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MSMED Act, 2006 – Arbitral Award – Section 34 Petition – Delay – Section 14 Limitation Act

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The Council passed the Award dated 5.2.2020.  Section 34 petition was dismissed by the District Judge, Pune, as barred by limitation by the judgment dated 21.7.2023.

The Respondent approached the Council for the claim of Rs.4,50,92,587/- arising out of the Purchase Order dated 9.3.2013.  The Council passed the Award dated 5.2.2020 just before the Covid-19 pandemic.  The Award was made available / received on 21.8.2020 during lock-down period.

This was challenged in the writ petition filed in 2021.   However, the said writ petition was withdrawn on 17.3.2023 and section 34 petition was filed in the District Court, Pune.   There was delay of 66 days.

Five principles for application of section 14 of the Limitation Act for exclusion of time in filing Section 34 petition – (1) both prior and subsequent proceedings are civil proceedings of same party; (2) prior proceeding has been prosecuted with due diligence and in good faith; (3) failure of prior proceeding was due to the defect of jurisdiction or other cause of like nature; (4) earlier and later proceedings must relate to the same matter in issue and (5) both the parties are in a court.    The provisions of Section 14 are intended to aid substantive justice and the parties not suffering the hard technicalities of law so as to be rendered remediless.

Judgment dated 17.3.2025 of the High Court of Bombay in Arbitration Appeal No.55 of 2024 of NTPC BHEL Power Projects Pvt Ltd  Vs.  Shri Electricals & Engineers (India) Pvt Ltd.

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