Arbitration Act – Section 34 – Appeal – Delay in filing – Mandatory duty of the District Judge to inquire and find out the date when copy of Arbitral Award was received to record finding on delay.
On 6.8.2022, the certified copy of the Award was received and same was filed with the appeal before the District Judge under Section 34 of the Arbitration Act. The appeal was filed one year after passing of the Award. It was rejected by the order dated 8.8.2022 by the District Judge.
The appellant contended that the signed copy of the award was never received and the appeal was filed within limitation from the date of receipt of the certified copy of the Award.
HELD that there does not appear to be any finding as to when the signed copy of the Award was served on the appellant since the period of limitation for challenging the Award under Section 34 starts from the date on which the party making application has “received” the copy of the arbitral award. Relying on the decision of the Supreme Court in Dakshin Haryana Bijli Vitran Nigam Ltd (2021)(7) SCC 657, it is, therefore, necessary to ascertain the date of “receipt” of the Award by the appellant so as to count the period of limitation in filing the appeal. In other words, date of “receipt” or “service” of the Arbitral Award is sine qua non to ascertain period of limitation and same has to be ascertained for limitation even if not pleaded or given by the party.
Judgment dated 19.3.2024 of the Allahabad High Court in Smt.Sudha V. Union of India and others in Appeal No.271 of 2022 under Section 37 of the Arbitration and Conciliation act, 1996.
