Section 5 of The Limitation Act Applies To Arbitration Reference Under National Highways Act, 1956 - High Court of Madhya Pradesh

02/07/2022, 17:11 Section 5 Of The Limitation Act Applies To Arbitration Reference Under National Highways Act, 1956: High
1956: High Court of Madhya Pradesh
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NEWS UPDATES
Section 5 Of The Limitation Act Applies To

Arbitration Reference Under National
Highways Act, 1956: High Court of Madhya
Pradesh
Ausaf Ayyub 2 July 2022 1:00 PM
https://www.livelaw.in/news-updates/high-court-of-madhya-pradesh-national-highways-act-limitation-act-madhya-pradesh-road-development-corporation-arbit… 1/17
02/07/2022, 17:11 Section 5 Of The Limitation Act Applies To Arbitration Reference Under National Highways Act, 1956: High Court of Madhya Pradesh
The High Court of Madhya Pradesh has held that Section 5 of the Limitation Act would
be applicable to reference to arbitration under the National Highways Act, 1956.
The Division Bench of Chief Justice Ravi Malimath and Justice Purushiandra Kumar
Kaurav reiterated that since no limitation is provided under Section 3G(5) of the
National Highways Act, the provisions of Article 137 of the Schedule to the Limitation
Act would apply to such proceedings.
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The Court held that therefore, the limitation period for filing an appeal against the
decision of the competent authority before the arbitrator is three years from the date
of expiry of 90 days from the decision of the competent authority.
Facts
Mr. Ghanshyam Gupta (Petitioner) was the landowner of the land which was acquired
by Madhya Pradesh Road Development Corporation (Respondent). The competent
authority determined the quantum of compensation payable to the petitioner and
passed an award to that effect on 30.07.2015.
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Being dissatisfied with the quantum of compensation determined by the competent
authority, the petitioner filed an appeal before the arbitrator on 04.12.2019. The
arbitrator dismissed the appeal as time-barred filed after the expiry of three years
limitation period.
Aggrieved by the decision of the arbitrator, the petitioner filed a writ petition before the
High Court.
The Contention Of The Parties
Also Read - Karnataka High Court Monthly Digest: June 2022 [Citations 180 - 239]

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• Section 5 of the Limitation Act is applicable to arbitration reference under

Section 3G(5) of the National Highways Act, 1956.
• The petitioner was unaware of the availability of the remedy of appeal against
the decision of the competent authority, it is only after consulting his lawyer, that
he came to know that he could seek enhancement. Therefore, there is a valid
ground to condone the delay.
Also Read - Extended Period Of Limitation Can Be Invoked Only When 'Suppression
Of Facts' Is Wilful To Evade Tax :CESTAT
The respondents countered the submissions of the petitioner on the following
grounds:
• In absence of a period of limitation for filing an appeal under Section 3G(5) of

the Act of 1956, it was construed that the provisions of Article 137 of the
Limitation Act would stand applicable.
• Article 137 provides for 3 years period, and the petitioner filed the appeal after
a delay of 4 years.
Analysis By The Court
The Court held that since no limitation is provided under Section 3G(5) of the National
Highways Act, the provisions of Article 137 of the Schedule to the Limitation Act would
apply to such proceedings.

The Court held that therefore, the limitation period for filing an appeal against the
decision of the competent authority before the arbitrator is three years from the date
of expiry of 90 days from the decision of the competent authority.
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The Court held that there is nothing in the National Highways Act that excludes the
applicability of Section 5 of the Limitation Act, therefore, Section 5 of the Limitation
Act would be applicable to reference to arbitration under the National Highways Act,
1956 and the arbitrator has the power to condone the delay in filing an appeal against
the award by the competent authority.
The Court held that the petitioner was not aware that an appeal could be filed against
the decision of the Competent Authority and it is only after consulting his lawyer that
he came aware of any such right, therefore, there is sufficient reason to condone the
delay.
The Court allowed the application and directed the arbitrator to decide the case of the
petitioner on merit.
Case Title: Ghanshyam Gupta v. State of Madhya Pradesh and Ors. Writ Petition No.
13670 of 2021
Date: 21.04.2022
Counsel for the Petitioner: Mr. Shambhoo Dayal Gupta
Counsel for the Respondents: Mr. Rohit Jain and Atul Nema
Click Here To Read/Download Order
TAGS NATIONAL HIGHWAYS ACT HIGH COURT OF MADHYA PRADESH LIMITATION ACT
MADHYA PRADESH ROAD DEVELOPMENT CORPORATION ARBITRATION
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02/07/2022, 17:11 Section 5 Of The Limitation Act Applies To Arbitration Reference Under National Highways Act, 1956: High

1956: High Court of Madhya Pradesh

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