court without jurisdiction,
subject to satisfaction of certain conditions. From the scheme
and language of Section 34 of the Act of 1996, the intention of the     G
legislature to exclude the applicability of Section 14 of the
Limitation Act is not manifest. Having regard to the legislative
intent, the provisions of Section 14 of the Limitation Act, 1963
would be applicable to an application submitted under Section 34
                                                                        H
678               SUPREME COURT REPORTS                 [2018] 14 S.C.R.


A     of the Act of 1996 for setting aside an arbitral award.”
      [Para 10][685-D-E]
            Consolidated Engineering Enterprises v. Principal
            Secretary, Irrigation Department (2008) 7 SCC 169 :
            [2008] 5 SCR 1108 – relied on.
B           4. In the present case, application under Section 34 of the
      1996 Act was submitted on 30 January 2015 before the District
      Judge, for setting aside the arbitral award dated 27 October 2014.
      On 12 February 2016, the District Judge dismissed the
      respondent’s application for want of jurisdiction. It was only on
C     28 March 2016, that the respondent filed an application under
      Section 34 of the 1996 Act before the High Court challenging the
      arbitral award, along with an application for condonation of delay
      of 514 days. A plain reading of sub-section (3) along with the
      proviso to Section 34 of the 1996 Act, shows that the application
      for setting aside the award on the grounds mentioned in sub-
D     section (2) of Section 34 could be made within three months and
      the period can only be extended for a further period of thirty
      days on showing sufficient cause and not thereafter. Even if the
      benefit of Section 14 of the Limitation Act is given to the
      respondent, there will still be a delay of 131 days in filing the
E     application. That is beyond the strict timelines prescribed in sub-
      section (3) read along with the proviso to Section 34 of the 1996
      Act. The delay of 131 days cannot be condoned. To do so, as the
      High Court did, is to breach a clear statutory mandate.
      Administrative difficulties would not be a valid reason to
      condone a delay above and beyond the statutorily prescribed
F     period under Section 34 of the 1996 Act. [Paras 11, 13 and 15]
      [685-G-H; 686-G-H; 687-A-B; 688-D]
            Union of India v Tecco Trichy Engineers & Contractors
            (2005) 4 SCC 239 : [2005] 2 SCR 983 – distinguished.

G           5. Therefore, in view of the period of limitation prescribed
      in Section 34(3), the Single Judge of the High Court was not
      justified in condoning the respondent’s delay of 514 days in
      filing the application. The petition under Section 34
      stands dismissed on the ground that it is barred by limitation.
      [Para 16][688-E-F]
H
    M/S SIMPLEX INFRASTRUCTURE LTD v. UNION OF INDIA                         679


                              Case Law Reference                             A
[2001] 3 Suppl. SCR 619                 relied on          Para 9
[2008] 5 SCR 1108                       relied on          Para 10
[2005] 2 SCR 983                        distinguished      Para 15
      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 11866                  B
of 2018.
      From the Judgment and Order dated 27.04.2016 of the High Court
at Calcutta in GA No. 958 of 2016.
     C. A. Sundaram, Sr. Adv., Rakesh Sinha, Sourav Ghosh, Samrat
                                                                             C
Sengupta, Ms. Soumya Dutta, Debayan Ghosh, Advs., for the Appellant.
      Ms. Kiran Bhardwaj, Ms. Pranay Ranjan, Sumit Teterwal,
Venkatesh, R. B. Yadav, Varun Singh, Ms. Nishta Kumar, Mrs. Anil
Katiyar, Advs., for the Respondent.
          The Judgment of the Court was delivered by                         D
          DR. DHANANJAYA Y CHANDRACHUD, J.
       1. The present appeal arises from the judgment of a learned Single
Judge of the High Court of Calcutta by which the respondent’s application
for condoning a delay of 514 days in filing an application under Section
34 of the Arbitration and Conciliation Act, 1996 (‘the 1996 Act’) was        E
allowed.1
       2. The appellant, who is a contractor, entered into an agreement
for the construction of 821 units of permanent shelters in the tsunami-hit
Andaman and Nicobar Islands with the Union of India, represented by
the Executive Engineer, Andaman Central Division, Central PWD, Port          F
Blair.2 The scope of work involved the construction of single storied
permanent shelters, including internal water supply, sanitary installation
and internal electrification. Due to differences with regard to the
performance of the construction work, the parties were referred to
arbitration. On 27 October 2014, the arbitrator made an award in             G
favour of the appellant and directed the respondent to pay a sum of
9,96,98,355/- with simple interest @ 10% per annum from 1 January
2009 till actual payment. The respondent received the copy of the award
on 31 October 2014.
1
    The High Court delivered judgment on 27 April 2016.
2
    The date of the agreement is 5 January 2006                              H
680                  SUPREME COURT REPORTS                       [2018] 14 S.C.R.


