{"id":341523,"date":"2025-02-15T16:00:46","date_gmt":"2025-02-15T10:30:46","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=341523"},"modified":"2025-03-01T16:53:43","modified_gmt":"2025-03-01T11:23:43","slug":"bhc-dismisses-condonation-application-by-national-highway-division-arbitration-appeal","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/02\/15\/bhc-dismisses-condonation-application-by-national-highway-division-arbitration-appeal\/","title":{"rendered":"\u2018Entirely based on false foundation\u2019; Bombay HC dismisses condonation of delay application by National Highway Division in arbitration appeal"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Bombay High Court:<\/span> In a condonation of delay application filed by the National Highway Division of Maharashtra Government in an arbitration appeal, a Single Judge Bench of Somasekhar Sundaresan, J., dismissed the application, holding that the entire application was based on a false foundation. The Court also held that Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001553169\" target=\"_blank\">116<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726959\" target=\"_blank\">Limitation Act, 1963<\/a> (&#8216;Limitation Act&#8217;) would apply to arbitration appeals under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544942\" target=\"_blank\">37<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration and Conciliation Act, 1996<\/a> (&#8216;Arbitration Act&#8217;).<\/p>\n<h3>Background<\/h3>\n<p style=\"margin-bottom: 3%;\">An arbitration appeal was filed against a judgment wherein the District Court upheld an arbitral award enhancing the compensation amount regarding land acquisition for the construction of a National Highway. However, there was a delay of 124 days in filing the said appeal, thus the present condonation application was filed.<\/p>\n<h3>Analysis<\/h3>\n<p style=\"margin-bottom: 3%;\">The Court rejected the reasoning that the delay happened due to the Section 34 application being handled by a local advocate in the District Court. The Court stated that the explanation given was unsatisfactory as it was evident that there was no change in the Advocate or the law firm who handled the prior proceedings when it came to filing the appeal. Thus, since this reason was the foundation of explaining the delay, the entire application was set up on a false foundation.<\/p>\n<p style=\"margin-bottom: 3%;\">Further, even if this had not been the case, the Court stated that sufficient cause had not been shown as the grounds were flimsy and vague. The Court reiterated that State agencies could not hide behind the conventional excuse of bureaucratic delays and inefficiency in the State&#8217;s capacity for condonation of delays. In this regard, the Court relied on <span style=\"font-style: italic;\">State of Maharashtra<\/span> v. <span style=\"font-style: italic;\">Borse Bros. Engineers &amp; Contractors (P) Ltd.<\/span> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/TLNly791\" target=\"_blank\">(2021) 6 SCC 460<\/a>, wherein it was held that when persons who were involved in filing appeals were well aware and conversant with the issues involved, a special treatment could not be accorded to arms of the Government by mechanically condoning delay.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court stated that it was clear that an appeal under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544942\" target=\"_blank\">37<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a> would draw the limitation period of 90 days from Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001553169\" target=\"_blank\">116<\/a> of the Schedule of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726959\" target=\"_blank\">Limitation Act<\/a>. For any delay after that, the principles of Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001553197\" target=\"_blank\">5<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726959\" target=\"_blank\">Limitation Act<\/a> would be imported for showing sufficient cause. The Court added that in Para 27 of <span style=\"font-style: italic;\">Borse Brothers (supra)<\/span>, the Supreme Court cautioned that the &#8220;<span style=\"font-style: italic;\">most important principle to be applied&#8221;<\/span> was the <span style=\"font-style: italic;\">&#8220;main object of the Arbitration Act requiring speedy resolution of disputes&#8221;<\/span> and this objective would govern arbitration appeals.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court remarked that it was a conscious legislative choice to adopt the speedy dispute resolution framework of the Arbitration Act for dealing with compensation disputes under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001563982\" target=\"_blank\">3G<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002948253\" target=\"_blank\">National Highways Act, 1956<\/a>.<\/p>\n<p style=\"margin-bottom: 3%;\">Thus, applying the principles and the law declared in <span style=\"font-style: italic;\">Borse Brothers (supra)<\/span>, the Court held that the delay could not be condoned.<\/p>\n<p style=\"margin-bottom: 3%;\">Since the very foundation of this case was a demonstrably false pleading, the Court held that there was no reason to entertain the application any further. The Court rejected the contention that even if the Advocate in the Section 34 proceedings was the same, it took time to get the records and prepare the Arbitration Appeal. The Court stated that such an argument hardly explained why a positive assertion that the Advocate was different was made in the first place.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court remarked that the applicant was habitually late and had held up matters with inordinate delays, even in the proceedings so far.<\/p>\n<p style=\"margin-bottom: 3%;\">Thus, the Court dismissed the application and the arbitration appeal due to not being satisfied that a case was made out for condonation of delay, particularly considering the manner of pleadings made in the present application and overall view of the matter.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">National Highway Division v. Sanjay Shankar Surve, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/QYA1BZV5\" target=\"_blank\" rel=\"noopener\">2025 SCC OnLine Bom 339<\/a>, decided on 05-02-2025<\/span>]<\/p>\n<hr\/>\n<p>Advocates who appeared in this case:<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the petitioner:<\/span> Kajal Gupta and Shweta Singh<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the respondent:<\/span> Revati Desai and Chetan Mali<\/p>\n<h3 style=\"color: #000080;\">Buy Arbitration and Conciliation Act, 1996 &nbsp; <a href=\"https:\/\/www.ebcwebstore.com\/product_info.php?products_id=382\" target=\"_blank\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product_info.php?products_id=382\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-191x300.png\" alt=\"arbitration and conciliation act, 1996\" width=\"191\" height=\"300\" class=\"aligncenter size-large wp-image-294803\" srcset=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-191x300.png 191w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-38x60.png 38w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996.png 620w\" sizes=\"auto, (max-width: 191px) 100vw, 191px\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">&#8220;It is now trite law that State agencies cannot hide behind the conventional excuse of bureaucratic delays and inefficiency in the State&#8217;s capacity, to condone delays.