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Supreme Court of India

BINOD BIHARI SINGHversusUNION OF INDIA

Citation
[1992] SUPP. 3 S.C.R. 468
Decided
8 December 1992
Disposal
Dismissed

Holding

The application was deemed to be under Section 14(2) of the Arbitration Act, governed by Article 119(a) of the Limitation Act, and therefore barred by limitation; no condonation was warranted.

Summary

The appellant, Binod Bihari Singh, entered a contract with the Union of India for handling goods at a railway shed, which was terminated early. An arbitrator was appointed and awarded Rs. 82,100 to the appellant on 26 February 1965. The appellant filed an application on 20 May 1966 under Section 17 of the Arbitration Act, 1940, to have the award made a rule of court, claiming he received the award copy only in early May 1965. The respondent raised a bar of limitation, arguing the application was under Section 14(2) and thus governed by Article 119(a) of the Limitation Act. The High Court held the award copy had been received by early March 1965, rejected any implied authority to file the award, and applied Article 119(a), refusing condonation of delay. The Supreme Court affirmed the High Court, holding that the appellant’s claim was barred by limitation, no authority existed to treat the application as under Section 17, and the plea of limitation could be considered even though not originally raised. The appeal was dismissed.

Issues considered

  • Whether the application to make the arbitration award a rule of court was filed under Section 17 or Section 14 of the Arbitration Act, 1940.
  • Whether the limitation period applicable is Article 119(a) or Article 137 of the Limitation Act, 1963.
  • Whether the arbitrator’s forwarding letter and copy of the award conferred implied authority to file the award in court.
  • Whether the bar of limitation can be condoned under Section 5 of the Limitation Act.

Legislation cited

Subjects

ArbitrationLimitationRule of CourtSection 17Section 14Condonation of delayBar of limitationAward filing

Judgment

A                           BINOD BIHARI SINGH
                                    v.
                              UNION OF INDIA

                              DECEMBER 8, 1992

B                [B.P. JEEVAN REDDY AND G.N. RAY, JJ.]

          Arbitration Act, 1940-Section 17-Contractor's application dated
    20.5.1966 filing carbon copy of award dated 26.2.1965 to make the award a
    rule of Court-Legality of-Plea of law of limitation-Whether proper-Con-
e   donation of delay-Whether possible.

         . Constitution of India, 1950-Artic/e 136-Appeal-Plea of law of
    limitation in filing application u/s. 17 of Arbitration Act-Legality of-Con-
    donation of delay-Whether possible-Findings of High Court-Justification.

D        A contract was entered between the appellant and the respondent on
    10th December, 1957 for loading, unloading and handling of goods at
    Gaya Goods Shed of the Eastern Railway for the period of 3. years.

         The Railway Administration terminated the contract before the
    completion of the period of contract.
E
          In terms of arbitration clause in .the agreem~nt for reference of the
    dispute arising out of the contract, an arbitrator was initially appointed
    by the Railway. Appellant disputed the appointment.

          The High Court appointed an arbitrator by consent of the parties.
F
          The arbitrator entered upon the reference and after hearing the
    parties, made an a\'1-ard in favour of the appellant for a sum of Rs.82,100
    on 26th February, 1965.

G         The arbitrator forwarded the signed copy of the a\vard to the appel-
    lant alongwith a forwarding letter dated 20th February, 1965, indicating
    therein that he had signed and published the award on 26th February,
    1965, and the same was being sent for the information of the appellant.

         On 20.5.1966, the appellant made an application under section 17 of
H   the Arbitration Act for making the award a rule of court and for directing -
                                        468
                            BINOD BIHARI v. U.O.l.                         469

    the arbitrator to file the award in Court before the Subordinate Judge.       A
           Though the respondent in the petition of objection did not take the
     plea of bar of limitation, but the plea was raised latter.

          The Subordinate Judge rejected the plea of bar of limitation and the
     award was made a Rule of Court.                                              B
         The respondent preferred a Miscellaneous Appeal in the High Court
    against the decision of the Subordinate Judge.

