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Arbitration  – Section 34(3) – Limitation – Award of Institutional Arbitration – Different dates of receipt of Majority and Dissenting Awards – Calculation of Limitation

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The parties had chosen the Institutional Arbitration.  On 1.6.2022, the majority award was passed.

On 1.6.2022, the majority award was received by the parties.  The petition under Section 34 of the Arbitration Act was filed on 10.10.2022.

However, according to the petitioner, the limitation for award of Institutional Arbitration would be calculated from the of receipt of certified copy of the Award from SCOPE – Standing Conference of Public Enterprises.   The said date was 19.7.2022 and therefore, the petition was filed within three months.

The important questions – what is the precise date on which the arbitral award is made by a panel of arbitrators and whether an arbitral award is deemed final upon being signed by the majority of the Tribunal’s members or is the incorporation of the dissenting opinion essential for its completion and finality?

In other words, the critical issue was when the point at which an arbitral award issued by a panel of arbitrators is considered to have attained finality or in other words, is deemed to be made or delivered as per the Act.

HELD that as long as the majority of the arbitrators sign off on the award, it is considered valid and enforceable under the law thereby triggering the procedural timelines for any challenges.  The inclusion of a subsequent dissent note does not alter the making or declaring of an award for commencement of the liitation period for filing objections.  The dissenting opinion dated 11.6.2022 would not form part of the arbitral award for calculation of limitation under Section 34 of the Act.  There is no requirement for a ceritifed copy of the arbitral award to be received by the parties. The majority award dated 1.6.2022 signed by three arbitrators constituted arbitral award for Section 34 of the Act.

Judgment dated 5.4.2024 of the Delhi High Court in O.M.P.(COMM) No.449 of 2022 of Container Corporation of India Limited Vs. Roadwings International Pvt Ltd.

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