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1996 DAILYLAW 1485 (ALL)

VIJAY ARORA v. DELHI CIRCLE STATE BANK STAFF ASSOCIATION CREDIT AND THRIFT SAHKARI SOCIETY LIMITED AND 6 OTHERS

ARPLD/152/2026 · 2026-09-06

Arun Bhansali, Kshitij Shailendra

body1996

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HIGH COURT OF JUDICATURE AT ALLAHABAD APPEAL UNDER SECTION 37 OF ARBITRATION AND CONCILIATION ACT 1996 DEFECTIVE No. - 152 of 2026 Vijay Arora …..Appellant(s) Versus Delhi Circle State Bank Staff Association Credit and Thrift Sahkari Society Limited and 6 others …..Respondent(s) Counsel for Appellant(s) : Namit Srivastava, Parth Pandey, Parul Srivastava Counsel for Respondent(s) : Chief Justice's Court HON'BLE ARUN BHANSALI, CHIEF JUSTICE HON'BLE KSHITIJ SHAILENDRA, J. 1. Heard learned counsel for the appellant. 2. This appeal has been filed under Section 37 of Arbitration & Conciliation Act, 1996 (the 'Act, 1996') assailing the order dated 21.04.2026, whereby an application (Paper No. 7-C) filed by the appellant under Section 34(3) of the Act, 1996, registered as Misc. Case No. 39 of 2023 (Vijay Kumar Arora vs. Delhi Circle State Bank Staff Association Credit and Thrift Sahkari Society Ltd.), has been rejected. 3. The appeal is reported to be beyond time by 44 days. 4. An application seeking condonation of delay under Section 5 of the Limitation Act, 1963, supported by affidavit of the appellant has 2 ARPLD No. - 152 of 2026 been filed, wherein explanation offered for delay has been given in paragraphs no. 2 and 3, which reads as under: "2. That the delay in filing the present Arbitration Application was for the reason that the deponent had no knowledge regarding filing of the Arbitration Application and it was only in the month of May when the deponent contacted his counsel and prepared the appeal and went back to arrange the necessary papers for filing the present appeal however the deponent fell ill and could not come to Allahabad for filling the present appeal. 3. That after recovery, the deponent came to Allahabad for filing the present Arbitration Application without any further delay. therefore the deponent request the Hon'ble Court to condone the delay in filing the present Arbitration Application and treat the same to have been filed within time." 5. Apparently, the explanation offered is that the appellant had no knowledge regarding filing of 'Arbitration Application', i.e. the arbitration case and that it was only in the month of May when he contacted his counsel and prepared the appeal and went back to arrange papers for filing of appeal, but on account of his illness, he could not come to Allahabad for filing the same. 6. Learned counsel for the appellant has made submissions that since there was no arbitration clause in the agreement between the parties, the award itself is illegal and the same having not come to the knowledge of the appellant, delay occurred in filing the application under Section 34 of the Act, 1996. As far as delay in filing the present appeal is concerned, except from reading the afore-quoted paragraphs no. 2 and 3 of the affidavit, nothing more has been argued. 7. We have considered the submissions made and have perused the material available on record. 8. A perusal of the record indicates that pursuant to a resolution dated 10.06.2021 passed by the respondent-Co-operative Society, Arbitration Case No. 3 of 2021 was registered before the sole Arbitrator Mr. Hari Lal, Advocate. An award was passed on 12.04.2022 which indicates that despite various notices sent to the appellant by registered post and despite their service upon him, he did not appear to contest the 3 ARPLD No. - 152 of 2026 proceedings and, consequently, the award was passed directing recovery for a sum of Rs.7,29,285/- alongwith interest @ 11% per annum. The findings recorded qua service of notice upon the appellant, his non- appearance and non-filing of response, are as under:- " वादी सोसोयटी ने विवापक्षीगण को बार- बार ऋण मय ब्यज जम कोरने को लिय कोहा गय परन्तु विवापक्षीगण द्वार ऋण को रलि मय ब्यज अदी नेहा! विकोय गय। इसो कोरण वादी सोसोयटी को प्रस्तुवा दिदीने'को 10-06-2021 को अनेसोर सोसोयटी को विनेयमवा को क्ज 39 को विनेयम 11 को अनेसोर मझे आबा+ट्रे टीर नेमिमने टी विकोय गय। उपरक्तु मम म र द्वार अपने रिरकोर्ड1 म2 प'जको3 तु विकोय