U.P. CO-OPERATIVE FEDERATION LTD. v. M/S. LAXMI RICE MILLS KOPA KOHANA AND 3 OTHERS
ARPLD/209/2025 · 2025-08-26
Arun Bhansali, Kshitij Shailendra
body2025
DailyLaw.ai
[ 2025 DAILYLAW 89278 (ALL) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 89278 (ALL) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
HIGH COURT OF JUDICATURE AT ALLAHABAD APPEAL UNDER SECTION 37 OF ARBITRATION AND CONCILIATION ACT 1996 DEFECTIVE No. - 209 of 2025 Chief Justice's Court HON'BLE ARUN BHANSALI, CHIEF JUSTICE HON'BLE KSHITIJ SHAILENDRA, J.
1. This appeal, filed on 10.08.2025, is directed against the order dated 06.07.2024 passed by the Commercial Court, Varanasi, whereby the application filed by respondent under Section 9 of the Arbitration and Conciliation Act, 1996 has been allowed and interim relief till constitution of Arbitral Tribunal and disposal of the application, to be filed by the respondent, has been granted. 2. Office has reported the appeal as barred by 350 days. 3. Along with the appeal an application under Section 5 of the Limitation Act has been filed supported by affidavit indicating the reasons for seeking condonation of delay. The affidavit inter alia reads as under:-
"2. That there is some delay in filing the present appeal as the matter was referred to the Head office at Lucknow which took some time therefore there is delay in filing the present appeal. 3. That there is an unintentional delay in filing the present appeal as finally the legal opinion dated 25.06.2025 was issued by Head office at Lucknow to file the present appeal challenging the impugned judgment dated 23.08.2024 allowing section 9 application under the Arbitration and Conciliation Act, 1996. A photocopy of Legal Opinion dated 25.06.2025 issued by Head office at Lucknow is marked and annexed as Annexure no. 1 to this affidavit. 4. That for reasons mentioned above there is a short delay in filing the present appeal under section 37 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') and the same is liable to be condoned by this Hon'ble Court."
4. A perusal of the above averments indicates that it has been claimed that Versus Counsel for Appellant(s) : Adarsh Bhushan Counsel for Respondent(s) :
U.P. Co-Operative Federation Ltd. .....Appellant(s) M/S. Laxmi Rice Mills Kopa Kohana And 3 Others .....Respondent(s)
there was an unintentional delay in filing the appeal as the legal opinion dated 25.06.2025 issued by the head office for challenging the order dated 23.08.2024 was received late, which resulted in the 'short delay' of 296 days. 5. The averments contained in the affidavit are absolutely cursory and the reason indicated is that the head office took a decision to challenge the order on 25.06.2025, which led to the delay.
The head office is that of the appellant Federation itself and is not an outside agency which can provide cause for the delay in getting the opinion/sanction to file the appeal. 6. The Hon'ble Supreme Court in the case of Government of Maharashtra Vs. Borse Brothers Engineers and Contractors Private Limited, (2021) 6 SCC 460 in relation to appeals under Section 37 of the Act has inter alia laid down the parameters for condoning the delay as under:-
"63. Given the aforesaid and the object of speedy disposal sought to be achieved both under the Arbitration Act and the Commercial Courts Act, for appeals filed under section 37 of the Arbitration Act that are governed by Articles 116 and 117 of the Limitation Act or section 13(1A) of the Commercial Courts Act, a delay beyond 90 days, 30 days or 60 days, respectively, is to be condoned by way of exception and not by way of rule. In a fit case in which a party has otherwise acted bona fide and not in a negligent manner, a short delay beyond such period can, in the discretion of the court, be condoned, always bearing in mind that the other side of the picture is that the opposite party may have acquired both in equity and justice, what may now be lost by the first party's inaction, negligence or laches."
7. In terms of the determination made by Hon'ble Supreme Court, wherein only in extraordinary circumstances delay in filing the appeal can be condoned, no case for condoning the delay in the present appeal is made out. The application under Section 5 of the Limitation Act is, consequently, dismissed. 8. The appeal is also dismissed as barred by limitation. August 27, 2025 RK ARPLD No. 209 of 2025 2 (Kshitij Shailendra,J.) (Arun Bhansali,Chief Justice) Digitally signed by :- RAJESH KUMAR High Court of Judicature at Allahabad