Case Note & Summary
The petitioner, M/s. P.C.V. Traders and M/s. M.C. Vora and Co., filed two arbitration petitions under Section 34 of the Arbitration and Conciliation Act, 1996, challenging an arbitral award dated 8th November, 2005 and a supplementary award dated 17th August, 2006. The respondent, Kapol Cooperative Bank Limited, raised a preliminary objection that the petitions were barred by limitation. The court examined the chronology: the original award was received in November 2005, the petitioner applied under Section 33(4) for clarification, and the supplementary award was passed on 17th August, 2006, received the same day. The petitions were filed on 19th December, 2006, which was beyond three months from receipt of the supplementary award. The petitioner had earlier filed a Notice of Motion seeking condonation of a two-day delay, but the court found that the actual delay was much longer. The court noted that the limitation period under Section 34 is three months, extendable by thirty days on sufficient cause, but not beyond. Since the petitions were filed after the expiry of the three-month period plus the thirty-day extension, they were barred by limitation. The court dismissed both petitions as time-barred, rejecting the petitioner's claim of only a two-day delay.
Headnote
A) Arbitration - Limitation - Section 34 of Arbitration and Conciliation Act, 1996 - Challenge to Award - Petitions filed under Section 34 challenging original award dated 8th November, 2005 and supplementary award dated 17th August, 2006 were filed on 19th December, 2006, beyond three months from receipt of supplementary award. The court held that the petitions were barred by limitation as the delay could not be condoned beyond the statutory period of three months plus thirty days. (Paras 1-5)
Issue of Consideration
Whether the arbitration petitions challenging the original award and supplementary award were barred by limitation under Section 34 of the Arbitration and Conciliation Act, 1996.
Final Decision
Both arbitration petitions are dismissed as barred by limitation.
Law Points
- Limitation period under Section 34 of Arbitration and Conciliation Act
- 1996 is three months from receipt of award
- extendable by thirty days on sufficient cause
- but not beyond. Supplementary award under Section 33(4) does not extend limitation for challenging original award.
Case Details
2012 LawText (BOM) (10) 73
Arbitration Petition No. 26 of 2008 and Arbitration Petition No. 31 of 2008
Mr. S.K. Jain for petitioner, Mr. R.M. Haridas for respondent
M/s. P.C.V. Traders and M/s. M.C. Vora and Co.
Kapol Cooperative Bank Limited
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Nature of Litigation
Petitions under Section 34 of the Arbitration and Conciliation Act, 1996 challenging an arbitral award and supplementary award.
Remedy Sought
Setting aside of the award dated 8th November, 2005 and supplementary award dated 17th August, 2006.
Filing Reason
The petitioner alleged that the awards were erroneous and sought to challenge them.
Previous Decisions
The arbitrator passed the original award on 8th November, 2005 and a supplementary award on 17th August, 2006.
Issues
Whether the arbitration petitions were barred by limitation under Section 34 of the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
Respondent submitted that the petitions were barred by limitation as they were not filed within three months from receipt of the supplementary award.
Petitioner contended that there was only a two-day delay and sought condonation.
Ratio Decidendi
The limitation period under Section 34 of the Arbitration and Conciliation Act, 1996 is three months from receipt of the award, extendable by thirty days on sufficient cause, but not beyond. A supplementary award under Section 33(4) does not extend the limitation period for challenging the original award. Petitions filed beyond the prescribed period are barred by limitation.
Judgment Excerpts
From the perusal of the averments made in the petition, it is clear that the copy of the award dated 8th November, 2005 was received in the month of November, 2005.
The present petition has been lodged by the petitioner on 19th December, 2006 which is much after three months from the date of getting copy of the supplementary award from the learned arbitrator.
Procedural History
The arbitrator passed the original award on 8th November, 2005. The petitioner applied under Section 33(4) for clarification. The arbitrator passed a supplementary award on 17th August, 2006, received the same day. The petitioner filed the present petitions on 19th December, 2006, along with Notices of Motion seeking condonation of delay. The court heard the preliminary objection on limitation and dismissed the petitions.
Acts & Sections
- Arbitration and Conciliation Act, 1996: 34, 33(4)