            In the appeal, the respondent raised the bar of limitation and
    . challenged the correctness of the decision made by the Subordinate Judge.   c
           The applicant contended that he had received the signed copy of the
     award alongwith forwarding letter of the arbitrator only in first week of
     May, 1965 and the application for making the award a Rule of Court made
     by him was not time barred.
                                                                                  D
           Keeping the Miscellaneous Appeal pending, the High Court made a
     limited remand to the Subordinate Judge for answering two issues:-

          (i) When did the petition respondent get notice of the making of the .
     award from the arbitrator?                                                  E
           (ii) Whether on the findings arrived at by the court below, the
     application itself was barred by limitation?

           The Subordinate Judge came to the finding that in view of the


-    presumption that the registered cover containing the signed award and F
     the forwarding .Jetter should have reached by first week of March, 1965. It
     held further that although no written authority wa.s given by the ar-
     bitrator, an implied authority of the arbitrator was there in filing the
     award in the Court. The Subordinate Judge also held that the signed copy
     of the award filed by the applicant should be treated as an original award
     and the court was competent to pass appropriate order on the basis of the G
     signed copy of the award since filed by the applicant. In such circumstan-
     ces, the provisions of Article 119(a) of the Limitation Act was not at-
     tracted. The Subordinate Judge also held that in the facts and
     circumstances of the case, Article 137 of the Limitation Act was attracted
     and the period of limitation being three years under the residuary Article, H
    470                 SUPREME COURT REPORTS [1992] SUPP. 3 S.C.R.

A   the application made by the applicant was not time barred; and that even
    if it was assumed that the case was governed by Article 119(a) of the
    Limitation Act, it was a fit case for condoning the <lelay in presenting the
    application· beyond the period of limitation.

          The High Court held that there was no implied authority from the
B   arbitrator given to the applicant to file the same to make it a rule of court
    and the forwarding letter of the arbitrator had indicated that the same
    was sent only for information of the concerned part)'.

          The contentions of the applicant that the application presented by
C   the applicant should be treated as an application under Section 17 of the
    Arbitration Act; and that the case was governed by the residuary Article
    137 and not by Article 119(a) of the Limitation Act; were not accepted by
    the High Court. Appellant's plea for condonation of delay under Section
    5 of the Act was also not accepted by the High Court.

D         The High Court further held that the award was actually filed in
    Court on June 12, 1965, by the Arbitrator and on June 20, 1965, 'the court
    directed that the opposite party should be informed about the filing or" the
    award and objection petition _was filed within thirty d~ys from the date of
    such direction. Accordingly, there was no occasion to hold that the objec-
    tion petition was itself barred by limitation.
E
                                                  -
          The High Court allowing the appeal filed by the respondent set aside
    the order passed by the Subordinate Judge and dismissed the application
    made by the applicant to make the award a rule of court. The cross

F
    objection filed by the applicant for future ano pendentelite interest on the
    sum awarded was also dismissed.

         In the present appeal, by special leave, the judgment and order of
                                                                                    ..
  the High Court was challenged by the Contractor, contending that the plea
  of limitation had never been taken by the respondent either in the petition
  of objection or even in the two applications for amending the objection .
G petition, that the plea was raised only during the argument and in such
  circumstances, the High Court was not justified in allowing the parties to
  raise the plea of limitation and sending the two issues to the Subordinate
  Judge for deciding and reporting back to the High Court; that though the
  appellant could not file the registered cover, it was specifically stated by
H him that the registered cover was received by him only in the first week of
                                                                                    r
                         BINOD BIHARI v. U.O.L                             471

