Supreme Court to Review the Permissibility of Condoning Delays in Filing Appeals under Section 37 of the Arbitration Act
The Supreme Court will review whether courts can condone delays beyond 120 days for appeals under Section 37 of the Arbitration and Conciliation Act, 1996.
9/19/20241 min read
A division bench of Justices Abhay Oka and Pankaj Mithal noted on Wednesday that the 2020 ruling in Union of India v. Varindera Constructions Limited, which prohibits condoning delays, might need reevaluation. The Court has issued notice on a petition from M/S Sab Industries Limited, challenging the Himachal Pradesh High Court's decision to condone a 166-day delay by the State in filing an appeal under Section 37 of the Act.
The appellant relied on the Varindera Constructions Limited decision, arguing that delays beyond 120 days in filing an appeal under Section 37 cannot be condoned. Acknowledging the limitation under Section 43 of the Act, the Court indicated that the Varindera Constructions ruling may need reconsideration.
The counsel for the petitioner cited the Supreme Court's decision in Union of India vs. Varindera Constructions Ltd., (2020) 2 SCC 111, which held that delays beyond 120 days in filing appeals under Section 37 of the Arbitration and Conciliation Act, 1996, cannot be condoned. The Court, however, observed that this view may require reconsideration in light of Section 43 of the Act and scheduled the matter for further hearing on October 21.
On August 5, a division bench of the High Court condoned a 166-day delay by the State in filing an appeal under Section 37 against a single-judge's ruling. The delay was attributed to a mix-up, as the certified copy of the judgment was delivered to the wrong department. The High Court allowed the delay, imposing costs of ₹10,000 on the State. Aggrieved by this decision, the appellant approached the Supreme Court.