The Allahabad High Court observed that if a certified/signed copy of the award cannot be obtained and filed with an application under Section 34 of the Arbitration and Conciliation Act, 1966, filing a copy of the award along with an explanation would be an appropriate exercise.
Brief Facts:
The appellant filed an application under Section 34 of the Arbitration and Conciliation Act, 1996, against an arbitral award. In the Statement of Truth filed along with the application, it was indicated that the Appellant could not obtain a certified copy of the arbitral award as the address of the Arbitrator was not operational and had to rely on a copy of the signed copy of the arbitral award received via post. The office of the Commercial Court objected to the non-filing of the signed copy of the award and dismissed the application, holding that under Section 31(5) of the Act, an Arbitrator must serve a copy of the signed award to the party and, in the absence thereof, the application under Section 34 of the Act was not maintainable. The present appeal has been filed against this impugned order.
Contentions of the Appellant:
The learned counsel appearing on behalf of the appellant submitted that along with the application under Section 34 of the Act, the specific assertion was made regarding the receipt of a copy of the signed award and that efforts made to obtain the certified copy failed as the office of the Arbitrator was not operational and therefore, there was no reason for the Commercial Court to have rejected the plea raised in this regard by not believing it.
Contentions of the Respondent:
The learned counsel appearing for the respondents submitted that as the Commercial Court had not even issued notices, there was no occasion for the respondents to have appeared before him and raised an objection, if any, to the maintainability and/or the nature of the copy, which was filed along with the application under Section 34 of the Act.
Observations of the Court:
The court noted that it is not in dispute that along with the application under Section 34 of the Act, only a copy of the signed award was annexed by the appellant and being aware of the requirement to file a signed award, a specific assertion was made in the Statement of Truth as noticed hereinbefore and once the said statement was made by the appellant along with the application under Section 34 of the Act, in the absence of any counter affidavit or some obvious discrepancy in the submissions made, the Commercial Court was not justified in disbelieving the affidavit filed in this regard.
Further, the court observed that it is true that under Section 31(5) of the Act, the Arbitrator is required to supply a signed award to the parties; in an application under Section 34 of the Act, the said signed copy must be annexed. However, for any reason the same cannot be filed, filing a copy of the award, along with an explanation, would be an appropriate exercise and in case the Commercial Court comes to another conclusion, consequences may follow. However, for the said purpose, a finding based on material available on record is required to be recorded, and only the assertion that the statement made in this regard cannot be believed is not sufficient.
The decision of the Court:
The court allowed the appeal and set aside the impugned order.
Case Title: Ram Babu Vishkarma vs M/S Shriram Finance Ltd and Anr.
Coram: Hon’ble Mr Chief Justice Arun Bhansaliand Hon’ble Mr Justice Vikas Budhwar
Case No.: Appeal U/s 37 of Arbitration & Conciliation Act 1996 No. 382 of 2024
Advocate for the Petitioner: Yash Tandon
Advocate for the Respondent: M.K. Maurya for Nishant Mehrotra
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