May and in the absence of any document showing such service of tbe copy A
of the award along with the forwarding letter of the arbitrator, the High
Court was not justified in proceeding on the presumption that the
registered cover must have been received within reasonable time, namely,         1




by first week of March, 1965; that the award made by the.arbitrator was
otherwise found to be valid and the same was not liable to be discarded
on account of the misconduct of the arbitrator; that it was an admitted.
                                                                              B
case of the parties that the carbon copy of the signed award had been sent
to the applicant and such copy bad been filed by the applicant to make the
award a rule of court, and in the circumstances, the provision of Section
14 of the Arbitration Act was not attracted and the case being governed by
Section 17 of the Arbitration Act, the limitation for presenting the applica-        c
tion for making the award filed by the applicant a rule of court was not
referable to Article 119(a) of the Limitation Act but such case was square-
ly governed by Article 137; and that even if such contention was not
accepted by this Court, in the special facts and circumstances of the case,
the delay in presenting the application should be condoned.
                                                                                     D
       The respondent contended that the case was governed by Article
119(a) of the Limitation Act and the application presented by the applicant
could not be held to be an application made under Section 17 of the
Arbitration Act; that the appellant received the signed copy of the award in
the first week of May, 1965; that the High Court was justified in not accepting      E
the prayer for condonation of delay, that the High Court had given very
cogent reasons for allowing the appeal and setting aside the decision of thf.
learned Subordinate judge in making the said award a rule of court and
interference by this Court was not called for.

      Dismissing the appeal, this Court                                              F
       HELD : 1.1 It may not be desirable for the government or the publi~
authority to take shelter under the plea of li~itation to defeat a just claim
of a citizens. But if a claim is barred by limitation and such plea is raised
specifically the court can not straightway dismiss the plea simply on the            G
score that such plea is ignoble. [481-A]

      1.2 A bar of limitation may be considered even if such plea has not
been specifically raised. Limitation Act is a statute of repose and bar of a
cause of action in a court of law, which is otherwise lawful and valid,
because of undesirable lapse of time as contained in the Limitation Act, H
      472                  SUPREME COURT REPORTS (1992) SUPP. 3 S.C.R.

 A    has heen made on a well accepted principle of jurisprudence and public
      policy. [481-B]

            1.3 The appellant, in this case, having taken a false stand on the
      question of receipt of the signed copy of the award to get rid of the liar of
      limitation, should not fie encouraged to get any premium on the falsehood
 B    on his part by rejecting the plea of limitation raised by the respondent.
                                                                               [481·C]

            1.4. The High Court has given very cogent reasons for not accepting
      the case of!he appellant that he had received a signed coPY of the award
 C    and the forwarding letter some time in May, 1965 and there is no reason
      to take a contrary view. The applicant has not produced. the registered
      cover received by him which would have established the actual date of the
      receipt of the postal cover by the applicant convincingly. [480-E]

            1.5 It is not at all a fit case where in the anxiety to render justice to a ·
· D party so that a just cause is not defeated, a pragmatic view should he taken by
    . the Court in considering the sufficient cause for condonation of delay under
      Section 5 of the Limitation Act.[480-H]

          1.6 As the case sought to he made out by the appellant that be bad
    received the signed copy of the award only in !\lay, 1965 has not been
 E .accepted, the question of condonation of delay could not and did not arise.
                                                                              [480-G]

             1.7 In this case, there was no express authority given by the ar·
      bitrator to the applicant to file the award to make it a rule· of Court
      although a signed copy of the award was sent to the applicant. The
 F
      forwarding letter clearly indicates· that the award was sent for informa·
      lion. [480·,DJ

            1.8 The High Court is justified in its finding that the objection petition
      has been filed llithin time by the respondent and the service of the copy oflhe
 G    application made by the appellant on the counsel of the respondent who had
      appeared .in an earlier proceeding did not constitute a notice as con·
      templated under Article 119(b) of the Limitation Act. [48l·D]

          G. Ramegowda and others etc. v. Special Land Acquisition Officer,
   Bangalore, [1988] 2 SCC 142 and Banarsi Das v. Seth Kanshi Ram and •
 H others, [1964] l SCR 316, referred to.
                    BINOD BIHARI r. U.O.I. [RAY, J.]                     473

        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2224 of A
1982.

     From the Judgment and Order dated 30.6.1976 of the Patna High
Court in Misc. Appeal No. 194 of 1%7.

