SC Clarifies – Who counts as Party for Delivery of Arbitral Award?
Order dated 28.8.2025 (uploaded on 1.9.2025) of the Supreme Court of India in Civil Appeal No.4480 of 2016 of M/s. Motilal Agarwala Vs. State of West Bengal and another
Section 34 of the Arbitration Act – Petition and Limitation
The contract was between the Superintending Engineer, Mahananda Baraj Circle DTE & the appellant. The Executive Engineer, Teesta Canala Division, Islampur, was also a party to the arbitration.
The Arbitral Award was passed on 12.11.2013.
The signed copy of the ward as delivered to SDO/AE – TCS D-2 Islampur wo was present at the meeting on behalf of the respondent.
On 20.3.2014, the State filed Section 34 petition.
On 3.4.2014, the State applied to the Arbitrator for certified copy of the Award.
The District Judge rejected the petition as time barred.
The High Court allowed the appeal and set-aside the order of the District Judge.
In that context, the question was whether the delivery of the true / xerox copy of the Arbitral Award duly signed by the Arbitrator to an authorized representative of the State on 12.11.2013 constituted delivery upon the respondent in terms of section 31(5) of the AA.
HELD that although the authorized representative had collected xerox copy of the award on 12.11.2013, the said representative would not fall in the ambit of “party” to an arbitration agreement, under Section 2(1)(h) of the Arbitration Act.
Delivery of an Arbitral Award under Section 31(5) is not a matter of mere form but substance. The delivery of signed copy of the Award to an authorized representation of the State, who was not a party to the arbitration agreement and arbitral proceedings is not valid service of Award under Section 31(5).
The Award should be received on the context of huge organizations by the person wo has knowledge of the proceedings and who would be the best person to understand and appreciate the arbitral award as also to take a decision in the matter of moving appropriate applications.