A            3. Aggrieved by the award, the respondent filed an application3
      under Section 34 of the 1996 Act on 30 January 2015 before the District
      Judge, Port Blair for setting aside the arbitral award. During the pendency
      of the arbitration proceedings, the appellant had filed an application4
      under Section 9 of the 1996 Act before the High Court of Calcutta praying
      for an injunction on encashment of bank guarantee against the respondent
B
      and the application was duly contested by the respondent.
             4. On 12 February 2016, the District Judge dismissed the
      respondent’s application under Section 34 of the 1996 Act for want of
      jurisdiction. The District Judge observed:
C            “…According to the provision of Section 42 of the Arbitration
             and Conciliation Act, when an application has been made regarding
             an arbitration agreement before any Court under the same part;
             that Court shall only have jurisdiction over the arbitration
             proceedings and all subsequent application arising out of that
             agreement and the arbitral proceedings shall be made in that court
D            and in no other court.
             In this case the parties have preferred an application under Section
             9 of the Arbitration and Conciliation Act before the Hon’ble High
             Court of Kolkata… Thus, it is clear to me that this Appellant
             Court has no jurisdiction to entertain this appeal according to Section
E            42 of the Arbitration and Conciliation Act.”
             5. On 28 March 2016, the respondent filed an application5 under
      Section 34 before the High Court of Calcutta for challenging the arbitral
      award dated 27 October 2014, along with an application6 for condonation
      of a delay of 514 days. The respondent justified the delay on ground of
F     there being a bona fide mistake in filing the application before the wrong
      forum and the respondent’s counsel causing delay due to which necessary
      formalities were not complied with within the prescribed time.
            6. On 27 April 2016, the learned Single Judge of the High Court
      allowed the respondent’s application and condoned the delay of 514 days.
G     The High Court held:


      3
        O.A No.2/2015
      4
        AP No 91 of 2008
      5
        A.P. No. 224/2016
      6
H       G.A. No. 958/2016 in A.P. No. 224/2016
 M/S SIMPLEX INFRASTRUCTURE LTD v. UNION OF INDIA                              681
        [DR. DHANANJAYA Y CHANDRACHUD, J.]

        “After considering the submissions made by the learned advocate        A
        for the applicant/petitioner and upon perusing the application for
        condonation of delay, it appears that sufficient cause has been
        shown to explain the delay in filing the application, being AP No.
        224 of 2016 and as such the delay is condoned…”
       7. The issue which has been raised before this Court is whether         B
the learned Single Judge was justified in condoning a delay of 514 days
by the respondent in filing the application under Section 34. In dealing
with this issue, this Court needs to assess whether the benefit of Sections
5 and Section 14 of the Limitation Act can be extended to the respondent,
and if so, whether a delay beyond the specific statutory limitation
prescribed under Section 34(3) of the 1996 Act could be condoned.              C