        Ranjit Kumar and Ms. Binu Tamta for the Appellant.                      B

      Dr. Anand Prakash, Ms. Indu Goswami and Ms. A. Subhashini (NP),
for the Respondent.

        The Judgment of the Court was delivered by
                                                                                c
      G.N. RAY, J. This appeal arises out of a judgment dated 30th June,
1976 passed by a Division Bench of the Patna High Court, in Misc. Appeal
No. 194 of 1967 arising o(it of the decision of the learned Additional Subor-
dinate Judge, Patna in Misc. Case No. 38 of 1961 since renumbered as Misc.
Case 14 of 1962. The said Misc. Case arises out of an application made by the   D
appellant Binod Bihari Singh for making an award in an arbitration proceed-
ing, a Rule of Court after directing the arbitrator to file the award. The
relevant facts relating to the appeal may be indicated as follows:

      A contract: was entered between the appellant Shri Binod Bihari
Singh and the President of India on 10th. December, 1957 for loading, E
unloading and handling of goods at Gaya Goods Shed of the Easteoi
Railway for the period of 3 years. Such contract however was terminated
by the Railway Administration before the completion of the period of
contract namely with effect from 2nd August, 1960. In: terms of arbitration
clause in the argument for reference of the dispute arising out of the F
contract, an arbitrator was initially appointed by the General Manager,
Eastern Railway. There was dispute about such appointment. Ultimately,
the High Court of Patna, appointed Shri J.C. Mehta Deputy General
Manager, Eastern Railway as the sole arbitrator by consent of the parties,
and such arbitrator entered upon the re_ference and after hearing the
parties, made an award in favour of the appellant for a sum of Rs.82,100. G
Such award was made on 26th February, 1965. The arbitrator sent carbon
copies of the award signed by him to both the parties. So far as the
appellant is concerned, the arbitrator forwarded the signed copy of the
award to the appellant alongwith a forwarding letter dated 20th February,
1965, indicating therein that he had signed and published the award on H
       .
    474                 SUPREME COURT REPORTS [1992] SUPP. 3 S.C.R.

A   26th February, 1965, and the same was being sent for the information of
    the appellant. There is a dispute as regards 'the date when the said copy
    of the arbitration award and the forwarding Jetter dated 26th February,
    1965 of the arbitrator were received by the appellant.

           The appellant made an application on May 20, 1966 for making the
B   award a Rule of Court and for directing the arbitrator to file the award in
    Court before the learned Subordinate Judge, Patna. The case of the
    appellant was that the said application was made by him under Section 17
    of the Arbitratio'n Act apd not· under Section 14 of the said Act. In the
    petition of objection to the said application for making the award a Rule
C   of Court the plea of bar of limitation was not taken by the respondent and
    only at the stage of arguments, such contention of bar of limitation was
    raised by the respondent. The learned Subordinate Judge upheld the award
    as valid. The learned Subordinate Judge also rejected the plea of bar of
    limitation. Accordingly the Misc. Case was allowed by the learned Subor-
                                                                                   .•
D   dinate Judge and the award was made a Rule of Court.

           Bein~ aggrieved by such decision of the learned Subordinate Judge,
    the respondent, Union of India preferred a Misc. Appeal No. 194 of 1961
    in the High Court at Patna. In the appeal, the bar of limitation was raised
    by the Union of India for challenging the correctness of tl).e decision made
E   by the learned Sub Judge. It was contended on behalf of the applicant Shri
    Binod ~ihari Singh that the application was not barred by limitation and
    in any event, it was a fit case where delay, even if any, in presenting the
    application for making the award a Rule of Court should be condoned. It
    was contended by the applicant that he had received the signed copy of
    the award alongwith forwarding letter of the arbitrator only in first week
F
    of May, 1965 and as such the application made by him was not time barred.
    The High Court made a limited remand for answering two issues framed
    by it by the learned Subordinate Judge by keeping the Misc. Appeal
    pending. The issues directed to. be decided by the learned Subordinate
    Judge are to the following effect:
G
            (i) When did the petition respondent get notice of the
                making of the award from the arbitrator?



