The Supreme Court is set to review whether courts can condone delays exceeding the 120-day limit for filing appeals under Section 37 of the Arbitration and Conciliation Act, 1996. This arises in the case of M/S Sab Industries Limited v. State of Himachal Pradesh and Another.
A division bench comprising Justice Abhay Oka and Justice Pankaj Mithal noted that the 2020 decision in Union of India v. Varindera Constructions Limited, which bars the condonation of delays beyond 120 days, may need reconsideration.
The Court issued notice on a plea from M/S Sab Industries Limited challenging a Himachal Pradesh High Court order that condoned a 166-day delay by the State in filing an appeal under Section 37. The appellant cited the Varindera Constructions judgment to argue that delays beyond 120 days should not be excused.
The Supreme Court acknowledged that, in light of Section 43 of the 1996 Act, which deals with limitations, the previous ruling might need to be re-evaluated. The case is scheduled for further hearing on October 21.
The High Court had condoned the State’s delay due to a mix-up in the delivery of the certified judgment, imposing a ₹10,000 cost on the State. Dissatisfied with this outcome, the appellant took the matter to the Supreme Court, represented by advocates Tarun Gupta, Hirday Virdi, and Sidhant Ranta.
