Bombay High Court Dismisses Petitioner's Section 34 Petition as Time-Barred Under Section 34(3) of Arbitration and Conciliation Act, 1996 — Petitioner Failed to Prove Non-Service of Arbitral Award Sent by Registered Post.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Jasvinder Kaur, filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging an arbitral award dated 9th December 2010 that allowed the claims of the respondents, L&T Finance Ltd. and Mr. Bhupinder Singh. The respondent no.1 raised a preliminary objection that the petition was barred by limitation under Section 34(3) of the Act, as it was filed on 30th August 2012, more than three months after the award was served. The petitioner contended that she was never served with any proceedings or notices from the arbitrator and only came to know about the award on 4th June 2012. The court examined the issue of limitation and held that the burden was on the petitioner to prove that the award was not served. Since the arbitrator had sent the award by registered post and the petitioner did not rebut the presumption of service, the petition was dismissed as time-barred.

Headnote

A) Arbitration Law - Limitation for Setting Aside Award - Section 34(3) Arbitration and Conciliation Act, 1996 - The petition under Section 34 must be filed within three months from the date of service of a signed copy of the award. The court held that the petitioner failed to discharge the burden of proving that the award was not served, and the petition filed on 30th August 2012 was beyond the limitation period. (Paras 2-3)

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Issue of Consideration

Whether the petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the arbitral award dated 9th December 2010 is barred by limitation under Section 34(3) of the Act.

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Final Decision

The court dismissed the petition as barred by limitation under Section 34(3) of the Arbitration and Conciliation Act, 1996.

Law Points

  • Limitation for filing Section 34 petition runs from date of service of signed copy of award
  • Section 34(3) Arbitration and Conciliation Act
  • 1996
  • Burden of proof on petitioner to show non-service
  • Presumption of service under Section 27 of General Clauses Act
  • 1897
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Case Details

2012 LawText (BOM) (03) 84

Arbitration Petition No.1053 of 2012

2015-03-12

R.D. Dhanuka, J.

Mr. Milind Gyani for the petitioner; Mr. Anand Poojary a/w Ms. S.I. Joshi a/w Ms. Nikita Pawar i/by M/s S.I. Joshi & Co. for respondent no.1

Jasvinder Kaur

L & T Finance Ltd. & Anr.

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Nature of Litigation

Petition under Section 34 of the Arbitration and Conciliation Act, 1996 to set aside an arbitral award.

Remedy Sought

Petitioner sought to set aside the arbitral award dated 9th December 2010.

Filing Reason

Petitioner claimed she was not served with any proceedings or the award and only came to know about it on 4th June 2012.

Previous Decisions

Arbitral award dated 9th December 2010 allowing claims of respondents.

Issues

Whether the petition under Section 34 is barred by limitation under Section 34(3) of the Arbitration and Conciliation Act, 1996.

Submissions/Arguments

Respondent no.1 argued that the petition was filed beyond three months from service of award and is barred by limitation. Petitioner argued that she never received any copy of the award or notices and only came to know about the award on 4th June 2012.

Ratio Decidendi

The limitation period under Section 34(3) runs from the date of service of a signed copy of the award. The burden is on the petitioner to prove that the award was not served. Since the arbitrator sent the award by registered post and the petitioner did not rebut the presumption of service, the petition is time-barred.

Judgment Excerpts

The principal contention raised by the petitioner in this petition is that the petitioner was neither served with a copy of any proceedings filed by the respondent no.1 nor received any notices from the learned arbitrator or from the respondents in respect of the said arbitral proceedings.

Procedural History

Arbitral award dated 9th December 2010. Petitioner filed Section 34 petition on 30th August 2012. Respondent raised limitation objection.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: 34, 34(3)
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High Court Bombay High Court Dismisses Petitioner's Section 34 Petition as Time-Barred Under Section 34(3) of Arbitration and Conciliation Act, 1996 — Petitioner Failed to Prove Non-Service of Arbitral Award Sent by Registered Post.
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