What is Section 37 of Arbitration and Conciliation Act

Section 37 of Arbitration and Conciliation Act

CHAPTER IX
Appeals

Section 37. Appealable orders 

(1) [Notwithstanding anything contained in any other law for the time being in force, an appeal] shall lie from the following orders (and from no others) to the Court authorised by law to hear appeals from original decrees of the Court passing the order, namely:

[(a) refusing to refer the parties to arbitration under section 8;

(b) granting or refusing to grant any measure under section 9;

(c) setting aside or refusing to set aside an arbitral award under section 34.]

(2) An appeal shall also lie to a Court from an order of the arbitral tribunal

(a) accepting the plea referred to in sub-section (2) or sub-section (3) of section 16; or

(b) granting or refusing to grant an interim measure under section 17.

(3) No second appeal shall lie from an order passed in appeal under this section, but nothing in this section shall affect or take away any right to appeal to the Supreme Court.

Scope of Section 37 of Arbitration and Conciliation Act

The Arbitration and Conciliation Act, 1996 Section 37 provides for filing of appeals against orders of the Court or for that matter an Arbitrator.

Three Judges bench of the Supreme Court of India of Justices R.F. Nariman, Navin Sinha, and K.M. Joseph, in Chintels India Limited v Bhayana Builders Private Limited, 2021 Latest Caselaw 67 SC, held on 11.02.2021 that an appeal prefered under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 is maintainable and permissible against an order of the Civil Court of refusing to condone delay in filing a objection application under Section 34 of the 1996 Act.

As far as Limitation is concerned, Section 37 of the Act does not provide any period for filing an appeal. This led to several contradictory findings by High Courts. Article 116 of Schedule I of the Limitation Act provides a period of 90 days for filing of appeals. As such an appeal under Section 37 of the A&C Act can be filed up to 90 days extendable up to any grace period as deemed appropriate by the concerned court or condonation of delay under Section 5 of the Limitation Act.

Hon'ble Supreme Court in case titled Consolidated Engineering Enterprises and Ors. v. Principal Secretary Irrigation Department and Ors. 2008 Latest Caselaw 329 SC has held that the provisions of the Limitation Act shall apply to all proceedings under the A&C Act, both before the Courts as well as Arbitrators, unless specifically excluded by the A&C Act.

The Apex Court relied on the legal principle that if the concerned special or local law is silent on the limitation period then the general law ie. schedule to the Limitation Act, 1963 shall apply to such appeals.

What orders are Appealable in Arbitration

The orders against which appeal is maintainablke are -

1. Order refusing to refer the parties to arbitration under section 8;

2. Order granting or refusing to grant any measure under section 9;

3. Order setting aside or refusing to set aside an arbitral award under section 34.]

4. Order of Tribunal accepting the plea referred to in sub-section (2) or sub-section (3) of section 16; 

5. Order of Tribunal granting or refusing to grant an interim measure under section 17.