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Supreme Court of India 2021-02-11 allowed

Chintels India Ltd vs Bhayana Builders Pvt. Ltd

Bench: 3 — Rohinton Fali Nariman

In Brief

This appeal addresses a crucial procedural question in arbitration law: whether a court's refusal to condone delay in filing an application to set aside an arbitral award is itself appealable. The Supreme Court held yes. An order refusing to condone delay under Section 34(3) of the Arbitration Act, 1996 falls within Section 37(1)(c), which provides for appeals against orders 'setting aside or refusing to set aside an arbitral award under section 34'. Since such a refusal effectively prevents the award challenge from being heard, it has the practical effect of refusing to set aside the award, making it appealable. The Court followed the pari materia principle from the 1940 Act and overruled contrary High Court judgments. The matter was remitted for a Division Bench to consider whether the condonation refusal was justified on merits.

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Arbitration Limitation Appeal Procedural Law Condonation of Delay

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