- (1.) THIS is an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 against the order of the learned Additional District Judge, Ludhiana passed on 23rd January, 2014 declining the objections under Section 34 of the Act thereby affirming the arbitration award dated 29th March, 2001 settling the claims between the contractor and the Employer -Superintending Engineer. The job work is for execution of a works contract for construction of a flyover in replacement of existing pedestrian bridge at Km 374.164 on Ludhiana -Amritsar Rail section at Ludhiana. The period of completion of contract was 18 months reckoned from 10th March, 1997. The employer terminated the contract on 13th June, 2006 on as -is -where is -basis but not at the risk and cost of the claimant. The arbitrator has found that even the security deposit was not forfeited. The contention of the claimant that this was an admission on the part of the employer that the claimant was not responsible for the delay in execution of the work, the disputes having arisen were resolved by the Arbitrator.
(2.) THE moot point in this appeal relates to whether there was sufficient cause in not presenting the application under Section 34 of the Act beyond the period of 3 months prescribed by Section 34 (3) of the Act. Before embarking upon a discussion on the material dates with respect to the filing of the objections to the award by the appellant Government, Section 34(3) requires to be reproduced : - "34(3) An application for setting aside may not be made after three month have elapsed from the date of which the party making that application had received the arbitral award or, if a request 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 within a further period of thirty days, but not thereafter."
(3.) THE facts found in the impugned order dated 23rd January,2014 in Arbitration Case No.6 of 1st August, 2011 are as follows : - The arbitration award was received in the office of PWD (B&R) Department, Ludhiana on 31 st March, 2011. The limitation under Section 34 of the Act commenced on 1.4.2011 and ended on 1.7.2011 after the expiry of 3 months. Further period of 30 days prescribed by proviso to Section 34 (3) of the Act expired on 30.7.2011, on which date, the application was filed. There is no doubt that the application was filed within the extended period of 30 days but the question which arose before the learned Additional District Judge, Ludhiana was whether the appellant had shown sufficient cause which prevented it from making an application beyond 3 months prescribed by Section 34 (3). This issue has been examined by the Court. The reasoning adopted are best put in her own words : - "10. Now coming to the question regarding sufficient cause which prevented the applicant from making the application. The applicant in this respect has prayed that he had entered into correspondence with the higher authorities including the Chief Engineer and Secretary for taking instructions for filing objections and that the said instructions were delayed due to official hassles and other technicalities. It is however, admitted by applicant himself that at one stage, it was proposed not to file objections against the award and to settle the matter by seeking undertaking from the respondent that he would claim interest on the award amount. The stand of respondent is also similar to the effect that an undertaking was called from him for not seeking interest and that even the proposal for release of payment to the respondent was made by the Chief Engineer. This fact has been admitted by the applicant himself. 11. It is apparent that the department, which was earlier keen for settling the award, subsequently adopted a dilly delaying approach towards the award and finally took the decision to file the objections after the expiry of three month period. The said process, however, cannot be said to be sufficient cause which prevented the applicant from filing the application for objection as the objections in case of an arbitral award are confined to the grounds as provided in Sec. 34 of the Act whereunder the arbitral award may be set aside by the Court only if a party was under some incapacity, or the arbitration agreement is not valid under the law or the party making the application was not given proper notice of the appointment of an arbitrator, none of which are the grounds raised by the applicant in its objections. The further ground on which the arbitral award can be set aside is where the arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration or the composition of the arbitral tribunal was not in accordance with the agreement of the parties, which again is not the case here.";