H
             (ii) whet\1,er on the findings arrived at by the court below,
            . the application itself is barred by limitation?                      •...
                       BIN OD BIHARI v. U.0.1. [RAY, J.]                    475

          After hearing the parties and considering the evidences and material A
    on record the learned Subordinate Judge came to the finding that in view
    of the presumption that the registered cover containing the signed award
    and the said forwarding letter should reach the addressee (the appellant)
    in time, it should be held that such signed copy of the award and !he
    forwarding letter must have reached by first week of March, 1965.
                                                                                  B
           The learned Subordinate Judge, however held that the case of the
    applicant, Shri Singh, was that he 'had filed the award in the Court under
    the authority of the Arbitrator. Although the Arbitrator in his evidence had
    stated that he had not given any authority to the applicant for filing the
    award in Court, but as he had sent the signed copy of the award to .the C
    applicant for appropriate action, it should be held that although no written
    authority was given by the arbitrator, an implied authority of the arbitrator
    was there. The learned Subordinate Judge further held that the signed copy
    of the award filed by the applicant should be treated as an original award
    and as such the prayer made bythe applicant for calling for the award from D
    the arbitrator was simply redundant and superfluous. The court was c()m-
    petent to pass appropriate order on the basis of the signed copy of the
    award since filed by the applicant. In such circumstances, the provisions of


-
    Article 119(a) of the Limitation Act was not attracted. The learned Sub-
    ordinate Judge also held that in the aforesaid facts, the residuary Article,
    namely, Article 137 of the Limitation Act was attracted and the period of E
    limitation being three years under the residuary Article, the application
    made by the applicant was not time barred. The learned Subordinate Judge
    further held that even if it was assumed that the case was governed by
    Article 119(a) of the Limitation Act, it was a fit case for condoning the
    delay in presenting the application beyond the period of limitation. In view F
    of the conflicting decisions as to the applicability of the said Article 119(a)
    when a party to the agreement filed the original award and also in view of
    the fact that the arbitration proceeding was initiated as far back as in the
    year 1961 when the old Limitation Act was in force and the period of
    limitation for filing an application for making the award rule of court was
     ninety days under Article 178 of the old Limitation Act and the new G
     Limitation Act having come into force only with effect from January, 19(}4
     prescribing the period of limitation as thir"ty days, a litigant might bona fide
     think that the arbitration proceeding having been initiated in 1961, the old
     Limitation Act would be applicable. In the aforesaid facts, it was a fit case
    where the delay, even if any, in presenting the application should be H
    476                 SUPREME COURT REPORTS [1992] SUPP. 3 S.C.R.

A   condoned under Section 5 of the Limitation Act.

           Such findings on the aforesaid two issues were taken into considera-
    tion by the High Court in disposing of the Miscellaneous Appeal No. 194
    of 1967. It may be noted here that the High Court has come to the finding
     that the award was otherwise valid and there was no misconduct on the
B
    part of the arbitrator for which the award was liable to be set aside. The
    postal re'teipt and the acknowledgment receipt of the postal cover by the
    appellant since sent to the Court of the learned Subordinate Judge along
    with the award by the arbitrator could not be found with the record of the
    case and the responsibility for the loss of those papers could not be
c   precisely fixed. The High Court, however took into consideration the
     account of postage expenses incurred in connection.with the sending of the
    arbitration award (Ext. B) to the appellant which showed that on February
    27, 1965 the said award, was sent under a registered cover. The stenog-
     rapher of the arbitrator had also deposed to the effect that he had received
D the acknowledgment receipt of the registered letter from the applicant
    within ten days from the date of dispatch and he had handed over the same
     to the arbitrator. The High Court was of the view that the evidence of
     posting of the award and the deposition of tke stenographer that he had
     received the acknowledgment receipt got corroboration from the documen-
    tary evidence and also from the fai:;ts and circumsta!J.ces of the case. The
E High Court was of the view that the evidences of the arbitrator and the
    stenographer were more reliable than the oral evidence adduced on behalf
     of the applicant. The High Court also drew adverse inference against the
    applicant for not producing the registered cover which admittedly the
    applicant received from the arbitrator. Considering the fact that at the
F · relevant time there was no disturbance in Calcutta during the period when
    the registered cover was addressed to the applicant, the High Court was
    of the view that it should be presumed that the said registered cover had
    reached by thf prst week of March, 1965. The High Court referred to a
   decision of this 'Court made in the case of Kumbha Mauji v. Dominion of
   India, AIR 1953 SC 313, wherein it has been held that mere handing over
G a signed copy of the award to a party does not mean that there was any
    implied au~hority from the arbitrator to file the award in Court on his
    behalf. Such authority from the arbitrator is required to be satisfactorily
    alleged and approved. The High Court has come to the finding that there
    was no implied authority from.the arbitrator given to the applicant to file
H the same to make it a ,r,~le of court and the forwardil'g letter of the
                        •:.

