In a recent decision, the Delhi High Court rejected the Union of India's request against a decision made by an arbitrator because it was filed too late. The court stressed the importance of sticking to deadlines set by law.
The case is between the Union of India and M/S Varindera Constructions Limited. The disagreement started because of a construction contract for a defense project in Meerut. When disagreements about payments and contract breaches happened, an arbitrator was brought in. The arbitrator decided in favor of Varindera Constructions, granting them ₹32.76 crores with interest.
The Union of India tried to challenge the arbitrator's decision under a specific section of the Arbitration and Conciliation Act, 1996. However, they submitted their challenge late. The law allows three months for such challenges, with a possible 30-day extension. Unfortunately, their initial submission was incomplete and not considered valid by the court.
"The initial filing...was non est in the eyes of law," noted Justice Harish Vaidyanathan Shankar.
The Union of India's legal team said that delays within government departments caused the late submission. They mentioned confusion over stamp duty and other administrative issues.
Varindera Constructions, through their lawyers, argued that the delay was unacceptable. They stressed that the timeline set by law is mandatory and cannot be extended beyond the allowed period.
Justice Harish Vaidyanathan Shankar decided that the request could not be considered because it was late. The court pointed out that the initial submission was missing important documents and did not meet legal requirements.
"Judicial sympathy cannot be permitted to supplant legislative mandate."
With the rejection of the Union of India's request, the decision in favor of Varindera Constructions will move forward. The court has ordered the Union of India to pay the awarded amount within two weeks.
This case highlights the crucial importance of following legal deadlines and the difficulties government entities face in dealing with procedural issues.
