High Court Dismisses State of Goa's Appeal Against Arbitral Award in Bridge Construction Dispute, Upholding Rejection of Objections Under Arbitration and Conciliation Act, 1996

Sub Category: Bombay High Court Bench: GOA
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Case Note & Summary

The State of Goa appealed under Section 37 of the Arbitration and Conciliation Act, 1996 against the rejection of its objections under Section 34 of the Act by the Principal District Judge, North Goa. The dispute originated from a 1987 contract for constructing the Mandovi Bridge, with arbitration initiated under the Arbitration Act, 1940. An arbitral award dated 08.08.1997 favored the Respondent, Post-enactment of the Act of 1996, jurisdictional issues arose, leading to the civil court returning the award. The Appellant filed objections under Section 34 nearly three years after the award, which were rejected as time-barred. The High Court dismissed the appeal, affirming the district court's decision on limitation and jurisdictional grounds.

Headnote

The High Court of Bombay at Goa dismissed an appeal filed by the State of Goa under Section 37 of the Arbitration and Conciliation Act, 1996 (the Act of 1996) -- The appeal challenged the Judgment and Order dated 22.02.2016 passed by the Principal District Judge, North Goa, which rejected the Appellant's objections under Section 34 of the Act of 1996 -- The dispute arose from a contract for construction of the Bridge, with an Arbitral Award dated 08.08.1997 in favor of the Respondent -- Key legal issues included the applicability of the Arbitration Act, 1940 versus the Act of 1996, the jurisdiction of civil courts, and the timeliness of objections under Section 34 -- The Court held that the objections were barred by limitation and that the civil court correctly declined jurisdiction post-enactment of the Act of 1996 -- The appeal was dismissed, upholding the arbitral award

Issue of Consideration: The Issue of Consideration mentioned in the Judgement is the appeal under Section 37 of the Arbitration and Conciliation Act, 1996 against the rejection of objections under Section 34 of the Act of 1996

Final Decision

The High Court dismissed the appeal, upholding the Principal District Judge's rejection of objections under Section 34 of the Arbitration and Conciliation Act, 1996, as they were barred by limitation and the civil court correctly declined jurisdiction

 

2026 LawText (BOM) (02) 150

Appeal Under Arbitration Act No. 6 of 2022

2026-02-27

Suman Shyam J.

2026:BHC-GOA:368

Mr. Manish Salkar, Government Advocate for the Appellant, Mr. Shivan Desai, Advocate with Ms. Maria Cotta Viegas, Advocate for the Respondent

State of Goa, Rep. By Executive Engineer, Public Works Department, Works Division VI (NH), Near Patto Bridge, Patto, Panaji, Goa

M/s. U. P. State Bridge Corporation Ltd., Setu Bhavan, 16, Madan Mohan Malariya Marg, Lucknow – 226 001

Nature of Litigation: Appeal under Section 37 of the Arbitration and Conciliation Act, 1996 against rejection of objections under Section 34 of the Act

Remedy Sought

The Appellant sought to set aside the arbitral award dated 08.08.1997 and challenge the district court's rejection of its objections

Filing Reason

Disputes arose during construction of the Mandovi Bridge, referred to arbitration under Clause 67 of the 1987 contract

Previous Decisions

Arbitral Award dated 08.08.1997 in favor of Respondent -- Civil Court Order dated 20.04.1999 returning award due to lack of jurisdiction post-Act of 1996 -- High Court Order dated 17.02.2000 rejecting Civil Revision Petition -- Principal District Judge's Judgment and Order dated 22.02.2016 rejecting objections under Section 34

Issues

Whether the objections under Section 34 of the Arbitration and Conciliation Act, 1996 were filed within the limitation period Whether the civil court had jurisdiction to entertain the arbitral award after enactment of the Act of 1996

Submissions/Arguments

The Appellant objected to the arbitrator's neutrality and independence The Respondent argued that the Act of 1996 applied, depriving civil courts of jurisdiction

Ratio Decidendi

Objections under Section 34 of the Arbitration and Conciliation Act, 1996 must be filed within the prescribed limitation period -- Post-enactment of the Act of 1996, civil courts lack jurisdiction over arbitral awards governed by the new Act, requiring proceedings under the Act of 1996

Judgment Excerpts

This Appeal preferred by the State of Goa, under Section 37 of the Arbitration and Conciliation Act, 1996, is directed against the Judgment and Order dated 22.02.2016, passed by the learned Principal District Judge (PDJ), North Goa, in Arbitration and Conciliation Petition No. 2 of 2012, rejecting the objection filed by the Appellant under Section 34 of the Act of 1996 After the rejection of the Civil Revision, the Appellant had filed objection against the Award under Section 34 of the Act of 1996 before the Court of Principal District Judge, on 28.04.2000 i.e. nearly three years after the Arbitral Award dated 08.08.1997 was passed

Procedural History

Contract signed on 21.02.1987 -- Arbitration initiated under Arbitration Act, 1940 -- Arbitral Award dated 08.08.1997 -- Civil Miscellaneous Application no. 280/1997/A filed -- Civil Court Order dated 20.04.1999 returned award due to lack of jurisdiction post-Act of 1996 -- Civil Revision Petition No. 149/1999 rejected by High Court on 17.02.2000 -- Objections under Section 34 filed on 28.04.2000 -- Principal District Judge's Judgment and Order dated 22.02.2016 rejected objections -- Appeal under Section 37 filed in 2022

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