                              BINOD BIHARI v. U.0.I. [RAY, J.]                477

        arbitrator had indicated that the same was sent only for information of the A
        concerned party. Accordingly, the application made by the applicant must
        be held to be made under Section 14(2) of the Arbitration Act and Article
      . 119(a) of the Limitation Act was attracted in the facts of the case. The
        contention of the applicant that the application presented by the applicant
        should be treated as an application under Section 17 of the Arbitration Act B
        was not accepted by the High Court and the contention that the case was
        governed by the residuary Article 137 and not by Article 119(a) of the
        Limitation Act was also not accepted by the High Court. The High Court
        also did not accept the case of the applicant for condonation of delay under
        Section 5 of the Act in view of the fact that it was the positive case of the
        applicant that he had filed his application within three weeks from the date C
        of receipt of the aw.ard. In such circumstances, the contention of the
        applicant that he was not aware of the change of the law of Limitation as
        sought to be contended was completely contradictory to the firm stand
        taken by the applicant that he had filed the award within three weeks from
        the date of receipt of the award. The High Court was of the view that in D
        the aforesaid facts, the case of the applicant that he was misled because of
        the provisions of the old Limitation Act, was not acceptable. The High
        Court also noted tha~ the applicant had not consulted any lawyer after
        receiving the copy of the award and if the appellant had not cared to
        ascertain the period of Limitation he was squarely to be blamed and there
        was no occasion to condone the delay by the court. The applicant al~o E
        contended that the applieation for making the award a rule of court having
        been served on the counset of the opposite party, the objection to the said
        application should have been filed within a period of thirty days from the
        date of such service. When admittedly such objection had not been filed
        within thirty days, such objection must be held to be time barred and the F
        appli~tion of the applicant should have been accepted by the court
        without considering any of the objections of the opposite party. The High
        Court rejected such contention. The High Court held that service of a copy
        of the application on a counsel of the opposite party who had' appeared in
        an earlier proceeding under Section 8 of the Arbitration Act did not
        amount to service of notice of filing the award as contemplated by the G
        Arbitration Act and Article 119(b) of the Ll~tation Act. The High Court
        held that the award was actually filed in ~lirt' ~n June 12, 1%5 by the
        Arbitrator and on June 20, 1965 the court <lliected that the opposite party
        should be informed about the filing of· the award and objection petition
                                                                                    H


...
  l
    478                  SUPREME COURT REPORTS [1992) SUPP. 3 S.C.R.

A was filed within thirty days from the date of such direction. Accordingly,
  there was no occasion to hold that the objection petition was itself barred
  by limitation. In that view of the matter, the High Court allowed this
  appeal, set aside the order passed by ,~he learned Subordinate Judge and
  dismissed the application made by the applicant to make the said award a
B rule of court. The cross objection filed by the applicant for future and
  pertdentelite interest on the sum awarded was also dismissed.

