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1988 Supreme(SC) 479

SUPREME COURT OF INDIA
SABYASACHI MUKHARJI AND L.M. SHARMA, JJ.
Indian Rayon Corpn. Ltd., Appellant
Versus
Raunaq and Company Pvt. Ltd., Respondent.
Civil Appeal No. 2746 of 1988 (arising out of Spl. Leave Petn. No. 13859 of 1987), D/- 4-8-1988.
Advocates appeared
Mr. D. Bhandari, Advocate, for Appellant; Mr. S.K. Dholkia, Sr. Advocate and Mr. Vineet Kumar, Advocate with him, for Respondent.

Advocates:
D.Bhandari, S.K.DHOLAKIA, VINIT KUMAR

Headnote:Limitation—APPLICATION FOR SETTING ASIDE AWARD - LIMITATION RUNS FROM THE DATE OF SERVICE OF NOTICE BUT WHERE THE PARTY HAS ACKNOWLEDGED FILING OF AWARD LIMITATION STARTS FROM SUCH DATE - APPLICATION FOR SETTING ASIDE AWARD—LIMITATION RUNS FROM DATE OF SERVICE OF NOTICE BUT WHERE THE PARTY HAS AKNOWLEDGED FILING OF AWARD LIMITATION STARTS FROM SUCH DATE - Limitation—APPLICATION FOR SETTING ASIDE AWARD—LIMITATION RUNS FROM DATE OF SERVICE OF NOTICE WHERE PARTY HAS ACKNOWLEDGED FILING OF AWARD LIMITATION STARTS FROM SUCH DATE.

Judgment

SABYASACHI MUKHARJI, J. :- Special leave granted. The appeal is disposed of by the order herein.

2. This appeal is directed against the judgment and order of the Division Bench of the High Court of Calcutta, dated 25th August, 1987, dismissing the application for setting aside the award, on the ground that the said application was barred by lapse of time. The award in this case was filed in the High Court on 4th February, 1977. The respondent affirmed an affidavit on 29th November, 1977 stating that the award had been filed in the Court on 4th February, 1977 and prayed that a notice be issued and served on the appellant so that the judgment in terms of the award could be passed.

3. On 10th January, 1978 the respondents advocate-on-record took out a Masters Summons and used the aforesaid affidavit as the ground for the prayers which were made in the Summons. On 1st February, 1978 M/s. Khaitan and Company, Solicitors, on behalf of the appellant, filed a Vakalatnama and a requisition in the department of the High Court for searching the records in this case. On 2nd February, 1978, M/s. Khaitan and Co. searched the records of the High Court of Calcutta. On 4th February, 1978, the appellant filed an affidavit stating that the award had been wrongly filed in the High Court of Calcutta and it should be taken off the file.

4. On 3rd May, 1978 an order was passed as prayed in the affidavit and the Masters Summons, and on 30th July, 1981, a notice under S. 14(2) of the Arbitration Act, 1940 (hereinafter called the Act) was served on the appellant. Section 14(2) of the Act enjoins the arbitrator or the umpire to give notice to the parties of filing of the award in order to facilitate the passing of the order thereon.

5. On 18th August, 1981, the appellant applied for a certified copy of the award and the application for setting aside the award under S. 30 of the Act, was filed on 8th September, 1981. Under Cl. (b) of Art. 119 of the Limitation Act, 1963 the time for setting aside an award or getting an award remitted for reconsideration is 30 days from the date of the service of the notice of the filing of the award. Hence, there must be filing of the award in Court. A notice must be given to the party/parties concerned of such filing of the award in the Court and on the expiry of 30 days from the service of the said notice limitation for setting aside an award expires. In this case, it appears that the appellant applied for a certified copy of the award on 18th August, 1981 and on 1st September, 1981, the appellant received the certified copy from the Court. The application under S. 30 of the Act, for setting aside the award was made on 8th September, 1981. Hence, if the date of service of the notice of the filing of award be 30th July, 1981, then in the events that have happened as narrated above, indisputably the application was within time. If, however, the notice is attributed to have been served prior to that date then the application was barred by lapse of time. The High Court held that the notice in this case was served prior to 30th July, 1981.

6. It appears as mentioned before that on 4th February, 1978 an affidavit had been filed in the High Court, stating on behalf of the appellant that the award had been wrongly filed in that Court. The appellant has, therefore, acknowledged that the award had been filed and a notice was issued to it in respect of the said award. In our opinion, this conclusion irresistibly follows from the narration of events mentioned hereinbefore. In order to be effective both for the purpose of obtaining the judgment in terms of the award and for setting aside the award, the, award must be filed in the Court. There must be service of notice or intimation or communication of the filing of the said award by the Court to the parties. If all these factors are established or are present, the mode of service of the notice would be irrelevant. If the substance is clear, the form of the notice is irrelevant b










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