Case Note & Summary
The petitioner, Marwadi Shares & Finance Ltd, a member of the National Stock Exchange and Bombay Stock Exchange, had disputes with its constituent, respondent No.1, regarding certain transactions. The disputes were referred to arbitration under the rules, bye-laws, and regulations of the Bombay Stock Exchange Ltd. The learned Arbitrator rendered an award on 1.11.2011 rejecting the petitioner's claims. The petitioner received a copy of the award on 4.11.2011. On 12.11.2011, the petitioner filed an application under Section 33 of the Arbitration and Conciliation Act, 1996 seeking corrections in the award. The Arbitrator, on 5.3.2012, partly allowed the application and directed corrections. The corrected award was received by the petitioner on 10.3.2012. On 12.4.2012, the petitioner filed an appeal before the appellate bench of the Bombay Stock Exchange, along with an application for condonation of delay of 3 days. The appellate bench dismissed the appeal on 15.11.2012 on the ground that it was filed beyond the prescribed period of 30 days from the date of receipt of the original award, and that the SEBI circular and amendments to the bye-laws clearly stated that the appeal bench could not take cognisance of any appeal unless received within the prescribed period. The petitioner then filed two petitions under Section 34 of the Act challenging the awards. The court held that the period of limitation for filing a petition under Section 34 runs from the date of receipt of the original award, and the filing of a Section 33 application does not extend the limitation period. The court further held that the appellate bench was correct in dismissing the appeal as time-barred, and the petitioner failed to show sufficient cause for the delay. Consequently, the petitions were dismissed.
Headnote
A) Arbitration - Limitation - Section 34 of the Arbitration and Conciliation Act, 1996 - Computation of limitation - The court held that the period of limitation for filing a petition under Section 34 runs from the date of receipt of the original award and not from the date of receipt of the corrected award under Section 33, as the correction does not alter the substance of the award. (Paras 1-10) B) Arbitration - Appeal under Stock Exchange Bye-laws - Limitation - The court held that the appeal filed before the appellate bench of the Bombay Stock Exchange was rightly dismissed as it was filed beyond the prescribed period of 30 days from the date of receipt of the original award, and the correction under Section 33 did not extend the limitation period. (Paras 4-8) C) Arbitration - Condonation of Delay - Section 5 of the Limitation Act, 1963 - The court observed that the appellate bench had no power to condone delay beyond the prescribed period under the bye-laws, and the petitioner failed to show sufficient cause for the delay of 3 days. (Paras 6-9)
Issue of Consideration
Whether the period of limitation for filing a petition under Section 34 of the Arbitration and Conciliation Act, 1996 is to be computed from the date of receipt of the original award or from the date of receipt of the corrected award after a Section 33 application.
Final Decision
The court dismissed both arbitration petitions, holding that the period of limitation for filing a petition under Section 34 runs from the date of receipt of the original award, and the appellate bench was correct in dismissing the appeal as time-barred.
Law Points
- Limitation for challenging arbitral award under Section 34 runs from receipt of original award
- Section 33 application does not extend limitation
- Appeal under stock exchange bye-laws must be filed within prescribed period
- Condonation of delay not available if no sufficient cause shown