&#8221;<\/p>\n","protected":false},"author":67011,"featured_media":314919,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[43926,78724,78725,2569,2552,37235,72782,78726,47469,27524,47804],"class_list":["post-341523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-arbitration-act","tag-arbitration-appeal","tag-article-116-limitation-act","tag-Bombay_High_Court","tag-Condonation_of_delay","tag-dispute-resolution","tag-justice-somasekhar-sundaresan","tag-maharashtra-national-highway-division","tag-national-highway-act","tag-section-34","tag-section-37"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>BHC dismisses condonation of delay application by National Highway Division in arbitration appeal | SCC Times<\/title>\n<meta name=\"description\" content=\"Bombay High Court denied condonation of delay by National Highway Division in arbitration appeal, held entire application based on false foundation\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2025\/02\/15\/bhc-dismisses-condonation-application-by-national-highway-division-arbitration-appeal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u2018Entirely based on false foundation\u2019; 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Commercial Law 2025: How Courts, Regulators and Lawmakers reinforced accountability and curbed abuse","author":"Soumya Yadav","date":"January 9, 2026","format":false,"excerpt":"This roundup highlights key 2025 corporate and commercial law developments from Adani\u2019s HDIL resolution and Vedanta\u2019s demerger setback to SEBI\u2019s insider trading penalties, Google\u2019s CCI settlement, and the pump-and-dump ban involving actor Arshad Warsi.","rel":"","context":"In &quot;Legal RoundUp&quot;","block_context":{"text":"Legal RoundUp","link":"https:\/\/www.scconline.com\/blog\/post\/category\/columns-for-roundup\/"},"img":{"alt_text":"India Corporate & Commercial Law Developments 2025","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/01\/India-Corporate-Commercial-Law-Developments-2025.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/01\/India-Corporate-Commercial-Law-Developments-2025.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/01\/India-Corporate-Commercial-Law-Developments-2025.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/01\/India-Corporate-Commercial-Law-Developments-2025.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":333556,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/10\/22\/challenging-varindera-time-to-reform-condonation\/","url_meta":{"origin":341523,"position":1},"title":"Challenging Varindera: Time to Reform Condonation?","author":"Bhumika Indulia","date":"October 22, 2024","format":false,"excerpt":"by Akash Hogade\u2020","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"Challenging Varindera","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/10\/Challenging-Varindera.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/10\/Challenging-Varindera.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/10\/Challenging-Varindera.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/10\/Challenging-Varindera.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":245948,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/22\/short-delay-in-filing-appeals-under-section-37-of-the-arbitration-act-can-be-condoned-in-exceptional-cases-heres-why-supreme-court-overruled-n-v-international-verdict\/","url_meta":{"origin":341523,"position":2},"title":"Short delay in filing appeals under section 37 of the Arbitration Act can be condoned in exceptional cases. Here&#8217;s why Supreme Court overruled N.V. International verdict","author":"Prachi Bhardwaj","date":"March 22, 2021","format":false,"excerpt":"Supreme Court: The 3-judge bench of RF Nariman, BR Gavai and Hrishikesh Roy, JJ has held that given the object of speedy disposal sought to be achieved both under the Arbitration and Conciliation Act, 1996 and Commercial Courts Act, 2015, for appeals filed under section 37 of the Arbitration Act\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-3-3.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-3-3.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-3-3.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-3-3.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-3-3.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":197646,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/06\/28\/period-of-delay-is-not-the-criteria-while-considering-application-under-section-5-of-limitation-act\/","url_meta":{"origin":341523,"position":3},"title":"Period of delay is not the criteria while considering application under Section 5 of Limitation Act","author":"Bhumika Indulia","date":"June 28, 2018","format":false,"excerpt":"Delhi High Court: A Division Bench comprising of G.S. Sistani and Sangita Dhingra Sehgal, JJ., refused to condone a delay of 65 days in filing the appeal under Section 37 of Arbitration and Conciliation Act, 1996 which was consequently dismissed. The appellant filed the said appeal against the order of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":325742,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/07\/04\/all-hc-directs-principal-secretary-implement-guidelines-government-departments-to-avoid-delay-filing-arbitration-appeals\/","url_meta":{"origin":341523,"position":4},"title":"Allahabad HC directs Principal Secretary to implement guidelines in Government departments to avoid filing Arbitration appeals beyond statutory time limits","author":"Editor","date":"July 4, 2024","format":false,"excerpt":"\u201cThe rationale behind such stringent timelines is rooted in the principles of finality and efficiency, which are paramount in arbitration. The limitation period serves as a deterrent against undue delays and encourages parties to act promptly, thereby ensuring that the arbitration process remains expeditious.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Allahabad High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":244814,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/01\/aggrieved-by-an-order-refusing-condonation-of-delay-in-filing-application-under-section-34-of-the-arbitration-act-1996-appeal-lies-holds-supreme-court\/","url_meta":{"origin":341523,"position":5},"title":"Aggrieved by an order refusing condonation of delay in filing application under section 34 of the Arbitration Act, 1996? Appeal lies, holds Supreme Court","author":"Prachi Bhardwaj","date":"March 1, 2021","format":false,"excerpt":"\u201cUndoubtedly, a limited right of appeal is given under section 37 of the Arbitration Act, 1996. But it is not the province or duty of this Court to further limit such right by excluding appeals which are in fact provided for, given the language of the provision.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/341523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=341523"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/341523\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/314919"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=341523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=341523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=341523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}