Section 34 Application Must Be Filed Within 90 Days Limitation To Claim Exclusion Of Period When Court Remain Closed: Supreme Court

Chambers of Ishaan Garg

Ch. No. 217, Western Wing, District & Sessions Court, Tis Hazari, New Delhi, Delhi 110054

+91 8851742417, +91 8800386163

The Hon'ble Supreme Court has held that an application under Section 34 of the Arbitration and Conciliation Act, 1996 must be filed within the “prescribed period” of limitation i.e. 90 days, for seeking the benefit of exclusion of the period during which the Court remained closed from computation of limitation period. If the application is filed by invoking Proviso to Section 34(3) of the Arbitration Act, which extends the limitation period to a further 30 days at the Court's discretion, then the benefit of such exclusion would not be available to the applicant.

The Bench comprising of Hon'ble  Justice M.R. Shah and Hon'ble Justice Krishna Murari further held that the Proviso to Section 10 of the General Clauses Act, 1897, specifically excludes the application of Section 10 to any act or proceeding to which the Indian Limitation Act, 1877 (now Limitation Act, 1963) applies. Since the Limitation Act, 1963 is applicable to arbitration proceedings, Section 10 of the General Clauses Act cannot be pressed into service to seek condonation of delay in filing of application on the ground that the last day of the condonable period falls on a Court holiday. 

Case Title:

Bhimashankar Sahakari Sakkare Karkhane Niyamita v/s. Walchandnagar Industries Ltd. (2023 SC)