        8. Section 34 of the Arbitration and Conciliation Act, 1996 provides
thus:
        “34. Application for setting aside arbitral award.—
        (1) Recourse to a Court against an arbitral award may be made          D
        only by an application for setting aside such award in accordance
        with sub-section (2) and sub-section (3)…
        (3) An application for setting aside may not be made after three
        months have elapsed from the date on which the party making
        that application had received the arbitral award or, if a request      E
        had been made under Section 33, from the date on which that
        request had been disposed of by the arbitral tribunal:
        Provided that if the Court is satisfied that the applicant was
        prevented by sufficient cause from making the application within
        the said period of three months it may entertain the application       F
        within a further period of thirty days, but not thereafter.”
       Section 34 provides that recourse to a court against an arbitral
award may be made only by an application for setting aside such award
“in accordance with” sub-section (2) and sub-section (3). Sub-section
(2) relates to the grounds for setting aside an award. An application filed    G
beyond the period mentioned in sub-section 3 of Section 34, would not
be an application “in accordance with” that sub-section. By virtue of
Section 34(3), recourse to the court against an arbitral award cannot be
beyond the period prescribed. Sub-section (3) of Section 34, read with
the proviso, makes it abundantly clear that the application for setting
                                                                               H
682                     SUPREME COURT REPORTS                    [2018] 14 S.C.R.


A     aside the award on one of the grounds mentioned in sub-section (2) will
      have to be made within a period of three months from the date on which
      the party making that application receives the arbitral award. The proviso
      allows this period to be further extended by another period of thirty days
      on sufficient cause being shown by the party for filing an application.
      The intent of the legislature is evinced by the use of the words “but not
B
      thereafter” in the proviso. These words make it abundantly clear that as
      far as the limitation for filing an application for setting aside an arbitral
      award is concerned, the statutory period prescribed is three months which
      is extendable by another period of upto thirty days (and no more) subject
      to the satisfaction of the court that sufficient reasons were provided for
C     the delay.
                9. Section 5 of the Limitation Act, 1963 provides thus:
                “5. Extension of prescribed period in certain cases. —Any appeal
                or any application, other than an application under any of the
                provisions of Order XXI of the Code of Civil Procedure, 1908,
D               may be admitted after the prescribed period if the appellant or the
                applicant satisfies the court that he had sufficient cause for not
                preferring the appeal or making the application within such period.
                Explanation. —The fact that the appellant or the applicant was
                misled by any order, practice or judgment of the High Court in
E               ascertaining or computing the prescribed period may be sufficient
                cause within the meaning of this section.”
             Section 5 of the Limitation Act, 1963 deals with the extension of
      the prescribed period for any appeal or application subject to the
      satisfaction of the court that the appellant or applicant had sufficient
F     cause for not preferring the appeal or making the application within the
      prescribed period. Section 5 of the Limitation Act, 1963 has no application
      to an application challenging an arbitral award under Section 34 of the
      1996 Act. This has been settled by this Court in its decision in Union of
      India v Popular Construction Company7, where it held as follows –
G               “As far as the language of Section 34 of the 1996 Act is concerned,
                the crucial words are “but not thereafter” used in the proviso to
                sub-section (3). In our opinion, this phrase would amount to an
                express exclusion within the meaning of Section 29(2) of the
                Limitation Act, and would therefore bar the application of Section
      7
H         (2001) 8 SCC 470 at para 12 and 14
M/S SIMPLEX INFRASTRUCTURE LTD v. UNION OF INDIA                            683
       [DR. DHANANJAYA Y CHANDRACHUD, J.]

