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Issues: (i) Whether the delay in re-filing the petition challenging the arbitral award could be condoned notwithstanding the period prescribed under Section 34(3) of the Arbitration and Conciliation Act, 1996; (ii) whether the arbitral award was liable to be set aside on merits under Section 34 of the Arbitration and Conciliation Act, 1996.
Issue (i): Whether the delay in re-filing the petition challenging the arbitral award could be condoned notwithstanding the period prescribed under Section 34(3) of the Arbitration and Conciliation Act, 1996.
Analysis: The petition was filed on the last date of limitation but remained defective for a substantial period despite repeated returns by the registry. The explanation offered for the delay in curing defects, including court vacations, non-availability of the authorised representative, non-availability of documents, and other pending litigations, was found unconvincing. A strict approach was warranted in view of the statutory mandate governing the time limit for a challenge under Section 34(3).
Conclusion: The delay in re-filing was not condoned and the application for condonation was rejected.
Issue (ii): Whether the arbitral award was liable to be set aside on merits under Section 34 of the Arbitration and Conciliation Act, 1996.
Analysis: The award was based on admitted receipt of advance payment and admitted failure to supply the contracted quantity of coal. The arbitrator had considered the evidence, including proof of market procurement at a higher price, and had awarded refund, damages, interest, and costs with reasons. The challenge based on alleged hindrances and assertions made in another proceeding was rejected because those averments were unproven and the petitioners had chosen not to participate in the arbitration or lead evidence. The award was not shown to be perverse or contrary to the public policy of India.
Conclusion: The arbitral award was upheld and no ground for interference under Section 34 was made out.
Final Conclusion: The petition failed both on limitation and on merits, and the award in favour of the respondent was left undisturbed.
Ratio Decidendi: A challenge under Section 34 must satisfy the statutory time discipline for re-filing, and a reasoned arbitral award based on evidence will not be set aside on unsubstantiated allegations or mere non-participation by the objecting party.
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