           ·Mr. Ranjit Kumar, learned counsel for the appellant has very
     strenuously contended that the plea of limitation had never been taken by
     the objector-respondent either in the petition of objection or even in the
C    two applications for amending the objection petition. It was only during
     the argument, a plea of limitation was vaguely raised. In such circumstan-
     ces, the High Court was not justified in allowing the parties to raise the
     plea of limitation and sending the aforesaid two issues to the learned
     Subordinate Judge for deciding and reporting back to the High Court. Mr.
D    Ranjit Kumar has also contended that unfortunately the appellant could
     not file the registered cover but it was specifically stated by the appellant
     that the registered cover was received by him only in the first week of May.
    "In the absence of any document showing such service of the copy of the
    award along with the forwarding letter of the arbitrator, the High Court
    was not justified in proceeding on the presumption that the . registered
E    cover must have been received within reasonable time, namely, by first
     week of March, 1965. He has contended that the evidence adduced by the
     arbitrator and his stenographer should not have been accepted by the High
     Court for coming to the finding that the registered cover had in fact been
     sent on February 27, 1965. Mr. Kumar has contended that in the instant
F    case, the award made by the arbitrator who was the Dy. General Manager
     of the Eastern Railway, was otherwise found to be valid and the same was
     not liable to be discarded on account of the misconduct of the arbitrator.
     It is only unfortunate that the application of the said award has not been
     made a rule of court and the application has been set aside only on the
    ground of limitation. Referring to a decision of this Court made in the case
G   of Madras Port Trnst v. Hymanshu International, [1979] 4 SCC 176, wherein
    this Court has held that resort to plea of limitation by a government. or
    public authority to defeat a just claim of a citizen is not fair and such
    practice should, be depreciated, Mr. Kumar has submitted that a belated
    plea of bar df limitation should not be allowed to be raised to defeat a just
H    claim of the· appellant whose contract had been unduly terminated to his
                   BINOD BIHARI v. U.0.1. [RAY, J.]                    479

serious loss and prejudice. He has also submitted that the original applicant A
has died and it will cause serious hardship to the heirs of the original
applicant to refund the awarded sum since received by the applicant. Mr.
Ranjit Kumar has also contended that it is an admitted case of the parties
that the carbon copy of the signed award had been sent to the applicant
and such copy had been filed by the applicant to rilake the award a rule of
court. Although the applicant in his application has stated that the direc- B
tion should be given to the arbitrator to produce the award in Court, such
statement, in the facts of the case, should not have weighed with the court
because the original award itself had been filed by the applicant. fo the
aforesaid circumstances, the provision of Section 14 of the Arbitration Act
was not attracted and the case being governed by Section 17 of the C
Arbitration Act, the limitation for presenting the application for making
the award filed by the applicant a rule of court was not referable to Article
 119(a) of the Limitation Act but such case was squarely governed by
Article 137. Mr. Ranjit Kumar has further submitted that even if such
contention is not accepted by this Court, in the special facts and cir- D
cumstances of the case, the delay in presenting theapplication should be
condoned. In this connection, he has referred to the d~cisions of this Court
in G. Ramegowda and others etc. v. Special Land Acquisition Officer,
Bangalore, [1988] 2 SCC 142 and in Banarsi Das v. Seth Kanshi Ram and
others, [1964] 1SCR316, wherein this Court indicated that 'sufficient cause'
appearing in Section 5 of the Limitation Act should be considered with a E
pragmatic approach and the court should be slow in shutting the door of
justice to a litigant on the score of limitation to defeat a just claim b¢cause
a litigant does not stand to gain by coming late to a court and then suffer
a prejudice by making his case barred by limitation.
                                                                             F
       The learned counsel appearing for the respondent has, ho)Vever,
disputed the contentions made by Mr. Kumar and has contended that the
case is squarely governed by Article 119(a) of the Limitation Act and the
application presented by the applicant cannot be held to be an ·applifation
made under Section 17 of the Arbitration Act. In the instant case, there
was no express authority from the arbitrator to file the award for making G
it a rule of court and the decision of this Court in Kumbha Mauji's case
(supra) is squarely applicable. The learned counsel has further contended
that the appellant did not come with a clean hand and he made a false
statement and stuck to such false case that he had received the signed copy
of the award in the first week of May, 1965. In the aforesaid circumst_~ces, H
     480                  SUPREME COURT REPORTS (1992] SUPP. 3 S.C.R.