   5 of that Act. Parliament did not need to go further. To hold that       A
   the court could entertain an application to set aside the award
   beyond the extended period under the proviso, would render the
   phrase “but not thereafter” wholly otiose. No principle of
   interpretation would justify such a result.
   …Here the history and scheme of the 1996 Act support the                 B
   conclusion that the time-limit prescribed under Section 34 to
   challenge an award is absolute and unextendible by court under
   Section 5 of the Limitation Act… “
   10. Section 14 of the Limitation Act, 1963 provides thus:
   “14. Exclusion of time of proceeding bona fide in court without          C
   jurisdiction. —
   (1) In computing the period of limitation for any suit the time during
   which the plaintiff has been prosecuting with due diligence another
   civil proceeding, whether in a court of first instance or of appeal
   or revision, against the defendant shall be excluded, where the          D
   proceeding relates to the same matter in issue and is prosecuted
   in good faith in a court which, from defect of jurisdiction or other
   cause of a like nature, is unable to entertain it.
   (2) In computing the period of limitation for any application, the
   time during which the applicant has been prosecuting with due            E
   diligence another civil proceeding, whether in a court of first
   instance or of appeal or revision, against the same party for the
   same relief shall be excluded, where such proceeding is prosecuted
   in good faith in a court which, from defect of jurisdiction or other
   cause of a like nature, is unable to entertain it.                       F
   (3) Notwithstanding anything contained in Rule 2 of Order XXIII
   of the Code of Civil Procedure, 1908 (5 of 1908), the provisions
   of sub-section (1) shall apply in relation to a fresh suit instituted
   on permission granted by the court under Rule 1 of that Order,
   where such permission is granted on the ground that the first suit
                                                                            G
   must fail by reason of a defect in the jurisdiction of the court or
   other cause of a like nature.
   Explanation. —For the purposes of this section,—
   (a) in excluding the time during which a former civil proceeding
   was pending, the day on which that proceeding was instituted and         H
   the day on which it ended shall both be counted;
684                     SUPREME COURT REPORTS                     [2018] 14 S.C.R.


A               (b) a plaintiff or an applicant resisting an appeal shall be deemed
                to be prosecuting a proceeding;
                (c) misjoinder of parties or of causes of action shall be deemed to
                be a cause of a like nature with defect of jurisdiction.”
             Section 14 of the Limitation Act deals with the “exclusion of time
B     of proceeding bona fide” in a court without jurisdiction, subject to
      satisfaction of certain conditions. The question whether Section 14 of
      the Limitation Act would be applicable to an application submitted under
      Section 34 of the 1996 Act has been answered by this Court in
      Consolidated Engineering Enterprises v Principal Secretary,
C     Irrigation Department8. This court observed thus:
                “At this stage it would be relevant to ascertain whether there is
                any express provision in the Act of 1996, which excludes the
                applicability of Section 14 of the Limitation Act. On review of the
                provisions of the Act of 1996 this Court finds that there is no
D               provision in the said Act which excludes the applicability of the
                provisions of Section 14 of the Limitation Act to an application
                submitted under Section 34 of the said Act. On the contrary, this
                Court finds that Section 43 makes the provisions of the Limitation
                Act, 1963 applicable to arbitration proceedings. The proceedings
                under Section 34 are for the purpose of challenging the award
E               whereas the proceeding referred to under Section 43 are the
                original proceedings which can be equated with a suit in a court.
                Hence, Section 43 incorporating the Limitation Act will apply to
                the proceedings in the arbitration as it applies to the proceedings
                of a suit in the court. Sub-section (4) of Section 43, inter alia,
F               provides that where the court orders that an arbitral award be set
                aside, the period between the commencement of the arbitration
                and the date of the order of the court shall be excluded in computing
                the time prescribed by the Limitation Act, 1963, for the
                commencement of the proceedings with respect to the dispute so
                submitted. If the period between the commencement of the
G               arbitration proceedings till the award is set aside by the court, has
                to be excluded in computing the period of limitation provided for
                any proceedings with respect to the dispute, there is no good reason
                as to why it should not be held that the provisions of Section 14 of
                the Limitation Act would be applicable to an application submitted
      8
H         (2008) 7 SCC 169 at para 23
 M/S SIMPLEX INFRASTRUCTURE LTD v. UNION OF INDIA                              685
        [DR. DHANANJAYA Y CHANDRACHUD, J.]

