Case Note & Summary
The petitioner, Rahul S/o Omprakash Gandhi, filed four writ petitions (W.P. Nos. 6091/2022, 6092/2022, 6093/2022, and 6094/2022) challenging the execution of an arbitral award dated 27.01.2015 passed by Arbitrator Shri G.N. Diwekar in favor of the respondent, The Akola Janta Commercial Co-Operative Bank Limited. The petitioner was the original judgment debtor (JD) and the respondent was the original decree holder (DH). The core contention of the petitioner was that he had not received a signed copy of the award as required under Section 31(5) of the Arbitration and Conciliation Act, 1996 (A&C Act), and therefore, under Section 36(1) of the Act, the award was not enforceable. The petitioner admitted that he received a certified copy of the award by post on 07.03.2015, but argued that this did not comply with Section 31(5) because it was not a signed copy delivered by the arbitrator. The petitioner had also filed an application under Section 34 of the A&C Act based on that certified copy. The respondent bank, represented by Mr. R.L. Khapre, Senior Advocate, opposed the petitions. The court, presided over by Justice Avinash G. Gharote, heard the matter and delivered a common judgment. The court held that the receipt of a certified copy of the award by post on 07.03.2015 satisfied the requirement of Section 31(5) because a certified copy is a signed copy. Consequently, the award became enforceable under Section 36(1) upon such receipt. The court further held that the filing of the Section 34 application based on the certified copy did not preclude the compliance of Section 31(5). The court dismissed all four writ petitions, upholding the execution of the award. The judgment was delivered on 10/04/2023.
Headnote
A) Arbitration Law - Section 31(5) Arbitration and Conciliation Act, 1996 - Delivery of Signed Copy of Award - The petitioner contended that he did not receive a signed copy of the award as required under Section 31(5), and therefore the award was not enforceable under Section 36(1). The court held that receipt of a certified copy of the award by post on 07.03.2015 satisfied the requirement of Section 31(5), as the certified copy is a signed copy. The award became enforceable under Section 36(1) upon such receipt. (Paras 3-4) B) Arbitration Law - Section 36(1) Arbitration and Conciliation Act, 1996 - Enforceability of Award - The court held that once a signed copy of the award is received by the party, the award becomes enforceable under Section 36(1). The filing of an application under Section 34 based on the certified copy does not preclude the compliance of Section 31(5). (Paras 3-4) C) Arbitration Law - Execution of Award - The court dismissed the writ petitions challenging the execution of the award, holding that the award was enforceable and the execution proceedings were valid. (Para 4)
Issue of Consideration
Whether the receipt of a certified copy of an arbitral award by post satisfies the requirement of Section 31(5) of the Arbitration and Conciliation Act, 1996, and whether the award becomes enforceable under Section 36(1) of the Act.
Final Decision
The court dismissed all four writ petitions, holding that the receipt of a certified copy of the award by post on 07.03.2015 satisfied the requirement of Section 31(5) of the Arbitration and Conciliation Act, 1996, and the award became enforceable under Section 36(1) upon such receipt. The execution proceedings were upheld.
Law Points
- Section 31(5) of Arbitration and Conciliation Act
- 1996
- Section 36(1) of Arbitration and Conciliation Act
- Section 34 of Arbitration and Conciliation Act
- receipt of certified copy by post satisfies Section 31(5)
- award enforceable under Section 36(1) upon receipt of signed copy
- filing of Section 34 application based on certified copy does not preclude compliance with Section 31(5)