 A    the High Court was justified in not accepting the prayer for condonation ·
      of delay. The High Court has clearly come to the finding that the case of
      the appell:ari.t was untrue and he had received the copy of the award some
      time in the first week of March, 1965. The learned counsel has submitted
      that the High Court has given very cogent reasons for allowing the appeal
      and setting aside the decision of the foarned Subordinate Judge in making
 B    the said award a rule of court and interference by this Court is not called _
      for.

            After giving our anxious consideration to the facts and circumstances
    of the case, we do not find any reason to interfere with the decision of the
  C High Court. In our view, the High Court has rightly held that the applica-
    tion made by the appellant was an application for directing the arbitrator
     to file the award in Cotirt so that such award is made a rule of Court. In
     this case, there was no express authority given by the arbitrator to the
     applicant to file the· award to make it a rule of Court although a signed
  D copy of the award was sent to the applicant. The forwarding letter clearly
    indicates that the awMd was sent for information. Accordingly, the decision
    of this Court made in Kumbha Mauji's case (supra) is applicable. The High
    Court has given very cogent reasons which, we have indicated in some
     details, for not accepting the case of the appellant that he had received a
    signed copy of the award and the forwarding letter some time in May, 1965
  E and we do not find any reason to take a contrary view. The applicant has
    not produced the registered cover received by ~ which would have
    established the actual date of the receipt of the postal cover by the             ..
    applicant convincingly. We are also not inclined to hold that the delay in
    presenting the application deserves' to be condoned in the facts and _cir-
. F cumstances of the case. The appellant has taken a very bold stand that he
    had received the signed copy of the award only in May, 1965 and only
    within three weeks of such receipt, he had filed the application. On the
    face of such statement, the plea of ignorance of the change in the Limita-
    tion Act need not be considered and accepted. As the case sought to be
    made out by the appellant that he had received the signed copy of the
  G award only in May, 1965 has not been accepted, and we may add, very
    rightly by the Court, the question of condonation of delay could not and
    did not arise. In our view, it is not at all a fit case where in the anxiety to
    render justice to a party so that a just cause is not defeated, a pragmatic
    view should be taken by the Court in considering the sufficiem cause for.
  H condonation of delay under Section 5 of the Limitation Act. Coming to the

                                                                          .
                    BINOD BIHARI v. U.O.I. [RAY, J.]                    481

  contention of Mr. Ranjit Kumar that to defeat a just claim of the appellant, A
  the ignoble plea of bar of limitation sought to be raised by the· respondent
  should not be taken into consideration, we may indicate that it may not be
  desirable for the government or the public authority to take shelter under
  the plea of limitation to defeat a just claim of a citizen. But if a claim is
  barred by limitation and such plea is raised specifically the court can not ' B
  straightway dismiss the plea simply on the score that such plea is ignoble.
· A bar of limitation may be considered even if such plea has ilot been
  specifically raised. Limitation Act is a statute of repose and bar of a cause
  of action in a court of law, which is otherwise lawful and valid, because of
  undesirable lapse of time as contained in the Limitation Act, has been
  made on a well accepted principle of jurisprudence and public policy. That C
  apart, th~ appellant, in this case, having taken .a false stand on the question
  of receipt of the signed copy of the award to get rid of the bar of limitation,
  should not be encouraged to get any premiuin on the falsehood on his part
  by rejecting the plea of limitation raised by the Respondent. We may also
  indicate here that the High Court is justified mits fmding that the objection D
  petition has been filed within time by the respondent and the service of the
  copy of the application made by the appellant on the counsel of the
  respondent who had appeared in an earlier proceeding did not constitute
  a notice as contemplated under Article 119(b) of the Limitation Act. In
  the aforesaid circumstances, the appeal must fail and is dismissed but we
  make no order as to costs.

 V.P.R.                                                  Appeal dismissed


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