      under Section 34 of the Act of 1996, more particularly where no          A
      provision is to be found in the Act of 1996, which excludes the
      applicability of Section 14 of the Limitation Act, to an application
      made under Section 34 of the Act. It is to be noticed that the
      powers under Section 34 of the Act can be exercised by the court
      only if the aggrieved party makes an application. The jurisdiction
                                                                               B
      under Section 34 of the Act, cannot be exercised suo motu. The
      total period of four months within which an application, for setting
      aside an arbitral award, has to be made is not unusually long.
      Section 34 of the Act of 1996 would be unduly oppressive, if it is
      held that the provisions of Section 14 of the Limitation Act are not
      applicable to it, because cases are no doubt conceivable where           C
      an aggrieved party, despite exercise of due diligence and good
      faith, is unable to make an application within a period of four
      months. From the scheme and language of Section 34 of the Act
      of 1996, the intention of the legislature to exclude the applicability
      of Section 14 of the Limitation Act is not manifest. It is well to
                                                                               D
      remember that Section 14 of the Limitation Act does not provide
      for a fresh period of limitation but only provides for the exclusion
      of a certain period. Having regard to the legislative intent, it will
      have to be held that the provisions of Section 14 of the Limitation
      Act, 1963 would be applicable to an application submitted under
      Section 34 of the Act of 1996 for setting aside an arbitral award.”      E
       The position of law is well settled with respect to the applicability
of Section14 of the Limitation Act to an application filed under Section
34 of the 1996 Act. By applying the facts of the present case to the well
settled position of law, we need to assess whether the learned Single
Judge of the High Court was justified in condoning the delay for filing an     F
application under Section 34 of the 1996 Act.
       11. The respondent submitted an application under Section 34 of
the 1996 Act on 30 January 2015 before the District Judge, Port Blair
for setting aside the arbitral award dated 27 October 2014. On 12
February 2016, the District Judge dismissed the respondent’s application       G
for want of jurisdiction. It was only on 28 March 2016, that the respondent
filed an application under Section 34 of the 1996 Act before the High
Court of Calcutta challenging the arbitral award, along with an application
for condonation of delay of 514 days.

                                                                               H
686                 SUPREME COURT REPORTS                      [2018] 14 S.C.R.


A           12. The contention of Mr Aryama Sundaram, learned senior
      counsel for the appellant is that even if the benefit of Section 14 of the
      Limitation Act is extended to the respondent in filing the application under
      Section 34 of the 1996 Act, there would still be a delay of 131 days
      which could not be condoned in view of the specific statutory limitation
      prescribed under Section 34(3) of the 1996 Act. The learned senior
B
      counsel has tendered the following tabulated chart:
                                  DELAY CHART



C




D




E



      The appellant has, in this connection, relied on Union of India v Popular
F     Construction Company (supra) and Consolidated Engineering
      Enterprises v Principal Secretary, Irrigation Department (supra)
      to support its case. On the other hand, it is the respondent’s contention
      that there were no willful latches on its part and the delay was caused
      due to inevitable administrative difficulties of obtaining directions from
      higher officials.
G            13. A plain reading of sub-section (3) along with the proviso to
      Section 34 of the 1996 Act, shows that the application for setting aside
      the award on the grounds mentioned in sub-section (2) of Section 34
      could be made within three months and the period can only be extended
      for a further period of thirty days on showing sufficient cause and not
H     thereafter. The use of the words “but not thereafter” in the proviso
    M/S SIMPLEX INFRASTRUCTURE LTD v. UNION OF INDIA                           687
           [DR. DHANANJAYA Y CHANDRACHUD, J.]

