Case Note & Summary
The applicant, Jolly Brothers Pvt. Ltd., filed a Notice of Motion seeking condonation of delay of 31 days in filing a petition under Section 34 of the Arbitration and Conciliation Act, 1996 to challenge an arbitral award dated 10th October 2015. The award was received by the applicant's advocate on 16th October 2015. The petition under Section 34 was lodged on 16th February 2016, which was beyond the period of three months from the date of receipt of the award. The applicant contended that the delay was due to the time taken to obtain legal advice and that the court had power to condone the delay under the proviso to Section 34(3). The respondents opposed the motion, arguing that the delay was beyond the permissible extension of 30 days. The court, relying on the Supreme Court judgment in Union of India v. Popular Construction Co., held that the limitation period under Section 34(3) is three months, extendable by a further period of 30 days on sufficient cause, but no extension is permissible beyond that. Since the delay was 31 days beyond the three-month period, it could not be condoned. The court dismissed the Notice of Motion, holding that the arbitration petition was barred by limitation.
Headnote
A) Arbitration Law - Limitation - Section 34(3) of the Arbitration and Conciliation Act, 1996 - Condonation of Delay - The court held that the period of limitation for filing a petition under Section 34 is three months from the date of receipt of the award, extendable by a further period of 30 days on sufficient cause, but not beyond. The delay of 31 days beyond the three-month period cannot be condoned as the proviso does not permit any extension beyond 30 days. The court relied on the Supreme Court judgment in Union of India v. Popular Construction Co. (2001) 8 SCC 470 which held that Section 5 of the Limitation Act, 1963 is not applicable to Section 34 petitions. (Paras 4-9)
Issue of Consideration
Whether the delay of 31 days in filing the petition under Section 34 of the Arbitration and Conciliation Act, 1996 can be condoned under the proviso to Section 34(3) which allows only a further period of 30 days.
Final Decision
The Notice of Motion is dismissed. The arbitration petition is barred by limitation and is dismissed.
Law Points
- Limitation period under Section 34(3) of the Arbitration and Conciliation Act
- 1996 is not extendable beyond 30 days from the expiry of three months
- Condonation of delay beyond the prescribed period is impermissible
- Section 5 of the Limitation Act
- 1963 does not apply to Section 34 petitions
Case Details
2016 LawText (BOM) (04) 69
Notice of Motion No. 696 of 2016 in Arbitration Petition (L) No. 267 of 2016
Mr. Shailesh Shah, Senior Advocate, a/w. Ms. Radhika Dixit, Mr. Abhishek Padwalkar, i/b. MDP & Partners for the Petitioner/Applicant; Mr. Nitin Thakkar, Senior Advocate, a/w. Mr. Firoz Bharucha, Mr. Midhun Kumar, i/b. Mr. Siddharth Mehta for the Respondents
Surendra Nath Jolly, Sudarshan Jolly, Vikas Jolly
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Nature of Litigation
Notice of Motion for condonation of delay in filing a petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging an arbitral award.
Remedy Sought
Condonation of delay of 31 days in filing the arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996.
Filing Reason
The applicant received the arbitral award on 16th October 2015 but filed the petition under Section 34 on 16th February 2016, which was beyond the three-month limitation period. The applicant sought condonation of the delay of 31 days.
Previous Decisions
The arbitral tribunal rendered the award on 10th October 2015. The award was collected by the applicant's advocate on 16th October 2015.
Issues
Whether the delay of 31 days in filing the petition under Section 34 of the Arbitration and Conciliation Act, 1996 can be condoned under the proviso to Section 34(3) which allows only a further period of 30 days.
Submissions/Arguments
The applicant submitted that the delay was due to the time taken to obtain legal advice and that the court had power to condone the delay under the proviso to Section 34(3).
The respondents argued that the delay was beyond the permissible extension of 30 days and therefore the petition was barred by limitation.
Ratio Decidendi
The period of limitation for filing a petition under Section 34 of the Arbitration and Conciliation Act, 1996 is three months from the date of receipt of the award, extendable by a further period of 30 days on sufficient cause, but no extension is permissible beyond that. Section 5 of the Limitation Act, 1963 does not apply to Section 34 petitions. Therefore, a delay of 31 days beyond the three-month period cannot be condoned.
Judgment Excerpts
By this notice of motion the applicant seeks condonation of delay of 31 days in filing petition under section 34 of the Arbitration and Conciliation Act, 1996.
The period of limitation for filing a petition under Section 34 of the Arbitration and Conciliation Act, 1996 is three months from the date of receipt of the award, extendable by a further period of 30 days on sufficient cause, but not beyond.
The Supreme Court in the case of Union of India v. Popular Construction Co. (2001) 8 SCC 470 has held that Section 5 of the Limitation Act, 1963 is not applicable to Section 34 petitions.
Procedural History
The arbitral award was rendered on 10th October 2015. The award was collected by the applicant's advocate on 16th October 2015. The applicant filed an arbitration petition under Section 34 on 16th February 2016, along with a Notice of Motion seeking condonation of delay of 31 days. The court heard the Notice of Motion and dismissed it on 29th April 2016.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 34, Section 34(3)
- Limitation Act, 1963: Section 5
