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Court Rules Out Limitation Act’s Extension in Late Arbitration Appeals

In a significant ruling, the Supreme Court has clarified that appeals against arbitral awards, filed beyond the three-month limit, cannot benefit from the 30-day extension mentioned in Section 34(3) of the Arbitration and Conciliation Act, 1996. This decision reinforces that Section 4 of the Limitation Act, which allows for court closures affecting filing deadlines, does not extend to such cases.

The case involved the State of West Bengal’s challenge against an arbitral award favoring Rajpath Contractors and Engineers Ltd. Despite arguing that a holiday fell on the last day of their extension, the Court upheld the Calcutta High Court’s ruling that deemed the appeal time-barred.

The dispute arose from a bridge construction contract, where the State’s delay in filing under Section 34 was contested due to the timing of court vacations. The Supreme Court’s verdict reaffirmed that the prescribed filing period under Section 34(3) remains strict, unaffected by subsequent holidays.

This decision marks a pivotal interpretation of arbitration appeal deadlines, ensuring adherence to statutory limitations irrespective of procedural nuances.

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