Arbitration – Service of Award – Requirements of Section 31(5) of the AA

The Arbitrator passed the ex parte award dated 1.7.2017.  There were five parties to the arbitration proceedings.   However, the Arbitrator signed only two copies of the Award.  The claimant – respondent no.1 had received the copy on 3.7.2017. However, the signature of one clerk of the partnership appeared on the acknowledgement of 5.7.2017 for partners i.e. appellant no.2 and the respondent no.2. The acknowledgement of appellant no.3 partner was unsigned.

In this background, the appellants filed section 34 petition on 7.9.2023 with the interim application for condonation of delay.   This was rejected by the order dated 1.4.2024.   This was challenged in section 37 AA appeal. 

HELD that the requirement of Section 31(5) of the AA to deliver a signed copy of the Award to each party has not have been satisfied as there were five parties to the arbitration proceedings. The Arbitrator sent a copy of the Award to each party by registered post with acknowledgement. Thus, there was no service of copy of signed Award on the appellant no.3 partner. Secondly, the service of signed copy of signed Award as received by the Clerk would not amount to service on the party to the arbitration proceedings. Service of the Award on the authorized representative would not constitute valid service of the award for the purpose of Section 31 of the AA.  The limitation under Section 34(3) AA would start when the “party making the application has received the award”. Section 31(5) requires that a signed copy of the Award is delivered to each party.

 Judgment dated 15.1.2025 of the Division Bench of the Bombay High Court (OS) in Arbitration Appeal (L) No.15397 of 2024 of Health Care, Medical & General Stores, Dadar, Mumbai and others Vs. Amulya Investment and others