Monsher Ent. vs Iaai And Anr.

Citation : 2016 Latest Caselaw 5897 Del
Judgement Date : 8 September, 2016

Delhi High Court
Monsher Ent. vs Iaai And Anr. on 8 September, 2016
*            IN THE HIGH COURT OF DELHI AT NEW DELHI

+                                    CS(OS) No.17/1991

%                                                               8th September, 2016

MONSHER ENT.                                               ..... Plaintiff
                            Through:      Ms. Shantha Devi Raman, Advocate
                                          with Mr. Arbaaz Hussain, Advocate.
                            versus

IAAI AND ANR.                                             ..... Defendants
                            Through:      Mr. S.K. Chandwani, Advocate.


CORAM:
HON'BLE MR. JUSTICE VALMIKI J.MEHTA

To be referred to the Reporter or not?


VALMIKI J. MEHTA, J (ORAL)

Review Petition No.462/2015

1.           On 10.8.2015, the corrected Award dated 22.3.2012 was made a

Rule of the Court noticing that no objections have been filed by the

plaintiff/petitioner to the Award and as required to be done within 30 days as

per Article 119 (b) of the Schedule of the Limitation Act, 1963. This Order

dated 10.8.2015 reads as under:-

     "1.      There is a very limited issue before this Court with respect to
     correction of the Award dated 22.3.2012 passed by the Arbitrator after the
     remand, and which correction is that the Award is said to be a Nil Award but
     Claim No. 6 has been allowed for an amount of Rs.33,659/- I may note that
     none of the parties have filed any objections to the Award.
     2.       Accordingly, the Award dated 22.3.2012 is corrected whereby where
     in the final portion, it is written as Nil Award, the same will be treated as an
     Award with respect to sums as otherwise granted by the Award, including with
     respect to Claim No. 6 for a sum of Rs.33,659/-
RP No. 462/2015 in CS(OS) 17/1991                                              Page 1 of 4
      3.       Petition is disposed of accordingly noting that since the Arbitrator has
     not awarded interest, this Court also does not feel need to exercise its discretion
     to grant any interest more so because defendants have already paid under
     Claim No. 6 to the plaintiff. Award is made Rule of the Court with the
     aforesaid observations."


2.            By this review petition filed under Section 114 of the Code of

Civil Procedure, 1908 (CPC), plaintiff/petitioner states that it was never served

any notice under Section 14(2) of the Arbitration Act, 1940 of the filing of the

Award for the period of limitation of 30 days to commence under Article 119

(b) of the Limitation Act. By referring to the record of this Court, it is argued

that the Order of the Joint Registrar dated 27.5.2014 wrongly records that

petitioner/plaintiff was served but is not present whereas for 27.5.2014 only

the respondent no.1/defendant no.1 was served. It is also argued that notice

received by the petitioner/plaintiff thereafter pursuant to an Order of the learned Single Judge of this Court dated 13.8.2014 was only a court notice and not a notice under Section 14(2) of the Arbitration Act, 1940 of the filing of the Award, and therefore, on receipt of only a court notice the limitation under Article 119 (b) of the Limitation Act did not commence.

3. I have gone through the record. It is seen that the Joint Registrar has wrongly recorded on 27.5.2014 that petitioner/plaintiff is served whereas service report for 27.5.2014 in the miscellaneous file shows that it was the respondent no.1/defendant no.1 which was served and not the petitioner/plaintiff. Thereafter petitioner/plaintiff appeared only pursuant to RP No. 462/2015 in CS(OS) 17/1991 Page 2 of 4 service on 26.5.2015 but that appearance was only pursuant to the court notice issued originally by the learned Single Judge of this Court on 13.8.2014 and reissued thereafter on various dates and ultimately for 26.5.2015 when the petitioner/plaintiff was served of the court notice. In law, unless a person who wants to object to the Award is specifically served with a notice of filing of the Award as required by the third column of Article 119 (b) of the Schedule of the Limitation Act, the period of 30 days of limitation cannot begin to run for filing of objections. There are serious consequences of not filing objections within 30 days of receipt of the notice of filing of the Award, inasmuch as Award can thereafter be made Rule of the Court in the absence of the objections having been filed. Therefore, parties have to be necessarily served with the specific notice of filing of the Award for the limitation of 30 days to commence under Article 119 (b) of the Limitation Act.

4. Since in the present case, admittedly the petitioner/plaintiff has never been served of notice of filing of the Award dated 22.3.2012, the Order of this Court dated 10.8.2015 wrongly records that none of the parties have filed objections and which is on the faulty premise that petitioner/plaintiff has received notice of filing of the Award, and which as stated above is factually not correct.

5. In view of the above, this review petition is allowed and the Order dated 10.8.2015 making the Award a Rule of the Court is set aside, however, RP No. 462/2015 in CS(OS) 17/1991 Page 3 of 4 by this order notice is issued under Section 14(2) of the Arbitration Act, 1940 to the petitioner/plaintiff to file objections to the Award.

Review petition stands disposed of.

+CS(OS) No.17/1991 and I.A. No.21013/2015 (under Sections 30 and 33 of Arbitration Act, 1940)

6. Notice of filing of the Award is accepted by the counsel for the petitioner/plaintiff. The objections be filed in accordance with law.

7. At this stage, it is stated that objections have already been filed by the petitioner/plaintiff on 18.9.2015 and have been registered as I.A. No.21013/2015.

8. Accordingly, let respondent no.1/defendant no.1 file reply to the objections within six weeks. Rejoinder affidavit thereto, if any, be filed within four weeks thereafter.

9. List before the Roster Bench after obtaining orders of Hon'ble the Chief Justice on 25th November, 2016.

I.A. No.21014/2015 (condonation of delay of 85 days in filing objections)

10. This application is unnecessary in view of the above said order passed today and therefore is disposed of as not necessary.

SEPTEMBER 08, 2016                                      VALMIKI J. MEHTA, J
Ne

RP No. 462/2015 in CS(OS) 17/1991                                         Page 4 of 4