गय ज आबा+ट्रे ने वादी सो'ख्य 3/2021 हा5 तुथा विवापक्षी ने'० 1 को नेविटीसो रजिजस्टीर्ड1 र्डको सो दिदीने'को 19- 07-2021 को लिय भे ज गय ज उसो प्रप्तु नेहा हुआ तुथा पने< नेविटीसो दिदीने'को 02- 08-2021, 26-08-2021, 16-09-2021 भे ज गय परन्तु विवापक्षी ने'० 1 पर तुम नेहा हुई तुथा पने< नेविटीसो रजिजस्ट्रे र्डको वा कोरिरयर द्वार दिदीने'को 13-10-2021 को लिय भे ज गय। दिदीने'को 13-10-2021 को इसो सोम्बान्ध म2 तुम नेहा हा5 तुथा प्रथा1ने पत्र वास्तु सो'धने बानेय जने जमनेमितुय2 को विवापक्षीगण दिदीय गय। प्रथा1ने पत्र सो'धने दिदीने'को 09-11-2021 को स्वाकोर विकोय गय तुथा नेय बानेय गय विवापक्षीगण2 को नेविटीसो दिदीने'को 17-12-2021 को लिय जरA विकोय गय विको वा अपने पक्षी स्वाय' य अमिधवाक्तु को मध्यम सो म र सोमक्षी रखे । विवापक्षीगण 2, 3 वा 7 पर तुम रजिजस्ट्रे र्डको सो पय1प्तु हा5। रजिजस्ट्रे रसोदी को तुम ने टी को कोप पत्रवा पर हा5 तुथा विवापक्षी ने'० 4 पर तुम इन्कोरA सो पय1प्तु हा5 तुथा विवापक्षी ने'0 1, 5 वा 6 पर तुम नेहा! हा5 तुथा पने< नेविटीसो दिदीने'को 11-01-2022 को लिय जरA विकोय गय । दिदीने'को 11-01-2022 पर विवापक्षी ने'० 1, 5 वा 6 पर तुम रजिजस्ट्रे र्डको सो पय1प्तु हा5। वादी द्वार ने टी को कोप दीखिखे को गई। तुम हाने को बावाजEदी भे विकोसो भे विवापक्षीगण ने अपने जवाबा / आपलिF दीखिखे नेहा! विकोय और इसो सोम्बान्ध म2 विको वा अपने उFर दीखिखे कोर , अन्तिन्तुम अवासोर भे दिदीय गय तुथा दिदीने'को 31-01-2022 को वादी म2 एको पक्षीय कोय1वाहा को आदी परिरतु विकोय गय तुथा दिदीने'को 08-02- 2022 को लिय वादी म2 एको पक्षीय सोक्ष्य हा तु विनेयतु को गई। दिदीने'को 08-02-2022 को सोक्ष्य दीखिखे नेहा विकोय गय तुथा सोमय को यचने को गई। दिदीनेको 25-02- 2022 को वादी सोसोयटी को ओर सो वादी पत्र को सोमथा1ने म2 वादी सोमिचवा श्री रज न्द्र लिसोहा ने अपने सोक्ष्य पथापत्र प्रस्तुतु विकोय जिजसोको द्वार वादी को विवास्तुर सो सोमथा1ने भे विकोय गय हा5 तुथा विवापक्षीगण को द्वार विनेष्पदिदीतु ऋण को दीस्तुवा ज2 को सो'ग्नेको को रूप म2 दीखिखे विकोय ज2 सो'ग्नेको 1 तु 17 हा5।" 9. Assailing the award dated 12.04.2022, a belated application under Section 34 of the Act, 1996 was filed by the appellant sometime in March, 2023. The same was accompanied by an application 7-C under Section 34(3) of the Act, 1996, wherein the ground for non-arbitrability of the dispute in absence of an arbitration clause was taken coupled with a plea of 'no knowledge' of the award prior to 08.12.2022. It is the said application, which has been rejected by Commercial Court by the order impugned in this appeal. 4 ARPLD No. - 152 of 2026 10. Since, at the moment, we are only considering the explanation offered for seeking condonation of delay, we find that the appellant has, surprisingly, indicated that he had no knowledge of filing of the 'Arbitration Application' itself. The said ground, apparently, is contrary to the record, inasmuch as, even if the plea raised by the appellant that copy of the award dated 12.04.2022 was served on him on 08.12.2022, it is a case where, according to the appellant himself, the award was very much there and it came to his knowledge on 08.12.2022. 11. In view of the above discussion, we find the explanation offered for delay ex facie false and misleading and application seeking condonation of delay has been filed as a mere formality contrary to the record and taking false pleas, although, in arbitration matters, considering the scheme of the Act of 1996, the explanation, if any, must be true, clear and specific and in consonance with the statutory requirements and not otherwise. 12. We are observing so in view of the fact that even application under Section 34 of the Act, 1996 cannot be filed beyond 120 days (90+30) and once the very application under Section 34 filed by the appellant was rejected as barred by limitation, if the appellant still chose not to file at least the instant appeal within time and has come up with an explanation which, ex facie, is untrue, we are of the considered opinion that the appellant has utterly failed to make out a case for condonation of delay, for which purpose, even findings recorded by the Commercial Court as well as learned Arbitrator become of significance. 13. Accordingly, the application under Section 5 of the Limitation Act, 1963 stands rejected. 14. Consequently, the present appeal is dismissed as barred by limitation. (Kshitij Shailendra,J.) (Arun Bhansali,CJ.) September 07, 2026 Sazia Digitally signed by :- SAZIA AQUIL High Court of Judicature at Allahabad