District Judge Did Not Ascertain When Signed Copy Of Arbitral Award Was Received: Allahabad HC Sets Aside Order Dismissing Section 34 Application For Delay
The Allahabad High Court recently set aside an order passed in an application under Section 34 of the Arbitration and Conciliation Act, 1996 due to delay, and remanded it to the learned District Judge with a direction to examine the records and ascertain the date of receipt of the signed copy of the arbitral award and thereafter pass a reasoned order.
The Bench of Justice Shekhar B. Saraf observed, “In my view, the learned District Judge should have inquired and found out the date of receipt of the signed copy of the arbitral award. In absence of having done so, the learned District Judge has failed to appreciate the law established by the Supreme Court in the case of Dakshin Haryana Bijli Vitran Nigam Limited vs. Navigant Technologies Private Limited reported in (2021) 7 SCC 657 wherein it has been specifically held that the period of limitation for challenging an award under Section 34 of the Act commences from the date on which the party making the application has received a signed copy of the arbitral award.”
The Appellant's Counsel submitted that the appeal before the learned District Judge was filed within the period prescribed under Section 34(3) of the Act as only the certified copy of the arbitral award was received by the appellant and the signed copy of the arbitral award was never received by the appellant.
In opposition, the counsel appearing on behalf of the Respondents submitted that the appeal was filed after about a year of passing of the award, and accordingly, since Section 5 of the Indian Limitation Act is not applicable to Section 34 of the Act, the learned District Judge has acted properly.
The High Court noted that the District Judge had only recorded the submission of the appellant that the signed copy of the arbitral award was never received by her.
Consequently, the Court allowed the appeal and set aside the Order and remanded the matter to the learned District Judge with a direction to examine the records and ascertain the date of receipt of the signed copy of the arbitral award for a fresh decision.
Cause Title: Smt. Sudha V. Union Of India And 3 Others. (Neutral Citation No. - 2024:AHC:49411)
Appearance:
Appellant: Advocate. Ravi Kant and Advocate. Vatsala
Respondents: A.S.G.I., Advocates. Pranjal Mehrotra and Rajesh Kumar