Case Note & Summary
The dispute arose between Indian Rayon Corporation Ltd. and Raunaq & Company Pvt. Ltd. regarding an arbitration award filed in the High Court on 4th February 1977. The respondent affirmed an affidavit on 29th November 1977, requesting notice to be served on the appellant. A Master’s Summons was taken out on 10th January 1978, and the appellant filed an affidavit on 4th February 1978, claiming the award was wrongly filed. A notice under Section 14(2) of the Arbitration Act was served on 30th July 1981. The appellant applied for a certified copy of the award on 18th August 1981 and filed an application to set aside the award on 8th September 1981. The High Court ruled that the notice was served before 30th July 1981, rendering the application time-barred. The Supreme Court upheld this decision, stating that the filing of the award and proper notice were essential for the application to be considered timely. The court clarified that the notice need not be in writing and that the service of notice by the court is crucial for the limitation period to commence. The appeal was dismissed without costs, affirming the High Court's ruling that the application was barred by limitation due to prior notice (Paras 234D, 236F).
Headnote
A) Arbitration Law - Filing of Award - Requirement of Notice - Arbitration Act, 1940, Section 14(2) - The court emphasized that for an award to be effective, it must be filed in the proper court and notice of such filing must be communicated to the parties. The mode of service is irrelevant as long as the substance is clear, and the notice must be served by the court to start the limitation period for setting aside the award. Held that the application was barred by limitation as notice was served prior to the application date (Paras 234D, 236F).
Issue of Consideration
Whether the application for setting aside the arbitration award was barred by limitation due to the service of notice.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's decision that the application for setting aside the award was barred by limitation due to prior service of notice.
Law Points
- Arbitration
- Limitation
- Notice
- Filing of Award
- Service of Notice
