Case Note & Summary
The dispute arose from an arbitral award made in favor of the respondent, M/s. Ark Builders Pvt. Ltd., by an arbitrator on March 20, 2003. The arbitrator provided a signed copy of the award to the claimant but did not deliver a copy to the appellants, the State of Maharashtra and others, due to their failure to pay arbitration costs. The appellants received a certified copy of the award on January 19, 2004, and filed an application under section 34 of the Arbitration and Conciliation Act, 1996 on January 28, 2004. The respondent contended that the application was barred by limitation since a copy of the award was received by the Executive Engineer on March 29, 2003. The Principal District Judge dismissed the appellants' application as time-barred, a decision upheld by the Bombay High Court. The appellants argued that the limitation period should start from the date they received a signed copy of the award. The Supreme Court analyzed sections 31 and 34 of the Arbitration and Conciliation Act, 1996, concluding that the limitation period for setting aside an arbitral award begins only when a signed copy is delivered to the party. The court found that the High Court had erred in its interpretation and restored the appellants' application for consideration on merits, directing the Principal District Judge to dispose of the matter within six months.
Headnote
A) Arbitration Law - Limitation Period - Commencement of Limitation - Arbitration and Conciliation Act, 1996, Section 34(3) - The limitation for setting aside an arbitral award commences only from the date a signed copy of the award is delivered to the party making the application. The court held that the High Court erred in determining the limitation period based on the receipt of an unsigned copy of the award rather than a signed copy, which is mandated by law (Paras 10-13).
Issue of Consideration
Whether the period of limitation for making an application under section 34 of the Arbitration and Conciliation Act, 1996 for setting aside an arbitral award is to be reckoned from the date a copy of the award is received by the objector or from the date a signed copy is delivered by the arbitrator.
Final Decision
The Supreme Court set aside the judgments and orders passed by the Bombay High Court and the Principal District Judge, Latur, restoring the application made by the appellants under section 34 of the Arbitration and Conciliation Act, 1996 for consideration on merits.
Law Points
- Limitation period
- Arbitration and Conciliation Act
- 1996
- signed copy of award
- delivery of award
- commencement of limitation
