Introduction:

• In N.V. International v. State of Assam (2020) 2 SCC 109, the Supreme Court upheld its earlier decision in Union of India v. Varindera Constructions Ltd. (2020) 2 SCC 111 and held as follows:

1. The Court reaffirmed its earlier ruling in Union of India v. Varindera Constructions Ltd. (2020) 2 SCC 111, holding that delays exceeding 120 days in filing appeals under Section 37 of the Arbitration and Conciliation Act, 1996, should not be condoned, in line with the legislative intent of ensuring expeditious dispute resolution.
2. The judgment clarified that while a grace period of 30 days under Section 5 of the Limitation Act may apply, any delay beyond the aggregate 120-day period, including the grace period, would be detrimental to the objective of swift arbitration proceedings.
3. The Court reiterated the principle laid down in Lachmeshwar Prasad Shukul v. Keshwar Lal Chaudhuri AIR 1941 FC 5, asserting that any delay exceeding 120 days in filing an appeal against an arbitral award is impermissible as it undermines the statutory intent for timely adjudication of arbitration matters.
   

Facts & Background:

• In the present case, the Court was confronted with three appeals:
  

1. Civil Appeal No. 995 of 2021: The Bombay High Court, by judgment dated 17.12.2020, dismissed the Government of Maharashtra's appeal, refusing to condone the delay in filing under Section 37 of the Arbitration and Conciliation Act, 1996, beyond 120 days.
2. Civil Appeal No. 996-998 of 2021: The Delhi High Court, by judgment dated 15.10.2019, dismissed the Union of India’s appeal, refusing to condone the delay in filing under Section 37 of the Arbitration Act.
3. Civil Appeal No. 999 of 2021: The Madhya Pradesh High Court refused to follow the judgment in N.V. International v. State of Assam (2020) 2 SCC 109 citing a conflict with Consolidated Engg. Enterprises v. Irrigation Deptt. (2008) 7 SCC 169, and condoned a 57-day delay under Section 5 of the Limitation Act, 1963.

• The present case seeks to determine the correctness of the law established by the Division Bench of the Supreme Court in N.V. International v. State of Assam (2020) 2 SCC 109 particularly regarding the application of Section 37 of the Arbitration Act for condoning delays.
  

Main Issue:

1. Whether the judgment in N.V. International v. State of Assam (2020) 2 SCC 109 correctly equates the limitation period for challenging an arbitral award under Section 34 of the Arbitration & Conciliation Act, 1996 with that for filing an appeal under Section 37 of the Arbitration & Conciliation Act, 1996? (Paragraph 2)
2. Can Section 5 of the Limitation Act be excluded under the Commercial Courts Act, considering that Section 13(1A) of the Limitation Act, 1963 does not address delay condonation beyond the limitation period? (Paragraph 33)