The Allahabad High Court, while setting aside an arbitration order reiterated that the period of limitation for challenging an award under Section 34 of the Act commences from the date on which the party making the application has received a signed copy of the arbitral award.
Brief Facts:
The present appeal was filed under Section 37 of the Arbitration and Conciliation Act, 1996 filed under Section 37 of the Arbitration and Conciliation Act, 1996.
Contentions of the Petitioner:
The learned counsel appearing on behalf of the appellant submitted that the appeal before the learned District Judge, Rampur was filed within the period prescribed under Section 34(3) of the Act as only the certified copy of the arbitral award was received by the appellant on August 6, 2022, and signed copy of the arbitral award was never received by the appellant. Counsel further submits that the appeal against the said award was filed before the learned District Judge on August 6, 2022, and therefore, there was no delay in filing the said appeal.
Contentions of the Respondent:
The learned counsel appearing on behalf of the respondent submitted that the appeal was filed after about a year of passing of the award, and accordingly, since Section 5 of the Indian Limitation Act is not applicable to Section 34 of the Act, the learned District Judge has acted properly.
Observations of the court:
The court referred to the impugned order and noted that the learned District Judge had only recorded the submission of the appellant and that the signed copy of the arbitral award was never received by her. However, there does not appear to be any finding as to when the signed copy of the award was served upon the appellant. Further, the court stated that the learned District Judge should have inquired and found out the date of receipt of the signed copy of the arbitral award. In the absence of having done so, the learned District Judge has failed to appreciate the law established by the Supreme Court.
The court further relied on the decision in the case of Dakshin Haryana Bijli Vitran Nigam Limited vs. Navigant Technologies Private Limited, wherein it has been specifically held that the period of limitation for challenging an award under Section 34 of the Act commences from the date on which the party making the application has received a signed copy of the arbitral award.
The decision of the Court:
The court allowed the appeal and quashed and set aside the impugned order.
Case Title: Smt. Sudha vs Union of India and Ors.
Coram: Hon’ble Mr. Justice Shekhar B. Saraf
Case No.: APPEAL UNDER SECTION 37 OF ARBITRATION AND CONCILIATION ACT 1996 No. - 271 of 2022
Advocate for the Petitioner: Ravi Kant, Vatsala
Advocate for the Respondent: A.S.G.I., Pranjal Mehrotra, Rajesh Kumar Jaiswal
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