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2020 Supreme(Kar) 1516

IN THE HIGH COURT OF KARNATAKA AT BENGALURU (DHARWAD BENCH)
Suraj Govindaraj, J.
Prahaladas Goyal Since Deceased - Appellant
Versus
Anand - Respondent
Civil Revision Petition No. 100014 of 2019
Decided On : 30-09-2020

Advocates Appeared:
Vitthal S Teli, Advocate, M.V.V. Ramana, Advocate

An application under Section 33(4) of the A & C Act must fall within the statutory requirements and cannot seek reconsideration. The need for a fast and effective remedy in arbitration was emphasized, leading to the dismissal of the suit filed beyond the limitation period.

Headnote:

Extension of Limitation - Arbitration Suit - Arbitration and Conciliation Act, 1996 - Section 33(4)

Fact of the Case:

The Petitioner sought to set aside an order passed in an Arbitration Suit. The Respondent had filed an application under Section 33(4) of the Arbitration and Conciliation Act, 1996 (A & C Act) seeking reconsideration of claims after the counterclaim was rejected. The Trial Court rejected the application, and the Respondent filed a civil revision petition.

Finding of the Court:

The Court held that the application under Section 33(4) was not maintainable as it sought reconsideration, which is not contemplated under the Act. The Arbitration suit was dismissed as it was filed beyond the limitation period, emphasizing the need for a fast and effective remedy in arbitration.

Issues: 1. Whether filing an application under Section 33 could extend the limitation period under Section 34 of the A & C Act. 2. Whether an application for reconsideration is maintainable under Section 33. 3. Whether the Trial Court's order on the application was proper and correct.

Ratio Decidendi: The Court held that the application under Section 33(4) must fall within the statutory requirements and cannot seek reconsideration, as it is only permissible for correction of errors or passing of an additional award. The Court emphasized the need for a fast and effective remedy in arbitration, dismissing the suit as it was filed beyond the limitation period.

Final Decision: The civil revision petition was allowed, the Trial Court's order was set aside, and the Arbitration suit was dismissed due to being filed beyond the limitation period.

JUDGMENT

Suraj Govindaraj, J. - The Petitioner is before this Court seeking for setting aside the order on I.A.No.21 dated 20.12.2018 passed in Arbitration Suit No.5/2014 by the Principal District and Sessions Judge, Dharwad.

2. The facts leading up to the matter are that;

    2.1. On account of certain disputes between the Petitioner and the Respondent, the matter was referred to the Arbitration of a sole Arbitrator which resulted in an award dated 12.06.2014. By way of the said award, the claims lodged by the claimant was allowed to the extent of damages, interest and costs as indicated in the said award and the counter claim of the Respondent was rejected in full.

      2.2. Aggrieved by the same, the Respondent is stated to have filed an application under Section 33(4) of the Arbitration and Conciliation Act, 1996 (for short 'A & C Act'), in the said application the Respondent had contended that the counterclaim made by the Respondent had been dismissed on the ground that there were criminal proceedings pending and it was contended on behalf of the Respondent that such dismissal was not proper and correct, in the said application there were also grounds taken that the evidence of Mr. Govind Raju could not have been rejected. The letters evidencing the supplies made to MTR foods was required to be considered, that the rejection of the evidence of Mr..Govind Raju being related to the Respondent and the non consideration of the evidence of Mr. Tarun Agrawal amounted to unequal treatment of the parties since the evidence of Mr. Sudhir Habbu, on behalf of the claimant was accepted.

        2.3. It is in that background that the Respondent had requested the Tribunal to reconsider his claims and pass suitable award in favour of the Respondent by passing an additional award in the interest of justice and equity.

          2.4. The said application came to be opposed by the claimant/petitioner herein contending that there was no error committed by the Arbitrator while passing the award, the entire counterclaim of the Respondent had been rejected in full after consideration of the entire evidenceoral and documentary by the Tribunal. The application being one to reconsider the claim and pass suitable award was not maintainable under Section 33(A) of the A & C Act. An application under Section 33 is only permissible to seek for correction and interpretation of the award with prior notice to the other party and can be only be restricted to any computational errors, clerical and typographical errors or errors of similar nature, none of those conditions being satisfied, the application under Section 33 was not maintainable and as such the claimant therein and the Petitioner herein sought for dismissal of the application.

            2.5. The learned Arbitrator vide his order dated 16.08.2014 was pleased to dismiss the application by holding that after passing of the award, the Arbitrator would only have restricted powers in terms of Section 33 of the Act and in terms of sub-section 4 of the said Section, it is only when an Arbitral Tribunal omits to consider any claim, an additional award on such claim could be passed, the entire counterclaim of the Respondent had already been dismissed after framing of specific issues on the counterclaim. In view of the same, as per the applicable legal provisions, the Tribunal has held that there were no grounds made out in the application under Section 33(4) and as such the application came to be rejected.

              2.6. It is subsequently on 13.11.2014 that an Arbitration suit has been filed under Section 34 of the A & C Act by the Respondent herein challenging the award dated 12.06.2014 and while doing so, the Respondent herein had contended that the limitation period for filing of the said suit would arise only on the date of rejection of the application filed by the Respondent under Section 33(4) of the A & C Act, which was passed on 16.08.2014 and therefore, any suit could have been filed within a period of 90 days with a further grace period of

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