SUPREME COURT OF INDIA
CH. RAMALINGA REDDY
VERSUS
SUPERINTENDING ENGINEER
DECIDED ON: December 2, 1994
Limitation Act, 1963 – Article 119 – Arbitration Act – Sections 14, 30 and 33 – Arbitrators or umpire have made their award they shall sign it and shall give notice in writing to parties of making and signing and of amount of fees and charges payable in respect of arbitration and award arbitrators or umpire request of any party to arbitration agreement or any person claiming under such party or if so directed by Court and upon payment of the fees and charges due in respect of arbitration and award and of costs and charges of filing of award cause 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 – Held, One is that there is error apparent on face of award and other is that arbitrator exceeded his jurisdiction case the court can look into the arbitration agreement but in former it cannot – An award may be set aside on ground that arbitrator had exceeded his jurisdiction in making it case before us arbitrator was required to decide claims referred to him having regard to contract between parties jurisdiction, therefore, was limited by terms of contract – Learned counsel for appellant also relied upon judgment observations made therein that court should be very circumspect about setting aside an award reached by an arbitrator for parties had agreed that disputes that may arise or had arisen between them should be resolved not by a court of law but by arbitration circumspection does not mean that court will not intervene when arbitrator has made an award in respect of a claim which is by terms of contract between parties plainly barred – Appeals are allowed.
JUDGMENT
BHARUCHA, J.
( 1 ) THESE are appeals by special leave against the judgment and order of the High Court of Andhra Pradesh whereby the High Court set aside the arbitration award in respect of Claims 2, 3, 7, 8 and 12 and modified the award in respect of Claims 5, 6, 13 and 14. The claims were made by the appellant, a contractor, against the respondents, officers of the state Government, in respect of an excavation contract for 11. 711 km to 13. 287 km of Darsi Branch Canal for an amount of Rs 50,89,342.
( 2 ) TWO issues were raised before the High Court, and they are raised before this Court, namely, (i) whether the petition filed by the respondents to set aside the award under Sections 30 and 33 of the Arbitration Act was barred by time, and (ii) whether the award was vitiated in regard to certain claims.
( 3 ) THE award was made on 29-7-1985. It was sent by the arbitrator to the court on 31-7-1985 and was received by the Court at 12 noon on 5-8-1985. It is the case of the appellant that his advocate informed the Additional government Pleader in writing of the receipt of the award on 5-8-1985. On 7-8-1985, the Court issued notice of the award and it was received by the respondents on 10-8-1985. The petition to challenge the award was filed by the respondents on 6-9-1985.
( 4 ) THE relevant provision of the Limitation Act, 1963 is Article 119 (b) and it reads thus:
"description of suits
Period of limitation
Time from which period begins to run
119.
Under the Arbitration Act, 1940
(a)
* * *
(b)
for setting aside an award or getting an award remitted for reconsideration.
Thirty days.
The date of service of the notice of the filing of the award. "
( 5 ) SECTION 14 of the Arbitration Act, so far as it is relevant, reads thus:"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 of 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. "
( 6 ) SECTION 14 (1) of the Arbitration Act, 1940, requires arbitrators or umpires to give notice in writing to the parties of the making and signing of the award. Section 14 (2) requires the court, after the filing of the award, to give notice to the parties of the filing of the award. The difference in the provisions of the two sub-sections with respect to the giving of notice is significant and indicates clearly that the notice which the court is to give to the parties of the filing of the award need not be a notice in writing. The notice can be given orally. (See Nilkantha Sidramappa Ningashetti v. Kashinath Somanna Ningashetti.) In Indian Rayon Corpn. Ltd. v. Raunaq and Co. (P) Ltd. it was held that the fact that parties have notice of the filing of the award is not enough . The notice must be served by the court. There must be (a) filing of the award in the proper court; (b) service of the notice by the court or its office to the parties concerned; and (c) such notice need not necessarily be in writing. It is upon the date of service of such notice that the period of limitation begins for an application for setting aside the award.
( 7 ) IT was found by the High Court that"learned counsel for the respondent contractor had not drawn our attention to any material to indicate that Exhibit B-l notice was given by the learned counsel for the contractor to the learned Government Pleader on 5-8-
Nilkantha Sidramappa Ningashetti v. Kashinath Somanna Ningashetti
Indian Rayon Corpn. Ltd. v. Raunaq and Co. (P) Ltd.
Sudarsan Trading Co. v. Govt. of Kerala
Secy., Irrigation Deptt., Govt. of Orissa v. G.C. Roy
Referred to : Food Corpn. of India v. E.Kuttappan
Jajodia (Overseas) (P) Ltd. v. Industrial Development Corpn.of Orissa Ltd.
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