IMPORTANT POINT
Limitation for section 34(3) of Arbitration and Conciliation Act, 1996.

JUDGMENT

Aftab Alam, J. —

1. Leave granted.

2. Whether the period of limitation for making an application under section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the Act’) for setting aside an arbitral award is to be reckoned from the date a copy of the award is received by the objector by any means and from any source, or it would start running from the date a signed copy of the award is delivered to him by the arbitrator? This is the short question that arises for consideration in this appeal.

3. The material facts of the case are brief and admitted by both sides. These may be stated thus. On March 20, 2003 the arbitrator gave a copy of the award, signed by him, to the claimant (the respondent) in whose favour the award was made. No copy of the award was, however, given to the appellant, the other party to the proceedings, apparently because the appellant had failed to pay the costs of arbitration. The respondent submitted a copy of the award in the office of the Executive Engineer (appellant no.4) on March 29, 2003, claiming payment in terms of the award. On April 16, 2003, the Executive Engineer submitted a proposal to challenge the award before the Chief Engineer, and the Financial Advisor and Joint Secretary. The respondent sent a reminder to the Chief Engineer on June 13, 2003, for payment of the money awarded to him by the arbitrator and a second reminder to the Secretary and Special Commissioner on January 8, 2004. The Executive Engineer by his letter dated January 15, 2004, acknowledged all the three letters of the claimant and informed him that the government had decided to challenge the award before the appropriate forum.

4. According to the appellants, the decision to make an application for setting aside the award was taken on December 16, 2003, but no application could be made for want of a copy of the award from the arbitrator. Hence, on January 17, 2004, a messenger was sent to the arbitrator with a letter asking for a copy of the award. The arbitrator made an endorsement on the letter sent to him stating that on the request of the claimant the original award was given to him and the Xerox copy of the award (sent to him along with the letter), was being certified by him as true copy of the award. The endorsement from the arbitrator along with the Xerox/certified copy of the award was received from the arbitrator on January 19, 2004 and on January 28, 2004, the appellants filed the application under section 34 of the Act.

5. The respondent raised an objection regarding the maintainability of the petition contending that it was hopelessly barred by limitation. The Principal District Judge, Latur, by order dated February 15, 2007 passed in Civil Application No.84 of 2005 (previously Suit No.1 of 2004) upheld the respondent’s contention and dismissed the appellants’ application as barred by limitation.

6. Against the order of the Principal District Judge, the appellants preferred an appeal (Arbitration Appeal No.2 of 2008) before the Bombay High Court.

7. Before the High Court, the appellants contended that they were able to obtain a copy of the award duly signed by the arbitrator only on January 19, 2004 and the period of limitation prescribed under section 34 (3) of the Act would, therefore, commence from that date. The application for setting aside the award was filed on January 20, 2004 and hence, there was no question of the application being barred by limitation. In support of the contention, the appellants relied upon the last order passed in the arbitral proceedings on February 22, 2003 in which it was stated that the case was closed and the arbitrator would proceed with the framing of the award which would be declared and copies sent to both parties in due course. On behalf of the appellants it was stated that contrary to the order passed on February 22, 2003, the arbitrator did not send them a copy of the award even though a Xerox copy of the award was sent to them by the claimant-r