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2000(7) Supreme 389
SUPREME COURT OF INDIA
(From Patna High Court)
V.N. Khare & S.N. Variava, JJ.
Deo Narain Choudhury -Appellant
versus
Shree Narain Choudhary -Respondent
Civil Appeal No. 6104 of 2000
(Arising out of SLP (C) No. 6606 of 1999)
Decided on 31-10-2000
Counsel for the Parties :
For the Appellant : P.S. Misra, Sr. Advocate, A. Sharan, Mrs. Madhu Sharan, Chandra Shekhar, Vishnu Sharma, Upendra Mishra, Advocates.
For the Respondent : Rakesh Dwivedi, Sr. Advocate, Manish Mohan and Ugra Shankar Prasad, Advocates.
There can be no dispute with the proposition of law that the notice need not be in writing and can be oral. However, all the authorities clearly lay down that the notice must be some act of the Court. (Para 15)
Mere filing of a Caveat did not start the period of limitation. By the Caveat the Respondent was mere asking the Court to give it notice. There Caveat did not absolve the Court from its statutory duty to give notice under Section 14(2) of the Arbitration Act, 1940. The Order Sheet discloses that till 11th July, 1996 the Court was only dealing with the matter administratively. The case is not taken on file till 11th July, 1996. Thereafter on 16th July, 1996 the Court directs giving of notice to the parties. Admittedly this Notice was received by the Respondent only on 25th July, 1996. As the notice was received on 25th July, 1996 the period of limitation started running from that date. The objections filed on 21st August, 1996 are within the period of 30 days as provided by Article 119 of the Limitation Act , 1963. (Para 16)
JUDGMENT
S.N. Variava, J.-Leave granted.
2. This Appeal is against an Order dated 19th March, 1999 by which the Civil Revision filed by the Appellant herein has been dismissed.
3. The facts necessary for the purpose of this Appeal are as follows :
Appellant and Respondent are brothers. According to the Appellant their disputes, in respect of a property at Patna, were referred to Arbitration. The Arbitrator/Umpire declared an Award dated 21st January 1996. On 14th May, 1996 the Arbitrator/Umpire gave a registered Notice, to both the parties, that the Award had been made and that the same was filed in the Court. On 14th May, 1996 the Arbitrator/Umpire filed the Award in the Court of Sub Judge I Patna.
4. On 11th June, 1996 the Respondent filed a Caveat in the Court of the Sub Judge. It is mentioned in the Caveat that the Respondent has received a Notice dated 14th May, 1996 that an Award has been declared on 21st January, 1996 and that the Award has been registered on 20th April, 1996 and that it has been filed in the Court. In the Caveat it is prayed that before any order is passed, on the alleged Award, notice be issued to the Caveator and he be heard.
5. On 16th July, 1996 the Court sent a Notice to the parties about the filing of the Award. This Notice was admittedly received by the Respondent on 25th July, 1996.
6. On 1st August, 1996 both the parties applied for inspection of the Award. Parties were permitted to and took inspection. The Respondent filed his objections to the Award on 21st August, 1996.
7. The Appellant contended that the objections had been filed beyond the period of limitation. It was contended that the objections should thus be dismissed and a decree in terms of the Award be passed. This contention was tried as a preliminary issue. On 11th September, 1998 the trial Court rejected the preliminary contention. It was held that the objection had been filed within the period of limitation. The Appellant filed Civil Revision No. 2173 of 1998. This has also been dismissed by the impugned Order. Hence, this Appeal.
8. The question for consideration in this Appeal is when does the period of limitation for filing objections to an Award commence. Under Article 119, Limitation Act, 1963 the limitation for filing a petition for setting aside an Award is 30 days from the date of service of the notice of the filing of the Award.
Section 14 of the Arbitration Act, 1940 reads as follows :
"14. Award to be signed and filed.- (1) When the arbitrators or umpire have made their award, they shall sign it and shall give notice in writing to the parties of the making and signing thereof and of the amount of fees and charges payable in respect of the arbitration and award.
(2) The arbitrators or umpire shall, at the request of any party to the arbitration agreement or any person claiming under such party or if so directed by the Court and upon payment of the fees and charges due in respect of the arbitration and award and of the costs and charges of filing the award, cause the award or a signed copy of it, together with any depositions and documents which may have been taken and proved before them, to be filed in Court, and the Court shall thereupon give notice to the parties of the filing of the award.
(3) Where the arbitrators or umpire state a special case under clause (b) of Section 13, the Court, after giving notice to the parties and hearing them, shall pronounce its opinion thereon and such opinion shall be added to, and shall form part of, the award."
Thus, under Section 14(1) the Arbitrator has to give a notice to the parties. Then the Arbitrator or the Umpire has to file the Award in Court. Under Section 14(2) the Court "shall thereupon give notice to the parties of the filing of the Award". It is now settled law that the period of limitation under Article 119 of the Limitation Act, 1963 will start running from the date the notice has been given by the Court under Section 14(2) of the Arbitration Act, 1940.
9. In this case, admitt
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