Arbitration and Conciliation Act, 1996 – ss.33, 34(3) – Computation of period of limitation – High Court dismissed the appeal on the ground that the appellant had not filed the arbitration petition u/s.34 within the period of limitation prescribed therein – Appellant contended that the impugned order is in direct conflict with Ved Prakash’s decision as the period of limitation for challenging an award would, in terms of s.34(3) of the 1996 Act, commence only from the date on which an application filed u/s.33 of the Act 1996 is disposed of: Held: 1. The impugned order of the High Court does not reflect the correct position of law. [Para 20]
2. Where an application u/s.33 of the 1996 Act has not been filed, the legislature was conscious enough to state that it would be the date of the receipt of the award which would earmark the commencement of limitation for an application for setting aside of an award in terms of s.34 of the 1996 Act – Whereas, in the case where an application u/s.33 of the 1996 Act has been filed, the legislature was conscious enough to lay down that it would be the date of disposal of such request or application, that would be the starting point for calculation of limitation – Where such an application u/s.33 of the 1996 Act is filed, irrespective of whether the arbitral tribunal upon considering such application, either makes or does not make any correction or modification or choose to render or to not render an additional award in terms of s.33 of the Act, 1996, the starting point for the period of limitation for challenging the same u/s.34(3) would be the date of disposal of such application u/s.33 by the arbitral tribunal as long as the application u/s.33 of the 1996 Act had been filed within the prescribed period of limitation – Any other interpretation to the contrary, would do violence to plain and unambiguous language used in s.34(3) of the Act, 1996 – What is of significance, u/s.34(3) of the Act, 1996 is the date on which the application or request u/s.33 came to be disposed by the arbitral tribunal – Where a request is made u/s.33 of the 1996 Act, it is immaterial for the purpose of computation of limitation u/s.34(3) whether such request fell within the purview of the said provision or not – What is material is only that such request was made in the manner delineated u/s.33 i.e., it fulfilled the twin conditions of being made; (I) “within thirty days from the receipt of the arbitral award” and (II) “with notice to the other party” stipulated therein – Thus, the impugned order passed by the High Court is set aside. [Paras 35(i), (ii), (iii), (iv), 37]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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