A recent court decision has sparked some conversation, especially among those interested in arbitration and legal matters. The High Court of Delhi, led by Judge Girish Kathpalia, agreed with a decision to bring back objections that were initially dismissed because a lawyer was sick. Let’s look into the details.
The case involves M/S Richa Constructions Co as the petitioner and M/S NBCC (India) Ltd as the respondent. On November 19, 2022, the objections filed by M/S NBCC (India) Ltd under Section 34 of the Arbitration and Conciliation Act were dismissed. This happened because their lawyer was unwell and couldn't attend the court.
"The lawyer for M/S NBCC (India) Ltd could not appear because she was sick..."
M/S NBCC (India) Ltd only realized in January 2023 that their objections had been dismissed. They quickly moved to restore these objections. The trial court allowed this restoration, which led to the present petition by M/S Richa Constructions Co.
M/S Richa Constructions Co argued that the request to restore the objections was filed seven months late and without a formal request to excuse the delay. They believed that deadlines should be strictly followed, especially since M/S NBCC (India) Ltd is a government-run company.
"There being a delay of about seven months in filing the restoration request, the delay should not have been excused without a formal request to excuse the delay."
Judge Kathpalia emphasized that fairness should focus on the actual issues rather than rule-breaking. The court found the initial dismissal due to illness reasonable and saw no need for a formal request to excuse the delay if the situation was clear.
"It is the main principle of fairness that disputes should be decided on actual issues and not rule-breaking..."
M/S Richa Constructions Co also pointed out that the penalty cost imposed on M/S NBCC (India) Ltd was too low. However, the court decided not to get into the amount, emphasizing the principle over the amount.
In the end, Judge Kathpalia found no reason to change the trial court’s decision. The petition by M/S Richa Constructions Co was dismissed, and the restoration of objections remained in place.
This case shows how courts can focus on fairness and doing the right thing over strict rule-following, especially when uncontrollable situations like illness are involved.
