Bombay High Court Dismisses Arbitration Petition as Time-Barred Under Section 34(3) of Arbitration and Conciliation Act, 1996 — Period for Obtaining Certified Copy Not Excludable Under Section 12(2) of Limitation Act, 1963 for Filing Under Section 34.

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

The petitioner, Jenjon Retail and Services Pvt. Ltd., filed an arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging an arbitral award dated 18th July 2014. The respondent, Lavasa Corporation Ltd., raised a preliminary objection that the petition was barred by limitation under Section 34(3) of the Act. The petitioner argued that the signed copy of the award was served on them only on 13th March 2015, and they had applied for a certified copy on 26th February 2015, which was received on 13th March 2015. They contended that the period of 16 days taken to obtain the certified copy should be excluded under Section 12(2) of the Limitation Act, 1963, and thus the petition filed on 22nd June 2015 was within the three-month period from the date of receipt of the signed copy. The court, however, held that the time spent in obtaining a certified copy is not excludable because the petitioner already had a signed copy of the award served on them on 13th March 2015. The three-month period under Section 34(3) runs from the date of receipt of the signed copy, and the petition filed on 22nd June 2015 was beyond that period. Consequently, the court dismissed the petition as time-barred.

Headnote

A) Limitation - Section 34(3) Arbitration and Conciliation Act, 1996 - Exclusion of time for certified copy - The court considered whether the period taken to obtain a certified copy of the arbitral award is excludable under Section 12(2) of the Limitation Act, 1963 for computing limitation under Section 34(3) of the Arbitration Act. The court held that the time spent in obtaining a certified copy is not excludable because the petitioner already had a signed copy of the award served on 13th March 2015, and the petition was filed on 22nd June 2015, beyond the three-month period from that date. (Paras 2-5)

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Issue of Consideration

Whether the arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996 was filed within the period of limitation prescribed under Section 34(3) of the Act, and whether the time taken to obtain a certified copy of the award is excludable under Section 12(2) of the Limitation Act, 1963.

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Final Decision

The court dismissed the arbitration petition as time-barred, holding that the petition was filed beyond the period of limitation prescribed under Section 34(3) of the Arbitration and Conciliation Act, 1996.

Law Points

  • Limitation for filing Section 34 petition runs from date of receipt of signed copy of award
  • period for obtaining certified copy not excludable under Section 12(2) of Limitation Act
  • 1963
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Case Details

2016 LawText (BOM) (06) 76

Arbitration Petition No.1422 of 2015

2016-06-22

R.D. Dhanuka, J.

Mr.A.Wacha Sundar i/by Mr.Siddharth Deshpande for the petitioner, Mr.Atul Damle, Senior Advocate a/w Mr.Sandesh Shukla i/by Mr.Santosh Sawant for the respondent

Jenjon Retail and Services Pvt. Ltd.

Lavasa Corporation Ltd.

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Nature of Litigation

Arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging an arbitral award.

Remedy Sought

Petitioner sought to set aside the arbitral award dated 18th July 2014.

Filing Reason

Petitioner claimed the award was erroneous and that the petition was filed within limitation.

Previous Decisions

Arbitral award dated 18th July 2014 rejecting the petitioner's claim.

Issues

Whether the arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996 was filed within the period of limitation prescribed under Section 34(3) of the Act. Whether the time taken to obtain a certified copy of the award is excludable under Section 12(2) of the Limitation Act, 1963.

Submissions/Arguments

Petitioner argued that the signed copy of the award was served on 13th March 2015, and the petition filed on 22nd June 2015 was within three months from that date, excluding 16 days for obtaining certified copy under Section 12(2) of the Limitation Act. Respondent argued that the petition was barred by limitation as the three-month period from 13th March 2015 expired before 22nd June 2015, and the time for obtaining certified copy is not excludable.

Ratio Decidendi

The period of limitation under Section 34(3) of the Arbitration and Conciliation Act, 1996 runs from the date of receipt of the signed copy of the award. The time taken to obtain a certified copy of the award is not excludable under Section 12(2) of the Limitation Act, 1963 when the petitioner already has a signed copy of the award.

Judgment Excerpts

By this petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short “the Arbitration Act”) the petitioner has impugned the arbitral award dated 18th July 2014 rejecting the claim made by the petitioner... The respondent at the threshold has raised an issue of limitation in filing the present petition beyond the period of limitation prescribed under Section 34(3) of the Arbitration Act.

Procedural History

The arbitral award was rendered on 18th July 2014. The petitioner applied for a certified copy on 26th February 2015 and received it on 13th March 2015. The arbitration petition was filed on 22nd June 2015. The respondent raised a preliminary objection regarding limitation.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: 34, 34(3)
  • Limitation Act, 1963: 12(2)
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