SUPREME COURT OF INDIA

Before:- S.B. Majmudar and Ruma Pal, JJ.

Civil Appeal No. 1953 of 2000 (Arising out of SLP (C) No. 15569 of 1999). D/d. 6.3.2000.

Union of India (UOI) - Appellant

Versus

M/s. Hanuman Prasad and Bros. - Respondent

Arbitration Act, 1940 Section 30 Held, Section 5, Limitation Act, applicable to proceedings under Section 30 for setting aside award - High Court erred in holding otherwise - On facts, delay of 2 months and 22 days condoned on payment by appellant - State of special costs - Appeal allowed.

[Para 2]

ORDER

1. Leave granted.

2. We have heard learned Additional Solicitor-General for the Appellant and Shri Hanuman Prasad who is present in person on behalf of Respondent-firm.

3. In our view, on the facts and circumstances of the case, it could not have been said that there was no sufficient cause for the Appellant to get the delay of 2 months 22 days in filing objections under Section 30 of the Arbitration and Conciliation Act, 1996 condoned in the interest of justice. We also find that Section 5 of the Limitation Act was wrongly held inapplicable to the proceedings before Court regarding making the award a rule of the Court. Consequently, on these grounds, the impugned orders of the High Court as well as of the trial court are set aside. The trial court is directed to take up objections under Section 30 of the Arbitration and Conciliation Act, 1996 on record and to decide the same in accordance with law on merits within a period of two months from the receipt of a copy of the order at its end. We make it clear that we make no observation on the merits of the objections under Section 30 of the Act which have to be decided by the trial court on its own. As the delay of 2 months 22 days is condoned, we direct the Appellant to pay Rs. 5,000 by way of special cost to the respondent within four weeks from today. in the meantime, Rs. 24,37,868 lying deposited in the court of learned District Judge, Jaipur shall be invested by learned District Judge in any Nationalised Bank initially for a period of six months awaiting decision in the remanded proceedings and the said deposit can be renewed for further suitable period if so required. In view of the present order, earlier order dated 5.11.1999 directing the Appellant to keep a net balance of Rs. 7 lacs in Bank Account No. D-45 with State Bank of India at N.C.R.B. Branch, Jaipur does not survive. The appeal is allowed accordingly with Rs. 5,000 special cost to be paid to the Respondent.

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