Dda vs Kalyan Chand Goyal Ands Co.
2009 Latest Caselaw 1375 Del

*             IN THE HIGH COURT OF DELHI AT NEW DELHI


                                              Date of Reserve: March 30, 2009
                                                  Date of Order: April 13, 2009

+ IA No.3178/2006 in OMP 323/2005
%                                                                   13.04.2009
      DDA                                                    ...Petitioner
      Through : Mr. Bhupesh Narula, Advocates

       Versus

       Kalyan Chand Goyal Ands Co.                          ...Respondent
       Through : Mr. Girish Aggarwal, Advocate


       JUSTICE SHIV NARAYAN DHINGRA

1.     Whether reporters of local papers may be allowed to see the judgment?

2.     To be referred to the reporter or not?

3.     Whether judgment should be reported in Digest?

       ORDER

IA No.3178/2006 in OMP 323/2005

1. This application under Section 14 of the Arbitration Act, 1940 read with

Order 7 Rule 11 and Section 151 of CPC has been made by the respondent for

dismissal of the suit/petition filed by the plaintiff/petitioner on the ground of

limitation.

2. It is submitted by the respondent that the award in this case was

published by the learned Arbitrator on 5th May 2005. The petitioner received

the copy of the award on 10th May 2005. The petitioner paid the amount and

interest on Claim No.1 to 5 to the respondent on 8 th August 2005. On 6th

September 2005, the petitioner filed this petition under Section 14(2) of the

Arbitration Act, 1940 with a prayer that the Arbitrator be directed to file the

original award in the Court. The Arbitrator received notice of this application

on 24th November 2005 and the Arbitrator filed the original award and

OMP 323/2005 DDA vs Kalyan Chand Goyal Ands. Co. Page 1 Of 3 proceedings in December' 05. However, the petitioner filed objections against

the award on 23rd November 2005 i.e. before filing of award by the Arbitrator

in the Court. It is stated by the respondent that under Article 119A of the

Limitation Act, limitation for filing application in the Court is 30 days from the

service of notice of making the award. In the instant case, the petitioner

received notice of the award on 10th May 2005 and received copy of the

award and not notice for filing the award. The period of limitation expired on

9th June 2005. Thus the suit filed by the petitioner was barred by limitation.

Since the petitioner did not file the application under Section 14 of the

Arbitration Act within 30 days and also moved no application for condonation

of delay, the suit was liable to be dismissed being barred by limitation.

3. The petitioner in written statement has submitted that the award was

served on the petitioner on 10th May 2005 and the original award was filed by

the Arbitrator on 28th November 2005. The application under Section 14(2)

was filed by the petitioner on 6th September 2005. The petitioner filed

objections on 23rd November 2005. It is stated that the objections filed

against the award by the petitioner were filed within time granted by the

Court to the petitioner.

4. There is no dispute that under the Arbitration Act, 1940, the period of

limitation under Article 119 A of the Limitation Act is 30 days from the date of

service of notice of the making of the award. The petitioner did not make

application under Section 14 to this Court within this stipulated period of 30

days. It is not a case where the Arbitrator suo moto filed the award in the

Court and Court served notice of filing of award on parties. The period of

limitation for filing for application under Section 14 is 30 days from the date

OMP 323/2005 DDA vs Kalyan Chand Goyal Ands. Co. Page 2 Of 3 of notice of the award.

5. The petitioner who received notice of the award on 10 th May 2005 was

supposed to file the application for setting aside the award under Section 33

of the Arbitration Act, 1940 or under Section 14(2) within a period of 30 days

of the receipt of the notice. Since this application was not filed within a period

of limitation as prescribed under law, it is barred by limitation. The application

moved by the respondent is hereby allowed and the instant suit preferred by

the petitioner, is hereby dismissed. No orders as to costs.

April 13, 2009                                    SHIV NARAYAN DHINGRA J.
rd




OMP 323/2005        DDA vs Kalyan Chand Goyal Ands. Co.       Page 3 Of 3