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2018 Supreme(SC) 754

ROHINTON FALI NARIMAN, INDU MALHOTRA
STATE OF BIHAR – Appellant
Versus
BIHAR RAJYA BHUMI VIKAS BANK SAMITI – Respondent


Advocates Appeared:
For the Appellants:N. Rai, Sr. Advocate, Gopal Singh, Manish Kumar, Shivam Singh, Aditya Raina, Shreyas Jain, Aprajita Sud, Kumar Milind, Advocates.
For the Respondent:Jayant Kumar Mehta, Advocate.

JUDGMENT

R.F. Nariman, J.

Leave granted.

2. The question raised in this appeal pertains to whether Section 34(5) of the Arbitration and Conciliation Act, 1996, inserted by Amending Act 3 of 2016 (w.e.f. 23rd October, 2015), is mandatory or directory.

3. The present appeal arises out of an arbitration proceeding which commenced on 24.05.2015. An arbitral award was made on 06.01.2016. A Section 34 petition challenging the said award was filed on 05.04.2016 before the Patna High Court, in which notice was issued to the opposite party by the Court on 18.07.2016. Despite the coming into force of Section 34(5), the common ground between the parties is that no prior notice was issued to the other party in terms of the said Section, nor was the application under Section 34 accompanied by an affidavit that was required by the said sub-section.

4. A learned Single Judge of the Patna High Court, by a judgment dated 06.09.2016, held that the provision contained in Section 34(5) was only directory, following our judgment in Kailash v. Nanhku and Ors., (2005) 4 SCC 480. A Letters Patent Appeal to a Division Bench yielded the impugned order dated 28.10.2016, by which it was held, adverting to the Law






















































































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