makes it clear that the extension cannot be beyond thirty days. Even if        A
the benefit of Section 14 of the Limitation Act is given to the respondent,
there will still be a delay of 131 days in filing the application. That is
beyond the strict timelines prescribed in sub-section (3) read along with
the proviso to Section 34 of the 1996 Act. The delay of 131 days cannot
be condoned. To do so, as the High Court did, is to breach a clear statutory
                                                                               B
mandate.
       14. The respondent received the arbitral award on 31 October
2014. Exactly ninety days after the receipt of the award, the respondent
filed an application under Section 34 of the 1996 Act before the District
Judge, Port Blair on 30 January 2015. On 12 February 2016, the District
Judge dismissed the application for want of jurisdiction and on 28 March       C
2016, the respondent filed an application before the High Court under
Section 34 of the 1996 Act for setting aside the arbitral award. After the
order of dismissal of the application by the District Judge, the respondent
took almost 44 days (excluding the date of dismissal of the application
by the District Judge and the date of filing of application before the High    D
Court) in filing the application before the High Court. Hence, even if the
respondent is given the benefit of the provision of Section 14 of the
Limitation Act in respect of the period spent in pursuing the proceedings
before the District Judge, Port Blair, the petition under Section 34 was
filed much beyond the outer period of ninety days.
                                                                               E
       15. The respondent has relied on the decision of this Court in
Union of India v Tecco Trichy Engineers & Contractors9, where
this Court had to decide the effective date from which the limitation
within the meaning of sub-section (3) of Section 34 of the Act shall be
calculated. The Chief Project Manager on behalf of the Southern Railway
had entered into a contract with a contractor for construction of a railway    F
bridge. Disputes between the parties were referred to arbitration and an
award was delivered in the office of the General Manager, Southern
Railway. The Chief Engineer preferred an application against the award
under Section 34 of the 1996 Act before the High Court. The learned
Single Judge and the Division Bench of the High Court rejected the             G
application holding it as barred by limitation. This Court reversed the
order of the High Court and condoned the application for delay. This
Court observed that in huge organisations like the Railways having
different divisional heads and various departments within the division,
the copy of the award had to be received by the person who had
9
    (2005) 4 SCC 239
                                                                               H
688                  SUPREME COURT REPORTS                     [2018] 14 S.C.R.


A     knowledge of the proceedings and who would be the best person to
      understand and appreciate the award and grounds for challenge. This
      Court found that all arbitral proceedings for the Railways were being
      represented by the Chief Engineer and the General Manager had simply
      referred the matter for arbitration as required under the contract. While
      condoning the delay of three months and 27 days, this Court found that
B
      the service of the arbitral award on the General Manager could not be
      taken to be sufficient notice to constitute the starting point of limitation
      for the purpose of Section 34(3) of the 1996 Act. The decision in this
      case has no applicability to the facts of the present case as there is no
      dispute with respect to the party who received the arbitral award. It is
C     an admitted position that on 27 October 2014, the arbitrator made an
      award in favour of the appellant and on 31 October 2014, the Union of
      India received a copy of the award. One of the reasons stated by the
      respondent for delay in filing an application under Section 34 of the 1996
      Act was that the departmental office was located at Port Blair, Andaman
      and it was a time-consuming process for obtaining permission from the
D
      circle office at Chennai. Administrative difficulties would not be a valid
      reason to condone a delay above and beyond the statutory prescribed
      period under Section 34 of the 1996 Act.
              16. Under the circumstances, we are of the considered opinion
      that in view of the period of limitation prescribed in Section 34(3), the
E     learned Single Judge of the High Court was not justified in condoning
      the respondent’s delay of 514 days in filing the application. The judgment
      rendered by the learned Single Judge of the High Court of Calcutta on
      27 April 2016, in GA No. 958 of 2016 is set aside and the appeal is
      allowed. The petition under Section 34 stands dismissed on the ground
F     that it is barred by limitation. There shall be no order as to costs.

      Kalpana K. Tripathy                                           Appeal allowed.




G




H