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Allahabad High Court Dismisses UP Govt’s Delayed Appeal Against Arbitral Award

Updated: Jul 03, 2024 05:43:43pm
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Allahabad High Court Dismisses UP Govt’s Delayed Appeal Against Arbitral Award

Allahabad, Jul 3 (KNN) In a landmark ruling, the Allahabad High Court has taken a firm stance against the Uttar Pradesh government's tardiness in filing arbitration appeals.

Justice Shekhar B. Saraf, while dismissing an appeal filed by the state with a 224-day delay, has sent a clear message: the government must adhere to the same legal timelines as any other party.

In a noteworthy directive, Justice Saraf has ordered the Principal Secretary (Law) of Uttar Pradesh to develop procedures to prevent such delays in future arbitration appeals. A report on the actions taken is due within six months.

Justice Saraf's ruling underscores several critical points. First and foremost, the court emphasised that the government cannot expect preferential treatment in litigation, regardless of its status or resources.

This reaffirms the fundamental principle of equality under the law, a cornerstone of democratic justice systems.

Secondly, the judgment reinforces the 120-day limit for filing appeals under Section 37 of the Arbitration & Conciliation Act, 1996. By strictly adhering to these timelines, the court aims to maintain the efficiency and purpose of arbitration proceedings, which are designed to provide swift resolution to disputes.

The court also took a firm stance on bureaucratic excuses, dismissing the state's claims of procedural delays as insufficient grounds for condonation. This sends a clear message that internal administrative issues cannot be used as a shield to circumvent legal deadlines.

Lastly, by maintaining strict timelines, the court aims to preserve the integrity and credibility of the arbitration process.

The case stems from a dispute between the state and M/s Harish Chandra India Limited over a project in Agra. An arbitration award of Rs. 67,42,240 was granted to the company in 2009, which the state challenged belatedly.

The District Judge rejected the state's delay condonation application in 2012, prompting this appeal to the High Court. This ruling aligns with recent Supreme Court judgments emphasising the importance of timely resolution in arbitration matters.

The decision in "State of U.P. and Others vs. M/S Harish Chandra India Limited" (2024 LiveLaw (AB) 418) marks a significant step towards ensuring that government bodies are held to the same standards as private entities in legal proceedings.

(KNN Bureau)

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