Case Note & Summary
The petitioners, Francisco A. D'Souza and the legal heirs of Oscar de Souza, filed an arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging an arbitral award dated 18th September 2012. The respondent, L & T Finance Ltd., raised a preliminary objection that the petition was barred by limitation. The court examined the record, which showed that the award was sent by the learned arbitrator to two addresses of the petitioners. At one address, House No.142/B, Acoi, Karaswada, Mapusa, Bardez, Goa, the award was acknowledged by a person claiming to be a relative of the petitioners. The court noted that the acknowledgment was signed and the date of receipt was indicated. The petition was lodged on 22nd April 2014, which was beyond three months from the date of service. The court held that the service of the award was complete upon acknowledgment by the relative at the petitioner's address, and the petition was therefore time-barred under Section 34(3) of the Act. The court dismissed the petition as barred by limitation.
Headnote
A) Arbitration Law - Limitation for Challenging Award - Section 34(3) Arbitration and Conciliation Act, 1996 - Service of Award - The court considered whether the petition filed on 22nd April 2014 challenging an award dated 18th September 2012 was within limitation. The award was sent by the arbitrator to the petitioner's address and acknowledged by a relative. The court held that service was complete on the date of acknowledgment, and the petition filed beyond three months from that date was time-barred. (Paras 2-5)
Issue of Consideration
Whether the arbitration petition challenging the arbitral award was filed within the limitation period prescribed under Section 34(3) of the Arbitration and Conciliation Act, 1996, considering the date of service of the award.
Final Decision
The court dismissed the arbitration petition as barred by limitation, holding that the service of the award was complete upon acknowledgment by a relative at the petitioner's address, and the petition filed beyond three months from that date was time-barred under Section 34(3) of the Arbitration and Conciliation Act, 1996.
Law Points
- Limitation for challenging arbitral award
- Service of award
- Acknowledgment by relative
- Section 34(3) Arbitration and Conciliation Act
- 1996
Case Details
2015 LawText (BOM) (04) 170
Arbitration Petition No.1231 of 2014
Ms. Zahara Tejani for the petitioners, Mr. Anand Poojary a/w Ms. S.I. Joshi for the respondent
Francisco A. D'Souza and others
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Nature of Litigation
Petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging an arbitral award.
Remedy Sought
The petitioners sought to set aside the arbitral award dated 18th September 2012.
Filing Reason
The petitioners challenged the arbitral award on merits.
Previous Decisions
The arbitral award dated 18th September 2012 was made by the learned arbitrator.
Issues
Whether the arbitration petition was filed within the limitation period under Section 34(3) of the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
The respondent argued that the petition was barred by limitation as the award was served on the petitioners on 18th September 2012 or shortly thereafter, and the petition was filed on 22nd April 2014, beyond the three-month period.
The petitioners contended that the award was not properly served or that the limitation period should be calculated differently.
Ratio Decidendi
Under Section 34(3) of the Arbitration and Conciliation Act, 1996, an application for setting aside an arbitral award must be made within three months from the date of receipt of the award. Service of the award is deemed complete when it is sent to the correct address and acknowledged by a person residing there, even if that person is a relative of the party. The limitation period runs from the date of such acknowledgment.
Judgment Excerpts
By this petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, the petitioners have impugned the arbitral award dated 18th September 2012 made by the learned arbitrator.
In so far as the award sent at the address of House No.142/B, Acoi, Karaswada, Mapusa, Bardez, Goa – 403 507 is concerned, the same has been acknowledged by the person who claimed to be the relative of the petitioners.
Procedural History
The arbitral award was made on 18th September 2012. The petitioners filed Arbitration Petition No.1231 of 2014 on 22nd April 2014 under Section 34 of the Arbitration and Conciliation Act, 1996 to challenge the award. The respondent raised a preliminary objection of limitation. The court heard the objection and dismissed the petition as time-barred on 30th April 2015.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 34, Section 34(3)
